LS Construction Cost Handbook 2012

Legal: Langdon & Seah
All rights reserved. No part of the publication may be reproduced or copied in any form without prior written
permission from Langdon & Seah.
The information contained in the handbook should be regarded as indicative and for general guidance only.
Whilst every effort has been made to ensure accuracy, no responsibility can be accepted for errors and
omissions, however caused.
Unless otherwise stated, costs reflected in the handbook are costs as at 4th Quarter 2011.
CONSTRUCTION COSTS FOR SELECTED
ASIAN CITIES
BUILDING TYPE
US$/m
2
HONG KONG
+
SHANGHAI
+
BEIJING
+
GUANGZHOU/
SHENZHEN
+
CHONGQING
+
CHENGDU
+
DOMESTIC
Detached houses and bungalows 3,838 1,096 776 622 760 780
Terraced houses 2,863 822 528 439 480 500
Average standard apartments, high rise 2,217 658 560 525 440 470
Luxury apartments, high rise 2,453 987 993 605 800 1,000
OFFICE/COMMERCIAL
2,251 987 947 760 860 940
2,733 1,316 1,269 1,044 1,100 1,250
Shopping centres 2,545 1,206 1,090 983 900 950
HOTELS
Resort hotels N/A 1,370 N/A N/A N/A N/A
3-star budget hotels, inclusive of F.F. & E. 2,713 1,096 1,116 N/A 1,050 1,100
5-star luxury hotels, inclusive of F.F. & E. 3,436 2,193 1,919 1,517 1,880 2,150
INDUSTRIAL
1,184 N/A N/A N/A N/A N/A
warehouses 1,334 N/A N/A N/A N/A N/A
Single storey conventional factory of
structural steelwork N/A 548 586 520 550 550
Owner operated factories, low rise 1,805 735 765 648 N/A N/A
OTHERS
Basement carparks (< 3 levels) 1,900 830 780 759 700 700
Elevated carparks (< 4 levels) 1,028 398 456 353 390 390
Primary and secondary schools 1,497 598 632 415 480 500
Student hostels 1,663 343 335 266 330 330
Sports clubs inclusive of F.F. & E. 2,852 1,051 970 798 900 990
Exchange Rate Used : US$1 = HK$7.8 RMB6.35 RMB6.35 RMB6.35 RMB6.35 RMB6.35
The above costs are at 4th Quarter 2011 levels, inclusive of preliminaries and contingencies unless otherwise stated.
For latest cost information, please refer to our Quarterly Construction Cost Review.
+ Rates are exclusive of contingencies.
Prestige offices, high rise
Average standard offices, high rise
Light duty flatted factories
Heavy duty flatted factories and
ASIAN CITIES
BUILDING TYPE
US$/m
2
MACAU
SINGAPORE
KUALA
LUMPUR
BRUNEI INDIA
MANILA

DOMESTIC
Detached houses and bungalows 3,455 2,400 962 751 409 1,210
Terraced houses 3,015 2,040 317 525 300 620
Average standard apartments, high rise 1,545 1,680 463 871 347 845
Luxury apartments, high rise 2,230 2,760 1,070 1,071 439 1,070
OFFICE/COMMERCIAL
2,200 2,080 752 871 406 820
2,520 2,320 1,105 1,192 514 1,080
Shopping centres 2,710 2,240 917 1,097 470 960
HOTELS
Resort hotels N/A 2,480 1,333 1,438 723 1,290
3-star budget hotels, inclusive of F.F. & E. 2,560 2,560 1,537 1,559 817 1,230
5-star luxury hotels, inclusive of F.F. & E. 3,480 3,440 2,241 2,163 1,588 1,600
INDUSTRIAL
1,245 1,120 438 483 263 430

warehouses N/A 1,360 521 N/A 313 475
structural steelwork N/A 960 435 441 252 410
Owner operated factories, low rise N/A N/A 530 N/A 317 440
OTHERS
Basement carparks (< 3 levels) 1,230 1,310 505 N/A 254 480
Elevated carparks (< 4 levels) 910 760 286 494 222 465
Primary and secondary schools N/A 1,055 327 693 178 590
Student hostels N/A 1,160 413 793 228 695
Sports clubs inclusive of F.F. & E. N/A 1,770 854 N/A 605 1,260
Exchange Rate Used : US$1 = MOP7.97 S$1.25 RM3.15 B$1.26 INR50 PHP43
Rates based on projects in Bangalore and are nett of VAT and
Service Tax. Mumbai costs are generally 8% higher.
Rates are exclusive of contingencies and include 12% VAT.
Rates are exclusive of contingencies and any management
contract fee.
Rates are nett of GST and exclusive of contingencies.
PROGRESS PAYMENTS
CONTRACT
PERIOD
CUMULATIVE
PROGRESS
CLAIMES
CONTRACT
PERIOD
CUMULATIVE
PROGRESS
CLAIMES
5% 1% 55% 59%
10% 3% 60% 68%
15% 5% 65% 77%
20% 7% 70% 83%
25% 10% 75% 88%
30% 14% 80% 92%
35% 21% 85% 94%
40% 29% 90% 96%
45% 38% 95% 98%
50%
48% 100% 100%
The following graph and table are an indication of the rate of expen-
diture for construction projects.
The rate of expenditure is an average rate and will vary from proj-
ect to project when specific project circumstances are taken into
account.
No account has been made for retention.
ASIAN CITIES
BUILDING TYPE
US$/m
2
KARACHI BANGKOK
#
JAKARTA ^ HO CHI MINH
#
SEOUL
$
TOKYO
DOMESTIC
Detached houses and bungalows 985 - 1,150 967 475 500 - 600 1,930 2,760
Terraced houses 250 - 350 583 N/A 425 - 485 1,605 N/A
Average standard apartments, high rise 580 - 775 828 595 635 - 760 1,310 2,230
Luxury apartments, high rise 870 - 1,150 1,162 800 815 - 945 1,630 3,100
OFFICE/COMMERCIAL
575 - 725 750 575 760 - 880 1,170 2,680
950 - 1,150 983 860 890 - 1,130 1,330 3,200
Shopping centres 695 - 900 800 495 695 - 815 1,480 2,190
HOTELS
Resort hotels 1,965 - 2,305 2,267 1,200 1,195 - 1,500 1,535 3,510
3-star budget hotels, inclusive of F.F. & E. 1,125 - 1,450 1,367 980 1,495 - 1,750 1,730 3,480
5-star luxury hotels, inclusive of F.F. & E. 1,800 - 2,100 1,933 1,395 1,825 - 2,060 2,300 5,100
INDUSTRIAL
300 - 375 600 N/A 238 - 390 N/A 1,540

warehouses 350 - 450 N/A N/A 395 - 510 N/A 2,040
structural steelwork 435 - 450 600 260 385 - 510 690 1,760
Owner operated factories, low rise 325 - 425 N/A N/A 395 - 495 N/A N/A
OTHERS
Basement carparks (< 3 levels) 275 - 325 683 390 640 - 730 965 N/A
Elevated carparks (< 4 levels) 200 - 250 350 260 340 - 455 565 1,690
Primary and secondary schools 550 - 675 N/A N/A 475 - 500 1,820 2,070
Student hostels 410 - 540 N/A N/A 500 - 630 1,080 1,890
Sports clubs inclusive of F.F. & E. 810 - 900 N/A N/A 755 - 840 1,460 2,280
Exchange Rate Used : US$1 = PKR89.42 BAHT30 IDR8,910 VND21,011 KRW1,144 JPY78.14
$ Rates are nett of VAT and exclusive of contingencies.
Rates exclude contingencies, consultant fees and consumption tax.
#

Rates are nett of VAT and contingencies.
^
Rates are nett of VAT.
M&E COSTS FOR SELECTED ASIAN CITIES
BUILDING TYPE
HONG KONG SHANGHAI BEIJING
GUANGZHOU/
SHENZHEN
CHONGQING CHENGDU
HK$/m
2
RMB/m
2
RMB/m
2
RMB/m
2
RMB/m
2
RMB/m
2
MECHANIAL SERVICES
1,600 - 2,350 761 - 966 750 - 990 650 - 880 700 - 900 700 - 1,000
Industrial * 380 - 500 173 - 289 160 - 270 135 - 240 150 - 250 150 - 250
Hotels 1,750 - 2,150 971 - 1,265 910 - 1,110 890 - 1,115 750 - 1,000 750 - 1,200
Shopping Centres 1,950 - 2,400 1,050 - 1,103 790 - 950 660 - 890 600 - 850 600 - 1,000
Apartment 650 - 1,300 310 - 410 130 - 370 105 - 325 100 - 300 100 - 300
ELECTRICAL SERVICES
1,300 - 1,950 593 - 651 460 - 670 450 - 650 450 - 650 450 - 700
Industrial ** 450 - 850 305 - 431 320 - 450 260 - 400 300 - 400 300 - 400
Hotels 1,500 - 2,150 651 - 830 705 - 898 565 - 765 550 - 700 550 - 800
Shopping Centres 1,400 - 1,950 520 - 651 481 - 663 450 - 610 450 - 600 450 - 700
Apartment 850 - 1,300 252 - 368 253 - 386 240 - 380 250 - 350 250 - 350
HYDRAULIC SERVICES
270 - 380 110 - 163 95 - 140 105 - 140 70 - 130 70 - 130
Industrial 220 - 330 89 - 131 95 - 140 75 - 102 70 - 120 70 - 120
Hotels
800 - 1,050

368 - 488

360 - 470

325 - 410

300 - 400

300 - 400
Shopping Centres 270 - 380 137 - 184 140 - 200 105 - 140 70 - 130 70 - 130
Apartment 550 - 850 168 - 226 165 - 225 125 - 220 120 - 200 120 - 200
FIRE SERVICES
430 - 550 226 - 320 180 - 265 190 - 295 180 - 250 180 - 250
Industrial 250 - 300 168 - 278 140 - 215 125 - 240 150 - 250 150 - 250
Hotels 430 - 550 289 - 399 215 - 370 230 - 345 200 - 330 200 - 330
Apartment 75 - 120 47 - 116 60 - 125 55 - 105 50 - 100 50 - 100
LIFTS / ESCALATORS
550 - 900 275 - 540 294 - 577 250 - 410 350 - 550 350 - 600
Industrial 450 - 600 130 - 380 145 - 400 135 - 390 150 - 350 150 - 350
Hotels 450 - 650 215 - 485 232 - 520 200 - 390 300 - 450 300 - 500
Apartment 330 - 650 160 - 320 175 - 289 105 - 230 140 - 250 140 - 250
The above costs are at 4th Quarter 2011 levels, exclusive of contingencies unless otherwise stated.
*
Generally without A/C.
**
Excludes special power supply.
Offices
Offices
Offices
Offices
Offices
BUILDING TYPE
MACAU SINGAPORE
KUALA
LUMPUR
BRUNEI INDIA
MANILA
MOP/m
2
S$/m
2
RM/m
2
B$/m
2
INR/m
2
PHP/m
2
MECHANIAL SERVICES
N/A 153 - 228 350 - 455 133 - 166 3,600 - 4,700 3,000 - 4,300
Industrial * N/A 29 - 136 60 - 90 17 - 29 1,600 - 2,800 650 - 1,300
Hotels 1,850 - 2,150 150 - 289 280 - 450 214 - 247 4,500 - 4,850 3,000 - 6,000
Shopping Centres 1,600 - 2,150 158 - 214 280 - 410 152 - 181 3,500 - 4,500 2,500 - 3,700
Apartment 550 - 650 95 - 192 200 - 283 157 - 181 2,000 - 2,500 1,900 - 3,000
ELECTRICAL SERVICES
N/A 203 - 306 220 - 465 171 - 214 2,800 - 4,000 3,300 - 6,000
Industrial ** N/A 58 - 148 140 - 157 143 - 171 1,800 - 3,100 2,000 - 3,500
Hotels 1,900 - 2,300 202 - 340 240 - 590 214 - 280 3,200 - 4,900 4,400 - 8,400
Shopping Centres 1,900 - 2,100 170 - 275 200 - 260 162 - 233 3,000 - 4,000 3,600 - 5,400
Apartment 650 - 850 109 - 252 85 - 210 185 - 233 1,200 - 1,600 3,200 - 4,800
HYDRAULIC SERVICES
N/A 31 - 71 23 - 52 12 - 29 575 - 850 900 - 2,000
Industrial N/A 19 - 39 36 - 45 8 - 14 375 - 650 700 - 1,200
Hotels
850 - 1,050

97 - 136

173 - 235

45 - 62

3,000 - 4,500

1,750 - 3,800
Shopping Centres 300 - 400 49 - 75 23 - 30 9 - 30 825 - 1,500 650 - 1,100
Apartment 550 - 750 75 - 159 18 - 45 28 - 44 1,300 - 1,800 1,300 - 2,600
FIRE SERVICES
N/A 32 - 64
57 - 80
24 - 29 900 - 1,200 600 - 1,200
Industrial N/A 24 - 54 45 - 60 9 - 14 400 - 550 600 - 900
Hotels 500 - 600 49 - 78 65 - 90 19 - 36 1,000 - 1,300 600 - 1,100
Apartment 100 - 150 19 - 53 20 - 25 19 - 38 450 - 550 600 - 1,300
LIFTS / ESCALATORS
N/A 62 - 177 88 - 400 7 - 24 650 - 900 1,600 - 2,900
Industrial N/A 46 - 114 54 - 190 3 - 14 400 - 550 N/A
Hotels 500 - 700 76 - 138 85 - 370 9 - 33 800 - 1,000 1,500 - 3,000
Shopping Centres 400 - 600 83 - 200 85 - 110 9 - 27 800 - 1,100 700 - 1,700
Apartment 400 - 500 27 - 123 63 - 105 8 - 19 500 - 700 800 - 1,500

Rates are based on projects in Bangalore and are nett of VAT and Service
Tax. Mumbai costs are generally 8% higher.
Transformer, included in Electrical Services.
*
**
Rates are nett of GST.
The above costs are at 4th Quarter 2011 levels, exclusive of contingencies unless otherwise stated.
Offices
Offices
Offices
Offices
Offices
BUILDING TYPE
KARACHI BANGKOK
JAKARTA
#
HO CHI MINH SEOUL
$
TOKYO
PKR/m
2
BHT/m
2
IDR'000/m
2
VND'000/m
2
KRW'000/m
2
JPY/m
2
MECHANIAL SERVICES
3,750 - 8,500 3,900 - 4,800 625 - 735 1,590 - 2,267 200 - 280 21,000
Industrial * 1,085 - 1,890 1,250 - 1,400 195 - 455 N/A 87 - 150 11,200
Hotels 7,600 - 9,950 4,500 - 5,100 625 - 840 N/A 205 - 330 14,800
Shopping Centres 7,600 - 9,950 4,400 - 4,800 570 - 680 N/A 144 - 240 7,100
Apartment 2,600 - 3,500 4,400 - 4,500 570 - 730 1,198 - 1,729 92 - 169 3,000
ELECTRICAL SERVICES
4,425 - 5,413 2,250 - 2,500 510 - 680 1,962 - 2,337 250 - 365 19,600
Industrial ** 2,431 - 3,392 1,650 - 1,700 280 - 450 N/A 115 - 150 10,400
Hotels 5,850 - 9,925 2,750 - 3,200 510 - 730 N/A 350 - 460 18,800
Shopping Centres 4,715 - 7,825 2,150 - 2,400 450 - 570 N/A 200 - 230 7,600
Apartment 2,000 - 3,270 2,390 - 2,950 510 - 680 1,740 - 2,197 130 - 165 12,200
HYDRAULIC SERVICES
765 - 1,205 750 - 890 120 - 190 263 - 502 32 - 55 12,600
Industrial 630 - 835 700 - 780 71 - 130 N/A 20 - 30 5,700
Hotels
3,200 - 4,845

1,350 - 1,490

510 - 740

N/A

57 - 89

16,600
Shopping Centres 465 - 1,240 780 - 950 120 - 190 N/A 27 - 56 5,400
Apartment 1,360 - 1,970 1,150 - 1,350 510 - 730 514 - 1,171 49 - 65 18,300
FIRE SERVICES
Included
in above
1,285 - 1,675 760 - 850 160 - 250 614 - 1,019 40 - 65
Industrial 1,125 - 2,025 720 - 750 70 - 130 N/A 27 - 30
Hotels 1,285 - 2,650 750 - 850 150 - 250 N/A 56 - 87
Shopping Centres 1,125 - 2,025 760 - 790 160 - 210 N/A 42 - 69
Apartment 850 - 1,350 760 - 850 160 - 210 420 - 528 32 - 65
LIFTS / ESCALATORS
1,745 - 3,100 1,000 - 1,050 270 - 740 563 - 1,079 45 - 60 5,600
Industrial 1,745 - 3,100 N/A N/A N/A 16 - 25 2,500
Hotels 3,500 - 8,100 1,000 - 1,100 270 - 680 N/A 110 - 155 5,100
Shopping Centres 1,745 - 3,100 210 - 490 205 - 540 1,161 - 1,642 55 - 78 3,600
Apartment 1,745 - 3,100 450 - 500 260 - 540 633 - 920 27 - 38 2,700
# All rates are nett of VAT. Rates for Electrical Services are excluding genset. Rates
for Hydraulic Services are excluding STP. Rates for Mechanical Services refer to
ACMV Rates only.

Services. Smoke spill exhaust system is included in Mechanical Services. Fire
alarm system, emergency PA system are included in Electrical Services.
*
**
Based upon nett enclosed area and nett of VAT.
$ Rates are nett of VAT.
The above costs are at 4th Quarter 2011 levels,
exclusive of contingencies unless otherwise stated.
Offices
Offices
Offices
Offices
Offices
All costs are average. Sprinkler system, fire hose reel are included in Hydraulic
MAJOR RATES FOR SELECTED ASIAN CITIES
DESCRIPTION UNIT
HONG KONG SHANGHAI BEIJING
/ U O H Z G N A U G
SHENZHEN
CHONGQING CHENGDU
HK$ RMB RMB RMB RMB RMB
1. Excavating basements 2.00m deep m
3
115 30 15 25 16 20
2. Excavating for footings 1.50m deep m
3
110 25 18 30 18 25
3. Remove excavated materials off site m
3
190 * 105 25 68 43 35
4. m
3
650 168 120 155 120 130
5. Mass concrete grade 15 m
3
900 400 500 380 380 380
6. Reinforced concrete grade 30 m
3
1,130 470 560 465 420 420
7. Mild steel rod reinforcement kg 9.8 6 6.3 6.2 6.3 6.3
8. High tensile rod reinforcement kg 9.8 6 6.3 6.2 6.3 6.3
9.

slabs m
2

180

55

65

45

55

55
10. Sawn formwork to columns and walls m
2
180 55 55 45 55 55
11. 112.5mm thick brick walls m
2
190 60
@
90 58 47 50
12.

steel sheeting m
2

600

N/A

N/A

N/A

N/A

N/A
13. Aluminium casement windows, single

glazed m
2

1,700

600

780
**

550

750
**
750
**
14. Structural steelwork - beams, stanchions

and the like kg

25

12

11

14

12

12
15.

the like kg

27

10

11

11

10

10
16. 25mm cement and sand (1:3) paving m
2
80 35 20 21 22 25
17. 20mm cement and sand (1:4) plaster

to walls m
2

95

28

22

18

17

20
18.

(m/s) m
2

270

160

120

115

120

120
19. m
2
430 170 140 157 130 130
20. Two coats of emulsion paint to plastered

surfaces m
2

44

32

30

26

30

30
Average expected preliminaries % 10 - 15 3 - 8 5 - 10 5 - 10 5 - 10 5 - 10
The above costs are at 4th Quarter 2011 levels and are based on lump sum fixed price contract rates exclusive of preliminaries and
contingencies unless otherwise stated.
**
Rates for double glazed window.
*
Rate including waste charges implemented on 1 Dec. 2005.
@
Rates for 120mm thick concrete block walls.
Hardcore bed blinded with dine materials
Sawn formwork to soffits of suspended
Kliplok Colorbond 0.64mm profiled
Steelwork - angles, channels, flats and
Ceramic tiles bedded to floor screed
12mm fibrous plasterboard ceiling lining
DESCRIPTION UNIT
MACAU SINGAPORE
KUALA
LUMPUR
BRUNEI INDIA
MANILA
MOP S$ RM B$ INR PHP
3
110 16.5 15 - 20 3.5 130 350
3
105 16.5 15 - 20 3 145 250
3
60 15 20 - 25 3 100 200
4. m
3
580 50 60 - 70 37 3,060 2,500
3
680 202

230 - 250 117 4,200 3,500
3
730 155 - 170 250 - 280 132 5,125 4,800
7. Mild steel rod reinforcement kg 9.5 1.6 - 1.75 3.5 - 3.8 0.98 40 47
8. High tensile rod reinforcement kg 9.5 1.6 - 1.75 3.5 - 3.8 0.98 42 48
9.

slabs m
2

160

30 - 33 30 - 38

14.5

425

850
2
160 30 - 33 30 - 38 14 450 800
2
250 30 - 35 32 - 45 18.5 700 N/A
12.

steel sheeting m
2

N/A

43 55 - 60

56

960

900

glazed m
2

2,000

290 350 - 500

166 - 216

3,700

9,000

and the like kg

35

4.8- 5.8 6 - 7.5

3

75

100
15.

the like kg

32

4.8 - 5.8 6 - 7.5

2.7

75

95
2
80 11 15 - 22 7.5 300 350

to walls m
2

95

15.5 15 - 22

8

230

350
18.

(m/s) m
2

400

65.5 50 - 70

23
1,
100

1,200
19. m
2
460 30 30 - 45 28 850 1,300

surfaces m
2

80

3.5 - 4 3.5 - 4

5

130

350
The above costs are at 4th Quarter 2011 levels and are based on lump sum fixed price contract rates exclusive of preliminaries and
Rates are based on projects in Bangalore and are nett of

VAT and Service tax. Mumbai costs are generally 8% higher.

Rates are nett of GST.
Rate for lean concrete blinding.
Hardcore bed blinded with fine materials
Sawn formwork to soffits of suspended
Kliplok Colorbong 0.64mm profiled
Rate for aluminium with anodized finish; 6mm thick.
DESCRIPTION UNIT
KARACHI BANGKOK
#
JAKARTA
#
HO CHI
MINH
#
SEOUL
$
TOKYO
PKR BHT IDR'000 VND'000 KRW JPY
3
385 - 635 100 23 69 2,100 890
3
320 - 495 100 30 64 2,100 940
3
180 - 280 100 25 66 12,000 3,140
4. m
3
1,170 - 1,413 600 270 306 26,500 8,100
3
5,000 - 5,500 2,000 710 1,352 57,000 11,200
3
7,500 - 8,500 2,400 850 1,730 72,000 13,200
7. Mild steel rod reinforcement kg 80 - 110 31 10 23.3 1,070 68
8. High tensile rod reinforcement kg 77 - 115 30 10 22.2 1,080 83
9.

slabs m
2

485 - 625

350

120

181

23,000

3,400
2
550 - 790 350 120 223 23,000 3,400
2
990 - 1,060 700 120 165 40,000 13,100
12.

steel sheeting m
2

3,765 - 4,845

1,200

175

516

35,000

2,200

glazed m
2

5,000 - 7,500

6,000

880

2,545

249,900

23,000

and the like kg

135 - 160

55

18

33.5

2,400

210
15.

the like kg

135 - 160

55

18

38.5

1,900

320
2
425 - 590 200 44 46 2,500 2,600

to walls m
2

375 - 580

200

50

66.35

8,300

3,000
18.

(m/s) m
2

1,300 - 1,500

1,200

110

245

55,000

6,100
19. m
2
850 - 1,250 800 100
300 24,000 N/A


surfaces m
2

270 - 375

100

18

62.3

7,100

900
The above costs are at 4th Quarter 2011 and are based on lump sum fixed price contract rates exclusive of preliminaries and
$ Rates include labour costs and are nett of VAT.
& Including undercoat and primer.
# Rates are nett of VAT.
Rate for 9mm gypsum board.
Hardcore bed blinded with fine materials
sawn formwork to soffits of suspended
Kliplok Colorbong 0.64mm profiled
INTERNATIONAL CITIES
BUILDING TYPE
US$/m
2
SYDNEY AUCKLAND JO'BURG
LOS
ANGELES
SAN
FRANCISCO
NEW
YORK
LONDON
RESIDENTIAL
Average multi unit, high rise 2,845 1,770 940 3,500 3,600 3,700 2,420 - 3,060
Luxury unit, high rise 3,265 2,670 1,640 4,200 4,300 4,500 3,220 - 4,420
Individual prestige houses 3,440 2,815 1,650 3,400 3,500 3,800 3,600 - 5,430
COMMERCIAL/RETAIL
3,160 1,605 1,250 3,700 3,900 4,000 2,800 - 3,520
3,585 1,850 1,600 4,200 4,400 4,500 4,000 - 5,120
Major shopping centre (CBD) 2,530 1,110 1,180 2,800 3,100 3,200 1,830 - 2,390
HOTEL
3 star budget 3,265 2,220 1,900 2,100 2,200 2,250 1,940 - 2,340
5 star luxury 4,530 2,880 2,500 4,500 4,600 4,700 3,570 - 4,370
Resort style 4,110 2,220 3,000 4,500 4,600 N/A N/A
INDUSTRIAL
Light duty factory 685 450 430 1,200 1,400 1,200 850 - 1,070
Heavy duty factory 865 575 600 1,600 1,800 1,900 1,410 - 1,760
OTHERS
Multi storey carpark 895 535 460 850 880 900 510 - 860
District hospital 4,055 3,130 1,250 7,300 7,500 6,300 2,950 - 3,680
Primary and secondary schools 1,720 1,760 850 3,00 3,200 3,600 2,230 - 3,300
Exchange Rate Used
(as at July 2011) US$1 =
A$0.93 NZ$1.25 ZAR7.00 US$1.00 US$1.00 US$1.00 GBP0.63
The above costs are at 2nd Quarter 2011 levels. Prices excludes land, site works, professional fees, tenant fitout, equipment and
GST/VAT. Hotel rate includes FF&E.
Large fluctuation in exchange rates can create short tem anomalies.
CONSTRUCTION FLOOR AREA (CFA)
DEFINITION
The construction floor area measured from drawings is defined as
covered floor areas fulfilling the functional requirements of the
building measured to the outside face of the external walls or exter-
nal perimeter.
It includes floor ares occupied by:
partitions
columns
stairwells
lift shafts
plant rooms
water tanks
balconies
utilities platforms
vertical ducts
service floors higher than 2.2m and the like
But excludes floor areas occupied by:
bay windows
planters projecting from the building, and
the areas covered by canopies, roof eaves and awnings
Sloping surfaces such as staircases, escalators and carpark
ramps are to be measured flat on plan.
The measurement of construction floor area is as defined by
Langdon & Seah.
FINANCIAL DEFINITIONS & FORMULAE
Discount Rate
The rate of return a developer expects when investing in a proj-
ect.
i.e. opportunity cost
Internal Rate of Return (IRR)
The IRR may be defined as the interest rate that equates the pres-
ent value of expected future cash flows to the cost of the invest-
ment.
The IRR can be compared to the Discount Rate.
Net Present Value (NPV)
The NPV is the present value of all future cash flows, discounted
back to todays values at the Discount Rate.
The NPV indicates in todays dollars the profit or loss a developer
makes above or below his required profit (based on a nominated
Discount Rate).
72 Rule
The approximate number of years required to double your capital
can be calculated by dividing the interest rate into 72.
e.g. If interest rate = 10% p.a.
Then 72 10 = 7.2 years
It will take approximately 7.2 years to double your
capital if it is invested at 10% p.a.
PV = present value
FV = future value
PMT = payment amount
n = period (e.g. 10 years with monthly payments,
n = 10 x 12 = 120)
i = interest rate per period
(e.g. 12% p.a. compounded monthly;
i = 12% 12 months = 1% per period)
Future value of $1
Future value of $1 per period
Sinking fund (the amount
required to be put away periodi-
cally to realise
some future sum)
Present value of $1
Present value of $1 per period
Annuity with a PV of $1
FV = PV (1+i)
n
FV = PMT [((1+i)
n
1) i]
PMT = FV [i ((1+i)
n
1)]
PV = FV [1 (1+i)
n
]
PV = PMT [((1+i)
n
1) (i(1+i)
n
)]
PMT = PV[(i(1+i)
n
) ((1+i)
n
- 1)]
MORTGAGE REPAYMENT TABLE
REPAYMENT (years) Interest
p.a. 5 10 15 20
5% 18.87 10.61 7.91 6.60
6% 19.33 11.10 8.44 7.16
7% 19.80 11.61 8.99 7.75
8% 20.28 12.13 9.56 8.36
9% 20.76 12.67 10.14 9.00
10% 21.25 13.22 10.75 9.65
11% 21.74 13.78 11.37 10.32
12% 22.24 14.35 12.00 11.01
13% 22.75 14.93 12.65 11.72
14% 23.27 15.53 13.32 12.44
15% 23.79 16.13 14.00 13.17
16% 24.32 16.75 14.69 13.91
17% 24.85 17.38 15.39 14.67
18% 25.39 18.02 16.10 15.43
19% 25.94 18.67 16.83 16.21
20% 26.49 19.33 17.56 16.99
21% 27.05 19.99 18.31 17.78
22% 27.62 20.67 19.06 18.57
23% 28.19 21.35 19.82 19.37
24% 28.77 22.05 20.58 20.17
25% 29.35 22.75 21.36 20.98

Based on:
* 1,000 units of currency
* Interest compounded monthly
* Equal monthly repayments
Example
Borrow $1,000,000 to be repaid monthly at 10% p.a.
over 10 years.
Repayments = 1,000,000 / 1,000 x $13.22
= $13,220 per month
PRIME RATES & BASE LENDING RATES
as at 4th Quarter 2011
Country Rate (%)
Australia* 4.50
Brunei 5.50
China
**
6.90
Egypt*** 10.25
Hong Kong 5.00
India 14.75
Indonesia 6.00
Japan
^
1.60
Macau 5.25
Malaysia 6.60
New Zealand
^^
10.01
Pakistan
^^^

13.97
Philippines 5.74
Singapore 5.38
South Africa 9.00
South Korea
+
3.25
Thailand
++
7.71
United Kingdom 0.50
United States of America 3.25
Vietnam
+++
9.00
Source:
DLS branches
Central Bank of Egypt (www.cbe.org.eg)
Reserve Bank of New Zealand (www.rbnz.govt.nz)
Bank of England (www.bankofengland.co.uk)
www.economagic.com
www.investec.com
www.money-rates.com
* Over Night Cash Rate
** 3-Year Benchmark Lending Rate
*** Overnight Lending Rate
^ Long Term Prime Rate % pa (Implementation 10-Dec-2010)
^^ SME Overdraft Rate (Previously Businesss Base Lending Rate)
^^^ Weighted Average Lending Rate
+ Base Rate of The Bank of Korea
++ Minimum Loan Rate % pa (Average Based on Local Bank)
+++ Minimum and in VND per year
UTILITY COSTS FOR SELECTED
ASIAN CITIES
CITY
EXCHANGE
RATE
ELECTRICITY
DOMESTIC
COMMERCIAL/
INDUSTRIAL
US$1= US$/kWh US$/kWh
Hong Kong HK$7.80 0.10 0.11
Shanghai RMB6.35
0.097(peak) /
0.048(normal)
0.16(peak) /
0.077(normal)
Beijing RMB6.35 0.07 0.13
Guangzhou RMB6.35 0.09 0.17 / 0.14
Shenzhen RMB6.35 0.1066 0.048 - 0.183
Macau MOP7.97 0.11 0.12
Kuala Lumpur RM3.15 0.069 - 0.144 0.110 - 0.137
Singapore S$1.25 0.22 0.22
Jakarta IDR8,910 0.089 0.102
WATER FUEL
DOMESTIC
COMMERCIAL/
INDUSTRIAL
DIESEL LEADED UNLEADED
US$/m
3
US$/m
3
US$/litre US$/litre US$/litre
0.83 0.59 1.52 N/A 2.05
0.46 0.60 1.17 N/A 1.19 - 1.26
0.63 0.98 1.08 N/A 1.13
0.20 0.43 / 0.29 0.84 N/A 1.04
0.361 - 0.721 0.525 1.177 N/A 1.089 - 1.271
0.54 0.66 1.48 N/A 1.99
0.181 - 0.635 0.657 - 0.724 0.57 N/A 0.60
1.44 1.67 1.27 N/A 1.75
0.250 0.475 0.475 N/A 0.505
Bangkok BHT30.00 0.044 - 0.096 0.054 - 0.056
Manila PHP43.00 0.20 - 0.27 0.21
Brunei B$1.26 0.008 - 0.12 0.057 - 0.159
Ho Chi Minh VND21,000 0.091
0.082 - 0.141 /
0.051 - 0.092
Bangalore INR50.00 0.078 - 0.196 0.112 - 0.352
New Delhi INR50.00 0.098 - 0.167 0.123 - 0.229
Karachi PKR89.42 0.078 - 0.16 0.16 - 0.23
Seoul KRW1,146 0.155 0.0879
Tokyo JPY78.14 0.277 0.277
0.274 - 0.466 0.306- 0.510 0.951 N/A 1.074
0.56 - 0.65 1.32 1.095 N/A 1.243
0.087 - 0.349 0.484 - 0.524 0.302 0.404 0.421
0.21 - 0.50 0.65 / 0.35 0.995 N/A 0.99 - 1.014
3.083 - 5.507 4.142 - 6.829 0.921 N/A 1.457
3.304 - 5.288 4.865 - 7.932 0.82 N/A 1.328
0.175 - 0.319 0.292 - 0.529 1.105 N/A 0.983
0.311 1.475 1.61 N/A 1.73
2.726 5.170 1.459 N/A 1.639
Basis of Charges in Shenzhen, China
Water
Domestic : Within 22m
3
= US$ 0.361/m
3
; 23 - 30m
3
= US$ 0.541/m
3
;
31m
3
and above = US$ 0.721/m
3
Commercial : US$ 0.525/m
3

Industrial : US$ 0.525/m
3

Electricity
Commercial : US$ 0.158/kWh
Industrial : Peak = US$ 0.183/kWh; Normal = US$ 0.138/kWh;
Off-peak = US$ 0.048/kWh
Unleaded Fuel
90# = US$1.089/litre; 93# = US$1.174/litre; 97# = US$1.271/litre
The above costs are at 4th Quarter 2011 levels
Basis of Charges in Hong Kong, China
Water
Domestic :
0 - 12m
3
= Free of charge; 12 - 43m
3
= US$ 0.53/m
3
;
43 - 62m
3
= US$ 0.83/m
3
; Above 62m
3
= US$ 1.16/m
3
Electricity (Based on tariff scheme of CLP Holding Limited)
Domestic (bi-monthly consumption)
0 - 400kWh = US$ 0.10/kWh; 400 - 1,000kWh = US$ 0.11/kWh;
1,000 - 1,800kWh = US$ 0.12/kWh; Above 1,800kWh = US$ 0.13/kWh
Basis of Charges in Macau, China
Water
Domestic :

3
Other charges (Depending on meter size 15mm - 200mm) :
Meter rental = US$0.33 - 58.07/month;
Minimum consumption fee = US$2.22 - 383/month
Commercial/ Industrial :
Charges for ordinary users (e.g. Business, government buildings,
schools, associations, hospitals and others) only. Special users (e.g.
gaming industries, hotels, saunas, golf cources, construction, public
infrastructures and other temporary consumption) are excluded.
Electricity
n o i t p m u s n o c , s e g r a h c d n a m e d f o n o i t i s o p m o c e r a f f i r a t y t i c i r t c e l E
charges, fuel clause adjustment and government tax.
Basis of Charges in Beijing and Guangzhou, China
Unleaded fuel rate is for Unleaded gasoline 97.
Basis of Charges in Shanghai, China
Unleaded Fuel
93# = US$1.19/litre; 97# = US$1.26/litre
Basis of Charges in Kuala Lumpur, Malaysia
Unleaded fuel rate is for Unleaded petrol Ron 95.
Basis of Charges in Singapore (All rates are nett of GST)
Domestic water rate includes conservation tax and water-borne fee and is an
average for the 1st 40m
3
, exclude sanitary appliance fee.
Non-domestic water rate includes conservation tax and water-borne fee,
exclude sanitary appliance fee.
Electricity tariff is based on low tension power supply.
Unleaded fuel rate is for 98 Unleaded petrol as at 15 November 2011.
Diesel fuel rate as at 15 November 2011.
Basis of Charges in Manila, Philippines
Water
Domestic : 32m
3
- 52m
3
/month
Commercial/Industrial : 3,204m
3
/month
Electricity
Domestic : 100kWh - 533kWh
Commercial/Industrial : 222,600kWh
Water and Electricity actual billing includes miscellaneous charges such
as Environmental Charge, Currency Exchange Rate Adjustment (CERA),
VAT, etc.
Basis of Charges in Seoul, Korea
Water
Domestic = US$0.939/month (basic rate) + US$0.311/m
3
(Within 30m
3
usage)
Commercial = US$77.39/month (basic rate) + US$1.475/m
3
(Within 100m
3
usage)
Electricity
Domestic = US$4.757/month (basic rate) + US$0.155/kWh
(500kWh below in use)
Commercial = US$5.243/month (basic rate) + US$0.0879/kWh
(within 1,000kWh, 3,300V - 66,000V)
Basis of Charges in Tokyo, Japan (All rates are VAT inclusive)
Water
Domestic : Rates for 30mm diameter of water piping
+ Basic rate of US$41.64.
Commercial / Industrial : Rates for 100mm diameter of water piping
+ Basic rate of US$1,146.28.
Electricity
0kWh - 120kWh = US$0.217/kWh; 120kWh - 300kWh = US$0.277/kWh;
Over 300kWh = US$0.292/kWh
Basic rate = US$3.309 - 10A (ampere); US$9.927 - 30A (ampere);
US$19.855 - 60A (ampere) is added.

Basis of Charges in Ho Chi Minh, Vietnam (All rates are VAT inclusive)
Water
Domestic : Used in norm = US$ 0.21; Used over norm = US$ 0.50
Industrial = US$0.35
Commercial = US$0.65
Electricity
Domestic electricity rates are applied to the 301 KW above wards
Fuel : Diesel fuel D.O - 0.05%
: 92 and 95 Unleaded petrol as at October 2011.
Basis of Charges in Bangkok, Thailand
Unleaded fuel rate is for Gasohol 95.
Basis of Charges in Karachi, Pakistan
Fuel : The diesel fuel rate is for High Speed Diesel.
: The unleaded fuel rate is for Premier Petrol.
Basis of Charges in Brunei
Electricity (Domestic) : Tariff effective from 1st Jan 2012. 1-10 kWh 10c,
11-60 kWh 8c, 61-100kWh 12c, above 100kWh 15c
IDD CODES
Source : www.worldtimeserver.com ; www.worldtimezone.com
www.timeanddate.com
LOCATION
IDD
COUNTRY
CODE
AREA
CODE
Australia:
Melbourne 61 3
Perth 61 8
Sydney 61 2
Bahrain 973 -
Bangladesh (Dhaka) 880 2
Bhutan (Thimphu) 975 2
Brunei:
Bandar Seri Begawan 673 2
Kuala Belait 673 3
Cambodia (Phnom Penh) 855 23
Canada:
Toronto (Metropolitan) 1 416
Vancouver 1 604/250/ 778
China:
Beijing 86 10
Guangzhou 86 20
Hong Kong 852 -
Macau 853 -
Shanghai 86 21
Shenzhen 86 755
France (Paris) 33 1
India:
Bangalore 91 80
Chennai 91 44
New Delhi 91 11
Mumbai 91 22
Indonesia:
Bali 62 361
Jakarta 62 21
Ireland:
Cork 353 21
Dublin 353 1
Japan:
Tokyo 81 3
Osaka 81 6
Kazakhstan (Almaty) 7 727
Korea (Seoul) 82 2
Korea (Pyongyang) 850 2
Laos (Vientiane) 856 21
LOCATION
IDD
COUNTRY
CODE
AREA
CODE
Malaysia:
Johor Bahru 60 7
Kota Kinabalu 60 88
Kuala Lumpur 60 3
Kuching 60 82
Penang 60 4
Mongolia (Ulaanbaatar) 976 11
Myanmar (Rangoon) 95 1
Nepal (Kathmandu) 977 1
New Zealand:
Auckland 64 9
Wellington 64 4
Pakistan (Karachi) 92 21
Philippines (Manila) 63 2
Qatar 974 -
Singapore 65 -
Spain:
Barcelona 34 93
Girona 34 972
South Africa:
Johannesburg 27 11
Cape Town 27 21
Sri Lanka (Colombo) 94 1
Russia (Moscow) 7 495
Taiwan (Taipei) 886 2
Thailand:
Bangkok 66 2
Phuket 66 76
United Arab Emirates:
Abu Dhabi 971 2
Dubai 971 4
United Kingdom:
London 44 20
Edinburgh 44 131
USA:
Los Angeles 1 213
New York 1 212
Vietnam:
Ho Chi Minh City 84 8
Hanoi 84 4
WEIGHT AND MEASURES
Metric Measures and Equivalents
LENGTH
1 millimetre (mm) = 0.0394 in
1 centimetre (cm) = 10 mm = 0.3937 in
1 metre (m) = 100 cm = 1.0936 yd
1 kilometre (km) = 1,000 m = 0.6214 mile

AREA
1 sq cm (cm
2
) = 100 mm
2
= 0.1550 in
2
1 sq metre (m
2
) = 10,000 cm
2
= 1.1960 yd
2

1 hectare (ha) = 10,000 m
2
= 2.4710 acres
1 sq km (km
2
) = 100 ha = 0.3861 mile
2

VOLUME / CAPACITY
1 cu cm (cm
3
) = 0.0610 in
3

1 cu decimetre (dm
3
) = 1,000 cm
3
= 0.0353 ft
3

1 cu metre (m
3
) = 1,000 dm
3
= 1.3080 yd
3

1 litre (l )

= 1 dm
3
= 1.76 pt
1 hectolitre (hl ) = 100 l = 21.997 gal

MASS (WEIGHT)
1 milligram (mg) = 0.0154 grain
1 gram (g) = 1,000 mg = 0.0353 oz
1 kilogram (kg) = 1,000 g = 2.2046 lb
1 tonne (t) = 1,000 kg = 0.9842 ton

USA MEASURES AND EQUIVALENTS
USA Dry Measure Equivalents
1 pint = 0.9689 UK pint = 0.5506 l

USA Liquid Measure Equivalents
1 fluid ounce = 1.0408 UK fl oz = 29.574 ml
1 pint (16 fl oz) = 0.8327 UK pt = 0.4723 l
1 gallon = 0.8327 UK gal = 3.7854 l

LENGTH
1 inch (in) = 2.54 cm
1 foot (ft) = 12 in = 0.3048 m
1 yard (yd) = 3 ft = 0.9144 m
1 mile = 1,760 yd = 1.6093 km
1 int. nautical mile = 2,025.4 yd = 1.853 km

AREA
1 sq inch (in
2
) = 6.4516 cm
2

1 sq foot (ft
2
) = 144 in
2
= 0.0929 m
2

1 sq yard (yd
2
) = 9 ft
2
= 0.8361 m
2

1 acre = 4,840 yd
2
= 4,046.9 m
2

1 sq mile (mile
2
) = 640 acres = 2.59 km
2

VOLUME / CAPACITY
1 cu inch (in
3
) = 16.387 cm
3

1 cu foot (ft
3
) = 1,728 in
3
= 0.0283 m
3

1 fluid ounce (fl oz) = 28.413 ml
1 pint (pt) = 20 fl oz = 0.5683 l

1 gallon (gal) = 8 pt = 4.5461 l

MASS (WEIGHT)
1 ounce (oz) = 437.5 grains = 28.35 g
1 pound (lb) = 16 oz = 0.4536 kg
1 stone = 14 lb = 6.3503 kg
1 hundredweight (cwt) = 112 lb = 50.802 kg
1 ton = 20 cwt = 1.016 t

Temperature Conversion

o
C = 5/9 (
o
F - 32)
o
F = (9/5
o
C) + 32

o
C
o
F
Imperial Measures and Equivalents
CONVERSION GUIDE
Conversion Formulae
To use the conversion formulae simply multiply the Imperial mea-
surement by the factor beside the conversion you wish to make.
For example 6 inches into milimetres. 6 inches multiplied by 25.4
equals 152.4 milimetres. Conversely if you wish to convert Metric
measure into Imperial measure simply divide by the same factor.
LENGTH
To Convert Multiply by
mili-inches into micrometres 25.4
inches into milimetres 25.4
inches into centimetres 2.54
inches into metres 0.0254
feet into centimetres
feet into milimetres 304.8
30.48
feet into metres 0.3048
yards into metres 0.9144
fathoms into metres 1.8288
chains into metres 20.1168
furlongs into metres 201.168
miles, statute into kilometres 1.609344
miles, nautical into kilometres 1.852
VOLUME & CAPACITY
cubic inches into cubic centimetres 16.387064
cubic inches into litres 0.016387
cubic feet into cubic metres 0.0283168
cubic feet into litres 28.316847
UK quarts into litres
UK pints into litres 0.5682613
1.1365225
cubic yards into cubic metres 0.7645549
UK gallons into litres 4.54609
UK gallons into cubic metres 0.0045461
UK fluid ounces into cubic centimetres 28.413063
POWER
foot pounds-force per second into watts 1.35582
horsepower into watts 745.7
foot pounds-force per second into kilowatts 0.001356
horsepower into kilowatts 0.7457
horsepower into metric horsepower 1.01387
AREA
square inches into square milimetres 645.16
square inches into square centimetres 6.4516
square feet into square centimetres 929.0304
square feet into square metres 0.092903
square yards into (0.01 hectare)
square yards into square metres 0.836127
0.0083613
acres into square metres 4046.8564
acres into hectares 0.4046856
square miles into square kilometres 2.589988
MASS
grains into miligrams 64.79891
grains into metric carats 0.323995
grains into grams 0.064799
pennyweights into grams 1.555174
ounces troy into grams
ounces into grams 28.349523
31.103477
ounces into kilograms 0.0283495
pounds into kilograms 0.4535924
stones into kilograms 6.35023932
hundredweights into kilograms 50.802345
tons into kilograms 1016.0469
tons into metric tonnes 1.01605
tahils into grams 37.799
kati into kilograms 0.60479
PUBLIC HOLIDAYS
2011 2012
MALAYSIA
New Years Day**
Chinese New Year
Prophet Muhammads Birthday
Labour Day
Wesak Day
King/Agongs Birthday
Hari Raya Aidilfitri*
National Day
Malaysia Day
Hari Raya Qurban*
Deepavali*
Awal Muharram
Christmas Day
* Subject to change
** Except Johor, Kelantan, Kedah, Perlis & Terengganu
# Except Kelantan & Terengganu
## The following day will be an additional Public Holiday
01
03 - 04
15
01
17
04
30 - 31
31
16
06
26
27
25
Jan
Feb
Feb
May
May
Jun
Aug
Aug
Sep
Nov
Oct
Nov
Dec
01
23 - 24
05
01
05
02
19 - 20
31
16
26
13
15
25
Jan
##
Jan
#
Feb
##
May
May
Jun
Aug
##
Aug
Sep
##
Oct
Nov
Nov
Dec
PAKISTAN
Kashmir Day
Eid-e-Milad-un-Nabi*

(Birth of Prophet)
Pakistan Day
Labour Day
Independence Day
Eid al-Fitr (End of Ramadan)*
Allama Muhammad Iqbal Day
Eid-ul-Azha*
(Feast of the Sacrifice)
Ashoura*
Quaid-e-Azams Birthday
*Subject to change
05
16
23
01
14
30 Aug-
09

07 - 09
06 - 07
25

Feb
Feb
Mar
May
Aug
01 Sep
Nov
Nov
Dec
Dec
05
05
23
01
14
19 - 21
09

26 - 27
24 - 25
25
Feb
Feb
Mar
May
Aug
Aug
Nov
Oct
Nov
Dec
2011 2012
CHINA
New Years Day
@
Chinese New Years Eve
Chinese New Year*
Tomb-Sweeping Day**
Labour Day
+
Dragon-Boat Festival
#
Mid Autumn Festival
National Day^
@ 2nd and 3rd Jan are holidays, 31 Dec is working day.
* 25th to 28th Jan are holidays.
** 2nd and 3rd Apr are holidays, 31st Mar and 1st Apr are
working days.
+ 29th and 30th Apr are holidays, 28th Apr is working day.
# 22nd and 24th Jun are holidays.
^ 4th to 7th Oct are holidays.
01
02
03 - 04
05
01
06
12
01 - 03
Jan
Feb
Feb
Apr
May
Jun
Sep
Oct
01
22
23 - 24
04
01
23
30
01 - 03
Jan
Jan
Jan
Apr
May
Jun
Sep
Oct
BRUNEI
New Years Day**
Chinese New Year
Prophet Muhammads Birthday**
National Day
Royal Brunei Armed Forced Ann.
Israk Miraj**
His Majestys Birthday**
First Day of Ramadhan*
Ann. Revelation of the Holy Koran*
Hari Raya Aidilfitri*
Hari Raya Aidilfitri* (2nd day)
Hari Raya Aidil Adha*
&
**
First Day of Hijrah*
&
**
Christmas Day*
Fridays and Saturdays are government off days
* Subject to change
** Replacement for Fridays / Sundays
01
03
15
23
31
29
16
01
17
30
31
07
28
25
Jan
Feb
Feb
Feb
May
Jul
Jul
Aug
Aug
Aug
Aug
Nov
Nov
Dec
02
23
06
23
31
18
16
21
06
20
21
26
15
25
Jan
Jan
Feb
Feb
May
Jun
Jul
Jul
Aug
Aug
Aug
Oct
Nov
Dec
PUBLIC HOLIDAYS
2011 2012
MACAU
New Years Day*
The first working day after
New Years Day
#
Lunar New Year Eve (Afternoon)
Lunar New Year
Ching Ming Festival
Good Friday
The day following Good Friday*
Easter Monday#
Labour Day
The Buddhas Birthday*
the Buddhas Birthday
#
Tung Ng Festival
the Tung Ng Festival
#
Banks Holiday
The day following Chinese
Mid-Autumn Festival
National Day
Chong Yeung Festival
All Souls Day
Feast of the Immaculate
Conception*
The first working day after the
Feast of the Immaculate
Conception#
Macao SAR Establishment Day
Winter Solstice*
Christmas Eve
Christmas Day
Banks Holiday
New Years Eve (Afternoon)
#
* Not applicable to Bank
# Special Holiday Granted by Chief Executive.
^ As the day following Chinese Mid-Autumn Festival and
National Day fall on the same day, one additional holiday will
be granted following the National Day.
01
-
02
03 - 05
05
22
23
25
01 - 02
10
-
06
-
01
13
01 - 03
05
02
08
-
20
22
24
25 - 26
27
-
Jan
-
Feb
Feb
Apr
Apr
Apr
Apr
May
May
-
Jun
-
Jul
Sep
Oct
Oct
Nov
Dec
-
Dec
Dec
Dec
Dec
Dec
-
01
02
-
23 - 25
04
06
07
09
01
28
30
23
25
02
01
01
23
02
08
10
20
21
24
25
26
31
Jan
Jan
-
Jan
Apr
Apr
Apr
Apr
May
Apr
Apr
Jun
Jun
Jul
Oct
Oct^
Oct
Nov
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
2011 2012
INDONESIA
New Years Day 01
Jan
01
Jan
Chinese New Year (Imlek) 03 Feb 23 Jan
Prophet Muhammads Birthday 15 Feb 05 Feb
Hindu Day of Quiet (Nyepi) 05 Mar 23 Mar
Good Friday 22 Apr 06 Apr
Waicak Day (Buddha Birthday) 17 May 06 May
Ascension Day of Jesus Christ 02 May 17 May
Ascension Day of Prophet
Muhammad* 29 Jul 17 Jun
National Independence Day 17 Aug 17 Aug
Idul Fitri* 30 Sep 19 Aug
31 Sep 20 Aug
Idul Adha Day 06 Nov 26 Oct
Hijriyah New Year 27 Dec 15 Nov
* Subject to change
Christmas Day 25 Dec 25 Dec
HONG KONG
The First day Of January
Lunar New Years Day
Ching Ming Festival
Good Friday
Easter Monday
Buddhas Birthday
Labour Day
Tuen Ng Festival
HKSAR Establishment Day
The day following Chinese

Mid-Autumn Festival
National Day
Chung Yeung Festival
Christmas Day
# When public holiday falls on Sunday, the following Monday is
an alternative holiday.
* As the day following Chinese Mid-Autumn Festival and
National Day fall on the same day, one additional holiday will
be granted following the National Day.
01
03 - 05
05
22 - 23
25
10
01 - 02
06
01
13
01
05
25 - 27
Jan
Feb
Apr
Apr
Apr
May
May
Jun
Jul
Sep
Oct
Oct
Dec
01
23 - 25
04
06 - 07
09
28
01
23
01
01
01
23
25 - 26
Jan
#
Jan
Apr
Apr
Apr
Apr
May
Jun
Jul
#
Oct*
Oct*
Oct
Dec
PUBLIC HOLIDAYS
2011 2012
JAPAN
New Years Day*
Coming of Age Day
National Foundation Day*
Spring Equinox Day*
Day of Showa*
Constitution Memorial Day*
Greenery Day*
Childrens Day*
Marine Day
Respect-for-Senior-Citizens Day
Autumnal Equinox Day*
Physical Fitness Day
Cultural Day*
Labor Thanksgiving Day*
The Emperors Day*
*When Public Holiday falls on Sunday, the following Monday is
an alternative holiday.
01
10
11
21
29
03
04
05
18
19
23
10
03
23
23
Jan
Jan
Feb
Mar
Apr
May
May
May
Jul
Sep
Sep
Oct
Nov
Nov
Dec
02
09
11
20
30
03
04
05
16
17
22
08
03
23
23
Jan
Jan
Feb
Mar
Apr
May
May
May
Jul
Sep
Sep
Oct
Nov
Nov
Dec
INDIA
New Years Day
Sankranthi
Republic Day
Good Friday
May Day
Independence Day
Gandhi Jayanthi
Karnataka Formation Day
Deepavali
Christmas Day
01
14
26
22
01
15
02
01
26
25
Jan
Jan
Jan
Apr
May
Aug
Oct
Nov
Oct
Dec
01
14
26
06
01
15
02
01
13
25
Jan
Jan
Jan
Apr
May
Aug
Oct
Nov
Nov
Dec
2011 2012
KOREA
New Years Day
Lunar New Year (Seol)
Independent Movement Day
Buddhas Birthday
Childrens Day
Memorial Day
Liberation Day
Full Moon Day (Chuseok)
National Foundation Day
Christmas Day
01
02 - 04
01
10
05
06
15
11 - 13
03
25

Jan
Feb
Mar
May
May
Jun
Aug
Sep
Oct
Dec
01
23 - 24
01
28
05
06
15
29 - 01
03
25
Jan
Jan
Mar
May
May
Jun
Aug
Oct
Oct
Dec
PHILIPPINES (Regular Holidays)
Regular Holidays
New Years Day
Maundy Thursday
Good Friday
Araw ng Kagitingan
Labour Day
Independence Day
End of Eid-ul-Fitre
National Heroes Day
Eid-ul Adha
Bonifacio Day
Christmas Day
Rizal Day
Special Holidays
(Non Working Holidays)
Ninoy Aquino Day
All Saints Day
Last Day of the Year
01
21
22
09
01
12
31
30
07
30
25
30
21
01
31

Jan
Apr
Apr
Apr
May
Jun
Aug
Aug
Nov
Nov
Dec
Dec
Aug
Nov
Dec
01
05
06
09
01
12
19
30
26
30
25
30
21
01
31
Jan
Apr
Apr
Apr
May
Jun
Aug
Aug
Oct
Nov
Dec
Dec
Aug
Nov
Dec
PUBLIC HOLIDAYS
2011 2012
SINGAPORE
New Years Day
Chinese New Year
Good Friday
Labour Day
Vesak Day
National Day
Hari Raya Puasa
Hari Raya Haji
Deepavali*
Christmas Day
*Subject to changes
^ The following Monday will be a public holiday
01
03 - 04
22
01
17
09
30
06
26
25

Jan
Feb
Apr
May
May
Aug
Aug
Nov
Oct
Dec
01
23 - 24
06
01
05
09
19
26
13
25

Jan^
Jan
Apr
May
May
Aug
Aug^
Oct
Nov
Dec
TAIWAN
Founding Day
Lunar New Years Eve
Lunar New Year
Replacement Holiday
Peace Memorial Day
Woman Day and Childrens Day
Ching Ming Festival
Labour Day
Dragon Boat Festival
Mid-Autumn Festival
Double Ten Day
Replacement Holiday
* As 4-Feb is adjusted to work, this day is adjusted to holiday.
@
As 3-Mar is adjusted to work, this day is adjusted to holiday.
#
As 22-Dec is adjusted to work, this day is adjusted to holiday.
01
02
03 - 07
-
28
04
05
01
06
12
10
-

Jan
Feb
Feb
-
Feb
Apr
Apr
May
Jun
Sep
Oct
-
01
22
23 - 27*
27
28
04
04
01
23
30
10
31

Jan
Jan
Jan
Feb
@
Feb
Apr
Apr
May
Jun
Sep
Oct
Dec
#
2011 2012
THAILAND
New Years Day
Chinese New Year*
Makha Bucha Day
Chakri Memorial day
Songkran Festival
National Labour Day
Coronation Day
Royal Ploughing Ceremony Day
+
Visakha Bucha Day
Mid Year Bank Holiday
#
Asarnha Bucha Day
Khao Phansa Day (Buddhist Lent)
+
H.M. The Queens Birthday
Chulalongkorn day
H.M. The Kings Birthday
Constitution Day
New Years Eve
*Unofficial Chinese Community Only
#
Banks only
+
Government only
1
Substitute for 31 Dec 2011 (Sat)
2
Substitute for 14 Apr (Sat)
3
Substitute for 05 May (Sat)
4
Substitute for 12 Aug (Sun)
03
03
18
06
13 - 15
02
05
13
17
01
15
18
12
24
05
12
31

Jan
Feb
Mar
Apr
Apr
May
May
May
May
Jul
Jul
Jul
Aug
Oct
Dec
Dec
Dec
02
23
07
06
13 - 16
01
07
09
04
01
02
03
13
23
05
10
31

Jan
1
Jan
Mar
Apr
Apr
2
May
May
3
May
Jun
Jul
Aug
Aug
Aug
4
Oct
Dec
Dec
Dec
VIETNAM (Normal Scheduled Holidays)
Solar New Year
Lunar New Year
Hung Vuong King Celebration
Liberation Day of Saigon
International Labour Day
National Day
Christmas Day
* Substitute for 1 Jan (Sun)
** Substitute for 22 Jan (Sun)
# Substitute for 31 Mar (Sat)
^ Substitute for 2 Sep (Sun)
03
03 - 07
12
02
03
02
25

Jan
Feb
Apr
May
May
Sep
Dec
02
23 - 26**
02
30
01
03
25

Jan*
Jan
Apr
#
Apr
May
Sep^
Dec
ABOUT US
First established in 1934 in Singapore under the name "Waters
and Watson" we survived the Second World War to become
the pre-eminent Quantity Surveying and Construction cost
Management firm in Asia - operating for many years as Lang-
don Every and Seah. One of our early partners, Mr. Seah
Mong Hee, was the first Chartered Surveyor (RICS) in the
world.
Our Hong Kong office opened in 1949 and we quickly estab-
lished ourselves as the leading firm in the profession.
Following a series of global mergers, Davis Langdon & Seah
International was founded in 1990. As we begin 2012, Davis
Langdon & Seah has grown to almost 3,000 staff in 40 offices
across Asia, and continues to cooperate with Davis Langdon in
Europe & Middle East, USA, Australia & New Zealand and
Africa - forming a network of over 100 offices across more than
30 contries.
We entered the China market in 1984, introducing modern cost
management techniques to its newly evolving construction
market. Our initial commissions were from Hong Kong and
foreign developers investing in China, although we have since
then further developed our client base to include state owned
enterprises and local privatedevelopers. We now have 16
offices across China located in Hong Kong, Shanghai, Beijing,
Guangzhou, Shenzhen, Macau, Chongqing, Wuhan, Tianjin,
Shenyang, Chengdu, Foshan, Hangzhou, Dalian, Sanya and
Suzhou with a total staff count of around 1,400.
For over 60 years, DLS Hong Kong/China has been proac-
tively providing world-class construction consulting services for
all types of building and infrastructure projects. We are com-
mitted to further extending our professional expertise to related
fields and further expanding our activities in China to support
the needs of our clients as they explore one of the world's larg-
est and fastest growing markets.
QUALITY MANAGEMENT SYSTEM
Nowadays an effective Quality Management System is one of the
core elements in any kind of business. Davis Langdon and Seah
Hong Kong Limited aims to provide not merely quantity surveying
services but also the highest quality services to meet clients'
requirements.
We launched our Quality Management System in 1993 and have
continually upgraded our quality standards since then.
Davis Langdon & Seah Hong Kong Limited achieved certification
to ISO 9001: 1987 by the Hong Kong Quality Assurance Agency
in October 1994 to cover quantity surveying services. We were
certifies to ISO 9001: 1994 in October 1995.
The following further displays our commitment to the continual
improvement of our Quality Management System:
(i) June 2009 saw Davis Langdon & Seah Hong Kong Limited
being certified to the ISO 9001: 2008 standard.
(ii) In December 2009, the Hong Kong office of Davis Langdon &
Seah China Limited was certified to the ISO 9001:2008 standard.
(iii) In September 2010, Davis Langdon & Seah Macau Limited
was certified to the ISO 9001:2008 standard.
Plans are currently well advanced to further extend our HKQAA
ISO certification to all our offices in China.
CONSTRUCTION COSTS FOR HONG KONG
The above costs are at 4th Quarter 2011 levels.
BUILDING TYPE
HK$/m
2
BUILDING SERVICES TOTAL
DOMESTIC
Public rental housing, high rise 6,055 - 6,810 1,045 - 1,350 7,100 - 8,160
Private housing estates, high rise 14,035 - 14,780 2,455 - 3,320 16,490 - 18,100
Private luxury apartments, high rise 15,805 - up 3,325 - 4,220 19,130 up
Terraced houses 19,065 - 20,490 2,255 - 2,860 21,320 - 23,350
Individual prestige houses 27,485 up 2,455 - 3,610 29,940 up
OFFICE/COMMERCIAL
12,340 - 13,350 4,150 - 5,280 16,490 - 18,630
16,470 up 4,850 - 6,130 21,320 up
Average standard shopping centres 11,840 - 14,770 4,700 - 5,430 16,540 - 20,200
Prestige shopping centres 16,420 up 4,900 - 6,130 21,320 up
HOTELS
3-star budget hotels, inclusive of F.F. & E. 15,070 - 16,630 4,930 - 5,700 20,000 - 22,330
5-start luxury hotels, inclusive of F.F. & E. 21,470 up 5,330 - 6,550 26,800 up
INDUSTRIAL
6,980 - 7,410 1,750 - 2,330 8,730 - 9,740
15 kpa (300 lb.) loading 7,640 - 8,590 2,000 - 2,580 9,640 - 11,170
OTHERS
Carparks, above ground 6,210 - 6,480 1,300 - 2,050 7,510 - 8,530
Primary and secondary schools 9,120 - 9,330 2,050 - 2,850 11,170 - 12,180
International schools 10,960 - 11,680 3,000 - 3,950 13,960 - 15,630
Student hostels 8,790 - 10,060 3,150 - 3,950 11,940 - 14,010
Sports clubs inclusive of F.F. & E. 15,270 - 16,970 5,350 - 6,900 20,620 - 23,870
Average standard office, high rise
Light duty flatted factories, 7.5 kpa (150lb.) loading
Heavy duty flatted factories and warehouses,
M&E COSTS FOR HONG KONG
BUILDING TYPE
HK$/m
2
MECHANICAL
SERVICES
ELECTRICAL
SERVICES
FIRE
SERVICES
LIFTS/
ESCALATORS
HYDRAULIC
SERVICES
TOTAL
SERVICES
DOMESTIC
Public rental housing, high rise - - 450 - 550 75 - 120 200 - 250 320 - 430 1,045 - 1,350
Private housing estates, high rise 650 - 850 850 - 1,050 75 - 120 330 - 550 550 - 750 2,455 - 3,320
Private luxury apartments, high rise 1,100 - 1,300 1,050 - 1,300 75 - 120 450 - 650 650 - 850 3,325 - 4,220
Terraced houses 850 - 1,100 850 - 1,050 55 - 110 - - 500 - 600 2,255 - 2,860
Individual prestige houses 850 - 1,400 1,050 - 1,500 55 - 110 - - 500 - 600 2,455 - 3,610
OFFICE/COMMERCIAL
1,600 - 1,950 1,300 - 1,650 430 - 550 550 - 750 270 - 380 4,150 - 5,280
1,900 - 2,350 1,600 - 1,950 430 - 550 650 - 900 270 - 380 4,850 - 6,130
Average standard shopping centres 1,950 - 2,150 1,400 - 1,600 430 - 550 650 - 750 270 - 380 4,700 - 5,430
Prestige shopping centres 1,950 - 2,400 1,600 - 1,950 430 - 550 650 - 850 270 - 380 4,900 - 6,130
HOTELS
3-star budget hotels, inclusive of F.F. & E. 1,750 - 1,950 1,500 - 1,750 430 - 550 450 - 550 800 - 900 4,930 - 5,700
5-start luxury hotels, inclusive of F.F. & E. 1,850 - 2,150 1,750 - 2,150 430 - 550 450 - 650 850 - 1,050 5,330 - 6,550
INDUSTRIAL

(150 lb.) loading 380 - 500 450 - 650 250 - 300 450 - 550 220 - 330 1,750 - 2,330
warehouses, 15 kpa (300 lb.) loading 380 - 500 650 - 850 250 - 300 500 - 600 220 - 330 2,000 - 2,580
OTHERS
Carparks, above ground 200 - 550 450 - 650 250 - 300 250 - 350 150 - 200 1,300 - 2,050
Primary and secondary schools 550 - 850 850 - 1,050 250 - 350 150 - 250 250 - 350 2,050 - 2,850
International schools 1,300 - 1,600 1,050 - 1,400 250 - 350 150 - 250 250 - 350 3,000 - 3,950
Student hostels 650 - 850 1,400 - 1,600 350 - 450 150 - 250 600 - 800 3,150 - 3,950
Sports clubs inclusive of F.F. & E. 2,500 - 3,000 1,800 - 2,500 450 - 600 250 - 350 350 - 450 5,350 - 6,900
Light duty flatted factories, 7.5 kpa
BUILDING COST TRENDS IN HONG KONG
Historical TPI values from 1970 onwards available at www.dlsqs.com.
* Provisional
Source : Architectural Services Department, Hong Kong, SAR
Refer to www.archsd.gov.hk for further information.
* Up to Q2 only
YEAR
INDEX
(Base = 100, at Year 1970)
Q1 Q2 Q3 Q4
2000 1,079 1,057 1,040 1,020
2001 990 960 945 935
2002 915 890 875 840
2003 855 878 895 895
2004 940 952 933 930
2005 945 955 963 970
2006 970 980 985 990
2007 1,020 1,074 1,175 1,150
2008 1,239 1,360 1,355 1,281
2009 1,245 1,242 1,253 1,273
2010 1,297 1,315 1,342 1,367
2011 1,385 1,425 1,452 1,476*
YEAR
INDEX
(Base = 100, at Year 1970)
Q1 Q2 Q3 Q4
2000 959 873 858 844
2001 862 842 807 721
2002 687 742 692 733
2003 720 723 722 681
2004 685 712 704 701
2005 711 716 718 697
2006 714 730 751 789
2007 821 859 906 998
2008 1,118 1,305 1,401 1,262
2009 1,074 983 1,111 1,107
2010 1,134 1,161 1,249 1,266
2011* 1,273 1,320
* 1/11 to 8/11 only
Source : Civil Engineering and Development Department, Hong Kong, SAR
Refer to www.cedd.gov.hk/eng/index.htm for further information.
YEAR
HYD CONST. COST
INDEX
(Nov. 1975 Value = 100)
CEDD CIVIL
ENGINEERING
WORKS INDEX
(1980 Value = 100)
2000 844 419
2001 838 416
2002 839 416
2003 848 419
2004 871 428
2005 869 429
2006 886 436
2007 917 450
2008 1,031 500
2009 950 461
2010 989 481
2011* 1,061 518
LABOUR INDEX IN HONG KONG
Figures above are the quarterly average of the monthly indices
Source: Census and Statistics Department, Hong Kong, SAR
Refer to www.censtatd.gov.hk for further information.
*
Up to Q2 only
YEAR
INDEX
(Base = 100, at June 1995)
Q1 Q2 Q3 Q4
2000 152 153 154 154
2001 152 152 152 151
2002 150 150 149 148
2003 147 146 146 143
2004 143 140 140 138
2005 137 136 133 132
2006 131 133 134 136
2007 137 135 131 130
2008 129 128 128 129
2009 129 128 129 130
2010 131 131 131 132
2011*
133 134
MATERIAL PRICES IN HONG KONG
GALVANIZED MILD STEEL ANGLE
REBAR
SAND
ORDINARY PORTLAND CEMENT
Source: Organization of the Petroleum Exporting Countries (OPEC)
Refer to www.opec.org for further information.
Source: International Monetary Fund
Refer to www.imf.org for further information.
CRUDE OIL
COPPER GRADE A
ESTIMATING RULES OF THUMB AND DESIGN
NORMS FOR HONG KONG
CFA TO GFA RATIO
Building Type CFA : GFA
Residential 1.15 to 1.25 : 1
1.15 to 1.25 : 1
Hotel 1.30 to 1.45 : 1
FUNCTIONAL AREA DISTRIBUTION IN 5-STAR HOTELS
Functional Area % of Total Hotel CFA
Front of House 15 - 20%
Guestroom Floors 50 - 60%
Back of House 25 - 30%
DIMENSIONS OF TYPICAL GRADE A OFFICE SPACE
Component Dimension
Distance from curtain wall to
core wall 9 - 13 m
Population 9 m
2
usable floor
area/person
Average waiting interval for lifts 30 - 40 seconds
DENSITY OF BASIC MATERIALS FOR STRUCTURE
Material Density
Concrete 2,400 kg/m
3
Cement 1,450 kg/m
3
Sand 1,600 kg/m
3
Aggregate 1,600 kg/m
3
Steel 7,843 kg/m
3
AVERAGE LOADS VOLUME
Lorry (24 ton) 10.0 m
3
Concrete truck (24 ton) 5.5 m
3
Barge 200 - 1,450 m
3
AVERAGE PILING RATIO - BORED PILES
Building Type m
2
CFA / m
2
cross
section area of piles
Residential 200 - 300
200 - 250
Hotel 200 - 300
AVERAGE PILING RATIO - DRIVEN H-PILES
Building Type m
2
CFA / No. of piles
Residential 50 - 90
50 - 80
Hotel 50 - 90
AVERAGE PILING RATIO - PRE-BORED H-PILES
Building Type m
2
CFA / No. of piles
70 - 110
Hotel 70 - 120
All pile ratios are for high-rise buildings with normal soil
conditions.
BUILDING STRUCTURE - CONCRETE RATIO
0.4 m
3
/m
2
to 0.5 m
3
/m
2
Reinforcement
AVERAGE EXTERNAL WALL/FLOOR RATIO
Residential Apartments 1.0 m
2
/m
2
0.4 m
2
/m
2
Industrial 0.4 m
2
/m
2
Office / Commercial
Office / Commercial
Office / Commercial
Office / Commercial
Concrete/floor area
Formwork/floor area 2.2 m
2
/m
2
to 3.0 m
2
/m
2
160 kg/m
3
to 250 kg/m
3
Office, Hotel
AVERAGE INTERNAL WALL/FLOOR RATIO
2
/m
2

0.5 m
2
/m
2
Hotel 1.5 m
2
/m
2
The above ratios are indicative and for reference purposes
only. They do not account for buildings with special
shapes, configurations or particularly small foot prints.
AVERAGE LIGHTING LEVEL
Building Type Lux
Residential 300
500
Retail 400
Hotel 300
School 300 - 500
AVERAGE POWER DENSITY
Building Type VA/m
2
CFA
70
Retail 300 - 400
Hotel - Accommodation 30
Hotel - F&B Area 550
School 50
AVERAGE COOLING LOAD
Building Type m
2
Cooling Area/RT
Residential 18 - 23
14 - 18
Retail 12-14
Hotel 23
School 23
DIMENSIONS OF PARKING SPACES
Minimum
Type of Vehicle Length Width Headroom
Private Cars and
Taxis 5 m 2.5 m 2.4 m
Light Goods Vehicles 7 m 3.5 m 3.6 m
Medium/Heavy
Goods Vehicle 11 m 3.5 m 4.7 m
Container Vehicles 16 m 3.5 m 4.7 m
Coaches and Buses 12 m 3.5 m 3.8 m
Light buses 8 m 3 m 3.3 m
Minimum headroom means the clearance between
the floor and the lower most projection from the ceiling
including any lighting units, ventilation ducts, conduits
or similar
INDICATIVE DIMENSIONS FOR SPORTS GROUNDS
Length Width
Tennis Court 40 m 20 m
Squash Court 10 m 6.4 m
Basketball Court 34 m 20 m
Volleyball Court 36 m 20 m
Badminton Court 20 m 10 m
Ice Rink 61 m 26 m
Soccer Pitch 120 m 90 m
The above dimensions are for a single court with
appropriate clearance. No spectator seating or support
area has been allowed.

Office
Office
Office
Office
CONSTRUCTION ACTIVITY IN HONG KONG
* 1/11 to 9/11 onl y
#
As from January 2003 onwards, statistics by Buildings Department
on "Consent to Commence" are published with 2 sub-divisions, viz.
"First Submission" and "Major Revision". Details can be found in
the Buildings Department's "Monthly Digest".
YEAR
COMPLETED
m
2
CONSENT TO
COMMENCE
m
2
2000 1,515,000 1,850,000
2001 1,354,000 1,388,000
2002 1,908,000 1,372,000
2003
#
1,587,000 1,683,000
2004
#
1,720,000 1,115,000
2005
#
1,227,000 1,476,000
2006
#
1,389,000 1,398,000
2007
#
1,030,000 1,539,000
2008
#
1,097,000 997,000
2009
#
815,000 1,075,000
2010
#
1,139,000 1,210,000
2011
#
* 750,000 791,000
Buildings Department, Hong Kong , SAR
Refer to www.censtatd.gov.hk and www.bd.gov.hk for further information.
CONSTRUCTION VALUE IN HONG KONG
* 1/11 to 9/11 only
YEAR
VALUE IN NOMINAL
TERMS
HK$ MILLIONS
VALUE IN CONSTANT
(2000) MARKET PRICE
HK$ MILLIONS
2000 122,071 114,691
2001 113,986 111,385
2002 106,000 108,677
2003 99,032 106,274
2004 93,171 100,615
2005 90,851 98,275
2006 90,230 96,269
2007 92,866 96,844
2008 99,599 97,024
2009 100,944 93,683
2010 111,274 100,278
2011*
91,332 78,106
FIREE RECORDALS TRACKER: NOVEMBER
2011 UPDATE
Since May 2007, any injection of foreign capital in foreign-
invested real estate enterprises (FIREEs) must be recorded with
the PRC Ministry of Commerce (MOFCOM). These FIREE
recordals provide a useful perspective on the trend and pace of
new foreign capital inflow into the China real estate sector. How-
ever, the FIREE recordal statistics do not disclose the actual
amount of foreign capital involved in each transaction.
Baker & McKenzie has been tracking FIREE recordals announced
by MOFCOM since May 2007. Set out below are some FIREE
recordal statistics and data current up to the end of November
2011. In summary:
The total number of FIREE recordals for November 2011 was
95, up from 60 in October 2011.
The total number of FIREE recordals in 2008, 2009 and 2010
were 1,051, 991 and 1,094 respectively.
Since May 2007, cumulatively, there have been 5,614 FIREE
recordals up to the end of November 2011. This includes 2,486
cases of new project operating entities being established, 2,562
cases of capital increase or M&A transactions (involving capital
increase) related to existing project operating entities, and 238
cases of M&A transactions which do not involve any capital
increase.
1. FIREE recordals: monthly from 1 Jan 2009 to 30
Nov 2011:
2. Cities with the highest number of FIREE
recordals from May 2007 to Nov 2011:
3. Types of FIREE recordals from May 2007 to Nov
2011:
About the FIREE Recordal Regime
The regulatory regime for recording foreign-invested real estate
enterprises was first established in May 2007 by MOFCOM and
the State Administration of Foreign Exchange (SAFE). This
FIREE recordal regime was part of a scheme of regulatory mea-
sures introduced between 2006 to 2007 to monitor and control
foreign investment in the real estate sector at a time when the
central government considered the real estate sector to be over-
heated. This regime controls all types of foreign capital inflow
being injected into the real estate sector for purposes such as the
setting up of new entities, capital increases and mergers & acqui-
sitions. Foreign capital flowing into China cannot be converted
into Renminbi (Chinas legal currency) unless and until the
FIREE recordal process has been completed with MOFCOM
and SAFE.
Since July 2008, the provincial-level commerce authorities have
been charged with the primary responsibility of vetting the legal
compliance of FIREE-related transactions. MOFCOM reserves
the right to conduct random checks on the recordals filed by the
provincial-level commerce authorities. Generally, within one to
two weeks of receiving an electronic submission from a
provincial-level commerce authority, MOFCOM will release the
new FIREE recordal on its public website. Only then can the local
bureau of SAFE and the local commercial bank credit the foreign
currency funds into the accounts of the transaction parties con-
cerned. In December 2008, MOFCOM further simplified the local
recordal procedures such that the general office of the provincial
governemnt is no longer required to jointly endorse the recordal
form with the provincial-level commerce authority.
In December 2010, MOFCOM announced Notice 1542, which
requires local bureaus of MOFCOM to use the FIREE recordal
regime to slow down new foreign investment into the PRC real
estate sector.
Provided by :
Mr. Rico Chan Ms. Barbara Li
Partner Partner
+852 2846 1971 +86 10 6535 3824
rico.chan@bakermckenzie.com barbara.li@bakermckenzie.com
Baker & McKenzie Hong Kong Office Baker & McKenzie Beijing Office
HONG KONG GENERAL CONSTRUCTION
INSURANCE
This section provides general information regarding construction
insurance arrangements in Hong Kong.
It is common place for Hong Kong construction contracts to con-
tain provisions as to insurances such as Employees Compensa-
tion Insurance, Third Party Liability Insurance, Works Insurance
and, on occasion, Professional Liability Indemnity Insurance. For
employers, the insurance placement ensures that the contractual
indemnities are backed by a financial institution that can afford to
pay. For contractors, it provides a certain degree of protection to
ensure that he has the means to pay in the event of mishaps.
The insurances may be effected by the contractor (Contractor
Controlled Insurance Programme or CCIP) or be taken out by the
employer (Employer Controlled Insurance Programme or ECIP).
CCIP tends to be the most common insurance arrangement in
Hong Kong, since the contractor is in control of all site operations
and in a better position to manage its own site safety / risk. As a
poor safety record will count against the contractor in premiums
negotiation in the procurement of insurance, CCIP provides an
incentive for better safety / risk management. On the other hand,
ECIP placement leaves the control of the insurance programme in
the hands of the employer, thereby offering the advantage of pro-
viding comprehensive insurance coverage on a project-wide basis
and hence minimizing overlaps and gaps in insurance coverage.
Employees Compensation
Section 40(1) of the Employees Compensation Ordinance states
that no employer shall employ any employee unless there is a
policy of Employees Compensation Insurance in place. The maxi-
mum penalty for failing to comply with HK$100,000.
Under the Ordinance, the principal contractor shall take out insur-
ance for his employees and all of the employees of subcontractors
with a limit of indemnity of HK$200 million per event (or HK$100
million if the number of employees is less than 200).
Since an injured worker could attempt to sue the employer, the
employer will want to ensure the contractor has taken out insur-
ance in joint names with the employer.
Contractors' All Risks Insurance
A Contractors' All Risks policy generally comprises (i) Third Party
Insurance which covers injury to persons (except the Contractors
own workmen) or damage to property (other than the Works), due
to the carrying out of the Works which may or may not be caused
by a default of the contractor. The policy is normally subject to a
maximum reimbursement per incident but unlimited in the number
of incidents, (ii) Contract Works Insurance which covers damage
caused to the Works itself by risks not excluded from the policy
and (iii) Plant & Equipment Insurance which covers the
contractors plant and equipment used in the Works. Plant &
Equipment Insurance is not normally required under the contract
conditions and is voluntarily purchased by the contractor.
ACMV COSTS FOR VARIOUS DESIGNS
AND DEVELOPMENTS IN HONG KONG
Professional Indemnity Insurance
For construction contracts involving contractors design, it is not
uncommon for the employer to require the contractor and his
design consultants and independent checking engineers to obtain
insurance to cover their liability for design. For Government Con-
tracts, the Professional Indemnity Insurance shall cover the con-
tractor's liability for design generally for the construction period
and a further 6 years.
SPECIFIED FORMS FOR BUILDINGS ORDINANCE
OR REGULATIONS FOR HONG KONG
FORM NO. PURPOSE
RELEVANT
SECTION OF
REGULATION
BA1 Application for inclusion in the authorized persons' register / structural engineers' register / geotechnical engineers' register. BOs 3(6)
BA1A
Application for retention of name in the authorized persons' register / structural engineers' register / geotechnical
engineers' register.
BOs 3(9B)
BA1B
Application for restoration of name to the authorized persons' register / structural engineers' register / geotechnical
engineers' register.
BOs 3(12)
BA2 Application for registration as a general building contractor / specialist contractor. BOs 8B
BA2A Application for renewal of registration as a registered general building contractor / registered specialist contractor. BOs 8C(2)
BA2B Application for restoration of name to the register of general building contractors / specialist contractors. BOs 8D(2)
BA2C
Ordinance for a registered general building contractor / registered specialist contractor.
BOs 8B
BA4 Notice of appointment of authorized person and/or registered structural engineer and/or registered geotechnical engineer. B(A)R 23(1A)
BA5 Application for approval of plans of building works and/or street works, and certificate of preparation of plans. B(A)R 29(1) & 18A
BA6 B(A)R 18
BA7 Notice of urgent works required as a result of accident or emergency. BOs 19(3), B(A)R 28
BA8 Application for consent to the commencement and carrying out of building works or street works. B(A)R 31
BA9 Application for renewal of consent to the carrying out of building works or street works. BOs 20(2)
BA10
Notice of appointment of registered contractor, notice of commencement of building works or street works and undertaking
by registered contractor.
B(A)R 20
BA11
in respect of that part of the building works or street works carried out by the registered contractor.
B(A)R 24
BA12
and application for temporary occupation permit in respect of such building or part.
B(A)R 25, BOs 21(2)
BA13 B(A)R 25, BOs 21(2)
BA14 B(A)R 25 & 26
BA14A B(A)R 25
BA15 Notice of intended material change in the use of a building. BOs 25(1)
BA16
made thereunder.
BOs 42(2)
BA17 Application for permit to erect a temporary building. B(P)R 51
BA18 Application for permit to erect a contractor's shed. B(P)R 53(1)
BA19 Application for permit to erect hoardings, covered walkways or gantries. B(P)R 64
BA20 Notice of technically competent person or persons appointed to supervise demolition works. B(DW)R 8(3)
BA21
Notice of nomination by authorized person or registered structural engineer or registered geotechnical engineer of
another authorized person or registered structural engineer or registered geotechnical engineer to act in his stead during
temporary inability to act.
B(P)R 23(2)
BA22 Application for authorization to carry out and/or maintain groundwater drainage works. BOs 28B(1)
BA23 Application for grant/renewal of licence for an oil storage installation. B(OSI)R 6(1) & 7(3)

BA24
/ registered general building contractor / registered specialist contractor.
B(A)R 45
Source : Buildings Department, Hong Kong, SAR. Refer to www.bd.gov.hk for further information.
Application for approval of technical director / other office / person appointed to act for the purposes of the Building
Stability certificate of authorized person and/or registered structural engineer.
Notice from a registered contractor on ceasing to be appointed in respect of building works or street works and certificate
Certificate on completion of building works resulting in a new temporary building, a new building or part of a new building
Certificate on completion of demolition works
Certificate on completion of building works not resulting in a new building or street works.
Certificate on completion of building works resulting in a new building and application for permit to occupy such building.
Application for modification of and/or exemption from the provisions of the Buildings Ordinance and/or Regulations
Notification to the Building Authority of change of business address of authorized person / registered structural engineer
SUMMARY OF BUILDING REGULATIONS FOR
HONG KONG
Source: Buildings Ordinance, Hong Kong, SAR
Refer to www.legislation.gov.hk for further information.
DESCRIPTION
NUMBER OF
REGULATIONS
Administration 48
Appeal 14
Construction 93
Demolition Works 13
6
Oil Storage Installations 12
Planning 72
Private Street and Access
Roads
28
Refuse Storage Chambers and
Chutes
25
Standards of Sanitary Fitments,
Plumbing, Drainage Works and
Latrines
91
Ventilating Systems 7
Energy Efficiency
PERCENTAGE SITE COVERAGE AND PLOT
RATIOS FOR HONG KONG
OPEN SPACE ABOUT DOMESTIC BUILDINGS
Item Class of site Open space required
1. Class A site
Not less than one-half of
the roofed-over area of the
building
2. Class B site
Not less than one-third of
the roofed-over area of the
building
3. Class C site
Not less than one-quarter
of the roofed-over area of
the building
DEFINITION
Class A Site : Not being a class B or class C site, that abuts
on one street not less than 4.5 m wide or on
more than one such street.
Class B Site : A corner site that abuts on 2 streets either
of which is less than 4.5 m wide.
Class C Site : A corner site that abuts on 3 streets none of
which is less than 4.5 m wide.
Height of
Building
in metres
DOMESTIC BUILDINGS
Percentage site
coverage
Plot Ratio
Class
A
site
Class
B
site
Class
C
site
Class
A
site
Class
B
site
Class
C
site
Not over 15 m 66.6 75 80 3.3 3.75 4.0
15 m to 18 m 60 67 72 3.6 4.0 4.3
18 m to 21 m 56 62 67 3.9 4.3 4.7
21 m to 24 m 52 58 63 4.2 4.6 5.0
24 m to 27 m 49 55 59 4.4 4.9 5.3
27 m to 30 m 46 52 55 4.6 5.2 5.5
30 m to 36 m 42 47.5 50 5.0 5.7 6.0
36 m to 43 m 39 44 47 5.4 6.1 6.5
43 m to 49 m 37 41 44 5.9 6.5 7.0
49 m to 55 m 35 39 42 6.3 7.0 7.5
55 m to 61 m 34 38 41 6.8 7.6 8.0
Over 61 m 33.33 37.5 40 8.0 9.0 10.0
Source: Buildings Ordinance, Hong Kong, SAR
Refer to www.legislation.gov.hk for further information.
NON-DOMESTIC BUILDINGS
Percentage site
coverage
Plot Ratio
Class
A
site
Class
B
site
Class
C
site
Class
A
site
Class
B
site
Class
C
site
100 100 100 5 5 5
97.5 97.5 97.5 5.8 5.8 5.8
95 95 95 6.7 6.7 6.7
92 92 92 7.2 7.4 7.4
89 90 90 8.0 8.1 8.1
85 87 88 8.5 8.7 8.8
80 82.5 85 9.5 9.9 10.2
75 77.5 80 10.5 10.8 11.2
69 72.5 75 11.0 11.6 12.0
64 67.5 70 11.5 12.1 12.6
60 62.5 65 12.2 12.5 13.0
60 62.5 65 15 15 15
CONSTRUCTION COST SPECIFICATION
FOR HONG KONG
The costs for the respective categories given on the previous
pages are averages based on fixed price competitive tenders. It
must be understood that the actual cost of a building will depend
upon the design and many other factors and may vary from the
figures shown.
The costs per square metre are based on construction floor areas
measured to the outside face of the external walls/external perim-
eter including lift shafts, stairwells, balconies, plant rooms, water
tanks and the like.
All buildings are assumed to have no basement (unless otherwise
stated) and to be built on flat ground, with normal soil conditions.
The costs exclude external works, land costs, professional fees,
finance and legal expenses.
The standards for each category of buildings vary from country to
country. Standards representing by the construction costs of other
regions published hereinafter do not necessarily follow those of
Hong Kong.
DOMESTIC
Public rental housing is based on Hong Kong Housing Authority
Non-standard Cruciform Block design.
Private housing estates are based on blocks containing 30-50
storeys, with average unit size not greater than 100 m
2
. Single
glazed windows. Tiled or plastered finishes in general.
Air conditioning, kitchen cabinets and home appliances are
included for private housing estates, private luxury apartments,
terraced houses and prestige houses.
All types of domestic construction include provision of functional
light fittings only and no feature light fittings have been allowed.
Fitting out works and loose furniture are also not included.
OFFICE/COMMERCIAL
Office based on buildings 20-30 storeys high with floor plans mini-
mum 1,000 m
2
per level.I
Average standard offices and shopping centres exclude finishes,
A/C ducting and light fittings to tenants areas.
Prestige offices have curtain wall elevations and granite finishes
lobbies, with raised floor, suspended ceiling, A/C ducting and light
fittings to tenants areas.
INDUSTRIAL
Flatted factories exclude manufacturing equipment, air-
conditioning, electrical distribution systems and special services
provisions to tenants areas.
HOTELS
F.F. & E. includes interior decoration and loose furniture etc. but
excludes pre-opening expenses and hotel operation system and
equipment costs (e.g. cutlery, crockery, linen, uniform, etc.).
Includes 1 level of basement.
OTHERS
Carparks to be multi-storey.
Primary and secondary schools with standard government provi-
sions.
International Schools with upgraded facilities.
Student hostels to university standard.
Sports club to the standard of the Government's indoor recre-
ational centre.
FIT-OUT COSTS FOR HONG KONG
BUILDING TYPE HK$/m
2
HOTELS
Public Areas (Front of House)
:

3-star Hotel 7,600 - 11,500
4-star Hotel 12,000 - 16,000
5-star Hotel 17,000 up
Guest Rooms :

3-star Hotel 6,000 - 7,400
4-star Hotel 7,500 - 10,000
Notes :
1. Includes furniture, floor, wall and ceiling
finishes, drapery, sanitary fittings and
light fittings.
2. Excludes partitioning, M&E works,
building shell, chandeliers, operational
items and equipment (e.g. cutlery,
crockery, linen, television, refrigerator
etc.)., openinig expenses, stage
equipment and computer systems.
OFFICES
4,800 - 7,400
7,500 - 10,500
10,500 up
Notes :
1. Local/Taiwanese/PRC furniture allowed
for general offices
2. Includes furniture, partitioning, electrical
work, minor alteration to air-conditioning,
fire services and suspended ceiling to
suit layout.
3. Excludes telephones, data cabling, office
equipment (e.g. computers, photocopiers,
fax machines, UPS, etc).

BUILDING TYPE HK$/m
2
DEPARTMENT STORES
General department store

6,000 - 9,300
Prestige department store 10,000 up
Notes :

1. Includes electrical work, additional FCU
and minor alteration of fire services to
suit layout.

2. Excludes facade modification, data
cabling, operational items and
equipment (e.g. computers, P.O.S, office
equipment) and opening expenses.
RESTAURANTS
General dining restaurant 7,600 - 15,000
Fine dining restaurant 16,000 up
Notes :
finishes, electrical work, minor
alteration to air-conditioning and fire
services installation to suit layout,
exhaust for kitchen
2. Excludes exhaust flue, operational items
(e.g. cutlery, crockery, linen, utensils,
etc.).

General office
Executive office
Prestige office
UNIT COSTS FOR ANCILLARY FACILITIES
FOR HONG KONG
DESCRIPTION UNIT HK$
SQUASH COURTS
Si ngl e court wi t h gl ass backwal l
including associated mechanical and
electrical services but excluding any
public facilities (enclosing structure not
included).

per court 420,000
TENNIS COURTS

Single court on grade with acrylic
surfacing and complete with chain link
fence.

per court 870,000
surfacing and complete with chain link
fence.

per court 980,000
Extra for lighting. per court 300,000
SWIMMING POOLS
Half Olympic (25m x 10.50m) outdoor
swimming pool built into ground, fully
tiled; complete with 5m wide deck and
associated pool equipment and ozone
system.

per pool 5,500,000
PLAYGROUND EQUIPMENT
Outdoor playground equipment
comprising various activities. per set
250,000
to
650,000
DESCRIPTION UNIT HK$
SAUNAS
Sauna room for 4-6 people complete
with all accessories (enclosing structure
not included).

per room 130,000
STEAM BATHS

Steam bath for 4-6 people complete with
all accessories (enclosing structure not
included).

per room 130,000
GOLF COURSES
(Based on average cost of an 18-hole
golf course)
Excluding associated buildings and
equipment.

per hole
7,000,000
to
13,000,000
GOLF SIMULATOR
Golf simulation system complete with
projector, high impact projection screen,
artificial turf, recording system and
control computer with software (enclosing
structure not included). per set 550,000
Single court on grade with artificial turf
2012 OUTLOOK
China: Riding on the wave of recovery from 2010 and despite
continued volatility in the global economy, the quarters of 2011,
but was clouded by growing uncertainty in the property market
towards the end of the year.
The volume of construction works performed in 2011 grew at
about 25% per annum, close to the rate in each of the preceding
two years. However, the rate of growth for new-start floor areas in
the real estate sector has slowed down slightly. This is likely
because, on the one hand, the build-up of demand prior to the
2010 economic rebound has been released, whilst at the same
time, the central government has taken decisive action to curb
soaring residential property prices.
The Government has adopted a series of measures to reduce
speculative activities by property developers and end-users alike
including purchase limits, credit restrictions, a premium on the
benchmark mortgage rate and higher down payments. Given the
fact the Government has stated its long term goal is to keep prop-
erty prices stable, these measures will likely be in place for some
time. The credit crisis in the US coupled with the sovereign debt
problems in the Eurozone has weakened the global economy,
resulting in a slow-down of fixed asset investment activities across
China. Given these conditions, private sector activity is likely to
stablilise and we are unlikely to see another 2010-style boom any-
time soon.
A positive note is that the Government does not intend to cut the
supply of residential property. In fact, it has committed to provide
36 million affordable public housing units in the coming five years.
Of this, 10 million are to start each year in 2011 and 2012. When
compared to the number of residential units started by the public
and private sectors in 2010 (circa 5.8 million and 13 million
respectively), this new initiative accounts for about half of the total
floor area of all building works. On the face of it, this potential
volume of new public works should be able to outweigh the pos-
sible slowdown in the private sector.
However, the distribution of these 10 million units to various
regions may not be in direct proportion to the scale of construction
capacity in each region. For example, Chongqings construction
output in 2010 was only 2.6% of the whole country, but their allo-
cation of affordable public housing units for 2011 represents 5% of
the countrys annual target (i.e. 500,000). On the other hand, Bei-
jing and Shanghai performed 5.5% and 4.5% of the national total
output in 2010, but are assigned only 200,000 and 260,000 units
respectively. This apparent divergence may be partly explained
by the fact that Beijing and Shanghai have relatively more com-
mercial and infrastructure construction. However, it remains to be
seen if this policy results in more localised variances in construc-
tion costs across the country.
Within the industry, both material prices and labour wages con-
tinur to be influenced by inflation in living and and production
costs. Both the Consumer Price Index and Producer Price Index
had at one stage surged to 3-year highs, before dipping to 1-year
and 2-year lows respectively in November, albeit still in positive
territory. Workers pay rises are also bound by the nationwide
increment in the Statutory Minimum Wage, which is about 20% on
average. However, this has been offset to some extent by material
costs having dipped in the 4th quarter. As a whole, construction
costs have risen about 5% in 2011.
On the back of the Governments proactive housing policy, the
outlook for the industry remains fairly positive. Driven by
increases in labour costs and general inflation, overall construc-
tion costs are forecast to rise by 5% p.a. in both 2012 and 2013.
Hong Kong: Construction activity picked up in 2011, driven by
implementation of the public infrastructure projects and a gradual
recovery in the private residential sector following the 2008 crisis.
With this improved sentiment, private residential have
pressed ahead with new projects. Despite the HKSAR
Governments tightening measures (eg. extra stamp duty for
properties sold within 2 years of purchase, increased down pay-
ments for units over HK$8M) and the banks increased mort-
gage rates, residential construction starts during the first
nine months of 2011 still managed to reach 7,700 units. This sur-
passed the average 6,600 units which started each year from
2008 to 2010. These figures are likely to grow further over the next
few years as a result of the Chief Executives commitment in the
2010/11 Policy Address to supply land for 20,000 private residen-
tial units a year, for the next decade.
Plots of land released by the government for residential use in
2011 could potentially provide up to 12,000 private units. Of which,
6,700 will be built on top of, or adjacent to, existing MTR station
boxes, where most of the foundation works have already been
completed thus allowing an early start on the superstructure
construction. Given that the new-build private residential sector
contributes about 20% of the annual gross output of the construc-
tion industry, it will not be long before this supply translates into
increased construction volume. The likely follow-on effect will be
pressure on tender prices.
Basic construction costs have risen by around 8% in 2011, largely
as a result of escalation in material prices and labour wages
driven by the SARs 15-year-high inflation rate, the weakening of
the US dollar against the Renminbi, and growing demand for
labour.
Overall, the outlook for the industry in 2012 is fairly upbeat,
although continued uncertainty in the US and EU economies
will need to be kept in view. We forecast construction costs will
rise by 8% a year in both 2012 and 2013.
Macau: Construction activity is expected to gather pace in 2012.
One of the bigger projects is the long-awaited construction of
the Macau Light Rail Transit (LRT) system, which is sched-
uled to last for about four years. In addition, the Macau govern-
ment has been busy commissioning new public housing and other
infrastructure works in response to growing economic activity and
demand from the public.
In the entertainment and gaming sector, a number of Cotai proj-
ects, such as Venetian Parcel 3, Macau Studio City, Wynn and the
next phase of Galaxy Macau are scheduled to start in the latter
part of 2012. Given the relatively modest levels of casino con-
struction in the last two years, such increased demand is likely to
put significant pressure on construction labour and material prices
for 2012 and beyond.
Across the boundary with Guangdong, the progress of projects on
the neighbouring Hengqin Island is expected to pick up in the next
few years, especially from private sector investment. Given its
proximity to Macau, it is likely that the work there will have an
effect on Macau's construction prices.
According to the Statistics and Census Service of the Macau Gov-
ernment, as at third quarter 2011, the average daily wages of con-
struction workers was MOP569, representing a 4.6% year-on-
year increase. Similarly, the price index of construction materials
rose by 20.4% year-on-year.
Given the above situation, we predict tender prices are set to
increase by about 8% during 2012.
(1) Building Works
(2) Civil Engineering Works
CONSTRUCTION COST TREND PREDICTION
REGION 2011 2012 2013
China
(1)
+5% +5% +5%
Hong Kong
(1)
+8% +8% +8%
Hong Kong
(2
+8% +8% +6%
Macau
(1)

+7% +8% +8%
PROPERTY COMMENTARY
HONG KONG'S PROPERTY MARKET IN 2011
Economic overview
Hong Kongs economic growth remained stable in 2011 although
the global economy outlook remained unclear amid the outbreak
of the European sovereign debt crisis. Hong Kongs GDP growth
in real terms surged 4.3% in the third quarter, following a gain of
5.1% in tthe first half of 2011.
Visitor arrivals recorded a notable year on year growth of 16.2% in
the first nine months of 2011, mainly driven by the growth in visi-
tors from Mainland China. The value of retail sales also exhibited
strong year-on-year growth of 25.4 % in the period. Meanwhile,
the unemployment rate dropped to 3.3% in the three months to
October, compared with 4.2% in the same period of 2010.
Looking forward, the global economy is expected to become more
recessionary in the coming year and the effect will inevitably spill
over to Hong Kong. As employers may become cautious about
hiring because of the unclear economic outlook, the unemploy-
ment rate in Hong Kong may rise slightly in 2012. The Hong Kong
government has lowered the citys GDP growth forecast for 2012
from 56% to 5%.
Residential
Hong Kong's residential market slowed in 2011 by a series of
regulatory government policies, such as the implementation of
Special Stamp Duty, and credit tightening measures adopted by
local and Mainland banks. The number of residential sales trans-
actionstotaled about 75,300 in the first ten months of the year -
down 33.5% from the same period in 2010. The luxury residential
market was more resilient, with transactions worth HK$10 million
or above dropping a less drastic 14.3% during the same period.
Residential prices experienced minor downward adjustments in
the third quarter, following an upward trend in the first half of the
year. However, the average price of luxury homes by the end of
September 2011 was still 62.4% higher than the level in Novem-
ber 2008, according to Rating and Valuation Department, when
the market was dragged down to its trough by the global financial
crisis. Mass residential prices performed even better and soared
75.7% in September 2011 compared with their trough in Decem-
ber 2008. In the leasing market, the average rent of luxury resi-
dential properties, by the end of September, had risen 42.2% from
its trough in April 2009.
Looking forward, uncertainties in the global economy are
expected to keep the volume of residential sales transactions low
in 2012. Mass home prices are likely to drop about 10-15% in
2012. Luxury residential properties should be more resilient due to
their limited supply, with their prices set to adjust marginally by
less than 10% in 2012.
Office
The Grade-A office sales market continue to grow over the year,
despite the introduction of lower loan-to-value ratios by the gov-
ernment. The average capital value of Grade-A offices rose
20.8% during the first ten months, compared with only 16.9% over
2010. The number of office sales transactions totaled 2,675 in the
first nine months of 2011, up 4.3% from the same period of 2010,
according to the Rating and Valuation Department.
In the leasing market, financial institutions and professional ser-
vices firms scrambled for limited office space in core areas. The
average Grade-A vacancy rate edged down from 3.2% in Decem-
ber 2010 to 2.5% in October 2011.
Aggressive corporate expansions and decreasing vacancies
prompted landlords to raise their asking rents markedly, leading to
a boost in office rents. By the end of November, the average rent
of Grade-A offices witnesses a 21.3% year-to-date growth.
Looking forward, office demand from financial institutions - that
usually favour space in core districts - is likely to slow amid the
eurozone debt crisis. Meanwhile, local firms are also expected to
slow their expansion plans. Grade-A office rents in cire areas will
see mild corrections, while rents in non-core districts will remain
stable with the support of companies moving out from core areas
to these locations to save operation costs.
Retail
Hong Kongs retail property market experienced strong growth in
2011 on the back of robust retail sales and increased tourist arriv-
als, especially those from Mainland China. Amid relatively weak
economies in US and Europe, international brands expanded
aggressively in Hong Kong in order to grab a share of strong
spending from Mainland tourists. Competition for leasing shops in
prime locations was fierce, especially among international luxury
fashion brands and jewellery shops, pushing up rents of prime
street shops by 20.7% year on year in the first three quarter of
2011.
In the sales sector, although retail property sales transactions
dropped 8.5% year on year to 5,169 in the first nine mohts of
2011, their total value grew by 1.1%. In view of the cooling mea-
sures implemented on the residential sector, some investors
turned to acquire quality retail properties for long term growth,
pushing up prime street shop prices by 18.9% in the first three
quarters of the year.
In the coming year, with sustainable retail sales growth and the
continued influx of Mainland tourists, we expect international
retailers will continue to expand in Hong Kong, which would push
up retail rents by another 10% over 2012.
Industrial
Hong Kongs industrial property market continued to recover over
2011, in the aftermath of the global financial tsunami. The
governments new policies to encourage the change of use of
industrial buildings implemented in April 2010, plus the rezoning
of industrial areas proposed in October 2010, helped revitalise the
industrial sales market.
There were 6,617 flatted-factory sales transactions during the first
nine months of 2011, up 15.4% fromt he same period in 2010, with
total consideration rising 45.1% to over HK$24.0 billion. The value
of en-bloc industrial property sales reached about HK$4.6 billion
up to mid-November 2011, up 7.2% from the same period of 2010,
according to our research.
During the first nine months of 2011, prices of flatted factories
grew 23.1%, while their rents increased 11.4%, according to the
Rating and Valuation Department. With prices rising faster than
rents, yields slid to 3.9% in September 2011, compared with 4.6%
a year ago.
By the end of September, the Lands Department had approved 35
applications of change of usage under the revitalisation scheme,
involving the demolition and redevelopment of nine industrial
buildings as well as the wholesale conversion of 26 others, provid-
ing a total gross floor area of 380,000 sq m for non-industrial uses.
We expect the acquisition of industrial buildings for redevelop-
ment and conversion to continue in the coming year, which would
further push up industrial property prices, while their rents would
remain stable.
Provided by :
PROPERTY INDICATORS
HONG KONG GRADE-A OFFICE PRICE
HONG KONG GRADE-A OFFICE VACANCY RATES
HONG KONG GRADE-A OFFICE RENTAL VALUES
HONG KONG GRADE-A OFFICE SUPPLY
Source: Knight Frank
Source: Knight Frank Source: Rating and Valuation Department / Knight Frank
* Oct figure
* Oct figure
* Oct figure
GROSS FLOOR AREA (GFA) CALCULATIONS IN
HONG KONG
FEATURE
BUILDING
(PLANNING)
REGULATION
REMARKS
Accountable Area within outer surface of external walls.
Basement Accountable
Balcony / utility platform
*
Accountable
Non-accountable if for residential buildings and be open on at least 2
sides, max. 50% area grantable.
Curtain wall / cladding Non-accountable
Non- accountable if: 1. The curtain wall system itself does not form part of
the structural system of the parent building; 2. The system does not result
from the outer face of the structural elements does not exceed 300 mm.
External wall finishes (including bay
windows) *
Non-accountable
Precast facades may subject to conditions be excluded from GFA
calculation.
Plant rooms Non-accountable
Staircases and lift shafts Accountable Except staircases and lift shafts solely serving non-accountable areas.
Covered public carparking space Accountable
Covered private carparking space Non-accountable
Applicable only for spaces serving users of the building required under
local standard and built below ground.
Lobby
*
Accountable Concession may be granted for lift lobbies subject to conditions.
Canopy Accountable
Non-accountable when the canopy soley serves as protection against
weather and falling object.
Non-accountable
Accountable
Non-accountable if the covered areas are clearly intended for and designed
as playground or dedicated as public passage.
Covered walkways
*
Accountable
Open-sided covered walkways for common areas in residential
developments may be exempted, subject to the proposed walkways being
not for commercial use.
Loading and unloading bay Non-accountable Applicable if required under local standard/lease and built below ground.
Refuse storage chambers, refuse
storage, refuse chutes, refuse
hopper rooms
Non-accountable
Floor space inside sloping roof Accountable
Covered area on roof-tops Non-accountable Non-accountable for plant rooms and staircases only.
Recreational facilities
*
Accountable Non-accountable subject to conditions.
Spaces for watchmen and
management staff
*
Accountable Non-accountable subject to conditions.
External staircases Accountable Non-accountable if situated in non-accountable areas.
Disclaimer : GFA calculations are subject to various legislation and practice notes. All cases of accountable or non-accountable GFA
are subject to individual conditions. The above presents a brief summary only and users are advised to seek professional
advice from authorized persons. Langdon & Seah herewith disclaims any liability that may arise from unsolicited use
of the information given above.
*
Total concessions of these areas are subject to a cap of 10% of the total GFA and prerequisites with sustainability designs.
General floor area
in any additional floor area at a floor level; 3. The projection of the system
Subject to justification with reasonable plant layouts.
Refuge floor
Space below elevated ground floor
GROSS FLOOR AREA (GFA) CALCULATIONS IN
PRC
FEATURE
NATIONAL STANDARD
- STANDARD
MEASUREMENT FOR
CONSTRUCTION AREA OF
BUILDING
(GB/T 50353-2005)
REMARKS FOR BEIJING, SHANGHAI AND GUANGZHOU
Accountable
Area within outer surface of external insulation.
Shanghai : External insulation is exempted from calculation of plot ratio.
Basement Accountable
1. Beijing: Non-accountable
2. Shanghai : Non-accountable.
3. Guangzhou : Accountable for GFA except where the floor space is
solely for plant rooms or carpark
Balcony / utility platform Accountable
Curtain wall / cladding Accountable Except decorative type of curtain wall.
External wall finishes (including bay
windows)
Non-accountable
Plant rooms Accountable
Staircases and lift shafts Accountable
Covered public carparking space Accountable
Covered private carparking space Accountable
Lobby Accountable
Canopy Accountable Non-accountable subject to width of the canopy not exceeding 2.1m.
Accountable
1. Shanghai : Non-accountable.
2. Guangzhou : Only refuge areas on refuge floow are non-accountable.
Accountable
Non-accountable for GFA if for the usage of walkway, green, public
amenities or similar public function.
Covered walkways Accountable
Loading and unloading bay Accountable Non-accountable if not roofed over.
Refuse storage chambers, refuse
storage, refuse chutes, refuse
hopper rooms
Accountable Non-accountable if not roofed over.
Floor space inside sloping roof Accountable Non-accountable if clear height does not exceed 1.2m.
Covered area on roof-tops Accountable
1. Shanghai : Non-accountable if the area of the construction on roof-
top does not exceed 1/8 of the area of the typical floor.
2. Guangzhou: Staircase, lift lobby and water tank room on roof-tops
are exempted from GFA
Recreational facilities Accountable
Spaces for watchmen and
management staff
Accountable
External staircases Accountable Non-accountable if not roofed over.
Disclaimer : GFA calculations are subject to various legislation and practice notes. All cases of accountable or non-accountable GFA
are subject to individual conditions. The above presents a brief summary only and users are advised to seek professional
advice from authorized persons. Langdon & Seah herewith disclaims any liability that may arise from unsolicited use
of the information given above.
General floor area
Refuge floor
Space below elevated ground floor
COMPOSITE CPI
Note:
The base index (100) applies to the period from October 2009
to September 2010.
Source : Census and Statistics Department, Hong Kong, SAR
* 01/11 to 10/11 only
YEAR INDEX % CHANGE
1995 90.2 9.2%
1996 95.9 6.3%
1997 101.5 5.8%
1998 104.3 2.9%
1999 100.2 -3.9%
2000 96.5 -3.7%
2001 94.9 -1.6%
2002 92.0 -3.1%
2003 89.7 -2.6%
2004 89.3 -0.4%
2005 90.1 1.0%
2006 92.0 2.0%
2007 93.8 2.0%
2008 97.8 4.3%
2009 98.4 0.5%
2010 100.7 2.4%
2011* 105.5 5.2%
EXCHANGE RATES
Approximate rates prevailing on 30 November 2011.
Source : www.exchange-rates.org
Refer also : www.xe.com
COUNTRY CURRENCY HK$1 US$1
Australia Dollar 0.13 1.00
Brunei Dollar 0.17 1.30
Canada Dollar 0.13 1.03
China Renminbi 0.82 6.39
EU (Euro Zone) Euro 0.10 0.75
Hong Kong Dollar 1.00 7.79
India Rupee 6.70 52.18
Indonesia Rupiah 1,177.26 9,170.00
Japan Yen 10.01 77.93
Kazakhstan Tenge 19.05 148.39
Macau Pataca 1.03 7.99
Malaysia Ringgit 0.41 3.19
New Zealand Dollar 0.17 1.31
Pakistan Rupee 11.23 87.47
Philippines Peso 5.61 43.74
Qatar Rial 0.47 3.64
Singapore Dollar 0.17 1.30
South Korea Won 146.63 1,142.14
Taiwan NT Dollar 3.89 30.27
Thailand Baht 4.02 31.32
United Kingdom Pound 0.08 0.64
United States of
America
Dollar 0.13 1.00
Vietnam Dong 2,709.29 21,103.31
CURRENCY CHARTS
STERLING POUND
JAPANESE YEN
AUSTRALIAN DOLLAR
RENMINBI
Source : Hong Kong Monetary Authority
Refer to www.info.gov.hk/hkma for further information
Refer also : www.xe.com ; www.exchange-rates.org
Refer to www.info.gov.hk/hkma for further information
Refer also : www.xe.com ; www.exchange-rates.org
CHANGES IN HONG KONG PRIME RATES
Refer to www.info.gov.hk/hkma for further information.
DATE % DATE %
14 Feb 2000 8.75 23 May 2005 5.75
27 Mar 2000 9.00 05 Jul 2005 6.25
22 May 2000 9.50 22 Jul 2005 6.50
08 Jan 2001 9.00 11 Aug 2005 6.75
05 Feb 2001 8.50 23 Sep 2005 7.00
26 Mar 2001 8.00 03 Nov 2005 7.50
23 Apr 2001 7.50 15 Dec 2005 7.75
21 May 2001 7.00 30 Mar 2006 8.00
03 Jul 2001 6.75 07 Nov 2006 7.75
24 Aug 2001 6.50 20 Sep 2007 7.50
19 Sep 2001 6.00 02 Nov 2007 7.25
04 Oct 2001 5.50 12 Nov 2007 7.00
08 Nov 2001 5.25 13 Dec 2007 6.75
13 Dec 2001 5.125 24 Jan 2008 6.00
08 Nov 2002 5.00 01 Feb 2008 5.75
23 Sep 2004 5.125 20 Mar 2008 5.25
12 Nov 2004 5.00 10 Nov 2008 5.00
21 Mar 2005 5.25
HONG KONG PRIME RATE
HANG SENG INDEX

Refer to

www.aastocks.com

for further information.
TELEPHONE DIRECTORY
Refer to http://tel.directory.gov.hk for further information.
HONG KONG GOVERNMENT
Architectural Services Department
Headquarters Administration Division 2867 3628
Architectural Branch
Advisory & Statutory Compliance
Division 2867 3759
Architectural Drawing Records Unit 2867 3691
Division 1 2867 3935
Site Staff (New Works) 2867 3992

Grade Management Unit 2867 3691
Building Services Branch
Property Services Branch 2773 2217
Quantity Surveying Branch 2867 3298/2867 4597
Structural Engineering Branch 2867 3791
Buildings Department 2626 1616
Census and Statistics Department 2582 4807
Civil Engineering and Development
Department 2762 5111
Customs and Excise Department 2815 7711
Drainage Services Department 2877 0660
Electrical and Mechanical Services
Department 1823
Environmental Protection Department 2594 6308
Fire Services Department 2311 0066
Government Laboratory 2762 3700
Government Property Agency 2594 7604
Highways Department 2926 4111
Housing Department 2712 2712
Labour Department 2717 1771
Lands Department 2231 3294
Planning Department 2231 5000
Rating and Valuation Department 2152 0111
Water Supplies Department 2824 5000
Technical Officer (Architectural)
INTRODUCTION
Davis Langdon & Seah International has been involved in the
publication of construction costs handbooks for countries such
as Hong Kong, Malaysia, Philippines, Vietnam and Singapore
and is also the editor of the Spons Price Book Series.
As in the previous editions, the DLS Handbook India 2012
focuses on the construction cost profile of India and those of the
major cities in Asia.
The handbook is structured to serve as a general reference
guide on construction cost indicators in India.
The information contained in this handbook has been compiled
by Davis Langdon & Seah Consulting India Pvt Ltd. Any further
information and/or if advice relating to particular projects is
required, please contact us at the address given at the end of
this handbook.
INDIAN CONSTRUCTION - AN OVERVIEW
Construction in India has historical significance and finds remark-
able place in Indian history. World wonders such as the Taj
Mahal and ancient temples are classic examples of construc-
tion achievements in ancient times.
During the period of British rule and post Independence India,
the construction industry was dominated by the government
and this domination continued up to the mid 1990s. The subse-
quent change in foreign investment policies accelerated indus-
trialization, foreign investment and subsequent demand for build-
ings and infrastructure.
Indian Construction Industry today is the second largest eco-
nomic activity in the country, followed by agriculture. Construc-
tion with linkage to other industries hasgenerated employ-
ment for more than 40 million people in the country.
The cost structure of the construction industry is principally
dominated by raw material costs and sub-contracting
costs. Raw material cost which is the major cost component,
accounts approximately 30% to 50% of the total cost and sub-
contracting cost accounts approximately 20% to 40%. The con-
sumption of steeland cement by the construction industry has
also shown an increase of 16% and 10% respectively between
2002 and 2007. Prior to the global economic crisis, India has
experienced an unprecedented rise in the price of these two raw
materials resulting in a significant increase in the construction
cost trend. However, prices of these two materials have
reduced considerably in 2009 by up to 20% and 25% respec-
tively, resulting in a downward trend in construction cost. Prices of
these two materials started to increase in early 2010 and cur-
rent material price remains volatile.
The Construction Industry is dependent on investments in the
infrastructure, industrial and real estate sectors. The Planning
Commission has envisaged an outlay of approximately US$
300 billion during the 11th Five Year Plan for infrastructure devel-
opment in the country. These investments would be achieved
through a combination of Public and Public-Private Partnerships.
11th Five Year Plan (2007-2012). The estimate of additional
investment for the 11th Five Year Plan period is given below.
Private Investments in Road 34,000
Expressway Development
220,000
(Modernization/Upgradation)
Railways (Public) 180,000
Railways (Private) 120,000
Civil Aviation 40,000
Ports (Private) 50,000
Freight Corridors for Railways 22,000
Power Generation 420,000
150,000 Housing
ITEM
AMOUNT
RS CRORES
INFRASTRUCTURE DEVELOPMENT
1. Roads
India has 3.3 million kilometers of road out of which 70,000 kilo-
meters comprises national highways. The road network carries
approximately 85% of the total passenger traffic and 70% total
freight traffic. The National Highway Authority of India (NHAI) is
currently implementing an US$ 12 billion national highway devel-
opment projects. Some of the major developments planned by
NHAI are:
Six-laning of the Golden Quadrilateral - 5,846 kms connecting
Delhi-Kolkata-Chennai-Mumbai and;
Four-laning North-South and East-West Corridors 7,300 kms
connecting Kashmir to Kanyakumari including Salem to Cochin
Spur and Silchar to Porbandar; spanning the length and breadth
of the country.
2. Railways
The Indian Railway system is the Worlds fourth largest rails net-
work and the largest in Asia. It comprises of over 100,000 track
kilometers and runs about 11,000 trains everyday carrying an esti-
mated 18 million passengers and 2 million tonnes of freights. A
large proportion of the capital investment is proposed to be raised
through Public-Private Partnerships. Indian Railways is expected
to invest US$ 45.9 billion in the 11th Five Year Plan, triple the
amount envisaged in the 10th Plan.
3. Ports
Considerable private investment has started flowing into the
Indian port sector. A number of existing facilities have been taken
over by private players and many new facilities have also been set
up at existing ports. Two new ports (Mundra and Pipavav in Guja-
rat) have also been constructed by the private sector.
India currently has 12 major ports and 200 minor/intermediate
ports spread across the vast coastline of 7,517 kms. They handle
almost 90% of Indias total foreign trade.
The current handling capacity of the ports in the country is around
600 million tonnes. This has been achieved through construction
of a new port at Ennore and a mechanized coal handling facility at
Paradip. Thesetwo facilities entailed an investment of around US$
394 million.
According to government estimates, private sectorinvestment in
ports may exceed US$ 18 billion within a decade.
The Government of India targets to increase cargo handling
capacity of major ports by two folds to reach 1.5 billion metric
tonnes (MT) by the year 2012.
BASIC COST OF KEY MATERIALS
* Material rates are nett of VAT

RATE*
MATERIAL UNIT

[Rs]
Reinforcement Steel MT 42,000
Ordinary Portland Cement Bag 5 8 2
20mm Aggregate m
3
0 5 8
Sand m
3
1,200
Shuttering Plywood m
2
5 2 6
200mm Solid Concrete Block No 6 3
(400mm x 200mm x 200mm)
100mm Solid Concrete Block No 5 2
(400mm x 200mm x 100mm)
200mm Hollow Concrete Block No 5 3
(400mm x 200mm x 200mm)
100mm Hollow Concrete Block No 5 2
(400mm x 200mm x 100mm)
Teak Wood m
3
110,000
Sal Wood m
3
33,000
Vitrified Tiles m
2
0 0 5
Ceramic Tiles m
2
0 0 4
Emulsion Paint Ltr 0 0 2
The prices of cement and reinforcement steel are highly volatile
and fluctuate very frequently. The charts below provide the price
variation of these two materials for the last six months:
Cement Price Fluctuation
Reinforcement Price Fluctuation
300
295
290
285
280
275
270
Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11
R
s
.

/

5
0
k
g

b
a
g
Months
Cement
(Grade 53)
Cement Price Fluctuation
45,000
44,500
44,000
43,500
43,000
42,500
42,000
41,500
41,000
40,500
R
s
.

/

M
T
Months
Reinforcement
Steel
Reinforcement Steel Price Fluctuation
Description
Rs. / MT
Reinforcement Steel 41,500 41,350 44,385 41,600 42,689 41,500
Description
Rs. / 50kg bag
Cement (Grade 53) 275 285 280 280 275 295
WAGES OF KEY PERSONNEL

Y A D / E T A R
PERSONNEL

[Rs]
Skilled Mason 400
Semi-Skilled Mason 300
Tiling Mason 450
Bar Bender 375
Carpenter 425
Painter 400
Welder 400
Electrician 400
Plumber 400
Unskilled Labour 250
4. Airports
India has 126 airports: of these 12 are designated as international
airports. The top 5 airports in the countryhandle 70% of the pas-
senger traffic.
The Government has embarked on a number ofupgrading and
new airport development projects which have been made avail-
able for FDI. Key factors driving airport development are listed
below:
Passenger traffic is projected to grow at a Compound Annual
Growth Rate (CAGR) of over 15% in the next 5 years. Expecting
100 million passengers per annum (p.a) over the next 5 years
Cargo traffic to grow at approximately 20% p.a. over the next five
years
Favourable demographics and rapid economic growth point to a
continued boom in domestic passenger traffic and international
outbound traffic
Indian private airline accounts for around 60% of the domestic
passenger traffic
Estimated investment of about Rs.40,000 Crores (US$ 9 billion)
for airport development over the next 5 years
100% FDI is permissible in existing airports; FDI beyond 74%
requires FIPB approval
100% tax exemption for airport projects for a period of 10 years
5. Power
India presently has a huge shortfall in power generating require-
ments to support the economic and population growth. Some key
features are as follows:
Transmission and Distribution Network of 5.7 million circuit km
the 3rd largest in the world
57% of the installed generation capacity comes from coal-fired
plants, followed by 25% from hydro power, 10% gas-based, 3%
from nuclear energy and 5% from renewable sources
100% FDI is permitted in Generation, Transmission and Distribu-
tion
Total investment opportunity of about US$ 200 billion over a
seven year horizon
Investment in Different Sectors
Scope of Investment Required in Different
Sectors (5 to 7 Years)
Sectors
U
S
$

B
i
l
l
i
o
n
US$ Billion
0
10
20
30
40
50
60
70
80
R
o
a
d
R
a
i
l
w
a
y
s
A
i
r
p
o
r
t
P
o
r
t
P
o
w
e
r
T
e
l
e
c
o
m
F
o
o
d

P
r
o
c
e
s
s
W
a
t
e
r

I
n
f
r
a
.
PROCUREMENT MODEL AND CONTRACT
FORMS
In both public and private sectors, most of the construction proj-
ects are procured based on competitive tendering.
The following are the commonly adopted procurement routes in
India:
1. Conventional Contract based on Bills of Quantities/ Lump
Sum
2. Design and Build Contract
3. Construction Management Contract
4. Management Contract
Commonly used contract forms are:
FIDIC suite of Contracts (EPC/Turnkey/Short Form)
Indian Institute of Architects Forms
Central Public Works Department Forms
Municipal Bodies Forms
CHALLENGES FACING REAL ESTATE AND
CONSTRUCTION INDUSTRIES
Land Ownership and Title Issues
High Transaction Cost
Slow Approval Process
Liquidity Risk
Property Market Transparency Risk
Supply and Demand on Material and Labour
Shortage of Technical Supervisory/Skilled Labour
PREAMBLES
The construction costs for the respective categories given on the
following pages are average costing at 4th Quarter 2011. They
are based on interpolation of competitive tenders received.
The construction cost serves as a guide for preliminary cost
appraisals and budgeting. It must be understood that the actual
cost of a building will depend upon the design and many other
factors and may vary from the figures shown. The costs per
square metres are based on construction floor areas measured to
the outside face of the external walls/external perimeter including
lift shafts, stairwells, plant rooms, water tanks and the like.
All buildings are assumed to have no basements (unless other-
wise stated) and are built on flat ground, with normal soil condi-
tions and minimal external works. The costs exclude the following:
Professional fees
Authorities processing and approval charges
Land cost
Financing charges
Administrative expenses
Legal costs and disbursements
Demolition of existing building/s
Loose furniture and fittings
Operating equipment
Cost escalation
Value Added Tax (VAT) and Service Tax
CONSTRUCTION COSTS FOR INDIA
Exchange Rate US$1 = Rs.50/-

COST
TYPES US$/m
2

Rs/m
2
RESIDENTIAL
Detached houses and 20,441 409
bungalows
Terraced houses 15,007 300
Avg. std. apartments, high rise 17,336 347
Luxury apartments, 21,955 439
OFFICE/COMMERCIAL
Avg. std. offices, high rise 20,295 406
Prestige offices, high rise 25,704 514
Shopping centres 23,512 470
INDUSTRIAL
Light duty flatted factory 13,183 263
factories
Heavy duty flatted 15,667 313
factories and warehouses
The foregoing construction costs are based on Bangalore.

Single storey 12,622 252
conventional factories
Owner operated 15,840 317
factories, low rise
HOTEL
Resort hotels 36,180 723
3-star budget hotels
40,888 817
inclusive of F.F. & E.
5-star hotels inclusive 79,600 1,588
of F.F. & E.
OTHERS
Basement car parks 12,712 254
(<3 levels)
Elevated car parks 11,080 222
(<4 levels)
Primary and 8,907 178
secondary schools
Student hostels 11,385 228
Sports clubs inclusive 30,255 605
of F.F. & E.
M&E COSTS FOR INDIA

ACMV ELECTRICAL
TYPES

Rs/m
2
Rs/m
2
RESIDENTIAL
Detached houses 1,140 1,460
Avg. std. apartments, high rise 900 1,100
Luxury apartments, high rise 1,200 1,450
OFFICE
Avg. std. offices, high rise 3,700 4,000
Prestige offices, high rise 4,050 4,475
INDUSTRIAL
Flatted factories 2,540 2,675
Warehouses 2,800 3,050
HOTELS
Resort hotels 2,310 2,520
3-Star budget hotels 4,050 4,400
5-Star luxury hotels 4,650 4,850
OTHERS
Elevated car parks - 475
Basement car parks 520 500
Shopping centres 3,250 3,850
OFFICE M&E COST COMPONENTS
Electrical
Sub-station, HV & LV switchgear
MATV/SCV system
Underfloor trunking system
CCTV/Guard patrol system
Power transformer
Public address system
Intercom/Card access system
LV mains & sub-mains distribution system
Lightning protection system
Luminaries
Earthing system
Final sub-circuit for lighting & power points
External lighting
Standby generator
Telephone distribution system
5%
4%
8%
3%
11%
1%
1%
10%
9%
1%
1%
1%
12%
13%
20%
ACMV
Chilled water pumps and pipeworks
Cooling towers
Split units and ductworks
Chilled water AHU/FCU and ductworks
Electrical and automatic control works
Chiller plant
Mechanical ventilation fan system and
ductworks
Condenser water pumps and pipeworks
1% 4%
8%
10%
12%
15% 15%
35%
Plumbing and Sanitary
Aboveground drainage piping system
Underground drainage piping system
Installation and connection of waste
water piping to sanitary wares
Water works
Water pumps
Cold water distribution piping
Installation and connection of water piping
to sanitary wares
19%
11%
7%
2%
27%
6%
28%
Fire Protection
Automatic fire alarm
Fire extinguisher
External fire hydrant
Sprinkler
Hose reel
Wet riser
Dry riser
7%
13%
3%
3%
10%
22%
42%
REAL ESTATE DEVELOPMENT
The real estate development in India has grown considerably since
2003 and peaked in 2007. The sector development slowed down in
2008 as a result of the global economic turmoil and showed a dras-
tic slowdown in the first half of 2009. Faced with reduction in
demand, housing prices dropped drastically. The early 2010
showed a comeback in the property sector and the outlook for the
sector currently looks promising; however the uncertainties in the
global economy may affect the FDI investments in the real estate
sector.
Residential space constitutes of almost about 80% of the real
estate developed in India. The IT/ITES sector and the organized
retail industry would require an estimated space of 150 million sq ft
and 200 million sq ft respectively pan-India in the next 3 years. Hos-
pitality sector also shows similar increase in requirements.
The key demand drivers in the various real estate segments are:
Indias emergence as an attractive off-shoring destination for soft-
ware development
Availability of highly skilled manpower
High disposable income and increasing aspirations for quality
residential space
Entry of global brands and professional players
Improvement in infrastructure
Real estate as an investment option
Relaxed government and legal processes
India is one of the oldest civilizations with a kaleidoscopic variety
and rich cultural heritage. It has achievedmultifaceted socio-
economic progress since gaining independence in 1947. Cover-
ing a landmass of 3,287,590 Square Kilometers extending from
theHimalayan heights to the tropical rain forests of the south. As
the seventh largest and second most populous country in the
world, India stands apart from the rest of Asia. Bordering with
Afghanistan and Pakistan to the northwest, China, Bhutan and
Nepal to the north, Myanmar to the east and Bangladesh to the
east of West Bengal and Sri Lanka to the south, India is strategi-
cally located.
India is a Sovereign Socialist Democratic Republic witha federal
parliamentary system of government. TheConstitutional head of
State is the President and head of Government is the Prime Minis-
ter. The federal republic is governed in accordance with the Con-
stitution of India which came into force on 26th January 1950.
The Federal Republic consists of twenty-eight states and seven
union territories. The parliament is a bicamental legislature: the
lower house, the Lok Sabha, has 545 members, 543 single-
member constituencies and 2 representatives of Anglo-Indians
appointed by the President; and the upper house, the Rajya
Sabha, is elected by the provincial legislatures.
Government
Country Name : Republic of India
Head of State : President
Government Type : Federal Republic
Head of Government : Prime Minister
Capital City : New Delhi
Administrative Divisions : 28 States and 7 Union Territories
Independence : 15th August 1947
Legal System : Based on Constitution of India
Official Language : English/Hindi
National Language : Hindi
Geography
Geographic Coordinates : 2000N, 7700E
Location : Southern Asia
Total Area : 32,87,590 SqKm
Land Area : 29,73,190 SqKm
Water : 3,14,400 SqKm
Land Use : Arable land 48.83%
Permanent crops 2.8%
Others 48.37%
Irrigated Land : 5,58,080 SqKm
Coastline : 7,500 Km
KEY DATA
Natural Resources : Coal (world 4th largest), iron ore,
manganese, mica, bauxite, titanium
chromate, natural gas, diamonds,
petroleum, limestone
Climate Type : Tropical monsoon with four seasons;
winter, summer, rainy south-western
monsoon and north-east monsoon
People
Total Population : 1,210 million
Age Structure : 0 - 14 years 32.3%
15 - 59 years 60.5%
60 & above 7.2%
Population Growth Rate : 1.548%
Median Age : Total 26.2 years
Male 25.6 years
Female 26.9 years
Life Expectancy : Total 68.8 years
Male 65.77 years
Female 67.95 years
Urban Population
Delhi : 16.33 million
Mumbai : 18.41 million
Kolkata : 14.11 million
Chennai : 8.69 million
Bangalore : 8.49 million
Ethnic Group : Hindus 80.5%
Muslims 13.4%
Christians 2.3%
Sikhs 1.8%
Buddhists 0.8%
Jains 0.4%
Others 0.7% and
Unspecified 0.1%
Languages : Hindi 41%
Bengali 8.1%
Telugu 7.2%
Marathi 7%
Tamil 5.9%
Urdu 5%
Gujarati 4.5%
Others 21.3%
Literacy (Definition- : Total population 64%
Age 15 and over Male 75.3%
can read and write) Female 53.7%
Population below : 21%
poverty line
Labour Force : 523.5 million
Labour Force by : Agriculture 60%
Occupation Industry 12%
Services 28%
Unemployment Rate : 6.8%
Economy
Monetary Unit : Indian Rupees (Rs)
Currency Code : INR
Exchange Rate to
British Pound : 80.10 INR
USD : 49.78 INR
Euro : 68.82 INR
Inflation Rate : 9.73%
Fiscal Year : 1 April 31 March
GDP (Purchasing Power : $ 4.057 trillion
Parity) (2011 Est)
GDP (Official Exchange : $ 1.54 trillion
Rate)
GDP Real Growth Rate : 7.6%
GDP per Capita : $ 3,580
GDP Composition : Agriculture 18.5%
by Sector Industry 26.3%
Services 60.5%
Trade
Total Exports : $ 251.1 billion
Major Export : Engineering Goods, Textile goods,
Commodities Chemicals, Gems & Jewellery,
Leather manufactures
Export Partners : US 10.17%, UAE 13.76%,
China 7.81%
Total Imports : $ 369.7 billion
Major Import : Crude Oil, Chemicals, Fertilizer
Commodities and Gems
Import Partners : China 11.75%, US 5.42%
UAE 8.85%, Singapore 1.93%
International Airports : Delhi, Mumbai, Kolkata, Chennai,
Bangalore, Trivandrum, Cochin,
Hyderabad, Ahemadabad
Major Seaports : Mumbai, Cochin, Vishakhapatnam,
Chennai, Tuticorn, New Mangalore,
Kandla
ECONOMY
The Indian economy has been growing at an impressive rate of
6% per year which accelerated to around 8% during the last
couple of years. The growth recorded at 7.6% in 3rd Quarter 2011
which was moderately lowerthan the 8% anticipated by the Gov-
ernment of India. Rising inflation has resulted in a lower growth
rate for year 2010-2011 as compared to the 8.8% growth rate in
the previous year.
Following the liberalization policy in 1990, the Government of
India opened up the market through economic reforms and by
easing government controls on foreign trade and investment.
The Indian economy is characterized by a large young workforce
which makes it dynamic and expansive. It is very diverse, with a
wide range of sectors: manufacturing, handicrafts, textiles and
services sectors. Theadvancement of information technology and
the abundance of young well educated populace versed in Eng-
lish, is transforming India into an importantdestination for all major
international companies for software development and technical
support services. India is a major exporter of highly-skilled soft-
ware professional.
India is also expected to make considerable progress in other
areas such as pharmaceuticals, manufacturing, tourism, aviation,
telecommunications and biotechnology.
Challenges for Indian Economy
Controlling inflation
Equitable spreading of growth benefits
Completing investment projects which are essential for the long
term development of the economy
Managing global financial
Source: Reserve Bank of India
GDP at Factor Cost
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
Years
G
D
P

(
F
a
c
t
o
r

C
o
s
t
)
Mining & Quarrying
Manufacturing
Electricity, Gas & Water
Supply
Construction
Trade, Hotel, Transport &
Communication
Financing, Insurance,
Real Estate & Business
Services
Community, Social &
Personal Services
Agriculture
FOREIGN INVESTMENT POLICY
The following are some of the highlights of the Foreign Direct
Investment (FDI) Policy in the real estate sector:
100% FDI is allowed in real estate developments of over 50,000
m2
Capital must be brought into India within 6 months of incorpora-
tion of JV or subsidiary
Repatriation of original investment allowed after 3 years
Sale of undeveloped land is not permitted
Minimum area to be developed has been reduced from 100 to 25
acres for integrated township projects
Minimum capital investment of wholly owned subsidiaries and
joint ventures stands at US$ 10 million and US$ 5 million respec-
tively
51% FDI is allowed in single brand retail outlets and 100% in
cash-and-carry through automatic route
FDI Infrastructure Equity Limit:
Real Estate (Townships) 100%
Roads 100%
Power 100%
Airports 74%
Mining 74%
Telecom 74%
Airlines 74%
Banks (Private) 74%
Insurance 26%
Special Economic Zones (SEZs)
SEZs are specially delineated duty free enclaves for the purpose of
trade, operations, duty and tariffs. A SEZ may be set-up in the
public, private, or joint sector and/or by a state government. There
are about 98 functional SEZs in the country including those con-
verted from the Export Processing Zones. SEZs have been devel-
oped in various segments such as multi-product, IT/ITES, biotech-
nology, gems and jewellery and technology intensive areas. The
policy allows 100% FDI in most manufacturing activities. Develop-
ments in SEZ qualify for approval through automatic routes subject
to sectorial norms. Details of the type of activities permitted are
available in the Foreign Trade Policy issued by the Department of
Commerce. Proposals not covered under the automatic route
require approval by the Foreign Investment Promotion Board
(FIPB).
Facilities to SEZ Units
SEZ units may import or procure from the domestic sources, duty
free, all their requirements of capital goods, raw materials, con-
sumables, office equipment, etc., for setting up of units or further
operations without any license or specific approval
Goods imported/procured locally duty free could be utilized over
the approval period of five years
100% income tax exemption for the first five years and 50% for
the two years thereafter
100% FDI is allowed in the manufacturing sector in SEZ units
under the automatic route except sectors requiring an industrial
license. 100% FDI is allowed in items reserved for small scale
units
Setting up of offshore banking units is allowed in SEZs. They
would be entitled for 100% income tax exemption for three years
and 50% for the next two years
More flexible exchange control regulations for units in SEZs and
for external commercial borrowing up to US$ 500 million in a year
Exemption from service tax to SEZ units
Generally the developments permitted under 100% FDI are:
1. Export Oriented Units (EOU)
2. Industrial Parks
3. Electronic Hardware Technology Parks
4. Software Technology Parks Units
Breakdown of SEZ by Sector
IT/ITES Biotech Pharma Textile Multiproduct Others
62%
5%
4%
3%
4%
22%
EXCHANGE RATES
Approximate current rates at 11th November 2011
Australia Dollar 52.47
China RMB 7.70
Europe Eur 68.82
Hong Kong Dollar 6.30
Japan Yen 0.64
Korea Won 0.04
Malaysia Ringgit 15.81
Philippines Peso 1.01
Taiwan NT Dollar 1.14
Thailand Baht 1.60
UK Pound 80.10
USA Dollar 49.78
COUNTRY PER UNIT INR
RELEVANT WEBSITES
Government of India
Government of India Directory
Ministry of Finance
Ministry of Commerce & Industry
Ministry of Statistics and Programme Implementation
Ministry of Law & Justice
Ministry of Labour
Ministry of Home Affairs (MHA)
Ministry of External Affairs
Ministry of Urban Development
Office of the Economic Advisor
Central Public Works Department
Supreme Court of India
Government Bodies
Reserve Bank of India
Bureau of Indian Standards
Insurance Regulatory and Development Authority
Construction Related Organisations
The Institution of Engineers
The Indian Institution of Valuers
The Indian Institute of Architects
Construction Industry Development Council
Others
National Stock Exchange of India Ltd.
Bombay Stock Exchange Limited
Davis Langdon & Seah Asia
http://goidirectory.nic.in/
http://finmin.nic.in
http://dipp.nic.in
http://mospi.gov.in
http://lawmin.nic.in
http://labour.nic.in
http://mha.nic.in
http://meaindia.nic.in
http://urbanindia.nic.in
http://eaindustry.nic.in
http://www.cpwd.gov.in
http://supremecourtofindia.nic.in
http://rbi.org.in
http://bis.org.in
http://irdaindia.org
http://ieindia.org
http://iivindia.org
http://iia-india.org
http://cidc.in
http://nseindia.com
http://bseindia.com
http://www.dlsqs.com
About Us
Davis Langdon & Seah (Malaysia) Sdn Bhd (520443-H)
Juru Ukur Bahan Malaysia
JUBM Sdn Bhd (27638-X)
Quantity Surveyors & Construction Cost Consultants
Davis Langdon & Seah (Malaysia) Sdn Bhd, which was first set up
as Langdon & Every (Far East) in Kuala Lumpur in 1947 is
amongst the longest established Quantity Surveying firm in Ma-
laysia and pride ourselves with having the most complete set of
database on the major projects that have been implemented in the
country since Independence.
Davis Langdon & Seah (Malaysia) Sdn Bhd practises in conjunc-
tion with our local sister practices of Juru Ukur Bahan Malaysia
(JUBM) and JUBM Sdn Bhd. Jointly, we have accumulated a
wealth of information and knowledge of local construction prac-
tice, customs, costs and useful data from the numerous projects
that have been entrusted to us.
Juru Ukur Bahan Malaysia was established in 1972 and is one of
the earliest fully Malaysian Quantity Surveying practices to be set
up in Malaysia. Today, the DLS-JUBM Group is one of the largest
Quantity Surveying and Construction Cost Consultancy practices
in Malaysia with some 250 staff throughout Malaysia working from
five main offices situated at Kuala Lumpur, Penang, Johor Bahru,
Kota Kinabalu and Kuching.
The DLS-JUBM Group had successfully participated as Quantity
Surveyors and Cost Managers providing capital budgeting, cost
management, cost control, financial, contractual advisory and
other related services in the full spectrum of development works in
Malaysia for both Government and the Private Sector. Our expe-
rience covers participation in project evaluation, value manage-
ment and feasibility/market studies as well as in the physical
implementation of capital projects. We have also developed our
competencies in undertaking project management, legal support
and management consultancy services.
Davis Langdon & Seah (Malaysia) Sdn Bhd is a member of Davis
Langdon & Seah which constitutes a regional partnership of
Quantity Surveyors and Construction Cost Consultants offering
clients the services of more than 2,800 staff based in 40 offices in
13 countries.
Global Reach .... Local Delivery
Quality Management System
It is a policy of the Davis Langdon & Seah (Malaysia) Sdn Bhd
together with its associated local companies, namely Juru Ukur
Bahan Malaysia and JUBM Sdn Bhd (The Company) to ensure
that the quality of the services provided are consistently of a high
professional level and shall be no less than the scope of work and
brief agreed with the client.
Through the implementation and constant improvement of the
Quality Management System, the Company aims to achieve our
vision of becoming the first point of reference for clients.
This quality policy is supported by the Companys commitment in
continuing education and training of its staffs, as well as applying
the latest technology which are pertinent to their works.
Together with our member firms in other regions around the world,
we aim to have global reach whilst at each locality we have
hands-on experience to deliver our services. The Company
achieved the accreditation to ISO 9001 by the Standard & Indus-
trial Research Institute of Malaysia (SIRIM) since May 1995 and
we are also the first Quantity Surveying Consultancy firm in Ma-
laysia to have successfully obtained such certification. We have
since upgraded our quality management system to the new MS
ISO 9001:2008 standards.
We believe the application and implementation of the Companys
Quality Management System provides us with significant opportu-
nities for:
Improved service performance and client satisfaction;
Improved productivity and efficiency;
Increased competitive advantage through improved organi-
sational capabilities; and
Instilling confidence of clients and other interested parties in
the Company.
Certified to ISO 9001 : 2008
Cert. No. : AR0595 / AR0598 / AR0599
MS ISO/IEC GUIDE 62:1999
QS 02121999 CB 01
A
C
C
R
E
D
ITED CERTIFICATIO
N
B
O
D
Y MALAYSIA
Environmental Health & Safety
Davis Langdon & Seah (Malaysia) Sdn Bhd is committed in
addressing the delicate balance between maintaining profitability
and reducing environmental impact insofar as possible in the
companys daily practise, processes and business activities.
To this end, we - together with our associate local company JUBM
Sdn Bhd - have put in place an Environmental Management
System (EMS) that identifies all aspects of the business which
impacts on the environment as well as the relevant environmental
laws in the industry.
From the EMS is then derived the companys Environmental
Health and Safety (EHS) Policy Statement which lists the quantifi-
able objectives under the EMS for the company and its staff as
well as the management programme to achieve them on a con-
tinuous basis.
The companys EMS adopts the best available techniques that
are appropriate, economical and cost effective in achieving these
objectives in terms of measurability and practicability.
Our efforts in incorporating the EMS and the EHS Policy into the
practice, processes and business activities were given due recog-
nition on 27 February 2009 when Davis Langdon & Seah
(Malaysia) Sdn Bhd and JUBM Sdn Bhd received the globally rec-
ognised MS ISO 14001 accreditation in another industry landmark
achievement for the group.
Construction Cost Specification
The costs for the respective categories given on the following
upon the design and many other factors and may vary from the
figures shown.
eter, and are inclusive of lift shafts, stairwells, plant rooms, water
tanks and the like.
The costs per square metre excludes local infrastructure cost.
All buildings are assumed to have no basements (except oth-
erwise stated) and are built on flat ground, with normal soil
conditions and minimal external works. The costs excludes
land cost, professional fees, finance costs and legal
expenses.
The standards for each category of building vary from country to
country and do not necessary follow those of Malaysia.
DOMESTIC
Average standard apartments of 6-10 units per floor, 46m
2
- 83m
2
per unit.
Air conditioning allowed for luxury apartments and prestige
houses.
Prestige houses include provision of functional light fittings only.
Interior fit-out and decoration is excluded. No light fittings have
been allowed for other types of domestic construction.
OFFICE / COMMERCIAL
Based on buildings 20-30 storeys high with floor plans minimum
1,000m2 per level.
Average standard offices and shopping centres exclude A/C duct-
ing and light fittings to tenants areas.
Prestige offices have curtain wall elevations, granite finishes
lobbies with A/C ducting and light fittings to tenants area.
INDUSTRIAL
Flatted factories exclude manufacturing equipment, air-
conditioning and electrical distribution system to tenants areas.
Owner operated factories exclude manufacturing equipment, air-
conditioning and special services provisions.
HOTELS
F.F.&E. includes interior decoration and loose furniture etc. but
excludes operators items (e.g. cutlery, crockery, linen etc.).
OTHERS
Carparks to be multi-storey, above ground.
Schools with standard government provisions.
Student hostels to university standard.
KUALA LUMPUR CONSTRUCTION
COST TREND 2001 - 2011
0
500
1,000
1,500
2,000
2,500
3,000
3,500
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
RM/m
2
* Cost are at lower range cost
All cost are at an average level unless otherwise stated
Bungalows (mass housing) Detached houses and bungalows*
Terraced houses Luxury apts, high rise
Average standard apts, high rise Low cost flats, high rise
(<15 levels)
Low cost flats, low rise (<6 levels)
Low cost housing
Domestic
0
500
1,000
1,500
2,000
2,500
3,000
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
RM/m
2
Resort Hotel inclusive of F.F.&E.
3-star budget hotels, ditto
5-star luxury hotels, ditto*
RM/m
2
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
RM/m
2
Heavy duty flatted factories and warehouses
Single storey conventional factory of structural steelwork
Owner operated factories, low rise
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Industrial
Hotels Office / Commercial
Prestige offices, high rise*
Shopping Centres
FIT-OUT COSTS FOR KUALA LUMPUR
DESCRIPTION
HOTELS
Public Area (Front of House):
3 - star Hotel
4 - star Hotel
5 - star Hotel
Guest Rooms:
3 - star Hotel
4 - star Hotel
5 - star Hotel
Notes:
1. Includes furniture, floor, wall and ceiling finishes, drapery,
sanitary fittings and light fittings.
2. Excludes partitioning, M&E works, chandelier, building
shell, operational items and equipment (e.g. bed, cutlery
crockery, linen, television, refrigerator etc.), opening
expenses, stage equipment and computer systems.
OFFICES
General Office
Executive Office
Prestige Office
Notes:
1. Local furniture allowed for general offices.
2. Includes furniture, partitioning, minor alteration to air-
conditioning, fire services and suspended ceiling to suit
layout.
3. Excludes telephones, Local Area Network, office
equipment (e.g. computers, photocopies, fax machines,
UPS, etc).
RESTAURANTS
General dining restaurant
Fine dining restaurant
Notes:
1. Includes furniture, floor, wall and ceiling finishes, minor
alteration to air-conditioning and fire services installation
to suit layout, exhaust for kitchen but excludes exhaust
flue, operational items (e.g. cutlery, crockery, linen,
utensils, etc.).
RM/m
2

2,200 - 2,990
2,900 - 3,600
3,600 - above
1,100 - 1,550
1,500 - 2,370
2,300 - above
430 - 570
570 - 930
930 - above
1,800 - 3,300
5,000 - above
DLS - JUBM BUILDING WORKS COMPOSITE
TENDER PRICE INDEX (BWCTPI)
Base Year = 2000 Source: JUBM & DLS
97.8
74.2
93.6
97.8
90.6
98.1
101.2
100.0
91.7
96.6 92.2
111.3
118.0
122.8
137.2
145.7
152.3
180.1
161.3
147.2
135.7
137.3
133.4
141.0
141.6
142.1
141.3
143.2
146.0
146.3
149.9
153.8
40.0
50.0
60.0
70.0
80.0
90.0
100.0
110.0
120.0
130.0
140.0
150.0
160.0
170.0
180.0
190.0
1
9
8
2
1
9
8
3
1
9
9
5
1
9
9
6
1
9
9
7
1
9
9
8
1
9
9
9
2
0
0
0
2
0
0
1
2
0
0
2
2
0
0
3
2
0
0
4
2
0
0
5
2
0
0
6
2
0
0
7
Q
1

2
0
0
8
Q
2

2
0
0
8
Q
3

2
0
0
8

Q
4

2
0
0
8

Q
1

2
0
0
9
Q
2

2
0
0
9
Q
3

2
0
0
9
Q
4

2
0
0
9
Q
1

2
0
1
0
Q
2

2
0
1
0
Q
3

2
0
1
0
Q
4

2
0
1
0
Q
1

2
0
1
1
Q
2

2
0
1
1
Q
3

2
0
1
1
Q
4

2
0
1
1
P
r
o
j
e
c
t
i
o
n

1
H

2
0
1
2
Tender Price Index
LS - JUBM BUILDING WORKS COMPOSITE
TENDER PRICE INDEX (BWCTPI)
Base Year = 2000 Source: JUBM & LS
97.8
74.2
93.6
97.8
90.6
98.1
101.2
100.0
91.7
96.6 92.2
111.3
118.0
122.8
137.2
145.7
152.3
180.1
161.3
147.2
135.7
137.3
133.4
141.0
141.6
142.1
141.3
143.2
146.0
146.3
149.9
153.8
40.0
50.0
60.0
70.0
80.0
90.0
100.0
110.0
120.0
130.0
140.0
150.0
160.0
170.0
180.0
190.0
1
9
8
2
1
9
8
3
1
9
9
5
1
9
9
6
1
9
9
7
1
9
9
8
1
9
9
9
2
0
0
0
2
0
0
1
2
0
0
2
2
0
0
3
2
0
0
4
2
0
0
5
2
0
0
6
2
0
0
7
Q
1

2
0
0
8
Q
2

2
0
0
8
Q
3

2
0
0
8

Q
4

2
0
0
8

Q
1

2
0
0
9
Q
2

2
0
0
9
Q
3

2
0
0
9
Q
4

2
0
0
9
Q
1

2
0
1
0
Q
2

2
0
1
0
Q
3

2
0
1
0
Q
4

2
0
1
0
Q
1

2
0
1
1
Q
2

2
0
1
1
Q
3

2
0
1
1
Q
4

2
0
1
1
P
r
o
j
e
c
t
i
o
n

1
H

2
0
1
2
Tender Price Index
Green Building
A Green Building focuses on increasing the efficiency of resource
use while reducing building impact on human health and the envi-
ronment during the buildings lifecycle, through better sitting,
design, construction, operation, maintenance, and removal.
Green Building Index
The launching of the Green Building Index (GBI) in May 2009 was
an important milestone in the push for a more sustainable con-
struction industry in Malaysia.
Co-developed by Pertubuhan Akitek Malaysia (PAM) and Asso-
ciation of Consulting Engineers Malaysia (ACEM), the GBI is a
voluntary rating tool based on six criteria:
Energy Efficiency (EE)
Improve energy consumption by optimising building orienta-
tion, minimizing solar heat gain through the building envelope,
harvesting natural lighting, adopting the best practices in
building services including use of renewable energy, and
ensuring proper testing, commissioning and regular mainte-
nance.
Indoor Environmental Quality (EQ)
Achieve good quality performance in indoor air quality, acous-
tics, visual and thermal comfort. These will involve the use of
low volatile organic compound materials, application of quality
air filtration, proper control of air temperature, movement and
humidity.
Sustainable Site Planning and Management (SM)
Selecting appropriate sites with planned access to public
transportation, community services, open spaces and land-
scaping. Avoiding and conserving environmentally sensitive
areas through the redevel-opment of existing sites and brown-
fields. Implement-ing proper construction management, storm
water management and reducing the strain on existing infra-
structure capacity.
Water Efficiency (WE)
Rainwater harvesting, water recycling and water-saving
fittings.
Materials and Resources (MR)
Promote the use of environment-friendly materials sourced
from sustainable sources and recycling. Implement proper
construction waste management with storage, collection and
re-use of recyclables and construction formwork and waste.
Innovation (IN)
Innovative design and initiatives that meet the objectives of
the GBI.
Existing Incentives
Income Tax (Plant Annual Allowances) Rules 2000
Income Tax (Accelerated Capital Allowances)
(Conservation of Energy) Rules 2001
New Incentives*
Income Tax (Exemption) (No.8) Order 2009
Stamp Duty (Exemption) Order 2009
* Effective for GBI Certified Buildings from 24 Oct 2010 to 31 Dec 2014.
Green Incentives
The government, for example, offers tax exemptions on green
incentives that help lower capital costs for owners and operators.
Cost of Building Green
The additional premium in construction cost to build a green build-
ing would depend very much on the level of green rating (Basic to
Silver, Gold or Platinum) that is being targeted.
Green buildings submitted for certification are assessed on the
abovementioned six criteria and the points scored would deter-
mine its green rating. Due to the wide and numerous variables in
building designs, it would make it wholly inappropriate and even
simplistic to assign a so-called typical percentage in cost premi-
ums to achieve the said ratings.
Generally, it is suggested that the higher the rating - e.g. Gold and
Platinum - and complexities of the green features would increase
the construction cost.
Green Points
Table A lists examples where the GBI points can be scored; thus
outlining the green features which could be included in a buildings
construction planning and design. This would include open venti-
lation, building orientation, parking facilities for car poolers as well
as hard - and green - scapes.
Points GBI Rating
86+ points Platinum
76 to 85 points Gold
66 to 75 points Silver
50 to 65 points Certified
Finding Balance
The green building rating is geared towards the objective of push-
ing the boundaries in building efficiency. Accreditation focuses on
the whole construction process to achieve this right from the
design stage through to completion.
Additional cost premiums to achieve the green rating depending
very much on the objectives of a particular buildings efficiency.
This additional premium could be recouped over a period of time
from the cost savings in energy and water bills, but the greater
value would be in its overall contribution towards reducing nega-
tive environmental impact.
Source: - JUBM/DLS Malaysia
Construction News & Views, Issue 2 April 2010
- www.greenbuildingindex.org
GBI Points Sourcing (Non-Residential)
EQ2:Minimise exposure to
Environmental Tobacco Smoke (1)
Nominal Moderate Substantial
EE2: Flexible lighting control (3)
EE4:Encourage renewable energy (5)
SM10: Nominal parking capacity (1)
SM1: Site selection (1)
SM13: Building User Manual (1)
SM3: Community connectivity (2)
MR1:Reuse of Building Materials (2)
MR5: Recyclable materials storage (1)
WE4: Water efficient fittings (2)
Innovations (Max Points: 10) IN2: GBI Facilitator appointment (1)
MR2: Usage of materials with recycled contents (2)
MR4: Use of sustainable timber (1)
MR7: Environmental-friendly refrigerants and cleaning agents (2)
EE1: Energy Management Control System (1)
EQ4: Low VOC building materials (2)
EE6: Commissioning of Building Energy System (3)
EE9: Sustainable maintenance beyond defect & liability period (3)
EE5: Advanced EE performance of up to
BEI* between 90 - 150 (15)
SM12: Heat reducing hardscape, greenery and roof applications (2)
EQ6: Individual comfort controls (2)
EQ9: Daylight Glare Control (1)
SM4: Conservation and open spaces (2)
Water Efficiency
(Max Points: 10)
IN1: Innovation in design and environmental initiatives (6)
Criteria
Possible additional costs
Energy Efficiency
(Max Points: 35)
Indoor Environmental
Quality (Max Points: 21)
Sustainable Site
Planning &Management
(Max Points: 16)
Materials & Resources
(Max Points: 11)
WE5: Submeters and detection of water leakage (2)
WE1: Rainwater Harvesting (2)
Notes: BEI = Building Energy Intensity in kWh/m2 of annual energy usage GBI points in ( )
Table A
Estimating Rules of Thumb
Composition of Concrete (per m )
3
Mix Cement Sand Aggregate
1:3:6 216kg 0.45m
3
0.90m
3
1:2:4 308kg 0.43m
3
0.86m
3
1:1:2 540kg 0.38m
3
0.75m
3
Weight of Concrete Items
Item Weight
Concrete 2,400 kg/m
3
Cement 1,441 kg/m
3
Sand 1,600 kg/m
3
Aggregate 1,350 kg/m
3
Steel 7,843 kg/m
3
Average Loads Volume
Lorry 10.0 m
3
3
Barge 200 - 1,450 m
3
Dimensions for Standard Parking Space, Loading/
Unloading Bays and Lay-bys
Minimum
Length Width Headroom
Private Cars, Taxis 5 m 2.5 m 2.4 m
and Light Vans
Lorries 11 m 3.5 m 4.1 m
Container Vehicles 16 m 3.5 m 4.5 m
Minimum headroom means the clearance between the
floor and the lower most projection from the ceiling
including any lighting units, ventilation duct, conduits
or similar.
Structure Design - Concrete Ratios
The following is a range of concrete ratios for building
superstructure design:
Concrete/floor area 0.4 m
3
/m
2
to 0.5 m
3
/m
2
Formwork/floor area 2.2 m
2
/m
2
to 3.0 m
2
/m
2
Reinforcement 160 kg/m
3
to 250 kg/m
3

Average External Wall/Floor Ratio
2
/m
2
Office, Hotel
Industrial
Average Internal Wall/Floor Ratio
Residential Apartments
Office
Hotel
Air - Conditioning
Average 0.05 tonne/m
2
of floor area
only. They do not account for buildings with special shapes,
configurations or particular small foot prints.
Indicative Dimensions for Sports Grounds

Length Width
Squash Court 13 m 6 m
Rink 61 m 26 m
Soccer Playing Field 110 - 120 m 70 - 80 m
Futsal 25 - 42 m 15 - 25 m
The above dimensions are for a single court with appropriate
clearance. No spectator seating or support area has been
allowed.
0.4 m
2
/m
2
0.4 m
2
/m
2
1.0 m
2
/m
2
0.5 m
2
/m
2
1.5 m
2
/m
2
Technical Specifications
Table for Standard BRC Fabrics
A 10
A 9
A 8
A 7
A 6/5
A 5
A 4
BRC
Ref.
No.
BS 4483
or SS-32
Ref No.
Size
mm
Spacing
mm
Size
mm
Spacing
mm
Main
mm
2
/m
Cross
mm
2
/m
Mass Per
Unit Area
Kg/m
2
Main Wire Cross Wire Cross-Sectional Area
A 393
-
A 252
A 193
-
A 142
A 98
-
10
9
8
7
6.5
6
5
4

200
200
200
200
200
200
200
200

10
9
8
7
6.5
6
5
4

200
200
200
200
200
200
200
200

393
318
252
193
166
142
98
63

393
318
252
193
166
142
98
63

6.16
4.99
3.95
3.02
2.61
2.22
1.54
0.99

SQUARE MESHES
B 12
B 10
B 9
B 8
B 7
B 6
B 5
C 10
C 9
C 8
C 7
C 6
C 5
B 1131
B 385
-
B 503
B 385
B 283
B 196
C 785
C 636
C 503
C 385
C 283
-
12
10
9
8
7
6
5
10
9
8
7
6
5
100
100
100
100
100
100
100
100
100
100
100
100
100

8
8
8
8
7
7
7
6
6
5
5
5
5

200
200
200
200
200
200
200
400
400
400
400
400
400

1131
785
636
503
385
283
196
785
636
503
385
283
196

252
252
252
252
193
193
193
71
71
49
49
49
49

10.90
8.14
6.97
5.93
4.53
3.73
3.05
6.72
5.55
4.34
3.41
2.61
1.93

RECTANGULAR MESHES
STANDARD
SIZES
Sheets
(all Ref. Nos)
Length :
6.0 metres
Width:
2.2 metres
Rolls
(Ref. Nos: A4,
A5, A6, A6/5
only)
Length :
40.0 metres
Width :
2.0 metres

Weight Tables for Mild Steel Round Bars & High Tensile Deformed Bar
* High Yield Deformed Bar Standard Length : 12 metres straight.
* Mild Steel Round Bar Standard Length : 12 metres straight or
12 metres once folded.
* Special cut length can be produced from 6m to 15m on a certain
min. quality per size per order upon request.
No. of Pcs.
12m Length
Per Bundle
Weight
Per Bundle
(MT)
High Yield
Deformed
Mild Steel
Round
Std. Size (mm)
376
210
168
138
96
54
34
28
22
18
14
12
10
9
1.002
0.995
1.006
1.020
1.023
1.023
1.006
1.003
1.017
1.044
1.061
1.088
1.068
1.065
D 6
D 8
D 9
D 10
D 12
D 16
D 20
D 22
D 25
D 28
D 32
D 35
D 38
D 40

6
8
9
10
12
16
20
22
25
28
32
35
38
-

28.3
50.3
63.6
78.5
113.1
201.1
314.2
380.1
490.9
615.8
804.2
962.1
1,134.1
1,256.6
Cross
Sectional
Area (mm
2
)
Unit
Weight
(kg/m)
0.222
0.395
0.499
0.616
0.888
1.579
2.466
2.984
3.854
4.834
6.313
7.553
8.903
9.864
CONSTRUCTION SECTOR INDICATORS
Note: All rates are based on the new Industrial production Index (2005 = 100).
November and December rates are not available at time of publication.
Source: Monthly Statistical Bulletin, November 2011, Central Bank of Malaysia.
Other articles of concrete, cement and plaster
Basic iron and steel products
Production of construction related products
-40
-20
0
20
40
60
80
J
a
n
F
e
b
M
a
r
A
p
r
M
a
y
J
u
n
e
J
u
l
y
A
u
g
S
e
p
t
O
c
t
N
o
v
D
e
c
J
a
n
F
e
b
M
a
r
A
p
r
M
a
y
J
u
n
e
J
u
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A
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g
S
e
p
t
O
c
t
2010 2011
% Change
Other Articles
of Concrete,
Cement & Plaster 2011
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
- 17.3
- 12.5
- 21.7
- 4.1
2.9
- 3.5
12.9
20.9
46.2
17.8
9.3
27.7
4.2
- 3.5
2.1
2.9
25.6
- 3.8
- 9.3
6.8
13.8
16.4
15.7
6.5
22.7
17.9
20.9
8.2
10.3
12.5
Basic Iron and
Steel Products
Construction
Related Products
Production (% Change)
Housing Approvals* (number)
Loans Approved for Construction Sector (RM miliion)
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
0
5,000
10,000
15,000
20,000
25,000
J
a
n
F
e
b
M
a
r
A
p
r
M
a
y
J
u
n
e
J
u
l
y
A
u
g
S
e
p
t
O
c
t
N
o
v
D
e
c
J
a
n
F
e
b
M
a
r
A
p
r
M
a
y
J
u
n
e
J
u
l
y
A
u
g
S
e
p
t
O
c
t
N
o
v
D
e
c
J
a
n
F
e
b
M
a
r
A
p
r
M
a
y
J
u
n
e
J
u
l
y
A
u
g
S
e
p
t
O
c
t
N
o
v
D
e
c
J
a
n
F
e
b
M
a
r
A
p
r
M
a
y
J
u
n
e
J
u
l
y
A
u
g
S
e
p
t
O
c
t
N
o
v
2008 2009 2010 2011
RM Million Number
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Housing Approvals* (number)
2010 6,965 5,757 12,349 9,183 11,766 9,005 8,258 10,912 10,037 9,865 13,769 12,935
2011 12,455 8,766 11,781 9,354 11,639 13,180 12,655 16,665 15,674 13,463 20,142 N/A
Loans Approval for Construction Sector (RM million)
2010 1,602 1,120 1,793 1,643 1,492 2,288 2,391 2,165 3,094 2,287 3,356 2,292
2011 1,867 1,421 2,552 2,738 1,915 2,496 1,779 2,551 1,755 2,991 4,666 N/A
* No. of housing units by private developers approved for construction by the Ministry of Housing and Local Government

in Peninsular Malaysia.
Source: Monthly Statistical Bulletin, November 2011, Central Bank of Malaysia.
AVERAGE UNIT PRICES FOR CEMENT
IN MALAYSIA
Note: December 2011 rates are not available at time of publication.
Source: Special Release 1 for Peninsular Malaysia, Sabah & Sarawak, by Department of Statistics, Malaysia

PENINSULAR MALAYSIA SABAH SARAWAK
North Central East Kota Sandakan Tawau Kuching Sibu Miri
2011 Kinabalu
RM/Bag (50 kg)
Jan 15.53 16.03 15.86 17.00 19.88 20.50 16.09 16.75 16.38
Feb 15.61 16.03 15.86 17.00 19.75 20.00 16.09 16.75 16.38
Mar 16.16 16.19 15.88 17.00 19.75 20.00 16.09 16.75 16.38
Apr 16.65 16.60 16.14 17.00 19.75 20.00 16.09 16.75 16.38
May 16.63 16.69 16.18 17.00 19.75 20.00 16.09 16.75 16.38
Jun 16.63 16.74 16.18 17.00 19.75 20.00 16.09 16.75 16.38
Jul 16.60 16.86 16.32 17.00 19.75 20.00 16.09 16.75 16.38
Aug 16.80 16.93 16.32 17.25 19.88 20.00 16.79 17.42 16.95
Sep 16.82 16.92 16.32 17.38 19.88 20.00 16.79 17.42 16.95
Oct 16.80 16.85 16.32 17.38 19.75 20.00 16.79 17.42 16.95
Nov 16.77 16.90 16.32 17.38 19.75 20.00 16.79 17.42 16.95
CONSTRUCTION COST FOR KUALA LUMPUR
RM/m
2
DOMESTIC
Bungalow (mass housing)
Detached houses and bungalows
Terraced houses
Average standard apartments, high rise
Luxury apartments, high rise
Low cost housing
Low cost flats, high rise (<15 levels)
OFFICE / COMMERCIAL
Shopping centres
HOTELS
Resort hotels, inclusive of F.F.&E.
5-star luxury hotels, ditto
BUILDING

1,302 - above
1,974 - above
662 - 903
893 - 1,334
2,064 - above
368 - 399
462 - 499
520 - 572
1,344 - 1,481
1,896 - above
1,355 - 1,754
2,825 - 2,988
3,429 - 3,838
5,325 - above
SERVICES

903 - above
809 - above
168 - 278
289 - 441
793 - above
99 - 131
121 - 189
179 - 242
940 - 1,155
1,402 - above
830 - 1,155
1,250 - 1,565
1,192 - 1,444
1,875 - above
TOTAL

2,205 - above
2,783 - above
830 - 1,181
1,181 - 1,775
2,857 - above
467 - 530
583 - 688
698 - 814
2,284 - 2,636
3,298 - above
2,184 - 2,909
4,075 - 4,553
4,621 - 5,283
7,199 - above

INDUSTRIAL
structural steelwork
OTHERS
Basement car parks (<3 levels)
Elevated car parks (<4 levels)
Primary and Secondary schools
Student hostels
Sports clubs including F.F.&E.

782 - 798
1,013 - 1,008

840 - 998
1,124 - 1,218
971 - 1,145
572 - 730
630 - 719
809 - 871
1,623 - 1,722

530 - 693
593 - 751
362 - 520
483 - 583

368 - 467
210 - 289
189 - 210
242 - 289
540 - 641

1,313 - 1,491
1,607 - 1,759
1,202 - 1,518
1,607 - 1,801
1,339 - 1,612
782 - 1,019
819 - 929
1,050 - 1,160
2,163 - 2,363
The above costs are at 4th Quarter 2011 levels, inclusive of preliminaries (10%) but exclusive of contingencies.
UNIT PRICES FOR UNLEADED PETROL,
DIESEL & LIQUEFIED PETROLEUM GAS IN
PENINSULAR MALAYSIA
Unleaded Petrol Diesel Fuel Liquefied
With Petroleum
Effective RON 97 RON 95 Gas (LPG)
(Cent/Litre) (Cent/Litre) (Cent/kg)
18-Nov-08 200 - 190 175
03-Dec-08 190 - 180 175
16-Dec-08 180 - 170 175
12-May-09 180 175 170 175
16-Jul-10 210 185 175 185
02-Nov-10 215 185 175 185
04-Dec-10 230 190 175 185
05-Jan-11 240 190 180 190
31-Jan-11 250 190 180 190
02-Apr-11 270 190 180 190
04-May-11 290 190 180 190
16-Jun-11 280 190 180 190
Source: Ministry of Domestic Trade, Co-operatives and Consumerism
165
170
175
180
185
190
195
120
140
160
180
200
220
240
260
280
300
2
3
-
A
u
g
-
0
8
2
5
-
S
e
p
-
0
8
1
5
-
O
c
t
-
0
8
1
-
N
o
v
-
0
8
1
8
-
N
o
v
-
0
8
3
-
D
e
c
-
0
8
1
6
-
D
e
c
-
0
8
1
2
-
M
a
y
-
0
9
1
6
-
J
u
l
-
1
0
2
-
N
o
v
-
1
0
4
-
D
e
c
-
1
0
5
-
J
a
n
-
1
1
3
1
-
J
a
n
-
1
1
2
-
A
p
r
-
1
1
4
-
M
a
y
-
1
1
1
6
-
J
u
n
-
1
1
Cent/Kg
Cent/Litre
Unleaded Petrol RON 97
Unleaded Petrol RON 95
Diesel Fuel
Liquefied Petroleum Gas
COMMODITIES PRICE TREND (JAN TO DEC 2011)
16,500
17,500
18,500
19,500
20,500
21,500
22,500
23,500
24,500
25,500
26,500
27,500
28,500
29,500
USD/Tonne
Nickel
Copper (Grade A)
6,500
7,000
7,500
8,000
8,500
9,000
9,500
10,000
10,500
USD/Tonne
Source: London Metal Exchange
Aluminium

Year
2011

Jan 2,438.73 9,554.13
Feb 2,507.33 9,866.75
Mar 2,551.76 9,529.57
Apr 2,661.92 9,482.56
May 2,591.18 8,925.93
Jun 2,554.66 9,044.80
Jul 2,511.19 9,618.36
Aug 2,391.66 9,040.34
Sep 2,295.93 8,313.82
Oct 2,171.48 7,346.71
Nov 2,072.75 7,550.95
Dec 2,023.58 7,569.43
Copper
(Grade A)

25,638.50
28,246.75
26,803.04
26,321.39
24,203.00
22,344.32
23,721.43
22,075.23
20,384.55
18,879.29
17,876.82
18,129.50
Nickel
Monthly Average (USD / Tonne)
Aluminium
1,900
2,000
2,100
2,200
2,300
2,400
2,500
2,600
2,700
2,800
USD/Tonne
MALAYSIA TIMBER PRICES
Note: * 1st Half of December 2011 only.
Rates for March 2011 are not available due to earthquake
Source: International Tropical Timber Organisation (www.itto.or.jp)
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec* 2010 2011 2010 2011 Change

MALAYSIA SAWNWOOD
Domestic
Merbau

Kempas
Balau

491 492 N/A 493 497 500 505 510 512 512 512 511 486 503 1,529.98 1,584.45 3.56 %
290 291 N/A 294 300 303 307 309 310 310 310 309 284 303 893.81 954.45 6.78 %
343 344 N/A 345 350 352 354 356 356 356 356 354 339 351 1,066.40 1,105.65 3.68 %
MALAYSIA PLYWOOD
2.7 mm
3.0 mm
9.0 mm
455 457 N/A 462 469 470 473 478 479 478 475 474 444 470 1,397.15 1,480.50 5.97%
419 422 N/A 427 434 435 439 443 444 444 442 440 408 435 1,283.75 1,370.25 6.74 %
387 391 N/A 396 405 407 410 414 415 415 413 412 375 406 1,182.44 1,278.90 8.16 %
USD$1 = RM3.15 %
(USD/m
3
) (USD/m
3
) (RM/m
3
)
Monthly Average - Year 2011 Yearly Average
MALAYSIA CONSTRUCTION SECTOR
- EMPLOYMENT & GDP
Note: * Estimate by Ministry of Finance Malaysia
** Forecast by Ministry of Finance Malaysia
Source: Economic Report 2011/2012,
Ministry of Finance, Malaysia
Employment (000) %
Employment for Construction Sector
Contribution to Total Employment
Year
6.00
6.10
6.20
6.30
6.40
6.50
6.60
6.70
6.80
6.90
750.0
755.0
760.0
765.0
770.0
06 07 08 09 10 11*
Gross Domestic Product (GDP) for Construction Sector
Contribution to Total GDP
Year
GDP (RM million) %
3.00
3.05
3.10
3.15
3.20
3.25
3.30
3.35
12,000
14,000
16,000
18,000
20,000
06 07 08 09 10 11* 12**
CONSTRUCTION COST FOR JOHOR BAHRU
RM/m
2
DOMESTIC
Terraced houses
Low cost housing
OFFICE / COMMERCIAL
Shopping centres
HOTELS
BUILDING

1,390 - above
2,025 - above
720 - 810
910 - 1,079
1,800 - above
410 - 415
450 - 530
465 - 545
1,130 - 1,385
1,650 - above
1,185 - 1,435
2,100 - 2,220
2,550 - 2,855
3,960 - above
SERVICES

810 - above
675 - above
80 - 90
250 - 296
600 - above
90 - 95
100 - 120
135 - 155
670 - 815
1,270 - above
615 - 765
1,044 - 1,205
955 - 1,140
1,410 - above
TOTAL

2,200 - above
2,700 - above
800 - 900
1,160 - 1,375
2,400 - above
500 - 550
550 - 650
600 - 700
1,800 - 2,200
2,920 - above
1,800 - 2,200
3,144 - 3,425
3,505 - 3,995
5,370 - above

INDUSTRIAL
OTHERS
Student hostels

700 - 770
850 - 915

690 - 770
1,020 - 1,155
680 - 835
460 - 690
560 - 640
700 - 865
1,400 - 1,635

400 - 680
510 - 720
255 - 460
430 - 495

220 - 265
140 - 210
140 - 160
180 - 220
400 - 465

1,100 - 1,450
1,360 - 1,635
945 - 1,230
1,450 - 1,650
900 - 1,100
600 - 900
700 - 800
880 - 1,085
1,800 - 2,100
CONSTRUCTION COST FOR PENANG
RM/m
2
DOMESTIC
Terraced houses
Low cost housing
OFFICE / COMMERCIAL
Shopping centres
HOTELS
BUILDING

900 - above
1,780 - above
570 - 700
870 - 1,030
1,100 - above
420 - 470
440 - 520
455 - 600
1,100 - 1,300
1,600 - above
1,200 - 1,400
2,200 - 2,500
2,700 - 3,300
4,300 - above
SERVICES

450 - above
870 - above
95 - 125
285 - 330
450 - above
65 - 70
140 - 180
170 - 200
900 - 1,000
1,250 - above
720 - 850
1,000 - 1,300
960 - 1,450
1,500 - above
TOTAL

1,350 - above
2,650 - above
665 - 825
1,155 - 1,360
1,550 - above
485 - 540
580 - 700
625 - 800
2,000 - 2,300
2,850 - above
1,920 - 2,250
3,200 - 3,800
3,660 - 4,750
5,800 - above

INDUSTRIAL
OTHERS
Student hostels

620 - 800
650 - 800

510 - 680
540 - 820

650 - 780
460 - 595
575 - 650
650 - 740
1,300 - 1,450

500 - 630
580 - 700
500 - 560
400 - 600

270 - 300
200 - 270
160 - 200
195 - 240
500 - 610

1,120 - 1,430
1,230 - 1,500
1,010 - 1,240
940 - 1,420
920 - 1,080
660 - 865
735 - 850
845 - 980
1,800 - 2,060
CONSTRUCTION COSTS FOR KOTA KINABALU

RM/m
2
DOMESTIC
Terraced houses
Low cost housing
OFFICE / COMMERCIAL
Shopping centres
HOTELS
BUILDING

1,360 - 1,450
2,060 - above
700 - 940
940 - 1,390
2,160 - above
380 - 410
470 - 530
550 - 600
1,390 - 1,580
1,980 - above
1,410 - 1,930
2,950 - 3,130
3,590 - 4,010
5,570 - above
SERVICES

419 - 529
992 - above
287 - 342
353 - 419
926 - above
121 - 165
165 - 187
209 - 221
860 - 992
1,433 - above
860 - 992
1,158 - 1,422
1,422 - 1,566
2,282 - above
TOTAL

1,779 - 1,979
3,052 - above
987 - 1,282
1,293 - 1,809
3,086 - above
501 - 575
635 - 717
759 - 821
2,250 - 2,572
3,413 - above
2,270 - 2,922
4,108 - 4,552
5,012 - 5,576
7,852 - above

INDUSTRIAL
OTHERS
Student hostels

820 - 880
1,050 - 1,100

880 - 1,090
1,180 - 1,330

890 - 1,050
600 - 760
650 - 750
850 - 920
1,690 - 1,800

419 - 518
496 - 562
353 - 419
419 - 507

243 - 287
187 - 221
232 - 364
254 - 287
706 - 860

1,239 - 1,398
1,546 - 1,662
1,233 - 1,509
1,599 - 1,837
1,133 - 1,337
787 - 981
882 - 1,114
1,104 - 1,207
2,396 - 2,660
CONSTRUCTION COST FOR KUCHING

RM/m
2
DOMESTIC
Terraced houses
Low cost housing
OFFICE / COMMERCIAL
Shopping centres
HOTELS
BUILDING

1,030 - 1,160
1,600 - above
900 - 970
1,050 - 1,140
1,460 - 1,580
520 - 590
730 - 790
780 - 850
1,440 - 1,690
1,680 - above
1,570 - 1,700

2,640 - 3,040
2,830 - 3,100
4,550 - above
SERVICES

440 - 530
770 - above
150 - 190
280 - 380
790 - 950
110 - 130
150 - 170
160 - 220
880 - 1,000
1,510 - above
760 - 950
1,310 - 1,580
1,500 - 1,650
2,300 - above
TOTAL

1,470 - 1,690
2,370 - above
1,050 - 1,160
1,330 - 1,520
2,250 - 2,530
630 - 720
880 - 960
940 - 1,070
2,320 - 2,690
3,190 - above
2,330 - 2,650
3,950 - 4,620
4,330 - 4,750
6,850 - above

INDUSTRIAL
OTHERS
Student hostels

950 - 1,180
1,010 - 1,170

750 - 880
1,020 - 1,170

1,030 - 1,140
800 - 900
910 - 1,030
1,100 - 1,240
1,690 - 1,820

340 - 370
400 - 480
280 - 390
420 - 500

350 - 370
220 - 230
210 - 330
240 - 290
680 - 820

1,290 - 1,550
1,410 - 1,650
1,030 - 1,270
1,440 - 1,670
1,380 - 1,510
1,020 - 1,130
1,120 - 1,360
1,340 - 1,530
2,370 - 2,640
The above costs are at 4th Quarter 2011 levels, inclusive of preliminaries (10%) but exclusive of contingencies
MAJOR RATES FOR MALAYSIA
KUALA
LUMPUR
15 - 20
15 - 20
20 - 25
60 - 70
230 - 250
250 - 280
3.50 - 3.80
3.50 - 3.80
30 - 38
30 - 38
32 - 45
55 - 60
350 - 500
RM

1. Excavating basement 2m deep
2. Excavating for footings 1.5m deep
3. Remove excavated materials off site
4. Hardcore bed blinded with fine materials
5. Mass concrete grade 15
6. Reinforced concrete grade 30
7. Mild steel rod reinforcement
8. High tensile rod reinforcement
9. Sawn formwork to soffits of suspended
slabs
10. Sawn formwork to columns and walls
11. 112.5mm thick brick walls
12. Kliplok Colorbond 0.64mm profiled steel
sheeting
glazed

m
3
m
3
m
3
m
3
m
3
m
3
kg
kg
m
2
m
2
m
2
m
2
m
2
PENANG

12 - 16.5
13.6 - 21.8
5 - 13
50 - 70
225 - 265
230 - 270
3.40 - 3.80
3.40 - 3.80
25 - 34
25 - 34
35 - 40
60 - 85
260 - 360
JOHOR BAHRU
18 - 21
13 - 15
12 - 15
70 - 80
255
280
3.50 - 4.00
3.50 - 4.00
35
35
45 - 50
75 - 80
250 - 350
KOTA
KINA-
BALU
12
15
10
100
310
356
3.70
3.60
36
36
40
86*
250 - 350
KUCHING
15
15
15
75
280
330
3.50
3.50
38
38
38
86
320

6.00 - 7.50
6.00 - 7.50
15 - 22
15 - 22
50 - 70
30 - 45
3.50 - 4.50

6 - 12

and the like
15. Steelwork - angles, channels, flats and
the like
16. 25mm cement and sand (1:3) paving
17. 20mm cement and sand (1:4) plaster to
walls
18. Ceramic tiles bedded to floor screed (m/s)
19. 12mm fibrous plasterboard ceiling lining
20. Two coats of emulsion paint to
plastered surfaces
Average expected preliminaries
kg
kg
m
2
m
2
m
2
m
2
m
2
%

5.50 - 9.00
5.50 - 9.00
13.5 - 19.0
12 - 21
35 - 70
21 - 35
3.20 - 5.00

3 - 5

7.50 - 8.50
7.50 - 8.50
18 - 23
23 - 25
55 - 65
35 - 45
4.50 - 5.50

4.50 - 7.50

6.50 - 7.00
6.50 - 7.00
17
18
78
56
8.50

4 - 7

7
7
18
15
68
55
11

8.5

The above costs are at 4th Quarter 2011 levels, exclusive of contingencies and preliminaries.
* Rates is for Kliplok Colorbond 0.54mm profiled steel sheeting.
ACMV Costs for Various Designs & Developments in Kuala Lumpur
ACMV : Air Conditioning & Mechanical Ventilation System
310
100
350
200
60
280 278
391
190
450
280
90
450
400
0
100
200
300
400
500
H
o
s
p
i
t
a
l
A
c
a
d
e
m
i
c
I
n
s
t
i
t
u
t
i
o
n
O
f
f
i
c
e
R
e
s
i
d
e
n
t
i
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l
F
a
c
t
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y
H
o
t
e
l
C
o
m
m
e
r
c
i
a
l
C
o
m
p
l
e
x
RM/m
2
of Construction Floor Area
210
260
360
250
350
400
0
100
200
300
400
500
Central Variable
Air Volume
Central Constant
Air Volume
Central Variable
Refrigerant Volume
RM/m
2
of Construction Floor Area
RM/Tonne of Refrigeration
4000
5200
6650
4500
6000
7400
0
2000
4000
6000
8000
Central Variable
Air Volume
Central Constant
Air Volume
Central Variable
Refrigerant Volume
RM/Tonne of Refrigeration
6200
6600
1200
4600
1300
6500
7500
7500
8500
2000
5000
2000
7600
8400
0
2500
5000
7500
10000
H
o
s
p
i
t
a
l

A
c
a
d
e
m
i
c

I
n
s
t
i
t
u
t
i
o
n

O
f
f
i
c
e

R
e
s
i
d
e
n
t
i
a
l

F
a
c
t
o
r
y

H
o
t
e
l

C
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m
m
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c
i
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l

C
o
m
p
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e
x

FOR KUALA LUMPUR
DESCRIPTION
comprising various activities and
safety mat
Minimum recommended area:
13.97m x 13.61m
Age group: 4 to 12
Child Capacity: 20 - 30
* Price varies according to equipment
and design.
SAUNAS
Sauna room for 4 - 5 people
complete with timber finishes, stainless
steel heater with built-in control panel
and all accessories
Size: 5 x 5 x 66
STEAM BATHS
Steam bath for 5 - 6 people
complete with steam generator,
tempered glass door, ceramic wall
tiles, water proofing system, lighting
and all accessories
Size: 5 x 5 x 76
GOLF COURSES
(Based on Average Cost Model of
an 18 hole golf course in Asia).
Including fairway construction and
rough hydro seeding.
GOLF SIMULATOR
Complete golf simulation system
complete with projector, high
impact projection screen, artificial
grass putting turf, putting green

UNIT RM

per set 40,000
per room 12,000
per room 18,500
per hole 2,000,000
per set 275,000

DESCRIPTION
SQUASH COURTS
Single court with glass back wall
including associated mechanical
and electrical services but
excluding any public facilities
(enclosing structure not included)
TENNIS COURTS
Single court on grade with acrylic
surfacing complete excluding chain
link fence
SWIMMING POOLS
Size: 25m x 10.5m
Depth: approx. 1.2m to 1.8m
Outdoor swimming pool built on
ground, fully tiled, completed
with 5m wide deck and associated
equipment
Extra for heating equipment (solar)
Extra for ozone system
Size: 25m x 10.5m
Depth: approx. 1.8m to 3.0m
Indoor swimming pool built with
suspended structure (enclosing
structure not included) fully tiled
and completed with 5m wide deck,
including mechanical ventilation
and associated equipment
Extra for heating equipment (solar)
Extra for ozone system

UNIT RM

per court 46,500
per court 69,000
per pool 715,000
per pool 150,000
per pool 210,000
per pool 1,045,000
per pool 250,000
per pool 300,000
RESIDENTIAL
Residential
Q3 2011
p
Kuala Lumpur
Selangor
W.P. Putrajaya
Johor
Pulau Pinang
Perak
Negeri Sembilan
Melaka
Kedah
Pahang
Terengganu
Kelantan
Perlis
Sabah
W.P Labuan
Sarawak
MALAYSIA
Existing Stock
(unit)
411,694
1,292,318
4,479
677,542
353,583
387,910
233,123
155,823
264,897
214,693
54,418
56,761
20,801
145,145
11,153
200,256
4,484,596
41,145
136,095
834
82,530
47,383
34,168
66,399
14,627
37,031
27,284
18,310
13,125
1,996
38,444
636
18,316
578,323
Incoming Supply
(unit)
p = preliminary
Source: Residential Property Stock Report, 3rd Quarter 2011, by Valuation & Property Service Department & Knight Frank
Projection of Cumulative Supply for High End Condominiums
Number of units
0
5000
10000
15000
20000
25000
30000
35000
2008 2009 2010 1H2011 2H2011 2012
Bangsar /
Damansara
Heights
Ampang Hilir /
U-Thant
Mont' Kiara KL City
Locality
Gross Rent
(RM psf/month)
Asking Selling Price
(RM psf)
KL City* 3.00 - 6.00 700 - 1,800
Ampang Hilir / U-Thant 3.00 - 4.00 500 - 900
Damansara Heights** 3.20 - 4.00 400 - 900
Kenny Hills

3.00 - 4.00 500 - 900
Bangsar

2.50 - 4.50 500 - 1,100
Mont Kiara***

2.00 - 3.50 400 - 650
Asking Prices and Rentals of
Existing High End Condominiums (1H 2011)
Source: CB Richard Ellis and Knight Frank

Notes:
* Excludes The Binjai On The Park
** Includes Clearwater Residence
*** Excludes Verve Suites which comprises mainly fully
furnished small units
971
712
558
-
200
400
600
800
1,000
1,200
2004 2005 2006 2007 2008 2009 2010 2011 Q3
4.00
3.32
3.12
2.50
3.00
3.50
4.00
4.50
5.00
5.50
KLCC Bangsar Mont Kiara Average Asking Rental Rates for
KLCC Bangsar Mont Kiara Average Capital Values for
Average Asking
Rental Rates
RM psf per month
Average
Capital Values
RM psf
Average Capital Values and Asking Rental Rates for
Luxury Condominiums in Kuala Lumpur
HOTEL
Hotel
Q3 2011
p
Kuala Lumpur
Selangor
W.P. Putrajaya
Johor
Pulau Pinang
Perak
Negeri Sembilan
Melaka
Pahang
Kedah
Kelantan
Terengganu
Perlis
Sabah
W.P Labuan
Sarawak
MALAYSIA
Existing Stock
(Room)
31,806
13,903
401
17,398
13,703
9,671
4,764
9,664
8,697
21,472
6,926
3,570
688
14,138
1,013
15,611
173,425
6,587
3,250
359
6,098
654
744
996
1,172
188
921
1,639
557
212
1,048
444
941
25,810
Incoming Supply
(Room)
p = preliminary
Source: Leisure Property Stock Report, 3rd Quarter 2011 by Valuation & Property Services Department
Average Occupancy Rate of Hotels by Star Rating
P = Prediction
40.0
45.0
50.0
55.0
60.0
65.0
70.0
2
0
0
0
2
0
0
1
2
0
0
2
2
0
0
3
2
0
0
4
2
0
0
5
2
0
0
6
2
0
0
7
2
0
0
8
2
0
0
9
2
0
1
0
Q
1
2
0
1
1
Q
2
2
0
1
1
Q
3
2
0
1
1
p
%
5-Star 4-Star 3-Star
1
9
9
8
1
9
9
9
2
0
0
0
2
0
0
1
2
0
0
2
2
0
0
3
2
0
0
4
2
0
0
5
2
0
0
6
2
0
0
7
2
0
0
8
2
0
0
9
2
0
1
0
Tourist Arrivals & Receipts to Malaysia
5
0
10
15
20
25
30
Million
10,000
20,000
30,000
40,000
50,000
60,000
RM Million
-
Receipts (RM mil)
Arrivals (Mil)
4 Star
RM/Night
180
183
200
202
210
208
209
216
209

1H 2007
2H 2007
1H 2008
2H 2008
1H 2009
2H 2009
1H 2010
2H 2010
1H 2011
Average Room Rates for 5-star & 4-star Hotels
in Kuala Lumpur City Centre
5 Star
RM/Night
290
330
370
377
388
380
345
347
339
Source: Tourism Malaysia Source: Knight Frank
OFFICE
Major Office Investment Sales in 1H 2011 Approx
Lettable
RM psf
Area (SF)
Dua Sentral, Jalan Tun Sambanthan 430,000 540
Block 6, The Horizon (Phase 1), Bangsar South 46,100 780
Prima 9, Cyberjaya 111,000
(1)
650
Prima 10, Cyberjaya 100,000
(1)
610
Notes:
(1) Prime 9 and Prime 10 have a total of 374 and 307 car park bays
respectively.
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
9.00
10.00
11.00
M
e
n
a
r
a

M
a
x
i
s
M
e
n
a
r
a

I
M
C
M
e
n
a
r
a

C
i
t
i
b
a
n
k
M
e
n
a
r
a
S
t
d

C
h
a
r
t
e
r
e
d
M
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n
a
r
a
E
t
i
q
a

T
w
i
n
s
M
e
n
a
r
a

H
L
A
M
e
n
a
r
a

M
i
l
l
e
n
i
u
m
1H08 RM psf 1H09 RM psf
1H10 RM psf 1H11 RM psf
Average Gross Rental per month
RM psf
Purpose Built Office
Q3 2011
p
Kuala Lumpur
Selangor
W.P. Putrajaya
Johor
Pulau Pinang
Perak
Negeri Sembilan
Melaka
Kedah
Pahang
Terengganu
Kelantan
Perlis
Sabah
W.P Labuan
Sarawak
MALAYSIA
Existing Stock
Total Space (m
2
)
6,946,558
2,409,106
1,800,605
1,015,878
1,097,496
621,152
280,794
361,096
309,611
298,409
299,879
358,421
90,706
674,554
66,157
578,757
17,209,179
79.60
77.80
86.10
74.80
75.50
93.80
92.10
84.80
91.60
93.40
97.80
95.50
98.50
89.10
80.20
92.10
82.30
Occupancy Rate
(%)
1,189,092
431,497
373,348
180,301
38,789
5,071
5,097
17,398
14,305
99,902
16,837
22,128
64,270
67,963
28,022
7,378
2,561,398
Incoming Supply
(m
2
)
p = preliminary
Source: Commercial Property Stock Report, 3rd Quarter 2011 by Valuation & Property Service Department and CB Richard Ellis
Vacancy Rate (%)
Vacancy Rates of Office Space in KL City Center
KL City Golden Triangle Central Business District
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 3Q 2011
SHOPPING COMPLEX
Existing Stock
Total Space (m
2
)
Shopping Complex
Q3 2011
p

Kuala Lumpur 2,120,792 86.90
Selangor 2,591,801 85.60
W.P. Putrajaya 67,714 75.30
Johor 1,507,307 71.30
Pulau Pinang 1,406,060 69.30
Perak 573,940 86.80
Negeri Sembilan

340,892 82.40
Melaka 358,520 79.50
Kedah 391,772 75.60
Pahang 219,302 81.70
Terengganu 86,836 71.10
Kelantan 218,534 87.40
Perlis 66,829 97.80
Sabah 535,993 85.10
W.P Labuan 26,063 98.30
Sarawak 365,893 73.00
MALAYSIA 10,878,248 80.60
Occupancy Rate
(%)

635,734
146,763
9,907
213,770
82,176
193,289
44,475
25,344
50,411
32,657
4,265
4,320
6,720
130,271
0
259,569
1,839,673
Incoming Supply
(m
2
)
p = preliminary
Source: Commercial Property Stock Report 3rd Quarter 2011 by Valuation & Property Service Department
Shopping Complex's Existing Stock & Occupancy
Rate in Kuala Lumpur & Selangor (By Location)
as at Q3 2011
Existing Stock Occupancy
P
e
t
a
l
i
n
g

J
a
y
a
S
u
b
a
n
g

J
a
y
a

/

S
u
n
w
a
y
S
h
a
h

A
l
a
m
K
l
a
n
g
B
a
n
g
s
a
r

C
e
n
t
r
a
l

C
o
m
m
e
r
c
i
a
l

A
r
e
a
J
a
l
a
n

A
m
p
a
n
g

B
u
k
i
t

B
i
n
t
a
n
g

/

J
a
l
a
n

R
a
j
a

C
h
u
l
a
n60
70
80
90
100
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
%
m
2
Publika Mall @ Solaris Dutamas, Hartamas
1 Shamelin, Cheras
Kenanga Wholesale City, Pudu
Southgate, Jalan Tun Razak
KL Festival City, Setapak
Mines 2, Seri Kembangan
First Subang, Subang Jaya
Space U8, Shah Alam
335,000
420,000
500,000
189,000
450,000
295,000
120,000
574,000
Shopping Centres Completed / Scheduled for Completion in 2H2011
New Projects
Estimate Net.
Lettable Area (sf)
Source: Knight Frank Source: CB Richard Ellis
Klang Valley Prime Retail Rental Index
0
50
100
150
200
250
300
1
9
9
5
1
9
9
6
1
9
9
7
1
9
9
8
1
9
9
9
2
0
0
0
2
0
0
1
2
0
0
2
2
0
0
3
2
0
0
4
2
0
0
5
2
0
0
6
2
0
0
7
2
0
0
8
2
0
0
9
2
0
1
0
3
Q

2
0
1
1
Rental Index (Q4 1995 = 100)
SHOP
Selangor
Kuala Lumpur
Shop
Q3 2011
p
W.P. Putrajaya
Johor
Pulau Pinang
Perak
Negeri Sembilan
Melaka
Kedah
Pahang
Terengganu
Kelantan
Perlis
Sabah
W.P Labuan
Sarawak
MALAYSIA
Existing Stock
(unit)
23,084
77,317
198
67,521
28,238
42,201
18,182
16,531
25,513
17,379
4,794
8,199
3,346
15,858
794
22,699
371,854
1,793
12,154
3,257
229
9,539
3,772
3,415
3,068
3,289
2,817
1,117
2,197
369
1,932
74
1,818
50,840
Incoming Supply
(unit)
p = preliminary
Planned Supply
p
543 ;
6.12%
2,732 ;
30.78%
2,253 ;
25.38%
955 ;
10.76%
370 ; 4.17%
251 ; 2.83%
162 ; 1.82%
887 ;
9.99%
724 ;
8.16%
Pre-War 1-1 1/2 Storey 2-2 1/2 Storey 3-3 1/2 Storey 4-4 1/2 Storey
5-5 1/2 Storey 6-6 1/2 Storey Above 6 1/2 Storey Lock-Up SOHO
Existing
p
Distribution of Existing and Planned Supply of Shop
in Kuala Lumpur and Selangor as at Q3 2011
p = preliminary
2,376 ; 2.37%
7,415 ;
7.39%
30,153 ;
30.04%
28,306 ;
28.20%
18,035 ;
17.97%
1,294 ; 1.29%
665 ; 0.66%
534 ; 0.53%
11,353 ;
11.31%
240 ; 0.24%
Source: Commercial Property Stock Report, 3rd Quarter 2011 by Valuation & Property Service Department
INDUSTRIAL
Existing Stock
(unit)

Industrial
Q3 2011
p

Kuala Lumpur 5,160 35
Selangor 34,458 2,792
W.P. Putrajaya 48 35
Johor 13,476 789
Pulau Pinang 7,682 237
Perak 7,078 428
Negeri Sembilan

4,747 1,286
Melaka 4,140 263
Kedah 3,190 58
Pahang 3,313 332
Terengganu 716 11
Kelantan 458 80
Perlis 165 19
Sabah 4,266 1,013
W.P Labuan 605 0
Sarawak 4,227 447
MALAYSIA

93,729

7,825

Incoming Supply
(unit)
p = preliminary
Distribution of Existing and Planned Supply of Industrial in
Kuala Lumpur and Selangor as at Q3 2011
p = preliminary
Existing
p
29,346 ; 74.07%
3,962 ;
10%
4,803 ;
12.12%
1,386 ; 3.50%
121 ; 0.31%
Terraced Semi-Detached Detached
Flatted Factory Industrial Complex
689;
37.49%
412;
22.42%
705; 38.36%
7; 0.38%
25; 1.36%
Planned Supply
P
Source: Industrial Property Stock Report, 3rd Quarter 2011 by Valuation & Property Services Department.
MALAYSIA BALANCE OF TRADE

Exports Imports Trade
Balance
Year (RM mil) (RM mil) (RM mil)
2000 374,033 294,889 79,144
2001 334,326 264,472 69,854
2002 358,504 286,387 72,117
2003 397,969 300,207 97,762
2004 481,903 377,129 104,774
2005 539,420 410,529 128,892
2006 590,018 452,726 137,292
2007 605,175 475,687 129,488
2008 663,875 492,076 171,799
2009 554,067 412,322 141,745
2010 640,043 505,317 134,726
2011* 682,707 543,025 139,682
2012** 723,968 581,248 142,721
Note: * Estimate ** Forecast
Source: Economic Report 2011/2012,
Ministry of Finance, Malaysia
Import/Export
RM million
Trade Balance
RM million
Trade Balance
Export (RM million)
Import (RM million)
200,000
300,000
400,000
500,000
600,000
700,000
800,000
50,000
70,000
90,000
110,000
130,000
150,000
170,000
190,000
00 01 02 03 04 05 06 07 08 09 10 11*12**
CONSUMER PRICE INDEX
% Change in CPI
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2
0
0
0
2
0
0
1
2
0
0
2
2
0
0
3
2
0
0
4
2
0
0
5
2
0
0
6
2
0
0
7
2
0
0
8
2
0
0
9
2
0
1
0
2
0
1
1
Year
Year CPI % Change

2000 80.4 1.5 %
2001 81.5 1.4 %
2002 83.0 1.8 %
2003 83.9 1.2 %
2004 85.1 1.5 %
2005 87.7 3.0 %
2006 90.9 3.5 %
2007 92.7 2.0 %
2008 97.8 5.5 %
2009 98.3 0.6 %
2010 100.0 1.7 %
2011* 103.1 3.1 %
Note: Year 2010 is the Base Year
* Average from January to November 2011 only
Source: Department of Statistics, Malaysia
INTEREST RATES: BANKING INSTITUTIONS
Commercial Banks : Base Lending Rates
Commercial Banks : Average Lending Rates
Investment Banks : Average Lending Rates
4.00
5.00
6.00
7.00
8.00
9.00
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Percent Per Annum

Commercial Banks Investment
Banks
2011 Base Average Average
Lending Lending Rates Lending Rates
Rates (%) (%) (%)
Jan 6.27 5.10 7.27
Feb 6.27 5.07 7.20
Mar 6.27 5.06 7.19
Apr 6.27 5.06 7.17
May 6.54 5.10 7.12
Jun 6.54 5.07 7.05
Jul 6.54 5.03 6.91
Aug 6.54 5.05 7.01
Sep 6.54 5.05 6.99
Oct 6.54 5.03 6.95
Nov 6.54 5.06 6.99

Note: December rates are not available at time of publication.
Source: Monthly Statistical Bulletin, Central Bank of Malaysia
EXCHANGE RATES
as at 1 January 2012

Country Currency RM1 US $1
Australia dollar 0.3082 0.9792
Bahrain dinar 0.1185 0.3764
Brunei dollar 0.4028 1.2795
China rmb 1.9923 6.3290
Egypt pound 1.8956 6.0221
European
Currency Unit ecu 0.2428 0.7712
Hong Kong dollar 2.4441 7.7643
India rupees 16.9353 53.8000
Indonesia rupiah 2,853.87 9,066.2
Japan yen 24.1900 76.860
Kenya shillings 26.3116 83.587
Lebanon pound 470.149 1,493.6
Malaysia ringgit 1.0000 3.1706
New Zealand dollar 0.4046 1.2854
Pakistan rupee 28.1484 89.422
Philippines peso 13.7529 43.690
Qatar riyal 1.1462 3.6411
Singapore dollar 0.4080 1.2960
South Africa rand 2.5307 8.0396
South Korea won 364.97 1,159.42
Sri Lanka rupee 35.820 113.792
Thailand baht 9.7545 30.988
United Arab Emirates dirham 1.1561 3.6726
United Kingdom pound 0.2025 0.6432
United States of
America dollar 0.3148 1.0000
Vietnam dong 6,581.2 20,907.1
Source: www.oanda.com/convert/classic
CURRENCY CHART
RM per 1 USD RM per 1 GBP RM per 100 JPY
RM per 1 SGD RM per 1 EURO RM per 100 PAK
1.50
2.00
2.50
3.00
3.50
4.00
4.50
5.00
5.50
6.00
6.50
7.00
7.50
8.00
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Ringgit (RM)
Year
TELEPHONE DIRECTORY (MALAYSIA)
Ministries/Departments
Department of Statistics Malaysia
Department of Town and Country Planning
03-8885 7000
03-2698 9211
Ministry of Dom. Trade, Co-operatives &
Consumerism
Ministry of Entrepreneur & Co. Operative Dev.
03-8882 5500
03-8880 5000
Ministry of Housing and Local Government 03-8891 5000
Ministry of Science, Technology and
Innovation
03-8885 8000
Ministry of Works Malaysia 03-2711 1100
Kuala Lumpur City Hall (DBKL) 03-2617 9000
Penang Island Municipal Council 04- 259 2020
Perbadanan Putrajaya 03-8887 7000
Petaling Jaya City Council (MBPJ) 03-7956 3544
Shah Alam City Council (MBSA) 03-5510 5133
Subang Jaya Municipal Council (MPSJ) 03-8026 3131
Public Works Department Malaysia (JKR) 03-2691 9011
SIRIM Berhad 03-5544 6000
The Malaysia Highway Authority
03-8737 3000
Contractors Association
Master Builders Association Malaysia 03-7984 8636
Contractors Registration Board
Construction Industry Development Board 03-2617 0200
Professional Registration Boards
Board of Architects Malaysia
Board of Engineers Malaysia
03-2698 2878
03-2696 7095
Board of Quantity Surveyors Malaysia 03-2696 7999
Professional Bodies
Assoc. of Consulting Engineers Malaysia
(ACEM) 03-2095 0031
Malaysia Institute of Architects (PAM) 03-2693 4182
Malaysian Institute of Planners (MIP) 03-7877 0636
The Institution of Engineers Malaysia (IEM) 03-7968 4001
The Institution of Surveyors Malaysia (ISM) 03-7955 3333
Other Important Numbers
Ambulance & Police 999
Civil Defence (Rescue) 999
999 Fire Fighter
General Hospital KL 03-2615 5555
Bursa Malaysia 03-2034 7000
SYABAS Sdn Bhd 03-2088 5400
Tenaga Nasional (KL) 03-2296 5566
About Us
Davis Langdon & Seah Pakistan (Private) Limited
Davis Langdon & Seah Pakistan (Private) Limited (DLSPK) was
established in Karachi in late 2007, spearheading a field relatively
unheard of in Pakistan - Quantity surveying and cost manage-
ment.
Being pioneers, DLSPK is partly responsible assist in the building
of a strong group of qualified field professionals for years to come.
Hence, the publication of the DLS Construction Cost Handbook -
Pakistan 2009 providing an extensive database for accurate
assessment in cost management and quality Quantity Surveying
services.
This is our second edition, published with technical support from
DLS Malaysia, our partner in the proud network that is DLS Inter-
national with a total of 105 offices and 5,000 staff worldwide.
Focusing on Pakistans construction cost profiles as well as the
major cities in Asia; this handbook serves as general reference on
construction cost indicators for project budgeting, appraisals and
costing purposes.
The information within was compiled by DLSPK.
Actual unit prices may vary project to project, depending upon the
nature of work, quantum, location and prevalent economic condi-
tions.
For further information and/or advice relating to particular project,
please contact us at the address provided at the end of this hand-
book.
DLSI has been involved in the publication of construction costs
handbooks for countries including Malaysia, Hong Kong, Philip-
pines, Vietnam and Singapore; and is also the editor of the Spons
Price Book Series.
Global Reach .... Local Delivery
I ndustry Overview
Housing and construction has been identified as one of the four
priority sectors for growth and poverty alleviation for two reasons:
one, because it is labor intensive, and two because it has back-
ward and forward linkages with at least 40 other industries.
The housing situation in Pakistan has steadily deteriorated over
the past many years for a variety of reasons including ineffective
policies, resulting in huge housing backlog. According to the last
census held in 1998, the total number of housing units throughout
the countries was 19.3 million. The housing backlog, as estimated
according to the census, was 4.30 million units which then pro-
jected in 2004 to 6.0 million units. The annual additional require-
ments is estimated at 570,000 housing units whereas the annual
production is estimated at 300,000 housing units, resulting in a
recurring shortfall of 270,000 housing units annually. It is esti-
mated that in order to address the backlog and to meet the hous-
ing shortfall in the next 20 years the overall housing production will
have to be increased to 820,000 housing units annually.
Recognizing the gravity of the situation and realizing the poten-
tials of housing and construction as productive sector of the
economy, the present government has declared Housing and
Construction as priority industry and also formulated a pragmatic
and workable National Housing Policy with a view to:
a) Accelerate housing activity and contribute towards employment
generation and economic development
b) Facilitate provisions of housing inputs including land, finance
and building materials, institutional and legal framework
c) Analyse the culture of poverty and the forces generating ever
increasing slums and squatters including political, public, socio-
economic, bureaucratic and environmental forces
d) Promote ways and means for housing development by enhanc-
ing affordability, saving capacity, human tendencies and potential
e) Provide safeguards against malpractices, bureaucratic
inefficien-cies, institutional weaknesses, and
f) Particularly for low income groups
The Pakistan Housing Authority (PHA) has been entrusted to
spearhead the construction of thousands of apartments for low
income groups.
The followings are some of the measures initiated under the
Housing for ALL programme:
a) Housing schemes for Government employees launched in all
districts of the country for which the provincial governments and
ICT will provide (100) acres of State land at affordable price
b) Housing schemes for Government employees to be developed
on public private partnership basis in which Banks will participate
through appropriate collaboration with the private sector develop-
ers. Such partnership shall be secured on competitive basis
through a transparent selection process
c) Federal/ Provincial/ District Government shall facilitate and pro-
vide all necessary support to Banks/Developers with a view to cre-
ating enabling environment
d) Federal Government will ensure the provision of trunk
infrastruc-ture at the project sites from National Utilities regarding
electric-ity, gas and telephone. If required Banks may finance
extra cost of such infrastructure
e) Federal/ Provincial Government will ensure provision of trunk
infrastructure for housing schemes
f) Provincial Government will make the necessary legislation, if
required, for transfer of state land at realistic/affordable rates for
the Government employees housing schemes
g) Rationalization of the rate of registration fees, stamp duty and
property tax to promote housing sector by the Provincial govern-
ments
Selection of Design Consultants
The professions are regulated by the appropriate professional
bodies Institute of Architects Pakistan (IAP), Institute of Engi-
neers Pakistan (IEP) and Association of Consulting Engineers
Pakistan (ACEP), Individual professional consultants have to reg-
ister with their respective professional boards.
Pakistan Engineering Council (PEC) is the regulatory body for
engineering works. It is compulsory for all practicising engineers
and engineering firms to be registered with PEC.
Architects and town planners shall register individually (not as a
firm) with Pakistan Council of Architect and Town Planners
(PCATP) which is the regulating body for architects and town
planners.
There is no independent body for quantity surveyors. Quantity
surveying works are normally done in house as an integral part of
the engineering and/or architectural practices.
In the private sector, most consultants are selected and appointed
by the developers based on track record and personal relation-
ships besides cost consideration. In the public sector, the selec-
tion criteria of project consultants are based on experience, quota,
contracts and cost. The consultants must be registered with the
various development authorities such as Capital Development
Authority Islamabad, Rawalpindi Development Authority, Rawal-
pindi District Council, Karachi Building Control Authority (KBCA),
PHA, PWD, Defence Housing Authorities etc.
Contractual Arrangements
In the public sector, there are various forms of contract being used
for large tender bids, which are essentially modified FIDIC Forms
of Contracts. For smaller projects simple forms of contract are
normally used. The Public Works Department usually invites con-
tracting companies to tender through open advertisements in the
major newspapers. Sometimes, tenderers are selected through a
pre-qualification exercise for larger jobs. For private sector proj-
ects the most common procurement method is by selective ten-
dering.
In the private sector, the PEC Engineering Forms of contract are
widely adopted. Bill of Quantities, drawings and specification are
commonly used as the basis for tender.
Pakistan Engineering Council produced the following standard
bidding/contract documents with modifications based on FIDIC
and World Bank formats and specifically tailored to be in line with
relevant PEC construction and consultancy Bye laws and
Govern-ment of Pakistan requirements:-
a) Standard form of bidding documents (civil works) to be used
for construction contract over Rs 50 millions
b) Standard form of tender documents for procurement of works
(electrical and mechanical) to be used for E&M procurement
contract over RS 50 millions.
c) Standard form of tender documents for procurement of works
(for smaller contracts) to be used for all type of procurement
contract below Rs 50 million.
d) Standard form of contracts for engineering consultancy for
large projects (Time based/Lump sum assignments) and smaller
projects.
The documents are applicable to all projects to be executed in
Pakistan.
Development Control
Presently the functions of development control are contended by
several institutions. For instance Karachi Building Control Authority
(KBCA), created under the provision of Sindh Building Control
Ordinance 1979, is one of the legal valid bodies undertaking this
task.
KBCA is a regulatory and supervisory body whose prime function
is to approval of building plans and No Objection Certificates
(NOC) etc. and conformation with the existing Building & Town
planning regulations. However the quality, soundness and
implementation of appropriate design/specifications is the sole
responsibility of the concerned professionals licensed by KBCA
under Karachi Building Control Licensing Regulations 1982.
City District Government (CDGK) has also its own claim under the
Sindh Local government Ordinance.
Federally controlled and constituted bodies such as Cantonment
Board of the Ministry of Defence, Karachi Port Trust, Pakistan
Railways, Ministry of Works Pakistan, Board of Revenue, Sindh
Katchi Abadies Authorities, Sindh Industrial Trading Estates
Karachi have their own jurisdiction which stands untainted from the
other local authorities. Similarly other autonomous land owning
agencies such as public universities are not controlled by the
conventional building control practices.
In general all developments must adhere and conform to the Town
Planning and Building Control in accordance with Master Plan and
Environmental Control (Building and Town Planning Regulations
2002, given cover under Sindh Building Control Ordinance (SBCO)
1979), and the developers/builders must obtain the followings:
a) Building Plan approvals and NOCs from the various utilities
authorities
b) Approval of Structural Designs of Buildings
c) Obtaining of NOCs for sale and advertisement for public sale
projects i.e. fixation/approval of unit price, time period and
specifications of construction and development
d) Submission of as built plan upon completion
e) Obtaining occupation/completion certificate.
Standards
Generally the specifications for construction works are based on
the latest edition of Pakistan Standards, British Standards (BS),
American Concrete Institute Standards (ACI), American Society
for Testing and Materials Standards (ASTM).
Construction Cost Specification For Pakistan

The building costs per unit area given are averages incurred by
building clients for typical buildings in the urban area as at 4th
quarter 2008. They are based upon the total floor area of all
storeys measured between external walls and without deduction
for internal walls.
Approximate estimating costs generally include mechanical and
electrical installations but exclude furniture, loose or special
equipment, and external works; they also exclude fees for profes-
sional services. The cost shown are for specifications and stan-
dards appropriate to Karachi and this should be borne in mind
when attempting comparisons with similarly described building
types in other countries.
Major Rates
The unit rates provided are for main work items in a typical con-
struction project in the Karachi area in the 4th quarter 2008. The
rates include all necessary labour, materials and equipment.
Allowances of 20% to cover preliminary and general items and
20% to cover contractors overheads and profit have been
included in the rates which are the normal industry allowances in
Karachi. It is customary to induce preliminaries and overheads in
the unit rates.
Regional Variations
The approximate estimating costs are based on projects in Kara-
chi. Adjust these costs by the following factors to take account of
regional variations.
- Islamabad: 5 - 10%
- Lahore: 0 - 5%
Cost (Rs/ft
2
)
1,200 - 1,300 Factories for letting
Factories for owner occupation
1,500 - 1,600 (light industrial use)
Factories for owner occupation
1,900 - 2,200 (heavy industrial use)
High tech laboratory workshop centers
2,800 - 3,000 (air conditioned)
* air conditioned
3,000 Civic offices
3,200 - 3,500 Offices for letting, 5 to 10 storeys
3,500 - 3,700 Offices for letting, high rise
Offices for owner occupation, 5 to 10 storeys 3,800 - 4,000
Offices for owner occupation, high rise 4,000 - 4,400
Prestige/headquarters office, 5 to 10 storeys 5,900 - 6,100
Prestige/headquarters office, high rise 6,300 - 6,600
General hospitals
(excld. specialist equipment and installation) 6,500 - 7,600
Private hospitals
(excld. specialist equipment and installation) 7,500 - 8,700
3,300 - 4,000 Primary/junior schools
3,300 - 4,000 Secondary/middle schools
INDUSTRIAL BUILDINGS
ADMINISTRATIVE AND COMMERCIAL BUILDINGS
HEALTH AND EDUCATION BUILDINGS
University
4,900
Construction Costs for Pakistan
as at 4th Quarter 2008
Cost (Rs/ft2)
Theatres (over 500 seats) incld. seating
and stage equipment
Concert halls incld. seating
Sports hall incld. changing and social facilities
Swimming pools (school standard) incld.
changing facilities
National museums incld. full air conditioning and
standby generator
Social/economic single family housing
Private/mass market single family housing 2 storey
detached/semi detached
Social/economic apartment housing
- low rise (no lifts)
- high rise (with lifts)
Private sector apartment building
- standard specification
- luxury
Student/nurses halls of residence
Homes for the elderly
- shared
- self contained with shared communal facilities
Hotel
- 5 star, city center
- 3 star, city/provincial
Motel
RESIDENTIAL BUILDINGS
RECREATION AND ARTS BUILDINGS
1,000 - 1,200
1,400
1,300
1,500
3,300 - 3,700
5,500 - 6,300
1,800 - 2,000
1,300 - 1,500
1,500 - 1,700
11,000 - 13,000
7,000 - 8,800
3,100 - 3,700
70,000 - 75,000/seat
2,600 - 3,000
3,600
3,000,000 each
3,000 - 4,000
2,300 - 3,000 Terraced houses
Unit Rate Rs
Excavation
Mechanical excavation of foundation trenches m
3
425
Hardcore filling (sand) making up levels m
3
825
Reinforcement
Reinforcement in concrete walls,
suspended concrete slabs 80,000 tonne
Fabric reinforcement in concrete beds m
2
240 - 405
Steelworks
Fabricate, supply and erect steel framed
165,000 tonne structure
Framed structural steelwork in universal
165,000 tonne joist sections
Structural steelwork lattice roof trusses tonne 165,000
Plumbing
UPVC Half round eaves gutter (6 Dia.) m 4,300
UPVC rainwater pipes (4 Dia.) m 2,300
Light gauge copper cold water tubing
595 m (1/2 Dia.)
High pressure plastic pipes for cold water
m supply (2Dia) 1,235
Low pressure plastic pipes for cold water
315 m distribution (3/4 Dia.)
UPVC soil and vent pipes (3 or 4 Dia.) m 1,150
White vitreous china WC suite each 14,500
White vitreous china lavatory basin each 8,500
Stainless steel single bowl sink and double
11,700 each drainer
Hardcore filling (stone) making up levels m
3
1,170
Major Rates for Pakistan

(as at 4th Quarter 2008)
Roofing
Plain clay roof tiles 260 x 160mm m
2
740
Sawn softwood roof boarding (12mm) m
2
1,410
Bitumen based mastic asphalt roof covering m
2
450
Troughed galvanized steel roof cladding m
2
650 - 800
Electrical Work
PVC insulated and copper sheathed cable m 1,900
13 amp unswitched socket outlet each 490
Flush mounted 20 amp, 1 way light switch each 350
Unit Rate Rs
Wood and metalwork
Preservative treated sawn softwood,
size 50 x 100mm m
3
106,000
Single glazed casement window in
hardwood, size 650 x 900mm each 7,300
Two panel glazed door in hardwood ,
size 850 x 2000mm each 14,000
Solid core half hour fire resisting hardwood
internal flush doors, size 800 x 2000mm each 15,000
Aluminium double glazed window,
size 1200 x 1200m each 14,400 - 15,200
Aluminium double glazed door,
size 850 x 2100mm each 15,500 - 17,500
Hardwood skirtings m 500 - 535
2 coats gypsum based plaster on concrete
m
2
walls 20mm thick 500
White glazed tiles on plaster walls m
2
1,290 - 1,395
Red clay quarry tiles on concrete floors m
2
Cement and sand screed to concrete
m
2
floors, 30mm thick 345 - 376
Mineral fibre tiles on concealed
suspension system m
2
950
Finishings
900
Concrete work
m
3
Plain insitu concrete (C25) 6,400 - 7,745
Reinforced insitu concrete (C35) 7,200 - 8,715
Formwork
Softwood formwork to concrete works,
concrete columns, horizontal soffits of
slabs
270 - 325
Brickwork and blockwork
Precast hollow concrete block walls 1,130
Solid (perforated) common bricks 810
m
2
Facing bricks 1,350
Glazing
6mm clear float glass; glazing to wood m
2
600 - 700
Painting
m
2
Emulsion on plaster walls 215 - 235
m
2
Oil paint on timber 215 - 235
m
2
m
2
m
3
m
2
Unit Cost Rs
CEMENT & AGGREGATE
Ordinary portland cement in 50kg bags tonne 6,740
Coarse aggregates for concrete (3/4 down) m
3
825
Fine aggregates for concrete (Local Sand) m
3
670
m 1000 psi -
3
4,400
m 3000 psi -
3
5,400
STEEL
Plain steel reinforcement 10mm - 40mm dia. tonne 70,000 - 71,000
Cold-worked deformed Steel Bars,
10mm - 40mm dia.
tonne 80,000 - 81,000
Structural steel sections tonne 85,000 - 95,000
BRICKS & BLOCKS
Hollow concrete blocks
Solid concrete blocks
TIMBER & INSULATION
Softwood sections for Formwork m
3
26,500
Hardwood for joinery (Deodar Wood) m
3
113,000
m Teak plywood (Prime)
3
520
Commercial plywood for joinery m
2
500
Formica ply sheets (Local) m
2
390
100mm thick foam insulation (Jumbolon) m
2
1,300
Ready mixed concrete (in SR Cement)
m 3750 psi -
3
5,800
m 4500 psi -
3
6,360
m 6000 psi -
3
7,055
Ready mixed concrete (in SR Cement) is on average Rs 125/m
3
higher.
- 1200 psi (150 x 200 x 305mm) pc 19
- 1200 psi (100 x 200 x 305mm) pc 17
- 2000 psi (150 x 200 x 305mm) pc 58
- 1200 psi (150 x 200 x 305mm) pc 25
- 1200 psi (100 x 200 x 305mm) pc 23
- 3000 psi (150 x 200 x 305mm) pc 80
m 7000 psi -
3
8,200
m 9000 psi -
3
11,000
Hollow concrete fairface blocks
Solid concrete fairface blocks
- 1050 psi (190 x 190 x 390mm) pc 38
- 1050 psi (140 x 190 x 390mm) pc 29
- 1050 psi ( 90 x 190 x 390mm) pc 23
- 1050 psi (190 x 190 x 390mm) pc 50
- 1050 psi (140 x 190 x 390mm) pc 40
- 1050 psi ( 90 x 190 x 390mm) pc 30
Basic Cost of Key Materials in Pakistan
(as at 4th Quarter 2008)
CERAMIC TILES, STONE & MARBLE (Avg. Rate)
Prime Quality Ceramic Floor & Wall Tiles
- Local
- China
m
2
m
2
450 - 550
450 - 850
PLASTER & PAINT
Plastic Emulsion paint (Matt) litre 255
0 5 1 litre Distemper Paint
CEMENT TILES & PAVERS
Clay floor tiles (200 x 200mm) m
2
410
Precast concrete paving slabs
m (300 x 300 x 60mm)
2
1,000
Clay roof tiles (400 x 225mm) pc 110
Precast concrete roof tiles m
2
550
DRAINAGE
10,000 - 14,000 each WC suite complete
Lavatory basin complete each 70,000 - 80,000
100mm diameter UPVC drain pipes (Class D) m 755
150mm diameter UPVC drain pipes (Class D) m 1,635
Unit Cost Rs
Kerb Stone (150 x 300 x 450) (Local) pc 220
0 0 3 litre Enamel Paint (Matt)
Paint for External surface litre 300
Colour crete plaster for external surface m
2
645
Prime Quality Porcelain Floor &
m Wall Tiles (UAE)
2
950 - 1,450
Polished Finish Verona Marble
m (Local 18mm thk)
2
2,800 - 3,000
Polished Finish Granite (White) m
2
6,800
Flamed Finish Granite (White) m
2
7,300
The figures above are the cost of main construction materials, delivered to site in the urban area, as incurred by contractors in the
4th quarter 2008. These asume that the materials would be in quantities as required for a medium sized construction project and that
the location of the works would be neither constrained nor remote.
All estimated amounts are rounded to nearest Rs. 50.00 - 100.00

Wage rate
Rs/day
CATEGORY OF WORKERS
600.00 Mason/bricklayer
575.00 Carpenter
550.00 Plumber
500.00 Electrician
500.00 Aluminium Technician
550.00 Welder
500.00 Painter
550.00 Crane Operator
500.00 Pipe Fitter
Wage rate
Rs/hour
75.00 Foreman Asphalt
Foreman Concrete 75.00
70.00 Foreman Earthwork
63.00 Supervisor
Site Engineer 125.00
Asphalt Plant Engineer 125.00
Concrete Plant Engineer 125.00
Surveyor 105.00
85.00 Assistant Surveyor
Steel Binder / Cutter 75.00
600.00 Skilled Workers
450.00 Semi-Skilled Workers
350.00 Unskilled Workers
CATEGORY OF WORKERS
Note: Rates are as at 4th Quarter 2008
Source: Finance Department, Government of Punjab

Wages of Key Personnel in Pakistan
Carpenter
Islamabad
Karachi
Lahore
Peshawar
Quetta
Mason (Raj)
Islamabad
Karachi
Lahore
Peshawar
Quetta
Islamabad
Karachi
Lahore
Peshawar
Quetta
Labourer (Unskilled)
2007
525.00
450.00
388.00
375.00
500.00
525.00
450.00
491.00
442.00
450.00
275.00
300.00
250.00
200.00
300.00
2008
575.00
575.00
507.00
438.00
600.00
575.00
600.00
557.00
475.00
600.00
300.00
350.00
300.00
225.00
300.00
Category of
workers and
cities 2005
400.00
365.00
338.00
275.00
275.00
400.00
365.00
380.00
325.00
275.00
200.00
230.00
200.00
150.00
170.00
2006
400.00
369.00
325.00
275.00
313.00
400.00
369.00
396.00
325.00
313.00
200.00
230.00
213.00
150.00
200.00

Comparison of Daily Wages of Construction
Workers in Different Cities
Note: Data pertains to month of November each year (in Pak Rupees)
Source: Federal Bureau of Statistics, Pakistan
Infrastructure Development
(A) Roads
The total length of roads in Pakistan is approximately 260,000 km.
This includes 8,850 km of federalized roads, including twelve
National Highway and four Motorways (M-1, M-2, M-3, & M-9). An
investment of about Rs. 100 billion is earmarked for improvement
of existing roads and construction of new highways and motor-
ways during the 9th five-year plan.
Work on the 1,265 km Indus Highway Project has been com-
pleted. The Indus Highway, an alternate North-South route on the
west bank of river Indus, links Karachi and Peshawar through
some less developed areas of the country and reduces the
distance between Karachi and Peshawar by 300 km. The work on
the dualisation of 1,762 km National Highway (N.5), a historic
highway from Karachi to the Torkham border, through Lahore has
also been completed.
The construction of the Pakistan Motorway systems, connecting
the northern and southern parts of the country with a link at Gawa-
dar has been initiated. The first 333 km phase of the project, the
Lahore-Islamabad Motorway M-2, has been constructed with the
assistance of a South Korean firm at a cost of US$ one billion. The
project has been completed now. Along this Motorway, industrial
estates of 800 to 1,000 hectares at or near the interchanges are
also constructed. The Islamabad-Peshawar Motorway (M-1) has
also been completed.
The main Karakoram Highway (N-35), which is the historic silk
route, is being improved, with 713 km of the road being rehabili-
tated under Phase-I by the Frontier Works Organization (FWO) to
enhance road safety. Under Phase II, the road has been
upgraded to International Standards to eventually allow faster
flows of traffic from the sea ports of Karachi and Gawadar to the
Central Asian States.
(B) Ports
Pakistan has two major operating Ports serving 803,943 square
km of hinterland, besides offering services for land-locked
Afghani-stan. The Karachi Port has 30 general cargo berths with
draft of 10 to 11.5 M, and three oil jetties two of which are capable
of handling 75,000 dead weight ton (DWT) ships; the third is being
reconstructed to serve 75,000 DWT ships.
A dedicated Container Terminal of 600 mt. quay length with draft of
11.3 m is already functioning at the West Section of the Port which is
capable of handling 300,000 TEUs per annum and can accommo-
date 2,7000 TEU ships. The terminal is equipped with three gantry
cranes, 6 RTGs and has an area of 136,000 sq. m. with a holding
capacity of 8,570 TEUs. Berths 6-9 have been reconstructed and
will support the establishment of a second Container Terminal at the
East Section of the Port. The Port is also equipped with Two Harbor
Mobile Container handling cranes that are located at the East Wharf
Berths 1-4. The Port handles 18 million tons of cargo including about
7 million tons of liquid cargo. The Port has adequate covered and
open transit storage areas for storage of general cargo and contain-
ers with effective security and fire fighting systems. The Port also
provides buffer storage areas for export cargo, including bulk com-
modities for export.
Following are the details of some of the National Highways and
Motorways:
Name Route

Kilometers Specification
M-1 Peshawar to Islamabad 155 6 lanes
M-2 Lahore to Islambad 367 6 lanes
M-3 Pindi Bhattian to Faislabad 53 4 lanes
M-9 Karachi to Hyderabad 136 4 lanes
N-5 Extends from Karachi to
Torkham via Hyderabad,
Multan, Lahore, Rawalpindi
and Peshawar. Lahore -
Peshawar section is also
known as GT or Grand Trunk
1,819 4 lanes
N-10 Extends along the Arabian
Sea Coast from Karachi to
Gawadar. Also known as
Makran Coastal Highway
653 2 lanes
N-15 Extends from Mansehra to
Chilas via Naran and
Jalkhand
240 2 lanes
N-25 Extends from Karachi to
Quetta. Also known as
RCD Highway
813 2 lanes
N-35 Extends from Hasan abdal
to Khunjerab. Also known
as Karakoram Highway
806 2 lanes
N-40 Extends from Lakpass to
Taftan
610
2 l
anes
N-45 Extends from Nowshera to
Chitral
309 2 lanes
N-50 Extends from Kuchlack to
Dera Ismail Khan
531 2 lanes
N-55 Extends from Kotri to
Peshawar. Also known as
Indus Highway
1,264 4 lanes
N-65 Extends from Sukkur to
Saryab
385 2 lanes
N-70 Extends from Qila Saifullah
to Multan
447 2 lanes
N-75 Extends from Islamabad to
Kohala
90 2 lanes
Keeping in view the present status of the Port facilities, changes
in maritime transport, and future requirements of the trade and
commerce sectors, Karachi Port, with the assistance of the World
Bank, has formulated and launched a comprehensive Port Mod-
ernization Plan to take care of the Traffic for the next 20 years.
The other major port, Port Qasim, is located approximately 50 km
south-east of Karachi and became fully operational in 1983.The
approach to the port is along a 45-kilometre long Navigation
Channel which provides safe navigation for vessels up to 75,000
metric tons of DWT. The Port facilities include a 1,400 m multi-
purpose terminal, divided into seven berths of 200 m each Berths
1-4 can accommodate vessels of up to 25,000 DWT and Berths
5-7 of up to 35,000 DWT. There is also a 279 m special berth for
handling bulk iron ore and coal for Pakistan Steel. The berth is
connected with the Steel Mill facility through a 4.5 m elevated con-
veyor. The Port also has one Oil Terminal set up by the private
sector for handling liquid bulk cargoes, including fuel oil and petro-
leum. Port Qasim handles and annual average of 7.2 million tons
of cargo, of which about 3 million tons is liquid cargo.
The Port of Karachi and Port Qasim, are well served by the road
and rail system, linked directly with the National Highways and rail
services.
Pakistans coastlines are over 1962 km long, stretching from
Jiwani on the Pakistan-Iranian border at the western limit of the
Balochistan coast and ending at the Sir Creek, formed at the
Pakistan-India border on the Sindh Coast in the south-east. The
coastline fronts the Arabian Sea and is adjacent to the straits of
Hormuz and international shipping routes serving the Arabian Gulf
region. Various studies have been conducted for potential port
sites on the Balochistan Coast and a third major port is currently
under construction at Gawadar, which is ideally located to attract
traffic including transit and trans-shipment trade to/from the Gulf
and CAR Countries.
Gawadar Port
Gawadar port is located at Gawadar city at the entrance of the
Persian Gulf on Arabian Sea and about 460 km west of Karachi in
Balochistan. It is strategically located outside the sensitive area of
Strait of Hormuz but still remained on main shipping lanes. On its
western side lay several hub ports of the Gulf and on eastern side
Sri Lanka and Indian ports. It is bounded on the North by Kech
and Awaran District and on the East by Lasbela District. These
districts are mountainous and provide physical safety to Gawadar
port from adverse effects of sea storms. On its south is the Arabia
Sea and on West is Iran.
Gawadar port is a deep-sea warm water port, being constructed in
two phases with heavy investment from China. In 1993, Pakistan
started technical and financial feasibilities for the development of
Gawadar port. The Gawadar port project started on 22 March 2002
and the Port of Singapore Authority was hired for its management.
Gawadar Port became functional on March 15, 2008, when the first
ship carrying 60,000 tonnes of wheat docked, unloaded and safely
sailed out from the Gawadar Port. Thus, Gawadar Port finally made
history by beginning its cargo handling. It was also an important
event in the sense that it was the biggest ship that had ever docked
at a Pakistani port.
Gawadar Port has depth of 14.5 meters and approach channel of
five kilometers. Three multi-purpose berths of 210 meters in width
have been built. The port can handle bulk carriers of up to 50,000
DWT through its three berths.
The federal government has declared Gawadar port as a free port
for the next 20 years. Due to this fact, the Port has boosted
business and trade activities at all levels in Pakistan.
The second phase of Gawadar port is in progress. Phase II of the
project has to be built on BOO/BOT basis at an estimated cost of
US$ 524 Million will involve construction of 9 berths on BOT basis
including two container berths, one bulk cargo terminal, one grain
terminal with capacity to handle vessels up to 100,000 DWT, one
roll on/roll off terminal, two oil piers of vessels up to 200,000 DWT
and future expansion of two container berths. It is anticipated that
the private sector will come forward and participate in completion
of Phase II of the project. On completion of the project, Gawadar
Deep-sea port would be one of the worlds most strategically
located port in this part of the world.
(C) Shipping
The Pakistan National Shipping Corporation (PNSC), a public
sector organization. Its main objective is to serve as an operating
link between major trading partners of the country, maintain and
stabilize the freight rates and provide strategic link in case of
emergencies. PNSC operates a fleet of 14 vessels with a total
dead-weight capacity of 243,749 tonnes and also has its
subsidiar-ies.
PNSC is also the major carrier of crude oil for the Country. The
National Tanker Company (NTC), a subsidiary of PNSC has
ensured smooth transportation of about four million tonnes of
crude oil for the country annually at the most economical rates,
resulting in large savings in foreign exchange. It owns a Tanker
having oil carrying capacity of about 80,000 tonnes. The Countrys
remaining oil needs are met through chartered tankers on as
required basis.
The Government has issued 35 licenses to private sector
companies, but so far only two companies have started up the
Tri-Star Shipping Company with one tanker and the Millwall
Shipping Company with only one small vessel. Although there
are only two companies under the Pakistan national flag in the
private sector, a number of companies are operating under flags
of their own convenience.
Foreign shipping lines dominate the Pakistan shipping industry.
Due to small size and inadequate capacity, the national fleet
is presently shipping approximately 10% of the regular cargo
and 25% of the liquid bulk cargo.
(D) Air Transport
Pakistan is linked to almost all the countries of the world through
five international airports at Karachi, Islamabad, Lahore, Pesha-
war and Quetta. Karachi, the gateway to Asia, has the most
modern airport of the country.
For building a strong and dependable air transport infrastructure
in Pakistan, which would contribute significantly to improving
the regions logistics, the Government of Pakistan in its new
National Aviation Policy has explicitly provided for the construc-
tion of new airports in the country on BOT basis. The policy also
provides for an increase in private sector participation in the
construction of airports. To meet the needs of domestic and
international air transport, a number of private airlines have been
allowed to operate alongside PIA, the national air carrier. For
international operations, conditions will be developed to allow fair
and reasonable competi-tion with Pakistani carriers with suffi-
cient encouragement to the foreign airlines to continue to serve
Pakistan as much as possible and in the most efficient manner.
The policy also provides for selective open skies through
agreements on the principle of reciprocity and bilateralism with
the maximum number of countries.
Pakistan has concluded Air Services Agreement with 91 coun-
tries. As per the new National Aviation Policy of Pakistan, a
number of airlines have been granted access to the northern
gateway of Pakistan, namely Lahore, Islamabad and Peshawar,
effective 1st January 1999. The national airline, Pakistan Interna-
tional Airlines (PIA) now operates services to 45 cities in 36 coun-
tries across the four continents. It also serves over 35 cities within
Pakistan.
The aviation liberalization policy has also opened up investment
opportunities in the privatization of airports. This will ease the
burden on Civil Aviation Authority that already has enormous
airport development plans and projects besides on going
maintenance and upgrading of airports.
Overall, the deregulation of air transport has resulted in
phenom-enal growth of the sector, with domestic passenger traf-
fic increas-ing tremendously. On the major trunk routes, in particu-
lar Karachi-Islamabad and Karachi-Lahore, lower fares have con-
tributed to the rapid growth.
In recent years, private airlines in Pakistan have flourished.
Presently two private airlines, namely: Air Blue and Shaheen Air
International are operating on domestic/international routes. New
entrants are expected to enter the aviation market.
35 international airlines operate to Pakistan and there has been a
tremendous growth on the cargo side, where the Governments
open skies policy for exclusive cargo flights is creating growth in
this activity. In particular, with the opening of CIS states, charter
operations have also increased.
There is a Duty Free Shop located in the Jinnah Terminal Complex,
Karachi Airport. The Duty Free Shop covers an area of 16,000 sq.
ft. All outlets of Aer Rianta are in operation and their shops are full
stocked and operational on a 24-hours basis.
PLANT AND EQUIPMENT UNIT 2005 - 2006 2006 - 2007
0 0 . 1 9 7 , 7 0 0 . 1 9 7 , 7 m K e t u o R
0 0 . 6 1 6 , 1 1 0 0 . 5 1 5 , 1 1 m K k c a r T
Locomotives No 544.00 544.00
Coaching Vehicles No 1,663.00 1,670.00
Other Coaching
Vehicles
No 214.00 246.00
Freight Wagons No 20,809.00 19,638.00
Railway Stations No 626.00 589.00
Passengers Carried No 81.4 million 83.9 million
(E) Railways
Pakistan Railways has a well-developed system connecting virtu-
ally the entire country from north to south and east to west, cater-
ing to the large-scale movement of freight as well as passen-ger
traffic. The Pakistan Railways Network comprises of the following:
The Government of Pakistan is actively encouraging private
sector participation in the railway sector to operate passenger and
freight trains paying track access charges.
(F) Export Processing Zones (EPZ)
The Government of Pakistan has adopted a policy package for the
development of EPZs to energize the process of efficient
industrial-ization and development with adequate attraction for
locals and foreign investment for export oriented business ven-
tures. There are presently four notified EPZs viz. Karachi, Sialkot,
Saindak, and Risalpur and many new zones are being set up i.e.
Duddar, Gujranwala, Reko Diq, Tuwarqi, Gawadar, Khalifa
coastal etc.

Construction Output
Benefiting from both public and private investments, the
construc-tion industry of Pakistan is a prime source of employ-
ment genera-tion offering job opportunities to millions of unskilled,
semi-skilled and skilled work force.
The construction sector was a star performer for the fiscal year
2004-2005, against a sharp downturn of 10.7% in 2003-2004. It
recorded an equally sharp upturn of 17.9% in 2006-2007. For
2007-2008, a trend of slow growth was recorded in construction
industry curtailed at 15.2 % (recorded in 2007-2008) from 17.9%
(recorded in 2006-2007). Hence the industry saw a decline of
2.7% through year 2007-2008.
The decline in 2007-2008 was mainly caused by devaluation of
Pakistan Rupees and high inflation, which was observed globally.
During the last two years, the government has taken various bud-
getary and non-budgetary measures yielding positive results and
thus Construction activity in Pakistan gathered momentum. The
budget allocated for construction and transportation was
increased from Rs. 6.2 billion (US$ 78.7 million) in fiscal year
2007-2008 to Rs. 6.5 billion (US$ 82.5 million) in fiscal year 2008-
2009. More funds have been allocated to the construction industry
for its betterment and growth.
The sectoral share in GDP from construction industry increased
from 2.5% (in 2006-2007) to 2.7% (in 2007-08). Similarly demand
for construction related materials surged.
Many national and international real estate developers launched
different construction projects in Pakistan during the year 2007-
2008. But after the crash of global economy, Pakistan also
suffered loss in all fields as well as in construction industry. Prog-
ress in many of the mega projects slowed down or halted. Now the
Government as well as private sector is taking all the necessary
steps to regain the boost in the industry.
The killer earthquake on 8th October 2005 in the Azad Kashmir
and North-West Frontier Province (NWFP) region destroyed thou-
sands of medical facilities, schools and residential houses. It is
estimated that 2.5 million people were left homeless. It will cost
billions of US dollars over the next five to ten years to rebuild the
quake-affected areas in Pakistan and Azad Kashmir.
Rs million %
Construction GNP at Constant Factor Cost
Construction Sectoral Share in GDP
Construction Real GDP/GNP Growth Rate
-50,000
0
50,000
100,000
150,000
200,000
250,000
300,000
2000 2001 2002 2003 2004 2005 2006 2007
-15.00
-10.00
-5.00
0.00
5.00
10.00
15.00
20.00
25.00
Characteristics And Structure
Number of Employed Labour Force : Overall vs Construction Sector
-
10.00
20.00
30.00
40.00
50.00
60.00
1
9
9
0
1
9
9
1
1
9
9
2
1
9
9
3
1
9
9
4
1
9
9
5
1
9
9
6
1
9
9
7
1
9
9
8
1
9
9
9
2
0
0
0
2
0
0
1
2
0
0
2
2
0
0
3
2
0
0
4
2
0
0
5
2
0
0
6
2
0
0
7
Million
Employed Labour Force
Construction
In 2008 there were approximately 30,500 registered constructors
and 150 operators in Pakistan. Even though the number of labour
force in the construction industry had increased, it is still a mere
6.56% from the overall labour force.
In Pakistan no engineering works can be constructed except by a
constructor, or operated except by an operator licensed as such
by Pakistan Engineering Council (PEC). There are six categories
of registration, which differ mainly by the limit of construction cost
of project to be constructed or capital cost of project to be oper-
ated.

Limit of
construction
cost of project
(million rupees)
Average annual
value of work
for last 3 years
(million rupees)
Largest project
value during
last 3 years
(million rupees)
Paid up capital
or net/capital
worth (million
rupees)
Minimum
requirement of
professional
credit points
(pcp-credits)
C-1 No limit 20.00 15.00 20.00 100.00
C-2 Up to 100 15.00 10.00 10.00 70.00
C-3 Up to 50 5.00 3.75 2.50 40.00
C-4 Up to 20 2.00 1.50 1.00 20.00
C-5 Up to 10 1.40 0.75 0.50 10.00
C-6 Up to 5 0.50 0.38 0.25 5.00
O-1 No limit 4.00 2.00 4.00 100.00
O-2 Up to 50 3.00 1.60 3.00 70.00
O-3 Up to 20 1.00 0.80 2.00 40.00
O-4 Up to 8 0.50 0.50 2.00 20.00
O-5 Up to 4 0.30 0.30 1.00 10.00
O-6 Up to 2 0.10 0.20 0.50 5.00
Constructors Categories
Operators Categories
Note: Construction cost of a project shall exclude cost of land, plant and machinery permanently
installed in the works but shall include cost of erection, installation, testing and commissioning
Note: Capital costs of projects and other values in the above table are based on the value of the
operators fees.
Clients And Finance
Public sector investment makes up a quarter of the total
construc-tion investment, and the balance, by the private sector.
Most of the building projects are privately funded where the
financing is generally arranged through banks. Private funding is
increasing due to increased privatisation of the public organiza-
tions. However, public funding financed the majority of the civil
engineering and infrastructure projects.

Pakistan - An Overview

Pakistan has a strategic location, spread over a landmass of
803,940 square kilometers. Flanked by Iran and landlocked
Afghanistan in the West, the central Asian Republics and China in
the North and India in the South East, Pakistan boasts of signifi-
cant location advantage in vast, partially tapped, potential con-
sumer market. The affluent Gulf States are just across the Arabian
Sea, providing an additional opportunity of a high consumption
market.
Pakistan has vast, relatively cheap land for setting up industries
and other development. The average office occupation cost in the
prime business districts of the big cities at less than US$ 15 per sq
feet per year is much lower than other countries in the region.
Pakistan is a federation of four provinces and has a parliamentary
form of government. The federal government is a bicameral legis-
lature: the lower house, the National Assembly, is elected on adult
franchise basis; and the upper house, the Senate, is elected by
the provincial legislatures. The provinces - Punjab, Sindh, North
West Frontier and Baluchistan have unicameral legislatures with
seats of Government at Lahore, Karachi, Peshawar and Quetta
respectively.

Key Data
GOVERNMENT
Official Name : Islamic Republic of Pakistan
Official Language : English /Urdu
National language : Urdu
Government type : Federal Republic
Capital city : Islamabad
: 4 provinces, and 1 capital territory;
1) Sindh
2) Punjab
3) Baluchistan
4) North-West Frontier Province and
5) Islamabad Capital Territory
Legal system : Based on English common law with
provisions to accommodate Pakistan as
an Islamic State.
Administrative divisions
GEOGRAPHY
, a e S n a i b a r A e h t g n i r e d r o b , a i s A n r e h t u o S : n o i t a c o L
between India on the East and Afghanistan
and Iran on the West and China in the North
Total area : Land - 778,720 square kilometers
Water - 25,220 square kilometers
Cultivated area : 22.99 million hectares
Forest area
: 4.22 million hectares
, n m u t u a , r e m m u s , g n i r p s - s n o s a e s r u o F : e t a m i l C
winter and monsoons during summer
POPULATION
Total population (2008 est.)
: 165,253,500
Province wise population and %
- Sindh : 46,270,980 28.00%
- Punjab : 80,974,215 49.00%
- Balushidtan : 10,245,717 6.20%
- NWFP : 26,440,560 16.00%
- Islamabad : 1,322,028 0.80%
Languages
Ethnic groups : Punjabi, Sindhi, Pastun (Pathan), Baloch,
Muhajir
: Most of the Pakistanies are tri-lingual. They
speak Urdu, English and their regional
language. The percentage distribution is as
follows:
Urdu 95%, English 50% (can communicate)
Sindhi 12%, Punjabi 48%, Siraiki 10%,
Pastu 8%, Balochi 3%, Hindko 2%,
Brahui 1%, Others 8%
: Total 20.5 years
Male 20.3 years
Female 20.6 years
Life expectancy at birth (2008 estimates)
- Total population : 64.13 years
- Male : 63.07 years
- Female : 65.25 years
Median age
Population under 15 years : 37.80%
Population 15 to 64 years : 58.00%
Population 65 years and over : 4.20%
Average annual growth rate : 1.99%
: Total population : 49.90%
Male : 63.00%
Female 36.00% (2005 estimate)
Literacy (Definition: age 15 and over
can read and write)
Lending
Rates
Deposit
Rates
Spread
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
10.70
10.50
10.60
10.60
10.60
10.30
10.40
10.50
10.50
11.00
10.70
11.00
3.70
3.80
3.90
3.90
4.00
4.00
4.00
4.10
4.10
4.10
4.10
4.10
6.90
6.70
6.60
6.70
6.60
6.30
6.40
6.40
6.40
6.90
6.60
6.90
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
10.80
10.80
10.90
10.90
11.30
12.80
13.00
13.30
14.40
15.50
4.20
4.20
4.20
4.20
4.20
5.20
5.50
5.60
5.90
6.20
6.60
6.60
6.70
6.70
7.10
7.60
7.50
7.70
8.50
9.30
2007
2008
Weighted Average Lending & Deposit Rates
Source: Statistic Division, Government of Pakistan
% LR DR Spread
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00

J
u
n
-
0
5

A
u
g
-
0
5

O
c
t
-
0
5

D
e
c
-
0
5

F
e
b
-
0
6

A
p
r
-
0
6

J
u
n
-
0
6

A
u
g
-
0
6

O
c
t
-
0
6

D
e
c
-
0
6

F
e
b
-
0
7

A
p
r
-
0
7

J
u
n
-
0
7

A
u
g
-
0
7

O
c
t
-
0
7

D
e
c
-
0
7

F
e
b
-
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8

A
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r
-
0
8

J
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-
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8

A
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-
0
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O
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-
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8

Country Currency Rs1 US $1
China rmb 0.0874 6.8533
Egypt pound 0.0718 5.6304
European
India rupees 0.6362 49.900
Indonesia rupiah 142.934 11,210.8
Japan yen 1.1533 90.459
Qatar riyal 0.0465 3.6488
Russia rubles 0.3829 30.029
United States of
Exchange Rates
as at 1 January 2009
0.00
20.00
40.00
60.00
80.00
100.00
120.00
140.00
160.00
99 00 01 02 03 04 05 06 07 08
Year
Rupee
Rs per 1 USD Rs per 1 GBP Rs per 100 JPY
Rs per 1 SGD Rs per 1 EURO Rs per 1 RM
Currency Chart
Population below poverty line : 24% (2008 estimate)
n o i l l i m 8 7 . 0 5 : e c r o f r u o b a L
n o i l l i m 7 0 . 8 4 : d e y o l p m E
n o i l l i m 0 1 . 3 : d e y o l p m e n U
Unemployment Rate (2007 est.) : 7.50% + substantial under employment
Labour force by occupation
- Agriculture sector : 43.62%
- Construction industry sector : 6.56%
- Services sector : 14.41%
- Manufacturing and mining : 13.54%
% 6 8 . 1 2 : s r e h t O -
) % 0 2 a i h S , % 5 7 i n n u S ( % 5 9 m i l s u M : s n o i g i l e R
Christian, Hindu and others 5%
ECONOMY
) s R ( e e p u R k a P : t i n u y r a t e n o M
Exchange rate to: (20 Dec 2008)
the pound sterling : Rs 119.06
the US dollar : Rs 78.90
Euro : Rs 109.17
Average annual real inflation : 12.00%
Inflation rate (Jul - Nov 2008) : 24.70%
Gross Domestic Product (GDP) at
market price
: US$ 167.00 billion
GDP per capita (PPP) : US$ 2,400.00
Average annual real change in GDP : 5.87%
GDP composition by sector
: Agriculture 20.90%, Services 53.20%,
Construction Industry 2.70%,
Manufacturing 18.90%, Others 4.40%
UAE Dirham : Rs 21.45
GDP growth rate : 5.78%
Remittance (2007 - 2008) : US$6.45 billion (+17.5%)
POPULATION (contd)
TRADES

Total Exports (2007 - 2008) : US$20.13 billion
Major exports commodities : Textiles, rice, leather goods, sports goods,
chemicals, manufactures, carpets and rugs
Export partners (Jul 08 - Aug 08): USA 18.41%, UAE 8.85%,
Afghanistan 8.16%, , China 3.96%, UK 4.89%
Imports (2007 - 2008) : US$35.41 billion
Imports commodities : Petroleum and petroleum products,
machinery, chemicals, transportation
equipment, edible oils, pulses, iron and steel,
tea
Import partners : UAE, Saudi Arabia, Kuwait, USA, Malaysia
International Airports : Karachi, Lahore, Islamabad, Peshawar and
Quetta
Major Sea ports : International -Karachi, Port Bin Qassim
: Domestic - Minora, Gawadar and Pasni
CONSTRUCTION
Net Value of construction
output as a proportion of GDP
: 2.70%
Cement production (2008) : 8.75 million tonnes
Construction sector growth : 15.20%
Net Inflow of FDI (Construction) : US$ 88.5 million (2007 - 2008)
US$ 18.1 million (2008 - 2009)
GNP at Current Factor Cost : Rs 277,141 m

Economy

Comparative Performance of Key Economic Indicators
Unit 2003-4 2004-5 2005-6 2006-7 2007-8
GDP Growth % 7.50 8.60 6.60 7.00 5.80
Weighted Ave. Lending Rates % 5.05 8.00 9.60 10.68 12.02
Construction Growth % -10.70 18.60 5.70 17.90 15.20
Inflation % 3.90 9.30 7.90 7.90 12.00
Exchange Rate Rs/US$ 57.92 59.66 60.00 60.91 78.90
Stock exchange index (KSE) - 5,279 7,450 9,989 9,801 12,289
FDI US$ millions 949.40 1,524.00 3,521.00 4,160.00 5,152.00
Pakistans economy continues to show resilience to domestic and
international shocks of extraordinary nature during the out going
fiscal year. Although these have taken their toll, the economy is
expected to turn in a reasonable growth performance during fiscal
year 2008-2009, albeit substantially lower than target. However,
growing macroeconomic imbalances, particularly the widening
fiscal and current account deficits continued to create complica-
tions and add to inflationary pressures. On the other hand, Paki-
stan has largely been less affected by the continuing turmoil in the
international credit markets.
Pakistans economy has grown at an average rate of almost 6.6%
per annum during the last five years. Its GDP grew by 5.8% in
2007-2008 against 6.8% last year and growth target of 7.2%. Agri-
culture sector showed dismal performance and grew by 1.5%
against 3.7% last year and target of 4.8%. Manufacturing,
account-ing for 18.9% of GDP registered a modest growth of 5.4%
against 8.2% last year. Agriculture remains the dominant source
of employ-ment. The share of agriculture in employment
increased from 43% in 2003-2004 to 43.61% by the year 2006-
2007, with manufactur-ing (13.54%) and trade(14.43%) &
services(14.41%) absorbing a growing share of the work force.
Pakistans export performance has been impressive in recent
years (2002-2003 to 2005-2006) with exports registering an aver-
age growth of 16 percent per annum. Pakistans export perfor-
mance was however dismal in 2006-2007, witnessing abrupt and
sharp deceleration to less than 4 percent.
The SBP continued pursuing a relatively easy monetary policy
since 2002 to induce banks to reduce the lending rates in order to
providing low cost credit to private sector with the view of promot-
ing investment and growth. However, with recent monetary
devaluation, rising fuel prices and its global effects, SBP has
increased the lending rates to 15% effective 4th Quarter 2008.
Investment Policies And Incentives
Agriculture
Infrastructure
& Social
IT & Telecom
Services
Social
Government
Permission
Not required except
for 4 specific industries
i.e. arms and
ammunitions, high
explosives, radioactive
substances and
Remittance of capital,
profits, dividends, etc
Allowed
Upper limit of foreign
equity allowed
100% 100% 100% 100%
Minimum investment
amount
No USD 0.3m USD 0.3m USD 0.15m
Manufacturing Sector Policy Parameters
Allowed
Non Manufacturing Sectors
Not required except specific licenses from
concerned agencies
security printing
currency and mint

Custom duty on import
of Plant, Machinery
and Equipment
5% 0% 5% 0-5%
Tax relief (Initial
depreciation allowance,
% of Plant, Machinery
and Equipment)
50%
No restriction for
payment of royalty &
technical fee
Royalty & Technical Fee
Allowed as per guidelines initial lump
sum up to USD100,000
-Max rate 5% of net sales initial period
5 years
50%
The current Pakistan Government has adopted the following
liberal investment policy:
All economic sectors open to FDI
Equal treatment to local and foreign investors
100% foreign equity allowed
No government sanction required
Attractive tax/tariff incentives package
Remittance of royalty, technical and franchise fee, capital,
profits and dividends allowed
Foreign investment fully protected by Foreign Private Invest-
ment (Promotion & Protection) Act 1976, Protection of Eco-
nomic Reforms Act, 1992 and Foreign Currency Accounts
(Protection) Ordinance, 2001
Bilateral Agreements - Investment protection with 46 countries
and Avoidance of Double Taxation with 52 countries
The housing and construction sector was declared as industry in
1994. Plant, Machine and Equipment, not manufactured locally, of
housing and construction industry are importable at custom duty
of 5.0% and Zero rates sales tax. To encourage investment in this
sector, excise duty on paints was abolished, and import duties on
a number of building materials, including steel and its products
and construction machinery reduced. Sales tax and withholding
tax on construction machinery were also abolished.
Tariff
Manufacturing/Industrial Sector Custom duty Sales tax
Custom duty levied on imports of
plant, machinery and equipment
5.00% 0.00%
Imported of plant, machinery and
equipment (not manufactured locally)
0.00 - 5.00% 0.00%
Other Sectors (Non Manufacturing)

The Government is undertaking a major effort to remove
ambigui-ties in urban land titles, to provide certainties in the real
estate market. Local and foreign companies involved in real
estate projects will only market those whereby the property title is
transferred in the name of a locally incorporated company, and
the Commencement of Business certificate issued by the Secu-
rity & Exchange Commission of Pakistan to the firm.
Plant, Machine and Equipment - not manufactured locally - of
tourism, hotels and related projects are also importable at custom
duty of 5.0% and Zero rates sales tax.
Source: Central Board of Revenue, Pakistan
Normal Tax Rates
35%
35%
35%
Company Tax Rates
Banking Companies
Public Companies
Private Companies
20% Small Companies
having: 1) Paid up capital of Rs 25 mil
2) Turnover of Rs 200 mil
3) Incorporated after July 1, 2005
25% Private Companies
Tax Rate
Fi scal Incenti ves
To keep Pakistan competitive in international markets and support
the viability of investments in the country, the following incentives
are available to both foreign and local investors.
A) Initial Depreciation Allowance (IDA)
IDA at rate of 50% is permissible on an eligible depreciable
asset placed in service in Pakistan for the first time in a tax year.
Eligible depreciable asset means plant and machinery excluding
any road transport vehicle unless the vehicle is plying for hire; any
furniture including fittings; any plant or machinery that is required
second hand; and any plant or machinery in relation to which the
deduction has been allowed under other section of the New Ordi-
nance for the entire cost of the asset in the tax year in which the
asset is acquired.
B) Amortization
1) Amortization of pre-commencement expenses allowed at the
rate of 20% annually
2) Amortization of intangible assets allowed over a period of ten
year.
Personal Income Tax Rates
Salaried Taxpayers
Non Salaried Taxpayers
Taxable Income Rate of Tax (%)
Up to Rs. 100,000 0.00
Rs. 100,000 - 110,000 0.50
Rs. 110,001 - 125,000 1.00
Rs. 125,001 - 150,000 2.00
Rs. 150,001 - 175,000 3.00
Rs. 175,001 - 200,000 4.00
Rs. 200,001 - 300,000 5.00
Rs. 300,001 - 400,000 7.50
Rs. 400,001 - 500,000 10.00
Rs. 500,001 - 600,000 12.50
Rs. 600,001 - 800,000 15.00
Rs. 800,001 - 1,000,000 17.50
Rs. 1,000,001 - 1,300,000 21.00
Over Rs. 1,300,001 25.00
Taxable Income Rate of Tax (%)
Up to Rs. 180,000 0.00
Rs. 180,001 - 200,000 0.50
Rs. 200,001 - 250,000 0.50
Rs. 250,001 - 350,000 0.75
Rs. 350,001 - 400,000 1.50
Rs. 400,001 - 450,000 2.50
Rs. 450,001 - 550,000 3.50
Rs. 550,001 - 650,000 4.50
Rs. 650,001 - 750,000 6.00
Rs. 750,001 - 900,000 7.50
Rs. 900,001 - 1,050,000 9.00
Rs. 1,050,001 - 1,200,000 10.00
Rs. 1,200,001 - 1,450,000 11.00
Rs. 1,450,001 - 1,700,000 12.50
Rs. 1,700,001 - 1,950,000 14.00
Rs. 1,950,001 - 2,250,000 15.00
Rs. 2,250,001 - 2,850,000 16.00
Rs. 2,850,001 - 3,550,000 17.50
Rs. 3,550,001 - 4,550,000 18.50
Rs. 4,550,001 - 8,650,000 19.00
Over Rs. 8,650,000 20.00
Facilitation

Exchange Control
a) Full repatriation of capital, capital gains, dividends and profits is
allowed.
b) The facility for contracting foreign private loans (which does not
involve any Guarantee from the Government of Pakistan) is avail-
able to all those foreign investors, who make investment sectors
open to foreign investment, for financing the cost of imported plant
and machinery required for setting up the project. However, loan
agreement should be registered/ cleared by the State Bank of
Pakistan.
c) Foreign controlled manufacturing concerns will be allowed un-
limited domestic borrowing according to their requirements for
working capital.
d) Authorized dealers are authorized to grant rupee loans and
credits to foreign controlled companies for meeting their working
capital requirements subject to observance of Prudential regula-
tions prescribed under the Banking Companies.
Exports
Re-
Exports
Imports
Re-
Imports
Balance of
Trade
560,946.70 4,306.90 634,630.30 688.50 -70,065.20
652,293.80 2,943.50 714,371.90 342.00 -59,476.60
709,036.10 24,024.80 897,824.60 819.00 -165,582.70
854,087.70 6,076.70 1,223,079.10 4,729.10 -367,643.80
984,840.60 7,717.00 1,711,158.40 613.70 -719,214.50
Jul 88,878.90 N/A 155,454.10 N/A N/A
Aug 88,627.20 756.50 166,257.70 30.60 -76,904.50
Sep 90,014.10 527.00 1,658,343.90 26.30 -75,320.10
Oct 83,626.00 1,889.20 205,383.90 24.20 -119,912.90
Nov 93,891.20 25,317.90 192,838.60 44.50 -73,674.00
Dec 80,771.50 833.60 143,699.70 84.40 -62,179.00
Jan 91,319.70 765.40 220,097.10 27.10 -128,039.10
Feb 96,314.70 1,053.40 229,052.50 80.60 -131,765.00
2008
Mar 111,168.90 928.30 239,805.00 105.10 -127,812.90
Apr 113,816.00 1,127.10 260,569.70 5.50 -145,632.10
May 129,846.90 1,725.20 262,450.30 104.90 -130,983.10
Jun 128,362.60 9,755.60 270,628.20 94.80 -132,604.80
2005-06
Year /
Month
2001-02
2002-03
2003-04
2004-05
2007
1,029,311.67 9,726.10 1,851,805.91 232.00 -813,000.23 2006-07
1,196,637.60 45,527.60 2,512,071.70 690.80 -1,270,597.30 2007-08
Jul 132,665.00 1,838.00 250,512.60 73.40 -116,083.00
Aug 116,196.30 1,488.90 257,011.90 174.20 -139,500.90
Pakistan Value of Foreign Trade
(in million rupee)
Note: Base Year = 2000-01
Inflation Rates based on Sensitive Price Indicator (SPI),
Consumer Price Index (CPI) and Wholesale Price Index (WPI)
Yearly Inflation Rates
Period SPI CPI WPI
1990-91 12.6 12.7 11.7
1991-92 10.5 10.6 9.8
1992-93 10.7 9.8 7.4
1993-94 11.1 11.3 16.4
1994-95 15.0 13.0 16.0
1995-96 10.7 10.8 11.1
1996-97 12.5 11.8 13.0
1997-98 7.4 7.8 6.6
1998-99 6.4 5.7 6.4
1999-00 1.8 3.6 1.8
2000-01 4.8 4.4 6.2
2001-02 3.4 3.5 2.1
2002-03 3.6 3.1 5.9
2003-04 6.8 4.6 7.9
2004-05 11.6 9.3 6.8
2005-06 7.0 7.9 10.1
2006-07 10.8 7.7 6.9
2007-08 16.8 12.0 16.4
%
SPI CPI WPI
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00
20.00
1
9
9
0
-
9
1
1
9
9
2
-
9
3
1
9
9
4
-
9
5
1
9
9
6
-
9
7
1
9
9
8
-
9
9
2
0
0
0
-
0
1
2
0
0
2
-
0
3
2
0
0
4
-
0
5

2
0
0
6
-
0
7
*
www.pakboi.gov.pk Board of Investment
Capital Territory Police Islamabad www.cybercity-online.net
Central Board of Revenue www.cbr.gov.pk
Chamber of Commerce & Industry
- Federation of Pakistan www.fpcci.gov.pk
www.icci.org.pk Islamabad -
www.karachichamber.com Karachi -
www.lcci.org.pk Lahore -
www.scci.org.pk Sarhad -
Export Processing Zones Authority
Pakistan
www.epza.com.pk
Federal Bureau of Statistic www.statpak.gov.pk
Government of Punjab www.punjab.gov.pk
Government of Sindh www.sindh.gov.pk
Ministry of Information Technology
www.moit.gov.pk
Institute of Regional Studies www.irs.org.pk
Islamic Republic of Pakistan www.pakistan.gov.pk
Karachi Building Control Authorities www.kbca.gov.pk
Karachi International Container
Terminal
www.kictl.com
Karachi Port Trust
www.kpt.gov.pk
Ministry of Commerce www.commerce.gov.pk
Ministry of Environment www.environment.gov.pk
Ministry of Environment, Local
Government & Rural Development
www.environment.gov.pk
www.finance.gov.pk Ministry of Finance
Ministry of Foreign Affairs www.mofa.gov.pk
Ministry of Industries & Production
www.moip.gov.pk
Ministry of Petroleum & Natural
Resources
www.mpnr.gov.pk
Ministry of Science & Technology www.most.gov.pk
Competition Commission of Pakistan www.mca.gov.pk
National Database and Regulation
Authority (NADRA)
www.nadra.gov.pk
Useful Websites (Pakistan)
www.privatisation.gov.pk
National Reconstruction Bureau www.nrb.gov.pk
Pakistan Agricultural Research
Council
www.parc.gov.pk
Pakistan Broadcasting Corporation www.radio.gov.pk
Pakistan Computer Bureau
www.pcb.gov.pk
Pakistan Council of Architects & Town
Planners
www.pcatp.org.pk
Pakistan Engineering Council
www.pec.org.pk
Pakistan Housing Authority
www.pha.gov.pk
Pakistan Industrial Credit & Investment
Corporation
www.picic.com
Pakistan International Airline www.piac.com.pk
Pakistan National Commission for
UNESCO
www.un.org.pk
Pakistan National Shipping
Corporation
www.pnsc.com.pk
Pakistan Post Office www.pakpost.gov.pk
Pakistan Railways www.pakrail.com
Pakistan Software Export Board
www.pseb.org.pk
Pakistan Telecommunication Authority www.pta.gov.pk
Pakistan Television Corporation ptv.com.pk
Pakistan Tourism Development
Corporation
www.tourism.gov.pk
Pakistan Trade Office www.engineeringpakistan.com
Privatization Commission
Punjab Agriculture Marketing, Govt. of
Punjab
www.pamco.bz
Securities and Exchange Commission
of Pakistan
www.secp.gov.pk
Silakot Chamber of Commerce &
Industry
www.home.scci.org.pk
Small & Medium Enterprise Devt.
Authority
www.smeda.org
State Bank of Pakistan www.sbp.org.pk
Trade Development Authority of
Pakistan
www.tdap.gov.pk

Quality Policy Statement
Our policy and goal is to fill the companys culture
with committed, dedicated and excellent people
having in-depth knowledge in the Quantity Surveying
field who will play a positive and creative role in
realising the needs and expectations of our clients
and to continually strive to ensure that our clients
have the best service available.
Each process within the Company that determines the
quality of our services shall be managed and
controlled in a planned and systematic manner in
accordance with our quality system documents with
the highest integrity, impartiality and independency.
We see our quality system as a valuable tool and
mechanism to promote, instill, further develop and
bring about opportunities for improvement to our staff
and our internal processes.
Essential to an effective quality system is our belief in
continuous investment in professional development
and structured training of our staff at all levels in core
skills and knowledge.
All staff members are required to comply with this
policy statement, be responsible for the quality of their
work and for providing our clients with a consistently
high standard of service.
Alan P. Hearn
President
VISSION MISSION STATEMENT
Davis Langdon and Seah Philippines Inc.
Vision
To be the leading Cost and Quantity Surveying, Environmental
Sustainability and Development Management Consultant in the
Philippines built environment providing the highest level of excel-
lence in professionalism and integrity, working on modern, leading
edge projects - integrating and coordinating each of our business
lines.
Cost and Quantity Surveying
Vision
To be the leading Cost and Quantity Surveying Consultant in the
Philippines built environment, providing the highest level of excel-
edge projects integrating and coordinating our Cost and Quan-
tity Surveying Consultancy with our other service lines of Environ-
mental Sustainability and Development Management.
Mission
Protecting the interests of our Clients, we commit to:
Provide our Clients with proactive, integrated service where we
are working on the project covering more than one role.
Establish partnerships with major Clients, working together as
an integral part of their management team.
Provide our Clients with service over and above their require-
ments through enhanced understanding of their needs.
Provide our Clients accurate and dependable services taking
into account their needs and procurement options.Being the
greatest assets of the Company, we commit to the growth and
development of our Staff by:
Providing training, an exciting work environment and a competi-
tive remuneration package.
Providing opportunities for career growth and professional
development.
Encouraging and providing time and resource to gain external
accreditation and qualifications in the field of Cost Consultancy
and Quantity Surveying services at the earliest time.
We commit to continuously protect the interest of our Stockhold-
ers by:
Maintaining and upholding our Chartered status with the RICS.
Maintaining our Quality Assurance accreditation while being
committed to continual improvement.
Producing marketing materials and marketing strategy to diver-
sify and widen our client base on Cost Consultancy and Quantity
Surveying services.
We commit to our responsibility to our Society, hence;
We contribute to socio civic works as a conscientious organiza-
tion.
Environmental Sustainability
Vision
To be the leading Environmental Sustainability Consultant in the
edge projects integrating and coordinating our Environmental
Sustainability Consultancy with our other service lines of Develop-
ment Management, Cost and Quantity Surveying Consultancy.
Mission
Provide LEED, BERDE and BREAM accreditation consultancy
services and expanding this to a capability in other S.E. Asian
accreditation systems such as Greenmark (Singapore).
Provide our Clients with a proactive, integrated service guiding
them through the accreditation process and educating key parties
where there is lack of past experience/familiarization with the pro-
cess.
ments by achieving the projects targeted sustainability certifica-
tion, striving to go beyond the projects pursued level within a rea-
sonable cost and time.
Being the greatest assets of the Company, we commit to the
growth and development of our Staff by:
Providing training, an exciting work environment and a remu-
neration package that exceeds the highest local benchmark com-
petitors.
development.
accreditation, specialization seminars and qualifications in the
field of environmental sustainability consultancy services at the
earliest time.
ers by:
Developing the company as the foremost energy modeling
center in the region, well-versed over a range of accredited soft-
ware; that clients and other DLS companies in S.E. Asia might
refer for modeling services.
Expanding our Consultancy Services into other related fields
such as carbon assessment, daylight simulation and commission-
ing works.
Developing our Consultancy Services to increase our involve-
ment in the existing built environment as well as new build devel-
opments.
sify and widen our Client base on Environmental Sustainability
Consultancy.
tion.
Development Management
Vision
To be the leading Development Management Consultant in the
edge projects integrating and coordinating our Development
Management Consultancy with our other service lines of Environ-
mental Sustainability, Cost and Quantity Surveying Consultancy.
Mission
Provide a high level Clients Representative service incorporat-
ing strategic procurement advice, project management, planning,
risk avoidance and programming services.
Provide our Clients with a proactive, integrated service where we
Guide our Clients through the development process and educat-
ing key parties where there is lack of past experience/ familiariza-
tion with the process.
development.
accreditation and qualifications in the field of Development Man-
agement services at the earliest time.
ers by:
sify and widen our client base on Development Management ser-
vices.
tion.
VISSION MISSION STATEMENT
Davis Langdon and Seah Philippines Inc.
Vision
To be the leading Cost and Quantity Surveying, Environmental
Sustainability and Development Management Consultant in the
Philippines built environment providing the highest level of excel-
edge projects - integrating and coordinating each of our business
lines.
Cost and Quantity Surveying
Vision
To be the leading Cost and Quantity Surveying Consultant in the
edge projects integrating and coordinating our Cost and Quan-
tity Surveying Consultancy with our other service lines of Environ-
mental Sustainability and Development Management.
Mission
Provide our Clients with proactive, integrated service where we
Provide our Clients accurate and dependable services taking
into account their needs and procurement options.Being the
greatest assets of the Company, we commit to the growth and
development of our Staff by:
development.
accreditation and qualifications in the field of Cost Consultancy
and Quantity Surveying services at the earliest time.
ers by:
Maintaining and upholding our Chartered status with the RICS.
sify and widen our client base on Cost Consultancy and Quantity
Surveying services.
tion.
Environmental Sustainability
Vision
To be the leading Environmental Sustainability Consultant in the
edge projects integrating and coordinating our Environmental
Sustainability Consultancy with our other service lines of Develop-
ment Management, Cost and Quantity Surveying Consultancy.
Mission
Provide LEED, BERDE and BREAM accreditation consultancy
services and expanding this to a capability in other S.E. Asian
accreditation systems such as Greenmark (Singapore).
Provide our Clients with a proactive, integrated service guiding
them through the accreditation process and educating key parties
where there is lack of past experience/familiarization with the pro-
cess.
ments by achieving the projects targeted sustainability certifica-
tion, striving to go beyond the projects pursued level within a rea-
sonable cost and time.
Providing training, an exciting work environment and a remu-
neration package that exceeds the highest local benchmark com-
petitors.
development.
accreditation, specialization seminars and qualifications in the
field of environmental sustainability consultancy services at the
earliest time.
ers by:
Developing the company as the foremost energy modeling
center in the region, well-versed over a range of accredited soft-
ware; that clients and other DLS companies in S.E. Asia might
refer for modeling services.
Expanding our Consultancy Services into other related fields
such as carbon assessment, daylight simulation and commission-
ing works.
Developing our Consultancy Services to increase our involve-
ment in the existing built environment as well as new build devel-
opments.
sify and widen our Client base on Environmental Sustainability
Consultancy.
tion.
Development Management
Vision
To be the leading Development Management Consultant in the
edge projects integrating and coordinating our Development
Management Consultancy with our other service lines of Environ-
mental Sustainability, Cost and Quantity Surveying Consultancy.
Mission
Provide a high level Clients Representative service incorporat-
ing strategic procurement advice, project management, planning,
risk avoidance and programming services.
Provide our Clients with a proactive, integrated service where we
Guide our Clients through the development process and educat-
ing key parties where there is lack of past experience/ familiariza-
tion with the process.
development.
accreditation and qualifications in the field of Development Man-
agement services at the earliest time.
ers by:
sify and widen our client base on Development Management ser-
vices.
tion.
CONSTRUCTION COSTS FOR PHILIPPINES
PESO/m2
BUILDING
27,100 - 29,200
33,100 - 34,900
21,300 - 24,700
40,700 - 43,350
22,050 - 25,800
30,750 - 32,600
30,000
- 31,800
TOTAL SERVICES
6,800 - 9,500
9,500 - 14,700
2,700 - 4,600
7,900 - 12,150
9,450 - 13,300
13,150 - 16,400
8,100 - 13,400
TOTAL
33,900 - 38,700
42,600 - 49,600
24,000 - 29,300
48,600 - 55,500
31,500 - 39,100
43,900 - 49,000
38,100 - 45,200
DESCRIPTION
DOMESTIC
Town houses
Individual prestige houses
OFFICE/COMMERCIAL
Shopping Centers
Costs are at 4th Quarter 2011 levels. Manila building costs are expected to increase by approximately 0.5%
per month (compounded) during 2012.
OTHERS
Carparks, above ground
General hospitals
13,750 - 17,700
36,400 - 39,600
3,350 - 5,200
12,600 - 20,350
INDUSTRIAL
12,300 - 13,850 3,950 - 6,900 16,250 - 20,750
HOTELS
Resort hotels, inclusive of F.F.&E
3-star budget hotels inclusive of F.F.&E
5-star luxury hotels inclusive of F.F.&E
36,750 - 49,050
35,450 - 42,400
49,750 - 51,700
11,350 - 13,950
12,400 - 15,350
14,250 - 22,300
48,100 - 63,000
47,850 - 57,750
64,000 - 74,000
17,100 - 22,900
49,000 - 59,950
M & E SERVICES COSTS FOR PHILIPPINES
PESO/m2
TOTAL
SERVICES
6,800 -
9,500 - 14,700
2,700 -
7,900 - 12,150
9,450 - 13,300
13,150 - 16,400
8,100 - 13,400
4,600
9,500
ELECTRICAL
SERVICES
3,600 - 4,300
3,900 - 6,300
1,400 - 1,800
3,000 - 5,500
3,300 - 4,700
4,800 - 6,000
3,600 - 6,000
MECHANICAL
SERVICES
400 - 900
2,100 - 3,000
600 - 1,300
2,500 - 2,950
3,000 - 3,300
4,000 - 6,000
2,500 - 3,700
FIRE
SERVICES
600 -
700 - 1,300
-
-
650 - 900
650 - 1,200
650 - 900
900
LIFTS /
ESCALATOR
800 - 1,500
800 - 1,500
-
-
1,600 - 2,200
2,200 - 2,900
700 - 1,700
PLUMBING
SERVICES
1,400 - 1,900
2,000 - 2,600
700 - 1,500
2,400 - 3,700
900 - 1,500
1,500 - 2,000
650 - 1,100
DESCRIPTION
DOMESTIC
Town houses
Individual prestige houses
OFFICE/COMMERCIAL
Shopping Centers
Costs are at 4th Quarter 2011 levels.
INDUSTRIAL
OTHERS
Ccarparks, above ground
General hospitals
2,000 - 3,500
1,100 - 1,650
5,000 - 7,700
650 - 1,300
-
4,200 - 6,500
600 - 900
550 - 750
750 - 1,500
-
1,100 - 1,700
900 - 1,800
700 - 1,200
500 - 900
1,750 - 3,900
3,900 - 6,650
HOTELS
Resort hotel, inclusive of F.F.&E.
3-star budget hotels inclusive of F.F.&E.
5-star luxury hotels inclusive of F.F.&E
4,400 - 5,200
4,700 - 5,500
5,400 - 8,400
3,000 - 3,300
3,300 - 4,000
4,000
-
6,000
650 - 950
650 - 950
650 - 1,100
1,500 - 2,000
1,800 - 2,300
1,800 - 3,000
1,800 - 2,500
2,000 - 2,700
2,400 - 3,800
11,300 - 13,950
12,400 -
15,350
14,250 - 20,950
3,250 - 5,000
12,600 - 20,150
100 200
CONSTRUCTION VALUE
* Forecast
Source : www.census.gov.ph/data/sector data
Construction Value Php (1,000)
Year
Residential Non-Residential
2011*

102,938,618 94,679,492
2005 51,454,973 33,560,552
2006 51,179,051 50,772,217
2007 53,596,319 53,240,552
2008 69,043,520 50,718,172
2009 77,953,836 48,895,248
2010 97,247,194 79,047,539
Construction Value (Php Billions)
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011*
Year
120
105
90
75
60
45
30
15
0
Residential
Non-Residential
CONSTRUCTION ACTIVITY
* Forecast
Source : www.census.gov.ph/data/sector data
Usable Floor Area (m
2
)
Year
Residential Non-Residential
2011* 11,291,568 8,716,240
2005 8,460,337 5,234,044
2006 7,808,050 6,024,889
2007 7,740,142 7,028,643
2008 9,305,281 6,310,071
2009 9,848,587 5,355,568
2010 8,820,354 11,412,345
Usable Floor Area (Millions m)
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011*
Year
14
12
10
8
6
4
2
0
Residential
Non-Residential
LEAD TIME OF DIFFERENT PACKAGES
* Process Code
Legend:
A - Working Drawing
B - Approve working drwing
C - Procurement of materials
D - Manufacture
The lead time provided shall serve only as guide for use in
projects, this is due mainly to the variability of factors like
local customs processing/clearing, material availabilirt,
among others.
Lead times do not refer to any particular building/project
type and are based on average times. For examples;
Air-conditioning plant may require between six and twelve
weeks depending on the plant specified or required.
Therefore, an average of nine weeks has been used in the
table.
Process Code* (in weeks)
Packages A B C D
Insitu Concrete
Works
1 1 2 -
Structural steel
frames
4 2 - 5
Cladding-
curtain walling
10 2 - 14
Brickwork 1 1 2 -
3 1 4 4
Windows 2 1 3 6
Drylining, plaster
and screeds
1 1 1 -
Demountable
partitions
2 1 2 3
General joinery 2 2 3 5
2 2 - -
Suspended 2 3 3
Decorations
(wall coverings)
- - 2 -
Stone wall and
floor finishes
3 2 4 5
2
Roof finishes -
profiled metal
Raised floors
Process Code* (in weeks)
Packages A C D
Passenger lifts
8 3 - 27
(non-standard)
Escalators 4 2 -
Mechanical
pipework
4 2 1
Ductwork 4 2 4
Sprinklers 6 2 4 3
Air-conditioning
plant
2 2 3 6
Variable air-
volume unit
1 1 3 6
Electrical package 6 3 - -
Switchgear 2 2 - 10
Generators
(600 kW)
4 2 - 13
1 1 6 -
Security systems 3 3 4 -
Controls 4 3 3 -
Furniture 2 2 4 8
Data and voice
cabling
3 2 -
B
Light fittings
1
3
18
ESTIMATING RULES OF THUMB
Densities of Common Materials
Concrete
Minimum Recommended Cement Factor
Based on Concrete Strength
( in bags of 40 kg cement)
Concrete 2,400 kg/m
3
Water 1,000 kg/m
3
Cement Softwood
Sand 1,600 kg/m
3
Hardwood 1,100 kg/m
3
Gravel 1,350 kg/m
3
Aluminum 2,750 kg/m
3
Steel 7,850 kg/m
3
Soil (compact) 2,100 kg/m
3
1,441 kg/m
3
700 kg/m
3
Strength Ordinary Design Mix Pumpcrete Design
Psi Mpa Gravel Size
3
/
4
8,000 55 22 23
7,000 48 20 21
6,000 41 18 19
5,000 35 16 17
4,000 28 12.75 14.5
3,000 21 10 11.5
21
19
17
15
11.75
9
Gravel Size
3
/
4
1
1
/
2
Reinforcement
Bar Diameter
(mm)
6
8
10
12
16
20
25
32
40
Weight/m
(kg/m)
0.222
0.395
0.616
0.888
1.579
2.466
3.854
6.313
9.864
Perimeter
(mm)
Area
(mm
2
)
18.85
25.13
31.42
37.70
50.27
62.83
78.54
100.53
125.66
28.27
50.26
78.54
113.10
201.06
314.16
490.88
804.25
1256.64
Dimensions for standard parking space,
loading/unloading bays and lay-bys
Length Width Headroom
(m) (m) (m)
Private Cars,
Taxis and Light Vans 5 2.5 2.4
Coaches and Buses 12 3.0 3.8
Lorries 11 3.5 4.1
Container Vehicles 16 3.5 4.5
Minimum heandroom means the clearance between the floor and
the lower most projection from the ceiling including any lightings
units, ventilation duct, conduits or similar.
The above ratios are indicative and for reference purpose only.
They do not account for buildings with special shapes,
configurations or particularly small foot prints.
3
3
Structure Design - Concrete Ratios
superstructure design in Manila:
0.4 m
3
/m
2
to 0.55 m
3
/m
2
2.0 m
2
/m
2
to 3.0 m
2
/m
2
Reinforcement 180 kg/m
3
to 280 kg/m
3
Formwork/floor area
Concrete/floor area
2
/m
2

0.4 m
2
/m
2

Industrial 0.4 m
2
/m
2

Office, Hotel
2
/m
2
0.5 m
2
/m
2
Hotel 1.5 m
2
/m
2
Office
CONSTRUCTION MATERIALS WHOLESALE
PRICE INDEX IN THE NATIONAL CAPITAL
REGION (NCR)
2010
ALL ITEMS
A. Sand and gravel
B. Concrete Products
C. Cement
D. Hardware
E. Plywood
F. Lumber
G. G.I. Sheet
H. Reinforcing Steel
I. Structural Steel
J. Tile Works
K. Glass and Glass Products
L. Door, Jambs and Steel
Casement

M. Electrical Works
N. Plumbing Fixtures &
Accessories/Waterworks
O. Painting Works
P. PVC Pipes
Q. Fuel and Lubricants
R. Asphalt
S. Machinery and
Equipment Rental
Dec
171.7
183.8
182.9
194.5
157.3
172.9
202.3
220.1
246.0
159.9
174.6
180.6
171.3
146.9
185.1
165.3
290.3
388.0
114.6
197.0
Jan
171.1
185.1
183.2
195.2
157.9
172.9
203.0
221.1
246.2
160.7
174.6
181.1
171.5
147.3
185.8
166.0
299.3
388.0
114.6
199.4
Feb
171.4
186.6
183.3
195.2
161.1
172.9
204.8
225.1
251.0
162.4
174.6
184.5
174.0
148.8
186.8
166.0
305.7
388.0
114.6
201.8
Mar
174.2
189.7
183.7
197.5
165.1
173.5
210.7
230.7
253.8
162.6
176.0
189.3
177.2
150.0
189.5
166.8
326.5
388.0
114.6
206.6
Base Year (2000 = 100)
114.6 114.6 114.6 114.6 114.6 114.6 114.6 114.6
Apr
178.7
193.8
184.1
201.2
168.8
213.6
173.6
234.4
257.4
163.5
177.7
388.0
190.4
180.6
152.4
190.4
166.8
336.5
210.5
May
181.8
194.0
178.6
203.9
170.9
217.1
173.6
235.8
262.1
164.4
177.7
411.3
190.5
183.9
154.5
193.0
168.8
329.7
210.8
Jun
182.2
194.8
179.2
206.0
171.3
217.1
173.6
238.9
264.7
165.1
177.7
411.3
190.5
184.0
154.5
193.4
168.8
325.8
211.4
Jul
184.5
195.5
177.9
205.9
172.3
217.2
173.6
238.9
266.8
166.3
177.7
431.4
190.5
184.9
154.5
193.6
168.8
326.4
212.0
Aug
185.8
195.5
176.0
205.8
173.3
216.3
173.5
239.0
265.8
167.5
177.7
431.4
190.4
185.3
154.5
195.3
169.5
324.4
211.7
Sep
181.8
195.9
177.9
205.8
172.2
217.2
173.6
238.2
266.0
169.4
177.7
441.4
190.4
187.1
154.5
195.3
169.5
326.4
212.3
Oct
182.2
195.9
177.0
205.8
172.2
217.2
173.6
238.2
266.0
169.4
177.7
441.3
190.4
187.4
154.5
195.5
169.5
324.2
212.2
Nov
190.0
195.9
177.2
206.5
174.5
218.2
173.5
242.6
267.7
169.4
177.7
441.4
191.6
187.4
154.3
196.5
170.2
333.1
213.7
2011
Source : www.census.gov.ph/data/sectordata
MINIMUM WAGE
* ECOLA (Emergency Cost of Living Allowance)
Source : National Wages & Productivity Council,
Department of Labor and Employment
26 May 2011
01 January 1991
16 December 1993
01 April 1994
02 February 1996
01 May 1996
06 Febuary 1997
01 May 1997
06 February 1998
31 October 1999
01 November 2000
05 November 2001*
01 Febuary 2002*
25 June 2004*
16 June 2005
11 July 2006
28 August 2007
14 June 2008
28 August 2008
23 June 2010
NCR 16
NCR 02
NCR 03
NCR 03
NCR 04
NCR 04
NCR 05
NCR 05
NCR 06
NCR 07
NCR 08
NCR 09
NCR 09
NCR 10
NCR 11
NCR 12
NCR 13
NCR 14
NCR 14
NCR 15
22.00
12.00
17.00
10.00
16.00
4.00
15.00
5.00
13.00
25.50
26.50
15.00
15.00
20.00
25.00
25.00
12.00
15.00
5.00
22.00
426.00
118.00
135.00
145.00
161.00
165.00
180.00
185.00
198.00
223.50
250.00
265.00
280.00
300.00
325.00
350.00
362.00
377.00
382.00
404.00
Wage Amnt. of Peso per
Year
Order # Increase Day
0.00
50.00
100.00
150.00
200.00
250.00
300.00
350.00
400.00
450.00
2001 2011
Y E A R
2004 2006 2008 2010

Peso per Day
AVERAGE EARNINGS INDEX FOR
CONSTRUCTION (1987 = 100)
Q1 2,527.7 2,402.6 2,265.4 2,172.9
Q2 2,711.6 2,556.6 2,392.8 2,311.4
Q3 2,290.1 2,242.2 2,169.7
Q4 2,289.6 2,114.8 2,171.2
YEAR 2010 2009 2008
QUARTERLY 2,384.7 2,253.8 2,206.3
2011
January 2,577.3 2,250.1 2,165.1 2,386.3
February 2,366.2 2,211.0 2,121.2 2,300.6
March 2,639.6 2,335.0 2,232.5 2,521.0
April 2,664.3 2,413.6 2,312.7 2,511.4
May 2,834.4 2,447.9 2,365.6 2,601.4
June 2,636.1 2,317.0 2,255.8 2,556.8
July 2,188.0 2,168.7 2,208.4
August 2,234.1 2,146.7 2,236.5
September 2,304.6 2,193.6 2,425.4
October 2,064.8 2,131.2 2,297.5
November 2,135.8 2,163.0 2,366.8
December 2,143.7 2,219.3 2,204.5
ANNUAL 2,253.8 2,206.3 2,384.7
YEAR 2010 2009 2008 2011
CONSTRUCTION COST SPECIFICATION
The costs for the respective categories given on the previous
upon the design, procurement methods and many other factors
and may vary from the figures shown.
eter including lift shafts, stairwells, plant rooms, water tanks and
the like.
All buildings are assumed to have no basements (except other-
wise stated) and are built on flat ground, with normal soil condi-
tions and minimal external works. The costs exclude land cost,
professional fees, finance and legal expenses.
The standards for each category of building vary from country to
country and do not necessarily follow those of Manila.
FF&E refers to loose furniture, fixtures and equipment. FF&E is
excluded from office, residential and retail project costs, but are
included in hotels and country club project costs.
DOMESTIC
Average standard apartments of 6-8 flats per floor, 50m2 - 150 m2
per flat, facade comprising textured paint and punch window,
itnernal finishes comprising wood parquet, plaster and paint and
painted rubbed concrete to residential units and local ceramic tiles
to toilets.
Luxury residential facade comprised of window wall, textured
paint with stone accents, finished with homogeneous tiles, wood
cladding and coved timber ceiling to lobby, combination of wood
planks, plaster and paint and gypsum board to residential units
and homogenous tiles to toilets.
Air conditioning, gensets, automatic sprinkler system, complete
plumbing and disposal system, complete fire alarm and detection
system, CATV system are allowed for luxury apartments and
prestige houses.
Services to standard apartment also include for paging system
and Davit type gondola.Services to luxury residential also include
CCTV cameras on lobby, track mounted type gondola and helipad
provision.
OFFICE/COMMERCIAL
Based on building 30-40 storeys high with floor plans minimum
1,000 m2 per level.
Average standard offices and shopping centres have bare finish
and exclude A/C ducting and light fittings to tenants areas.
Prestige offices have curtain wall elevations, stone finished
lobbies
INDUSTRIAL
Owner operated factories exclude manufacturing equipment, air-
conditioning and special services provisions.
HOTELS
F.F. &E. includes interior decoration and loose furniture, etc. but
excludes hotel operators items (e.g. cutlery, crockery, linen etc.).
Includes 1 level of basement.
OTHERS
Carparks to be multi-storey, above ground.
Schools with standard government provisions.
Student hostels to university standard.Hospitals include fit-out to
nursing rooms, hospital facilities; services i.e., oxygen piping, A/C,
genset, ultrapure water system, fire suppression system and spe-
cial type plumbing fixtures; fit-out to doctors offices is excluded.
RETAIL PRICES OF BASIC CONSTRUCTION
MATERIALS FOR PHILIPPINES
Cement
240
220
200
180
160
140
120
100
Php / bag (40kg)
Year
Aggregates
1,100
1,000
900
800
700
600
500
400
300
2007 2008 2009 2010 2011
Year
Php / m3
Sand Gravel
2007 2008 2009 2010 2011
Ordinary Concrete Hollow Blocks
2007 2008 2009 2010 2011
Year
15
14
13
12
11
10
9
8
7
6
5
Php / piece
Timber
Php/bdft
2007 2008 2009 2010 2011
Year
Softwood
Hardwood
140
120
100
80
60
40
20
0
4" thk 6" thk

Reinforcing Bar
(Intermediate Grade - Grade 40; 275 Mpa)
Php/kg
2007 2008 2009 2010 2011
Year
Reinforcing Bar
(High Yield Grade - Grade 60; 10 Mpa)
Php/kg
Year
16mm
32mm
65
60
55
50
45
40
35
30
25
20
65
60
55
50
45
40
35
30
25
20
16mm
32mm
2007 2008 2009 2010 2011
Structural Steel (Angle Bar; A36)
Php/kg
75
70
65
60
55
50
45
40
35
30
25
2007 2008 2009 2010 2011
Year
60
55
50
45
40
35
30
25
Structural Steel (Wide Flange)
Php/kg
2007 2008 2009 2010 2011
Year
1/4" x 2" x 20'
3/8" x 3" x 20'
14 x 30 lbs
FOR PHILIPPINES
DESCRIPTION UNIT PESO
SQUASH COURTS
Single court with glass backwall including
associated mechanical and electrical services
but including any public facilities (enclosing
structure not included)
per court 1,300,000
SWIMMING POOLS
Half Olympic (25m x 16m) 6-lanes outdoor
swimming pool built in ground, fully tiled,
complete with 5m wide deck and associated
equipment
Half Olympic (25m x 16m) 6-lanes indoor
swimming pool with suspended structure
(enclosing structure not included) fully tiled
and completed with 5m wide deck, including
mechanical ventilation and associated
equipment.
Extra for heating equipment
Extra for salt chlorine generator
per pool 7,500,000
per pool 11,500,000
per pool 1,500,000
per pool 500,000
BASKETBALL COURTS
Exposed court, approximately 975 m
2
including
player benches and excluding equipment
Covered court approximately 975m
2
,
including metal viewing seats, built-in
furniture, provision for T&B, etc*
per court 3,500,000
per court 18,000,000
TENNIS COURTS
Single court on grade with acrylic surfacing
completed with chain link fence
Extra for lighting
per court 1,960,000
per court 2,400,000
per court 500,000
Single court on grade with artificial turf
surfacing including chain link fence
* includes provision for forward/rear fold ceiling mounted
basketball goal.
DESCRIPTION UNIT PESO
comprising various activities and
safety mat
500,000
to
1,500,000
per set
SAUNAS
Sauna room for 4-6 people complete
with all accessories (enclosing
500,000
per
room
STEAM BATHS
Steam bath for 4-6 people complete
with all accessories (enclosing
600,000
per
room
GOLF COURSES
(Based on Average Cost Model of an
18 hole golf course in Asia)
excluding fairway construction and
rough hydroseeding
Including fairway construction and
rough hydroseeding
23,000,000
27,000,000
per hole
per hole
GOLF SIMULATOR
Complete golf simulation system
complete with projector, high impact
projection screen, artificial grass
putting turf, putting green cup and
control computer with software
overall size 4m x7m x 3m high
(enclosing structure not included)
3,000,000
to
4,500,000
per set
M & E MAJOR PLANT COSTS FOR THE
PHILIPPINES
DESCRIPTION
1. Water cooled electric chiller
2. Air-cooled electric chillers
3. Cooling Towers; induced draft
4. Air Handling Units (AHU)
5. Packaged water-cooled units
(PWCU)
6. Fire Pumps; electric motor driven
7. Fire Pumps; diesel engine driven
8. Standby generator sets
COST
(Php)
16,000 25,000
25,000 35,000
1,500 2,000
11,000 18,000
16,000 21,000
17,000 21,000
22,000 25,000
5,500 9,000
UNIT
per TR
per TR
per GPM
per TR
per TR
per HP
per HP
per KW
NOTE:
1. Rates are based on direct supply of imported quipment and
materials by the developer.
2. Rates include all government imposed taxes, import duties
brokerage fees and allowances for local materials and
installation cost.
3. Rates exclude preliminaries and contingencies.
4. Rates are based on fixed price tenders received in 4th
Quarter 2011.
9. Power transformers, with built-in
primary protections; padmount
10. Power transformers, with primary
protection; silicon oil filled
11. Power transformers, with primary
protection cast resin
12. Sewage Treatment Plant,
Sequencing Batch Reactor (SBR);
including civil works
1,600 6,000
1,300 4,400
2,000 5,000
20,000 30,000
per KVA
per KVA
per KVA
per
m
3
/day
FIT- OUT COSTS FOR PHILIPPINES
HOTELS
Public Areas (Front of House) :
3-star Hotel 18,000 - 22,000
4-star Hotel 24,000 - 28,000
Guest rooms :
3-star Hotel 16,000 - 18,000
4-star Hotel 20,000 - 25,000
5-star Hotel 25,000 - 35,000
Notes :
finishes, drapery, sanitary fittings and
light fittings.
2. Excludes partitioning, M & E works,
building shell, chandelier, operational items
and equipment (e.g. bed, cutlery, crokery,
linen, television, refrigerator, etc.), opening
expenses, stage equipment and computer
systems.
COMMERCIAL
Shopping centers 18,000 - 22,000
Notes :
1. Mall/Public areas only; tenant area to be
bare finish
2. See notes 1,2,& 3 below
DESCRIPTION PESO/m
2
OFFICES
18,000 - 26,000
35,000 - 50,000
Banking lobby *** 55,000 - 65,000
* Medium quality systems furniture
** High quality furnitures and finishes
*** Imported stone finishes; double volume
spaces
Note :
See notes 1, 2 & 3 below
Executive offices **
Standard offices *
NOTE:
1. Costs are at December 2011 Levels.
2. Costs include wall, floor, ceiling finishes, doors, FF&E,
M&E Works service reticulation, preliminaries
Forex US$1:43
3. Costs exclude operational equipment and supplies,
structure, external enclosure, major M&E plant, financing
and developers costs, professional and marketing fees.
DESCRIPTION PESO/m
2
RESTAURANT
General dining restaurant 15,000 - 30,000
Fine dining restaurant 30,000 up
Note :
Includes furniture, floor, wall and ceiling
finishes, minor alteration to air-conditioning
and fire services installation to suit layout,
exhaust for kitchen but excludes exhaust
flue, operational items (e.g. cutlery, crockery,
linen, utensils, etc.).
55,000 - 70,000
30,000 - 45,000
50,000 - 65,000
45,000 - 70,000
40,000 - 45,000
THEATRES / CINEMAS
Theatres *
Cinemas **
* Includes stage rigging and equipment,
draperies, AV equipment projectors,
screens, acoustics and seatings
** Includes screens, projection equipment,
seats, finishes, ticketing booth
AUDITORIUMS
BUSINESS CLUBS
BAR / BILLIARDS *
* Excluding kitchen equipment
KITCHEN EQUIPMENT COSTS
FOR PHILIPPINES
DESCRIPTION COST (Php)
BUSINESS CLUB
15M - 20M
500 - 900 m
2
floor area
EXECUTIVE DINING
15M - 25M
200 - 400 m
2
floor area
4 STAR HOTEL
20M - 30M
50 - 150 rooms
5 STAR HOTEL
200 - 500 rooms
30M - 40M
OFFICE CANTEEN
10M - 20M
200 - 300 m
2
floor area
TRENDS IN CONSTRUCTION COSTS
FOR PHILIPPINES
Year Hotels Residential Retail
US$
to Php
2001 56,160 30,680 36,140 20,800 52.00
2011 68,800 46,400 46,010 41,280 43.00
2002 57,240 31,270 36,835 21,200 53.00
2003 57,750 31,625 37,125 20,625 55.00
2004 58,800 32,200 36,680 18,840 56.00
2005 58,850 32,175 36,850 19,800 55.00
2006 60,000 34,000 37,000 21,760 50.00
2007 60,200 36,980 37,410 26,500 43.00
2008 66,960 45,120 44,160 29,500 48.00
2009 67,000 45,120 44,180 29,800 47.00
2010 69,080 46,860 45,760 32,340 44.00
Building Construction Cost (Php/m
2
)
Office
Php / m2 (Thousands)
0
10
20
30
40
50
60
70
80
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Year
Office Bldgs. - Grade A
Residential - Luxury Apts.
Retail Stores
Hotels - 5-star
PROPERTY COMMENTARY
by Jones Lang LaSalle Leechiu
In General
The robust performance of the general property market in 2010,
particularly in Metro Manila, had sparked optimism in the market
in 2011. This has led property developers to introduce new proj-
ects and has encouraged increases in real estate prices. As a
result, positive growth in all property sectors (commercial office,
residential, hotel, retail and industrial) has been observed.
The upward trend in rentals that started in 2010 continued in 2011
as commercial office spaces in Makati, Ortigas and Bonifacio
Global City enjoyed healthy demand primarily from the offshoring
and outsourcing (O&O) sector. As a result, property developers
were encouraged to roll out more new office projects in various
areas in Metro Manila. Consequently, the volume of future supply
in the next few years has thoroughly increased as compared to
the previous year. In 2012, prices are still projected to rise
although tightening competition brought on by the large incoming
supply may limit their growth.
The residential condominium sector has sustained its positive per-
formance in 2011, supported by the remittances from overseas
Filipinos and relatively low interest rates. In the coming years, the
future stock of residential condominiums is expected to further
increase, reaching twice the current stock by 2015. The large
incoming supply may lead to an imbalance between demand and
supply, which may limit growth in rentals and capital values in the
mid-term.
The retail sub-sector has also recorded improvements in 2011 as
mall developers reported growth in their rental income. Despite
the lower domestic economic growth and the fragile state of the
global economy, remittance inflows from overseas Filipinos have
helped buoy retail spending in the country. Over the next year, the
forecast modest economic growth may likely support moderate
growth in the retail sector as well.
In the coming years, the hotel sub-sector is expected to experi-
ence a boom in room supply as new hotels across Metro Manila
are completed. Majority of these new hotels will likely be concen-
trated in Bonifacio Global City and Entertainment City where
most of the upcoming hotels are casino-related. Aside from Metro
Manila, many developers are venturing to more leisure resort
developments outside Metro Manila. These activities may poten-
tially attract more investments in the hotel sub-sector.
The industrial market remained resilient despite experiencing a
challenging year as economic externalities affected the perfor-
mance of the countrys exports. The sub-sector may likely post
minimal growth in the near term. However, recovery in the
countrys trade and manufacturing industry can propel growth in
the industrial sub-sector.
In general, the outlook on the property market for 2012 remains
positive, albeit growth may be modest as compared to the rela-
tively high growth experienced in the last couple of years. Amidst
the positive sentiments for the market for the year, property play-
ers are advised to exercise caution as the global economy contin-
ues to be volatile. The slow recovery of the US economy from the
last recession in 2009 and the lingering Eurozone debt crisis, are
market externalities that threaten to dampen the growth prospects
of the property market.
Commercial Sector
Jones Lang LaSalle Leechiu Research, Consulting & Valuation
(JLLL Research, Consulting & Valuation) notes that the consoli-
dated office stock for all grades in the established business
districts of Makati, Ortigas and Bonifacio Global City stood at
approximately 5.46 million sqm in 2011. This represents around
80% of the total stock of office space in Metro Manila (includes the
emerging urban districts of Eastwood City, Bay City, Newport City,
Alabang and other districts in Quezon City among others). Aver-
age vacancy of office developments in Makati CBD and Bonifacio
Global City declined from last years level to an estimated 4%. In
the next four years, approximately 1.06 million sqm are expected
to be added to the total office stock in Makati CBD, Ortigas CBD
and Bonifacio Global City.
In 2012, more than 300,000 sqm of new office space are being
constructed. Most of this future supply will come from completions
in Bonifacio Global City.
After the downturn in the property market experienced in 2009,
the office sector recovered in 2010 as rentals began rising again.
In 2011, rentals of office developments have continued this
upward trend. Average rental rates of prime and Grade A offices
in Makati and Bonifacio Global City have grown to reach around
Php9,100 per sqm per annum from approximately Php7,980 per
sqm per annum in the previous year. However, the upcoming
supply in 2012, which is more than twice the completions in 2011,
may affect the growth in rentals.
JLLL Research, Consulting & Valuation estimates that the aver-
age achievable gross rental levels for Grade A facilities in Makati
CBD (which continue to enjoy a premium to the overall market) is
approximately at Php750 to Php850 per sqm per month over
2012. Average rentals in prime office developments in Makati
CBD are projected to hover around Php900 to Php1,000 per sqm
per month. Meanwhile, rentals in office developments in Ortigas
CBD are projected to reach around Php500 to Php650 per sqm
per month. For office developments located in Bonifacio Global
City, rentals are estimated within the range of Php650 to Php850
per sqm per month. In terms of capital values, Grade A offices in
Makati CBD are estimated to achieve resale prices at around
Php75,000 to Php90,000 per sqm. In Ortigas CBD, average capi-
tal values of office spaces are projected within the range of
Php45,000 to Php55,000 per sqm.
Residential Condominium Sector
From the economic slowdown in 2009, the residential property
sector picked up in 2010 and continued to perform well in 2011.
Demand continued to be fueled by the sustained inflow of remit-
tances from overseas Filipinos coupled with the low interest rates
and flexible financing schemes. In terms of supply, the residential
condominium market continued to exhibit strong growth as total
stock in Makati CBD, Ortigas CBD, and Bonifacio Global City is
estimated at around 45,300 units in 2011.
Supply side factors in the residential sector remain a concern as
the number of residential condominium buildings further
increases. The large magnitude of supply expected in the coming
years may negatively affect the growth of rentals and capital
values. From 2012 to 2015, around 54,000 residential units are
expected to be added to the total supply in Makati CBD, Ortigas
CBD and Bonifacio Global City. On average, around 13,000 units
are expected per year for the next four years.
Rental rates of condominiums located in Makati CBD, Ortigas
CBD and Bonifacio Global City averages between Php375 and
Php700 per sqm per month. Meanwhile, average resale capital
values in these districts range from around Php60,000 to
Php115,000 per sqm, depending on the quality and location of the
condominium.
Hotels and Service Apartments Sector
The total number of hotel rooms has reached 15,765 rooms (as of
April 2011). Majority of the supply still stems from the deluxe and
standard hotel classification. These types of hotels also pose the
highest occupancy rates from January to August 2011. Occu-
pancy rates of deluxe hotels picked up as it rose to 72% while
average occupancy of standard hotels remained at 66%. How-
ever, overall occupancy of hotels across the various classifica-
tions remained at roughly the same level.
After the slight decline in occupancy rates in 2009, which may be
attributed to the global economic slowdown, performance of
hotels picked up in 2010. With the help of the growing number of
tourists coming into the country hand in hand with the economic
recovery in many countries, many hotels experienced a boost in
their occupancy rates, especially with deluxe hotels. This trend
continued through 2011, as occupancy rates continued to rise for
deluxe hotels.
Total Number of Residential Condominium Units
Makati CBD, Ortigas CBD and Bonifacio Global City:
By Type of Units (2001 - 2015E)

-
20,000
40,000
60,000
80,000
100,000
120,000
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012E 2013E 2014E 2015E
Makati CBD Bonifacio Global City Ortigas
Average Occupancy Rates of Hotels in Metro Manila By
Hotel Classification: 1996 to 2011
0%
10%
20%
30%
40%
50%
60%
70%
80%
Deluxe (5-star) First Class (4-star) Standard (3-star) Economy (2 and 1-star)
Deluxe (5-star) 75.00 73.00 60.00 63.81 65.27 58.39 62.72 61.23 71.03 74.03 73.63 73.84 70.11 64.43 70.45 72.17
First Class (4-star) 66.00 70.00 55.00 60.44 50.80 54.24 59.90 59.94 65.80 70.22 72.32 75.89 68.97 60.61 62.43 60.17
Standard (3-star) 65.00 62.00 53.00 51.53 53.14 52.51 55.88 58.97 64.28 67.88 70.29 71.81 70.77 67.77 65.72 66.05
Economy (2 and 1-star) 49.00 57.00 51.00 53.24 37.97 41.13 51.34 54.07 54.12 65.90 58.42 61.76 62.32 64.63 59.04 63.18
96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11
In the next four years, more than 9,000 hotel rooms are expected to open in Metro Manila. In 2012
alone, around 2,000 hotel rooms would be added to the Metro Manila market. Upcoming hotel
developments are expected in Quezon City, the Bay Area, Bonifa-
cio Global City and Alabang are expected to boost tourist arrivals
in the next few years.
Retail Sector
In 2011, the retail property sector sustained its positive perfor-
mance as shopping mall rentals witnessed growth and new retail
stock was added during the year. The retail market continues to
benefit from the countrys large consumer market, which is sup-
ported by the remittances from overseas Filipinos. Despite the
various ongoing problems affecting the global economy, such as
the debt crisis in the Eurozone and the slow recovery of the US
economy, remittances still grew by around 7% from January to
September 2011.
Despite the various ongoing problems affecting the global
economy, such as the debt crisis in the Eurozone and the slow
recovery of the US economy, remittances still grew by around 7%
from January to September 2011. Total remittances in 2011 is
estimated at around USD20 billion, while remittances for 2012 is
forecast to grow by 5%.
As a result of a stable inflow of remittances from overseas Filipi-
nos and the generally healthy spending of consumers in the coun-
try, demand in the retail property market witnessed positive
growth in the last couple of years with the entry and expansion of
new international retailers. Most of these retailers have either food
or clothing businesses. In 2012, many of these new retailers are
expected to expand within Metro Manila, and may venture out to
other urban centers in the Philippines.
In terms of supply, there were a few new shopping malls and
expansions of existing malls completed in 2011. With these new
additions, total retail stock of major malls in Metro Manila reached
4.0 million sqm. In the next few years, Metro Manila will likely
witness several new mid-scale shopping malls, more expansions
of existing shopping centers as well as retail malls within mixed-
use developments. In 2012, more than 200,000 sqm of retail
space is expected to be added to the total retail stock in Metro
Manila. Despite the additional retail space, JLLL Research, Con-
sulting & Valuation estimates vacancy rates in major malls to
remain in the vicinity of 4%-5%. In addition, mall developers are
also entering other underserved provinces where shopping cen-
ters are few and rare. Overall, retail supply in the Philippines is
expected to follow an upward pattern in the short- to medium-
term.
Industrial Sector
The industrial property sector recovered in the early part of 2011
as evidenced in the positive figures recorded over the said period.
Industrial land values picked up as developers faced renewed
interest from firms riding on the positive growth of the economy.
Average estimated land values in Cavite and Laguna were
observed to be between Php 3,000 and Php 3,700 per sqm.
Meanwhile, asset performance likewise improved as average
rentals in the aforementioned areas reached Php 110 to Php184
per sqm per month.
The sector remained relatively stable despite the set of crises in
Japan and more recently, the double digit dip in the countrys
exports in September. Total foreign direct investments in the
country surged in 3Q11, posting a 32% growth to Php 25 billion.
Approximately Php 9.6 billion of investment pledges were cor-
nered by the manufacturing sector alone. This growth in invest-
ments may represent the increased interest of foreign firms to
enter the Asian market as Western economies are poised to post
slow growth in the medium term. This increased interest may also
be reflected in the sustained take up of industrial products coupled
with the higher number of on-going constructions in select eco-
zones of the country.
The industrial market may exhibit subdued growth in 2012 as
externalities continue to exert pressure over the global economy.
In particular, the growing US debt and Eurozone crisis may impact
on the export-dependent Asian economies. Despite these exter-
nalities, industrial growth may be supported in the medium term
by regional trade with the countrys resilient Asian trading part-
ners. In the local scene, the open access to electricity is expected
to be implemented by September 2012 and is projected to assist
firms in securing cost-effective power rates which may improve
the marketability of the industrial sector.
Disclaimer: This document is prepared by Jones Lang LaSalle Leechiu, for information only. Whilst
reasonable care has been exercised in preparing this document, it is subject to change, and Jones
Lang LaSalle Leechiu makes no representations as to its truth, accuracy or completeness, and accord-
ingly cannot be held responsible for any liability whatsoever for any loss howsoever arising from or in
reliance upon the whole or any part of the contents of this document.
Provided by : Jones Lang Lasalle Leechiu
Accumulated Total Supply of Gross Leasable Space (in sq. m.)
Major Metro Manila Retail Malls 1995-2012E
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
1
9
9
5
1
9
9
6
1
9
9
7
1
9
9
8
1
9
9
9
2
0
0
0
2
0
0
1
2
0
0
2
2
0
0
3
2
0
0
4
2
0
0
5
2
0
0
6
2
0
0
7
2
0
0
8
2
0
0
9
2
0
1
0
2
0
1
1
2
0
1
2
E
G
L
A

(
i
n

'0
0
0

s
q
m
)
Jones Lang LaSalle Leechiu is the leading provider of profes-
sional services in real estate in the Philippines. Globally, the firm
offers integrated services delivered by expert teams worldwide to
clients seeking increased value by owning, occupying or investing
in real estate. With 2010 global revenue of more than USD 2.9
billion, Jones Lang LaSalle serves clients in 60 countries from
more than 1,000 locations worldwide, including 185 corporate
offices. The firm is an industry leader in property and corporate
facility management services, with a portfolio of approximately 1.8
billion square feet worldwide.
Jones Lang LaSalle has over 50 years of experience in Asia
Pacific, with over 19,400 employees operating in 78 offices in 13
countries across the region.
Jones Lang LaSalle Leechiu is currently the number one agency
in the Philippines, bringing together strong local presence and
talent and a global platform and infrastructure.
Jones Lang LaSalle Leechiu
5/F Equitable Bank Tower
8751 Paseo de Roxas
1226 Makati City
Philippines
Telephone : +63 (2) 902 0888
Fax : +63 (2) 729 5159
Website : www.joneslanglasalleleechiu.com.ph
: ap.joneslanglasalle.com/researchhub
For more information, please contact :
David T. Leechiu
Country Head
Telephone : +63 (2) 902 0880
Mobile : +63 (918) 910 5158
Email : david.leechiu@ap.jll.com
Claro dG. Cordero, Jr.
Head, Research, Consulting & Valuation
Telephone : +63 (2) 902 0887
Mobile : +63 (918) 914 3309
Email : claro.cordero@ap.jll.com
PHILIPPINES KEY DATA
* Population of Philippines key cities only
# Forecast / Projected
POPULATION
Population (August 2007) 88.57M
Population # (2012) 97.69M
Urban Population * 30.14%
Population under 15 31.97%
Population over 65 3.31%
Ave. annual growth rate (2000 - 2007) 2.04%
GEOGRAPHY
Land Area 300,000 km
2
Agricultural Area (2010) 42.98%
Capital City Manila
(population metropolitan Manila) 11.55M
(population Manila) 1.66M
ECONOMY 2011
Monetary Unit
Average Headline Inflation rate (Jan - Nov)
Peso
(2006 = 100) 4.83%
Gross Domestic Product (GDP)
(1Q to 3Q) Php 7,005.072bn
GDP per capita Php 79,090.80
CONSTRUCTION (1Q to 3Q) in 2011
Gross value of const. output Php 538.736bn
Net value of const. output Php 393.553bn
Net value of const. output as a
proportion of the GDP
2.07%
ECONOMIC HIGHLIGHTS
3rd Quarter 2011
Philippine Economy grows by 3.2 percent in Q3 2011
The domestic economy has decelerated for the third consecutive
quarter from the 7.3 percent honey moon growth last year to 3.2
percent this year. The so called death spiral of debt that hounds
our trading partners, the uninvigorating, albeit already expanded
government spending, and the decline in fishing due to unfavor-
able weather and the high cost of fuel contributed to this relatively
lethargic growth. As almost always, the Services sector saved the
domestic economy from posting an even lower growth. With the
downwardly revised second quarter GDP estimate, this puts the
growth for the first nine months of 2011 at 3.6 percent, quite a
distance even from the lower end of the whole year target of 4.5
percent.
On the demand side, consumer spending bolstered growth but
Construction continued to suffer from the much delayed imple-
mentation of the Public-Private Partnership program while Export
of Goods really got hit by the global crisis, posting a double digit
decline for the first time since the second quarter of 2009.
Industry declines
The Industry Sector contracted by 0.2 percent, its second con-
secutive quarter of decline after posting robust growths in the pre-
ceding five quarters. Manufacturing and Mining and Quarrying
contributed positively to Industry with [2.06 percentage point] and
[0.03 percentage point]; respectively.
Construction was the star under performer again, pulling down the
growth of Industry [with negative 2.15 percentage point]. Electric-
ity, Gas and Water Supply, likewise made a negative contribution
of [0.12 percentage point].
Construction slumps
For the second consecutive quarter, Construction declined by
12.2 percent from a growth of 15.6 percent recorded last year with
the decline of Private Construction and the contraction, albeit
lower, of Public Construction.
Source : The National Accounts of the Philippines
National Statistical Coordination Board
(www.nscb.gov.ph)
CONSUMER PRICE INDEX
Note : Base date 2006 = 100
2011*
2006
2007
2008
2009
2010
Year
126.0
100.0
102.9
111.4
116.0
120.4
Index
4.84%
2.95%
8.15%
4.22%
3.80%
% Change
* January - November 2011 CPI Average
0
1
2
3
4
5
6
7
8
9
2007 2008 2009 2010 2011
Year
% Change in CPI Index
EXCHANGE RATES
Approximate rates prevailing as at 02 January 2012
Notes:
* Convertible currencies with BSP
+ Non Convertible currencies with BSP
BSP Bangko Sentral ng Pilipinas
Source: Business Worls - BSP Reference Rate
COUNTRY
Australia*
Bahrain*
Brunei*
Canada*
China*
Denmark+
European
Currency Unit*
Hong Kong*
India+
Indonesia*
Japan*
Malaysia+
New Zealand+
Norway
Currency
dollar
dinar
dollar
dollar
yuan
kroner
euro
dollar
rupee
rupiah
yen
ringgit
dollar
kroner
44.88
116.50
33.74
43.09
6.95
7.65
56.84
5.65
0.83
0.00
0.57
13.86
34.12
7.34
Foreign
Currency
in PHP
0.0222
0.0085
0.0296
0.0232
0.1434
0.1438
0.0175
0.1768
1.2070
208.3333
1.7519
0.0721
0.0293
0.1361
PHP in
Foreign
Currency
0.98
0.38
1.30
1.02
6.32
6.32
0.77
7.77
53.01
9,090.00
76.94
3.17
1.29
5.97
US$ in
Foreign
Currency
COUNTRY
Pakistan+
Saudi Arabia*
Singapore*
South African+
South Korea*
Sweden+
Switzerland*
Taiwan+
Thailand*
United Arad
Emirates (UAE)*
United Kingdon*
United States of
America*
Currency
rupee
rial
dollar
rand
won
kroner
franc
NT dollar
baht
dirham
pound
dollar
0.49
11.71
33.87
6.49
0.38
6.37
46.842
1.45
1.40
11.96
68.25
43.92
Foreign
Currency
in PHP

2.0441
0.0853
0.0295
0.1542
26.3852
0.1568
0.0213
0.6892
0.7179
0.0836
0.0146
0.0227
PHP in
Foreign
Currency
89.78
3.75
1.29
6.79
1,158.75
6.88
0.94
30.27
31.53
3.67
0.64
1.00
US$ in
Foreign
Currency
CURRENCY CHARTS
Note: Monthly Average Rate
US Dollar
Japanese Yen
Php per 100 Japanese Yen
60
50
40
30
20
10
0
2006 2007 2008 2009 2010 2011
Year
Php per US$
60
50
40
30
20
10
0
2006 2007 2008 2009 2010 2011
Year
Singapore Dollar
Php per Singaporean Dollar
2006 2007 2009 2010 2011
Year
Sterling Pound
Php per GBP
2006 2007 2008 2009 2010 2011
Year
40
30
20
10
0
120
100
80
60
40
20
0
2008
Dirham
Php per Dirham
16
14
12
10
8
6
4
2
0
2006 2007 2008 2009 2010 2011
Year
Hong Kong Dollar
Php per Hong Kong Dollar
10
8
6
4
2
0
2006 2007
Year
2008 2009 2010 2011
Euro
80
70
60
50
40
30
20
10
0
Php per Euro
2006 2007 2008 2009 2010 2011
Year
Australian Dollar
Php per Australian Dollar
2006 2007 2008 2009 2010 2011
Year
50
40
30
20
10
0
MANILA REFERENCE RATE
0
2
4
6
8
10
2006 2007 2008 2009 2010 2011
Year
Note: Based on all maturities.
DATE %
Mar 2011 4.71
Jun 2011 4.71
Sep 2011 4.83
Dec 2011 4.81
Mar 2006 6.81
Jun 2006 7.13
Sep 2006 6.63
Dec 2006 6.63
Mar 2007 6.31
Jun 2007 6.56
Sep 2007 5.75
Dec 2007 6.06
Mar 2008 5.63
Jun 2008 5.63
Sep 2008 5.06
Dec 2008 5.38
Mar 2009 5.50
Jun 2009 5.40
Sep 2009 5.02
Dec 2009 4.88
Mar 2010 4.79
Jun 2010 4.81
Sep 2010 4.88
Dec 2010 4.86
PHILIPPINE CENTRAL BANK
MANILA REFERENCE RATE
Manila Reference Rate (%)
PHILIPPINE MAP
ENVIRONMENTAL SUSTAINABILITY
Overview of Leadership in Energy & Environmental Design
(LEED)
The U.S. based Leadership in Energy & Environmental Design
(LEED) Green Building System is a voluntary third-party rating
system in which credits are earned for satisfying specified green
building criteria. Projects are evaluated within six environmental
categories.
Sustainable Sites
Water Efficiency
Energy & Atmosphere
Materials & Resources
Indoor Environmental Quality
Innovation & Design
Certified, Silver, Gold and Platinum levels of green building certifi-
cation are awarded based on the total points earned.
Professional Services
Pre Design
Integrated sustainable design consulting ensures available opportu-
nities are recognized and explored
Assist in team selection
Evaluate project-specific opportunities and challenges based on
LEED goals
Create project-specific green guidelines
Design
Team members works closely and effectively towards a green solu-
tion.
Create sustainable design checklist including schedule and design
implications
Thoroughly evaluate design at key stages and provide detailed
instructions to the design team
Monitor design team responsibilities
Coordinate cost analysis with sustainable design goals
Develop on energy model
Liaise with USGBC
Assist and compile LEED documentation for Green Building Certi-
fication Institute (GBCI) review
Construction
Provide pre-bid conferences and contractor training
Assist during construction, including submittals and progress
reports
Monitor the implementation of green guidelines or green site con-
ditions
Liaise with USGBC
Assist and compile LEED documentation for certification

Operations
Perform post-occupancy project audits - lessons
Being part of LEED
Global Linkage
Davis Langdon & Seah (Phils) Inc. is a member of US Green Build-
ing Council (USGBC) and the Philippine Green Building Council
(PGBC).
Our environmental sustainability services employed highly skilled
Leadership in Energy & Environmental Design - Accredited Profes-
sionals (LEED-AP), certified Building for Ecologically Responsive
Design Excellence (BERDE) Professionals and highly qualified
Energy Modeller.
Green Building Facts
An Up-front investmentof 5-7% in green building design, on aver-
age, results in life cycle savings of 20% of the total construction
cost.
Source: The Costs and Financial Benefits of Green
Buildings: A report to Californias sustainable Building Task
Force, October 2003
Operating cost decrease 8-9%
Building value increase 7.5%
Return on investment improved 6.6%
Occupancy ratio increase 3.5%
Rent ratio increases 3%
Source: McGraw Hill Construction, Greening of Corporate
America SmartMarket Report, 2007.
Green buildings consume less energy and fewer resources
Green buildings consume 15-20% average less energy than con-
ventional buildings
Green buildings save, on average, 40% of drinkable / potable
water
Corporate perception of whether green fosters innovation: 57%
agree; 28% neutral and 15% disagree.
Source: McGraw Hill Construction, Greening of Corporate
America SmartMarket Report, 2007.

INTRODUCTION
publication of construction costs handbooks for countries such
as Hong Kong, India, Malaysia, Philippines and Vietnam and
is also the editor of the Spons Price Book Series which com-
prise
Spons Asia Pacific Construction Costs Handbook
Spons European Construction Costs Handbook
Spons Architects' and Builders Price Book
Spons Civil Engineering and Highway Works Price Book
Spons Mechanical and Electrical Services Price Book
Spons Landscape and External Works Price Book (co-edited
by Derek Lovejoy Partnership)
As in the previous editions, the DLS Handbook -Singapore
2012 focuses on the construction cost profile of Singapore and
those of the major cities in Asia.
The handbook is structured to serve as a general reference
guide on construction cost indicators in Asia.
The information contained in this handbook has been com-
piled by Davis Langdon & Seah Singapore Pte Ltd. Any further
information and/or if advice relating toparticular projects is
required, please contact any of the regional offices listed
under the Directory of Davis Langdon & Seah International
Offices at the end of this handbook.
Davis Langdon & Seah Singapore Pte Ltd
MATERIAL PRICE INDICES
94 135.00 100.0 - 585.04 100.0 - 233.00 100.0 - 17.97 100.0 - 101.35 100.0 -
95 134.00 99.3 -0.7% 542.51 92.7 -7.3% 244.00 104.7 4.7% 18.11 100.8 0.8% 103.01 101.6 1.6%
96 135.00 100.0 0.7% 526.97 90.1 -2.8% 240.00 103.0 -1.6% 20.68 115.1 14.2% 111.04 109.6 7.9%
97 131.00 97.0 -3.0% 521.03 89.1 -1.1% 227.00 97.4 -5.4% 22.12 123.1 7.0% 106.96 105.5 -3.7%
98 107.00 79.3 -18.2% 522.86 89.4 0.3% 185.00 79.4 -18.5% 14.45 80.4 -34.7% 83.35 82.2 -22.1%
99 74.00 54.8 -30.9% 474.50 81.1 -9.3% 135.00 57.9 -27.1% 11.38 63.3 -21.3% 70.36 69.4 -15.6%
00 71.00 52.6 -4.0% 458.65 78.4 -3.3% 141.00 60.5 4.5% 12.55 69.8 10.3% 71.32 70.4 1.4%
01 70.00 51.9 -1.3% 432.81 74.0 -5.6% 147.00 63.1 4.3% 12.69 70.6 1.1% 61.40 60.6 -13.9%
02 67.00 49.6 -4.4% 442.92 75.7 2.3% 149.00 63.9 1.3% 12.65 70.4 -0.3% 55.41 54.7 -9.7%
03 71.00 52.6 6.0% 579.62 99.1 30.9% 163.00 70.0 9.5% 12.25 68.2 -3.1% 56.75 56.0 2.4%
04 76.76 56.9 8.2% 863.40 147.6 48.9% 185.77 79.7 13.9% 12.57 69.9 2.5% 62.50 61.7 10.2%
05 85.21 63.1 10.9% 738.44 126.2 -14.5% 267.86 115.0 44.3% 16.29 90.7 29.8% 72.13 71.2 15.4%
06 88.02 65.2 3.3% 729.52 124.7 -1.2% - - - 16.58 92.3 1.8% 73.88 72.9 2.4%
07* 115.40 85.5 31.1% 1,054.60 180.3 44.6% - - - 24.10 134.1 45.3% 127.00
2
125.3
2
71.9%
08 120.40 89.2 4.3% 913.00 156.1 -13.4% - - - 23.90 133.0 -0.8% 121.90
2
120.3
2
-4.0%
09 93.40 69.2 -22.4% 722.50^^ 123.5^^ -20.9% - - - 17.10 95.2 -28.4% 93.30
3
92.1
3
-23.4%
10 89.00 65.9 -4.8% 867.50 148.3 20.1% - - - 23.40 130.2 36.8% 106.70
4
105.3
4
14.3%
11p** 94.60 70.1 6.4% 936.00 160.00 7.9% - - - 20.20 112.4 -13.7% 109.20
4
107.7
4
2.3%
YEAR INDEX
(BASE
1994)
$/TONNE INFLATION INDEX
(BASE
1994)
$/'000
BRICKS
(BASE
1994)
(BASE
1994)
INFLATION INDEX
(BASE
1994)
INFLATION $/m
3
CEMENT IN BULK STEEL BARS BRICKS^ GRANITE READY MIXED CONCRETE
1
Source: Building and Construction Authority as at 8 November 2011
Note:
^From 1st Quarter 2006, statistics on bricks have been discontinued.
*Market prices from 2007 to 2010 are based on prices as at the month of December.
**Market prices for 2011 are preliminary ('p' denotes preliminary) and are based on prices as at the month of October.
^^The market prices of rebar from 2009 onwards are based on fixed supply contracts with contract period 6 months or less.
1
Prior to 2007, the market prices of ready mixed concrete (RMC) were for Grade 30.
2
The market prices of RMC were for Grade 35.
3
The market prices of RMC were based on non-fixed price contract for Grade 35 Pump.
4
The market prices of RMC are based on contracts with non-fixed price, fixed price and market retail price for Grade 40 Pump.
40
80
120
160
200
94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11p
Cement In Bulk Steel Bars Bricks Granite Ready Mixed Concrete
TENDER PRICE, MATERIAL, LABOUR AND CONSUMER PRICE INDICES
*The Singapore Department of Statistics has rebased the Consumer Price Index (CPI) Base Year to Year 2009. **Indices for 2011 are based on 3
rd
Quarter 2011.
Source: Building and Construction Authority and Singapore Department of Statistics
100.7 - 118.2 97.5 - 105.3 102.5 - 82.3 91.0 - 94
104.8 4.1% 119.9 98.9 1.4% 109.3 106.4 3.8% 83.7 92.6 1.7% 95
107.6 2.7% 120.8 99.7 0.8% 112.2 109.3 2.7% 84.9 93.9 1.4% 96
107.3 -0.3% 119.4 98.5 -1.2% 111.2 108.3 -0.9% 86.6 95.8 2.0% 97
100.2 -6.6% 115.9 95.6 -2.9% 112.0 109.1 0.7% 86.4 95.5 -0.3% 98
88.9 -11.3% 111.9 92.3 -3.5% 98.7 96.1 -11.9% 86.4 95.5 0.0% 99
87.9 -1.1% 112.4 92.7 0.4% 103.1 100.4 4.5% 87.6 96.8 1.3% 00
88.1 0.2% 112.5 92.8 0.1% 102.3 99.6 -0.8% 88.4 97.8 1.0% 01
89.9 2.0% 112.5 92.8 0.0% 104.7 101.9 2.3% 88.1 97.4 -0.4% 02
95.6 6.3% 113.6 93.7 1.0% 104.9 102.1 0.2% 88.5 97.9 0.5% 03
98.9 3.5% 117.9 97.3 3.8% 104.6 101.9 -0.2% 90.0 99.5 1.7% 04
100.0 1.1% 121.2 100.0 2.8% 102.7 100.0 -1.9% 90.4 100.0 0.5% 05
103.2 3.2% - - - - - - 91.3 101.0 1.0% 06
122.5 18.7% - - - - - - 93.2 103.1 2.1% 07
137.3 12.1% - - - - - - 99.4 109.9 6.6% 08
115.9 -15.6% - - - - - - 100.0 110.6 0.6% 09
114.4 -1.3% - - - - - - 102.8 113.7 2.8% 10
114.5 0.1% - - - - - - 109.2 120.7 6.2% 11**
BCA TPI
INDEX
(BASE 2005) (BASE 2005) (BASE 2005) (BASE 2005)
INFLATION INDEX INDEX INFLATION INDEX INDEX INFLATION INDEX INDEX INFLATION YEAR
BCA BMPI BCA LCI CPI*
85
105
95
115
135
125
145
94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11
BCA TPI BCA BMPI BCA LCI CPI
STANDARD FORMS (PRIVATE SECTOR) -
MAIN FEATURES
SIA Articles and Conditions of Building Contract
(1) Contractors rates include all other works necessary to complete
the Works, whether or not specifically mentioned in the Contract
Documents [Article 5]
(2) Architects orders must be expressed as directions or instruc-
tions [Clause 1(2)]
(3) Contractor is responsible for own design and of his sub-contractors
or suppliers [Clause 3(1)]
(4) Contractor must supply a make-up of his prices [Clause 5]
(5) Provision is made for staged possession of the site and phased
completion of the Works [Clauses 10 and 25]
(6) No provision for Employer to take out insurances [Clauses 19
and 20]
(7) Contractors notification within 28 days of any event, direction or
instruction entitling the Contractor to an extension of time with
condition precedent to an extension of time [Clause 23(2)]
(8) Following failure of Contractor to remedy any defects within 3
months from the date of issue of Schedule of Defects (or such
other time as stated in the Appendix), Architect must direct the
Contractor, within 14 days from the expiry of 3 months from the
issue of the Schedule of Defects, that a defect need not be rem-
edied. In lieu thereof, the Employer may deduct from any monies
due to or recover from the Contractor based on the estimated cost
incurred by the Employer to employ other Contractors to remedy
the defects [Clause 27.4]
(9) After the expiry of the Maintenance Period and all defects are
either remedied, or dealt with under Clause 27.4, Architect to
issue Maintenance Certificate [Clause 27.5]
(10) Contractor is responsible for Designated/Nominated Sub-
Contractors in respect of design, delays, etc [Clause 28(2)]
(11) Contractor entitled to serve payment claim (which is defined as
having the same meaning ascribed in the Building and Construc-
tion Industry Security of Payment Act) on Employer on the last day
of each month following the month in which the contract is made
(or otherwise by such time or on such day specified in Appendix)
where interim payment is based on periodic valuation, or on certi-
fied completion of the relevant stage where interim payment is
by stage instalments [Clause 31(2)]
(12) Architect issues Interim Certificates within 14 days after receipt of
payment claim [Clause 31(3)]
(13) Second release of Retention monies shall be paid under the Final
Certificate issued by the Architect at the expiry of the Mainte-
nance Period or the issuance of Maintenance Certificate, which-
ever is the later [Clause 31(10)]
(14) Architect has no power to certify compensation to Contractor for
breaches of contract by Employer [Clause 31(14)]
(15) Employer responds to payment claim by providing, or causing to
be provided, a payment response within 21 days after service of
payment claim by Contractor [Clause 31(15)]
(16)Contractor entitled to serve Notice of Termination following failure
of payment of adjudicated amount by Employer [Clause 33(3)]
(17)Contractor entitled to suspend work pursuant to provisions of
Building and Construction Industry Security of Payment Act
[Clause 33(6)]
(18) Parties may refer dispute to mediation; provision for mediation
does not affect or prejudice right to refer dispute to arbitration
[Clause 38]
(19) Parties may refer technical disputes to expert determination; pro-
vision for expert determination does not affect or prejudice right to
refer dispute to mediation or arbitration [Clause 38A](
20)Optional clauses permit fluctuations on specified materials
[Clause 39] and insurance excesses [Clause 40]
SIA Conditions of Sub-Contract
(1) Contractor issues directions and instructions to the Sub-
Contractor [Clause 5.1]
(2) Contractor orders variations on sub-contract works [Clause 7.1]
(3) Application for extension of time is made to the Contractor, not the
Architect [Clause 11.2]
(4) Time period for notification of any event, direction or instruction
entitling the Sub-Contractor to an extension of time is 21 days
[Clause 11.2]
(5) Extension of time is assessed and granted by the Contractor
[Clause 11.2]
(6) The following certificates are issued by the Contractor:
- Sub-Contract Completion Certificate [Clause 11.3]
- Sub-Contract Maintenance Certificate [Clause 12.2]
- Sub-Contract Termination Certificate [Clause 13.1]
(7) Provision for recovery of general damages only - amount is set off
and deducted from monies due to the Sub-Contractor after condi-
tion precedents are satisfied [Clause 11.4]
(8) Contractor can terminate sub-contract without the need for the
Architect to issue notices [Clause 13.1]
(9) Sub-Contractor is entitled to serve Notice of Termination following
failure of payment of adjudicated amount by Contractor [Clause
13.6]
(10) Sub-Contractor entitled to serve payment claim (which is
defined as having the same meaning ascribed in the Building and
Construction Industry Security of Payment Act) on Contractor on
the last day of each month following the month in which the sub-
contract is made where interim payment is based on periodic valu-
ation, or on certified completion of the relevant stage where
interim payment is by stage instalments [Clause 14.4]
(11) Contractor responds to payment claim by providing, or causing
to be provided, a payment response within 21 days after service
of payment claim by Sub-Contractor [Clause 14.5]
(12) Where sub-contract is a supply contract, Contractor o respond to
payment claim by paying Sub-Contractor claimed amount or such
amount as Contractor agrees to pay [Clause 14.6]
(13) Contractor has no power to revise or correct any certificates
issued by him save for clerical, computational or typographical
errors, or errors of a similar nature [Clause 14.10]
[Clause 16]
(15) Parties may refer technical disputes to expert determination;
provision for expert determination does not affect or prejudice
right to refer dispute to mediation or arbitration [Clause 16A]
REDAS Design and Build Conditions of Contract
(1) No order of priority for Contract Documents; in the event of any
discrepancies between the documents, Employer's Requirements
shall prevail [Clause 1.7]
(2) Provision for Named Sub-Contractors; Contractor is entitled to
rights of objection [Clause 2.4 and 2.5]
(3) Contractor's Works and design shall be fit for their intended pur-
pose in accordance with the Employer's Requirements; Contrac-
tor also responsible for the sufficiency and correctness of the
Employer's designs, specifications and calculations in the Em-
ployer's Requirements [Clause 4.1]
(4) Administration of the Contract is carried out by the Employer's
Representative appointed by the Employer; Employer's Repre-
sentative's duties can be delegated to assistants with Employer's
consent [Clause 5]
(5) Provision is made for completion of the Works in whole or in
phases/sections [Clause 10]
(6) Contractor must satisfy extensive criteria before handing over
[Clause 11]
(7) Employer may occupy any parts of the Works upon issuance of
the Handing Over Certificate of Occupied Part by the Employer's
Representative [Clause 12]
(8) Contractors application for extension of time within 28 days of
occurance of cause of delay is condition precedent to an exten-
sion of time [Clause 16.2]
(9) Contractor entitled to serve payment claim (which is defined as
having the same meaning ascribed in the Building and Construc-
tion Industry Security of Payment Act 2004) (the SOP Act) on the
Employer on the last day of each month following the month in
which the Contract is made (or otherwise by such time or on such
day as stated in Appendix 1) [Clause 22.1]
(10) Employers Representative issues Interim Payment Certificate
within 14 days of receipt of payment claim [Clause 22.2]
(11) Interim payment certificate or final payment certificate issued by
the Employers Representative shall be deemed the payment
response from the Employer under the SOP Act if the Employer
does not provide any response within 21 days of service of pay-
ment claim. Where the Employer provides a payment response
within 21 days of service of payment claim, such response shall
take precedence over the interim payment certificate or final pay-
ment certificate [Clause 22.4]
(12) Application for final payment claim by Contractor to issuance of
final payment certificate by the Employers Representative is
regulated by a procedure [Clause 24]
(13) Claims for additional payment are regulated by a claims proce-
dure [Clause 29]
(14) Employer may at his convenience at any time to terminate the
Contract without cause [Clause 30.1]
(15) Contractor entitled to suspend work pursuant to provisions of
SOP Act [Clause 31.1]
(16) Contractor entitled to serve Notice of Termination following
failure of payment of adjudicated amount by Employer [Clause
31.2]
(17) Upon issuance of a Notice of Taking Over, Employer may take
over design and construction of a part of the Works where termi-
nation for default is not practical as a default may relate to a spe-
cific part only [Clause 32]
[Clause 33]
(19) Additional optional clause permit fluctuations on specified mate-
rials used for permanent works only [Clause 34]
(20) Option Module (with Employers Architectural Design) where the
Employer retains his own design consultants to provide the archi-
tectural design works and make the statutory submissions
FIDIC Conditions of Contract for Construction for Building and
Engineering Works designed by the Employer
(1) Documents forming the Contract are accorded a sequence of
priority for purposes of interpretation [Clause 1.5]
(2) Administration of the Contract and supervision of the execution
of the Works are carried out by the Engineer appointed by the Em-
ployer [Clause 3.1]
(3) Provision is made for the Contractor to design the Works to the
extent specified in the Contract [Clause 4.1]
(4) Contractor is obliged to submit detailed time programme within
28 days from receipt of notice of the Commencement Date
[Clause 8.3]
(5) Employer may take over any part of the Works upon issue of a
Taking-Over Certificate by the Employer [Clause 10.2]
(6) Employer is entitled to an extension of the Defects Notification
Period (by not more than two years) if the Works or a Section
thereof cannot be used by reason of a defect or damage [Clause
11.3]
(7) Contractor may submit to the Engineer value engineering pro-
posals to accelerate completion, reduce cost of construction,
maintenance and operation, or improve efficiency or value to the
Employer [Clause 13.2]
(8) Quantities in the Bill of Quantities are estimated quantities
[Clause 14.1]
(9) Provision for advance payment to the Contractor upon submis-
sion of an Advance PaymentGuarantee, if Employer agrees
[Clause 14.2]
(10) Amount certified in Interim Payment Certificate is paid by the
Employer within 56 days from receiptof the Contractor's State-
ment and supporting documents [Clause14.7]
(11) Employer is entitled to terminate the Contract without cause at
any time for his convenience subject to certain provisions [Clause
15.5]
(12) Insuring party is the Contractor unless otherwise stated in the
Particular Conditions that the Employer wishes to effect insur-
ances [Clause 18.2]
(13) Provision is made for disputes to be adjudicated by a Dispute
Adjudication Board [Clause 20]
(14) Claims for additional payment and extension of time are regu-
lated by a claims procedure which inter alia, requires the Engineer
or Employer to respond within a given time period [Clause 20]
STANDARD FORMS (PUBLIC SECTOR) -
MAIN FEATURES
Public Sector Standard Conditions of Contract for Construction
Works (PSSCOC)
(1) Superintending Officer, Superintending Officers Representative
and assistants to Superintending Officer and Superintending
Officers Representative are appointed for design, cost control
and contract administration [Clause 2]
(2) Failure to comply with the Superintending Officers instructions
entitles the Employer to recover any cost, loss, expense and
damage incurred inemploying another contractor and any other
loss or damage as a result of the Contractors default [Clause 2]
(3) Contractor must provide a security deposit (either as cash deposit
or guarantee from a bank or Monetary Authority of Singapore
approved insurer) within 14 days from letter of acceptance or such
other longer period as stated in Appendix [Clause 4.5]
(4) Employer may provide geotechnical information but it does not
relieve the Contractor from carrying his own investigation or
search for existing and other additional relevant information
[Clause 5.1]
(5) If Contractor encounters adverse physical conditions (which
include unforeseen sub-surface and ground conditions and under-
ground services), he may be granted extension of time and loss
and expense provided such conditions could not have been rea-
sonably foreseen by an experienced contractor [Clause 5.2]
(6) Superintending Officer has express power to suspend the Works,
and if suspension is more than 90 days, Contractor may regard it
as omission of the affected part (which is suspended) or a termi-
nation (where the suspension affected the whole Works) [Clause
13]
(7) If progress or completion of the Works will be delayed, Contractor
has to notify the Superintending Officer within 60 days of occur-
rence of the delaying event [Clause 14.3]
(8) Superintending Officer may require the Contractor to submit quota-
tion for any proposed variation before issuing an instruction
[Clause 19.3]
(9) Superintending Officer has 60 days from the date of certified sub-
stantial completion of the variation works to value the amount due
and notify the Contractor [Clause 20.2(2)]
(10) Provision is made for Contractor to recover loss and expense as
a result of regular progress and/or completion of the Works having
been disrupted, prolonged or materially affected by variation
instructions, failure to give site possession, suspension, late
supply of information, Superintending Officers instructions (which
Employer is liable to pay loss and expense),unforeseeable
adverse physical conditions, acts or omissions of other contrac-
tors and Employers act of prevention or breach of contract
[Clause 22]
(11) Superintending Officer has power to certify amounts payable to
the Contractor for all work executed until termination (where such
termination is without default of the Contractor) and any loss and
expense suffered by the Contractor [Clause 31.4]
(12) Superintending Officer has to issue a Payment Certificate to the
Contractor within 14 days of receipt of a Payment Claim (which is
defined as having the same meaning ascribed in the Building and
Construction Industry Security of Payment Act) [Clause 32.2(1)]
(13) Payment Certificate issued by Superintending Officer shall be
deemed the Payment Response from the Employer under the
Building and Construction Industry Security of Payment Act if the
Employer does not provide any response within 14 days from the
Payment Claim [Clause 32.2(2)]
(14) Where the Employer provides a Payment Response within 14
days from the Payment Claim, such response takes precedence
over the Superintending Officers Payment Certificate [Clause
32.2(2)]
(15) Contractor has 90 days from the Date of Substantial Completion
to submit Final Payment Claim which shall constitute a Payment
Claim under the Building and Construction Industry Security of
Payment Act [Clause 32.4]
(16) Superintending Officer has 21 days from receipt of Final Payment
Claim to provide Contractor with an Interim Final Account and at
the same time issue a Payment Certificate [Clause 32.5(1)]
(17) Where Contractor fails to submit a Final Payment Claim, Superin-
tending Officer has 150 days from the Date of Substantial
Completion to issue Interim Final Account, and a further 30 days
thereafter to issue a payment certificate. Interim Final Account
and payment certificate under such circumstances are not subject
to the Building and Construction Industry Security of Payment Act
[Clause 32.5(2)]
(18) Mechanism for fluctuation of materials prices applicable to speci-
fied materials in Appendix [Clause 33]
(19) Any dispute or difference which involves a Payment Claim or Pay-
ment Response to which the Building and Construction Industry
Security of Payment Act applies, entitles the Contractor to make
an adjudication application [Clause 35.5(1)]
(20) Employer can only recover from the Contractor any sum due or
to become due under this contract (and not from any other con-
tract between the Employer and the Contractor) [Clause 36.1]
Public Sector Standard Conditions of Contract for Design and
Build (PSSCOC D&B) (only main features which differ from the
Build form are highlighted below)
(1) Contractor is responsible for choice of plant, materials, goods,
workmanship and coordinating all design work [Clause 4.1]
(2) Contractor to engage and include all fees, costs, etc in the Con-
tract Sum for suitable qualified personnel viz, Registered Inspec-
tor, Resident Engineer and any others as required by statute;
such persons cannot be replaced without prior consent of the
Superintending Officer [Clause 4.2]
(3) Contractor must indemnify the Employer against all claims and
proceedings for infringements of any patent rights, design, trade-
mark name or copyright [Clause 4.6]
(4) Contractor warrants that the Contractors Proposals meet the
Employers Requirements and are fit for the purpose [Clause 6.1]
(5) Contractor indemnifies the Employer for any breach of design
responsibility in contract and under common law [Clause 6.1]
(6) When the Works are substantially completed and the Temporary
Occupation Permit obtained, Contractor gives notice plus an
undertaking to complete any outstanding work during the defects
liability period; Superintending Officer has 21 days from the notice
to either issue certificate or instructions on works still to be com-
pleted [Clause 17]
(7) No provision for Named Sub-Contractors
CONTRACTUAL ARRANGEMENTS
Contractual arrangements are concerned with the typeof agree-
ment to be entered into and the obligations,responsibilities, rights
and liabilities assumed by the parties under a contract. It deals
with the situation that exists from the time when a contract is
formed until the time when all the obligations created by it have
been discharged.
Contractual arrangements may comprise the following:
Conventional Contracts
The commonest form of contract is one based upon the SIA Con-
ditions of Contract. The design is prepared bya Consultant and
the price of the works determined before award, usually by com-
petition but occasionallyby negotiation. Small projects tend to be
based upon specification and drawings whilst large projects are
usually based upon bills of quantities.
Design and Build Contracts
A design and build contract is a contractual arrangementwhere
the Employer employs a Contractor to design and build the proj-
ect.
The Contract Sum is inclusive of design work,management and
construction costs.
Develop and Construct Contracts
A develop and construct contract is a contractual arrangement
where the Employer engages consultants to design the project to
a certain stage; the Contractor then develops and completes the
design and constructs the building.
Term Contracts
Under term contracts, the Contractor signs a contract to carry out
an indefinite amount of work within a certain framework over a
time period or term. While exactly what is to be done may be
uncertain, the generalcharacter of the work will usually be fairly
easy to define.
Orders for work are issued progressively from timeto time
throughout the contract period. The work is measured, valued and
the Contractor is paid accordingly subject to the tendered adjust-
ment on the Schedule of Rates.
Guaranteed Maximum Price (GMP) Contracts
A GMP, effectively a guaranteed lump sum price for a project, is a
set of conditions that can be introduced and used in conjunction
with any standard form of contract, e.g. SIA Standard Form (for
traditional procurement),JCT Standard Form with Contractor's
Design or REDAS Design and Build Standard Form (for design-
build procurement) and JCT Management Contract Standard
Form (for management contracting). It is not a standard form of
contract.
The guaranteed price is not subject to upward adjustment except
for fundamental and material changes in the client scope of work
or as a result of legislation or statutory requirements.
The benefits of GMP include greater price certainty, early start as
design and construction can overlap, contractor's input and contri-
bution on buildability, best practice construction methods and mu-
tually beneficial partnering-style relationship.
Management Contracts
A management contract is one in which the Management Con-
tractor is appointed to manage the planning and construction of a
project and in which the construction work is executed by Sub-
Contractors working under him, selected and appointed as the job
proceeds.
The Management Contractor prepares the programme, decides
on the contents of each work package to be sub-contracted, orga-
nises and manages the construction of all works which are under-
taken by Sub-Contractors, each selected in competition.
Construction Management Contracts
Construction management contracts entail an interactive procure-
ment concept involving combined efforts of the Employer, Con-
struction Manager, design consultants and multitude of work
package contractors.
Under construction management contracts, theConstruction Man-
ager is appointed to manage the entire delivery process from
inception to completion while construction work is executed by a
myriad of work package contractors engaged by the Employer,
selected and appointed as the job proceeds.
Public-Private Partnership (PPP)
Public-Private Partnership (PPP) is a generic term whichde-
scribes the various structures possible whereby the public and
private sectors work together in the delivery of services and the
provision and operation of assets. Typical forms of project struc-
tures under PPP include PFI (Private Finance Initiative), DBFO
(Design, Build, Finance, Operate), DCMF (Design, Construct,
Manage, Finance), BOO (Build, Own, Operate), BOT (Build,
Operate, Transfer) and BOOT (Build, Own, Operate, Transfer).
Broadly, a typical PPP model involves the procuring authority (or
public agency) contracting with the Special Purpose Vehicle
(SPV) under a long-term service purchase agreement for the
design, construction,maintenance and operation of the facility.
The SPV enters into a range of subcontracts for the building
works, and operations and maintenance of the new asset.
PREAMBLES
The construction costs for the respective categories given on the
following pages are average costing at 4th Quarter 2011. They
are based on interpolation of competitive tenders received.
The construction cost serves as a guide for preliminary cost
appraisals and budgeting. It must be understood that the actual
cost of a building will depend upon the design and many other
factors such as major infrastructure of the buildings/structures,
etc. and may vary from the figures shown. The costs per square
metre are basedon construction floor areas measured to the out-
side face of the external walls/external perimeter including
liftshafts, stairwells, plant rooms, water tanks and the like.
As a guide, it might be worth to note that construction costs gener-
ally may vary accordingly depending on the following specific
requirements:
a. Complexity of the project
b. Site encumbrances
c. The need of special structural such as heavy transfer structures
over MRT/RTS structures/tracks/boxes, etc. or due to close prox-
imity to nearby infrastructure such as canals, bridges, etc.
d. The types of structural system (i.e. reinforced concrete or
structural steel system, precast/prefabrication, etc.)
e. The types of temporary works required (i.e. diaphragm walls,
sheet piling, etc.)
f. The method of construction e.g. conventional or top down
g. Basement works which are carried out in phases may require
additional temporary works and different types of construction
sequence
h. Deep basement (i.e. levels of basement)
i. Selection of Contractor (i.e. local or foreign)
j. Shape of the existing site as longish sites would generally attract
higher cost due to higher wall to floor ratio
k. The level of Green Mark rating
All buildings are assumed to have no basements (except other-
wise stated) and are built on flat ground, with normalsoil condi-
tions and minimal external works. The costs exclude the following:
Professional fees
Authorities plan processing charges
Land cost
Financing charges
Site inspectorate
CURRENT CONSTRUCTION REGULATIONS
BCA Contractors Registry System (CRS)
The Contractors Registry was established in 1984 to register
contractors who provide construction-related goods and ser-
vices to the public sector. Contractors who wish to be registered
with the Registry must show that they have the relevant experi-
ence, financial, technical and management capability.
The table below summaries the registration requirements for gen-
eral building (CW01) and civil engineering works (CW02):
Source: Building and Construction Authority as at August 2011
GRADE
(PLEASE
REFER TO
NOTE: 1)
CW01 CW02
FINANCIAL
(MIN PAID-UP
CAPITAL &
MIN NET
WORTH)
MANAGEMENT
&
DEVELOPMENT
TRACK RECORD
(PAST 3 YEARS)** ADDITIONAL
REQUIREMENTS
A1 $15.0m 24RP/P/T incl
min 8RP
ISO9001:2008
(SAC)
ISO14000
OHSAS18000/
SS506 Part 1
$150.0m
of which
$75.0m PS
$112.5m MC
$37.5m SP
$150.0m
of which
$75.0m PS
$75.0m MC
$37.5m SP
A2 $6.5m 12RP/P/T incl
min 4RP
ISO9001:2008
(SAC)
ISO14000
OHSAS18000/
SS506 Part 1
$65.0m
of which
$32.5m PS
$48.75m MC
$16.25m SP
$65.0m
of which
$32.5m PS
$32.5m MC
$16.25m SP
i) Annual
submission
of financial
accounts and
certified VAP
calculation
ii) Annual
submission
of CET
declaration
iii) General
Builder
Licence -
Class 1 (GB1)
B1 $3.0m 6RP/P/T incl
min 2RP
ISO9001:2008
(SAC)
OHSAS18000/
SS506 Part 1
ISO14000
(by 1 Jul 13)
$30.0m
of which
$22.5m MC
$7.5m SP
$30.0m
of which
$15.0m MC
$7.5m SP
B2 $1.0m 3RP/P/T incl
min 1RP
ISO9001:2008
(SAC)
OHSAS18000/
SS506 Part 1
ISO14000
(by 1 Jul 13)
$10.0m
of which
$7.5m MC
$2.5m SP
$10.0m
of which
$5.0m MC
$2.5m SP
C1 $300,000 1P + 1T
SMC
$3.0m $3.0m
C2 $100,000 1P or 2T
SMC
$1.0m $1.0m
C3 $25,000 1T $100,000
(Please refer
to Note: 14)
$100,000
(Please refer
to Note: 14)
i) Annual
submission
of financial
accounts and
certified VAP
calculation
ii) General
Builder
Licence -
Class 1 (GB1)
General
Builder
Licence -
Class 2 (GB2)
Note:
1) Please refer to Page 131 for the tendering limits
2) m stands for million
3) Both minimum (min) paid-up capital and minimumnet worth must
be met. C3 firms are required to submit the latest management
accounts (not more than 12 months old)
4) PS projects executed in Singapore
5) MC main contracts (nominated sub-contracts may be included)
6) SP minimum size single project
7) Percentage of sub-contract value taken into consideration shall
be 50% for CW01 and 75% for CW02
8) RP Professional with relevant qualifications from universities
recognised by PEB, BOA or BCA P/T Professional and Tech-
nical personnel with relevant qualifications
9) PEB Professional Engineers Board of Singapore
10) BOA Board of Architects of Singapore
11) ISO 9001:2008 must be SAC accredited i.e. the certificate to
bear the SAC logo
12) SMC (Safety Management Certificate awarded by BCA) or
OHSAS 18000 required for C1 and C2
13) CET The continuing education and training (CET) requirement
has been implemented since 1 November 2010. In order to
retain their respective grades (i.e. A1 and A2), each registered
personnel is required to complete 14 hours of structured CET
courses annually over a 12-month period from 1 November to 31
October (of the next calendar year).
14) With effect from 1 February 2012, entry grade C3 will require
completed or on-going track recordof $100,000 for new, renewal
and upgrading applications. For companies with insufficient track
record, an interview with the technical personnel (conducted at
BCA office) will be required.
**For renewal cases of grades A1 to C2, projects completed satis-
factorily in the past 5 years including on-going projects and
recently awarded projects will be considered as track record. For
CW02-A1 registration, projects completed satisfactorily in the past
5 years can be considered as track record. For evaluation of over-
seas projects and financial accounts, BCA may send its officers to
the respective countries for further verification. All flight and
accommodation expenses shall be fully borne by the applicant.
In June 2006, BCA adopted a credit rating system to indicate the
financial standing of larger construction firmsin its Contractors
Registry. The adopted credit ratingsystem is similar to one devel-
oped by credit and business information bureau DP Information
Group to assess thefinancial health of companies.
However, the BCA system applies only to the larger construction
companies (i.e. those in the top categories of A1, A2 and B1).
Government agencies will use the DP credit rating as an addi-
tional reference on the financial standing of the firms when evalu-
ating public tenders.
CONSTRUCTION WORKHEADS
A1 A2 B1 B2 C1 C2 C3
(CW01 & 02)
Tendering limit ($million)
Unlimited 85.0 40.0 13.0 4.0 1.3 0.65
1 Jul 10 to 30 Jun 11
Unlimited 85.0 40.0 13.0 4.0 1.3 0.65
1 Jun 11 to 30 Jun 12
SPECIALIST WORKHEADS
L6 L5 L4 L3 L2 L1
(CR, ME, MW & SY)
Unlimited 13.0 6.5 4.0 1.3 0.65
1 Jul 10 to 30 Jun 11
Unlimited 13.0 6.5 4.0 1.3 0.65
1 Jul 11 to 30 Jun 12
Source: Building and Construction Authority as at 23 May 2011
New Tendering Limits for BCA Registered Contractors
In 2002, BCA launched a Tender Limit VariableComponent
(TLVC) to the tender limits of all registration grades in the Con-
tractors Registry System (CRS). TLVC is determined using the
Tender Price Index (TPI) to reflect the impact of tender price
movements on project value. Over the years, the TPI has moved
up significantly, hence resulting a need to adjust the tender limits
of the various CRS registration grades to better reflect the fluctua-
tions in the construction costs in the market.
In November 2007, BCA announced that the tendering limits will
be adjusted once a year on the first of July. The current new ten-
dering limits shown below are based on the latest TLVC updated
on 23 May 2011.
Man-Year Entitlement (MYE)
The Man-Year Entitlement (MYE) system is a work permit alloca-
tion system implemented by the Ministry of Manpower (MOM) in
April 1998. Under this system, main contractors are given entitle-
ments to employ foreign workers from Non-Traditional Sources
and the Peoples Republic of China either directly or indirectly
from their sub-contractors based on the nature and value of their
projects.
To reduce the construction industrys heavy reliance on foreign
workers and to raise the productivity levels, MOM has been tight-
ening the MYE formula so as to meet the Construction 21 (C21)
targets for MYE to be further reduced to 70% of 1999-level by
2005 and eventually to 50% of 1999-level by 2010, or earlier.
In line with the C21 blueprint, MOM has since implemented MYE
cuts/adjustments as follows:
June 2002
70% of 1998 MYE level for all upgrading projects
80% of 1998 MYE level for all civil engineering projects
65% of 1998 MYE level for all building projects below S$10
million
60% of 1998 MYE level for all building projects at or above
S$10 million
December 2004
Based on the feedback given by the industry, MYE allocation
was increased by 10% of 2002 MYE level for all new and on-
going construction projects
January 2007
5% reduction from 2004 MYE level for all projects except for
projects above $100 million
April 2007
5% restoration of January 2007 MYE level for all new and on-
going projects except for projects above $100 million
In March 2010, the Singapore Government made an announce-
ment that, with effect from 1 July 2010, there will be progressive
reduction in the MYE in phases, leading to a cumulative 25% cut
in MYE allocation by July 2012, details as follows:
Reduce MYE by 25% over 3 phases
- 1 July 2010 = 5%
- 1 July 2011 = 10%
- 1 July 2012 = 10%
The tabulation below illustrates the MYE allocation for different
project values applied during the respective periods:
Source: Ministry of Manpower as at 1 July 2011
PROJECT
VALUE
BETWEEN
1 JUL 10 AND
30 JUN 11
AFTER
1 JUL 11
BETWEEN
1 JUL 10 AND
30 JUN 11
AFTER
1 JUL 11
BETWEEN
1 JUL 10 AND
30 JUN 11
AFTER
1 JUL 11
$140,000,000 772 695 1,081 973 237 at least* 214 at least*
$35,000,000 296 266 430 387 129 116
$25,500,000 237 213 345 310 105 95
$15,000,000 158 142 229 206 70 63
$7,000,000 94 84 126 113 38 35
$600,000 12 11 18 16 5 5
$400,000 0 0 0 0 0 0
BUILDING
PROJECTS
UPGRADING
PROJECTS
CIVIL ENGINEERING
PROJECTS
*For CE Projects with contract value above $100 million, the MYE are to be
decided on a case-by-case basis.
The Government have made an announcement on 21 February
2011 that there will be a further 15% cut in the MYE quota for new
projects in July 2013.
Residential
(landed)
Residential
(non-landed)
Commercial
Industrial
School
Institutional and
Others
MINIMUM BUILDABLE DESIGN SCORE CATEGORY OF
BUILDING WORK /
DEVELOPMENT
57 (for A&A work within existing building)
60
2,000m
2
GFA <
5,000m
2
5,000m
2
GFA <
25,000m
2
65 68
67 72 75
69 74 77
69 74 77
64 69 72
60 66 69
GFA 25,000m
2
Source: Building and Construction Authority
Minimum Buildable Design Score
The legislation on buildability came into effect on 1 January 2001.
Projects submitted for planning after 1 January 2001 will be
affected by the legislation and are required to comply with a mini-
mum buildable design score as stipulated in the Code of Practice
on Buildability.
Over the years, the minimum buildability scores have been pro-
gressively raised.
In September 2005, all new building projects with gross floor area
equal or greater than 2,000m
2
are required to comply with the
minimum buildability score.
The minimum buildability score requirement shall also apply to
A&A work to an existing building if the building works involve the
construction of new floor and/or reconstruction of existing floor for
which their total gross floor area is 2,000m
2
or more.
The Code of Practice on Buildability (April 2011) has stipulated
the minimum buildable design score for building works with appli-
cations for planning permission made on or after 15 July 2011 for
different building types:
Residential (landed)
Residential (non-landed)
Commercial
Industrial
School
Institutional and Others
MINIMUM CONSTRUCTABILITY SCORE CATEGORY OF
BUILDING WORK /
DEVELOPMENT 5,000m
2
GFA < 25,000m
2
GFA 25,000m
2
40
(Minimum 25 points from
Structural System)
50
(Minimum 35 points from
Structural System)
Constructability Score
To steer the construction industry towards higher level of productiv-
ity, the Building and Construction Authority (BCA) would be tighten-
ing the existing BuildabilityFramework and mandating a new com-
ponent called Constructability Score. In this connection, contractors
would be expected to adopt more labour-efficient construction
methods or technologies.
The constructability requirement would apply to all planning permis-
sions submitted on and after 15 July 2011. This extends to all new
building works and projects involving repairs and Addition & Altera-
tion Works to existing buildings with GFA of 5,000m2 or more. The
Constructability Score of a project is made up of 3 parts
: Part A Maximum of 60 points for Structural System. Points are
awarded for various methods and technologies adopted during
the construction of structural works
Part B Maximum of 50 points for Architectural, Mechanical,
Electrical and Plumbing (AMEP) Systems. Points are awarded for
various methods and technologies adopted during the construc-
tion of AMEP works
Part C Maximum of 10 points for Good Industry Practices. Points
are awarded for good industry practices adopted on site to
improve productivity
Under the BCAs Code of Buildability (April 2011), the minimum
Constructability Score requirements and minimum score under the
Structural System component are allocated as follows:
Earth Control Measures
Public Utilities Board (PUB) has amended its Code of Practices on
Surface Water Drainage* to provide comprehensive guidelines on
how the industry can apply more effective erosion and sedimenta-
tion control measures, this came into force in October 2006.
The Code of Practice on Surface Water Drainage contains infor-
mation pertaining to the basic planning, design and procedural
requirements for surface water drainage, and specifies the mini-
mum engineering requirements for the provision of functional
facilities for surface water drainage. This Code of Practice is
issued under Section 32 of the Sewerage and Drainage Act
(Chapter 294).
As part of our commitment of excellent service to our clients, DLS
has responded to the amendments with changes in our contrac-
tual clauses and front-end documents.
*Code of Practice on Surface Water Drainage (Fifth Edition with
amendments under Addendum No. 4 September 2006)
Building Control Act (Chapter 29)
The salient features incorporating the Building Control
(Amendment) Act 2007 are highlighted below:
Require Site Supervision Teams to ensure adequate Supervi-
sion of Structural Works
Under this new requirement, both the Qualified Person (QP) and
the Builder are required to provide their own supervision team. The
actual number and compositions of the supervision team will
depend on the project costas prescribed in the Regulations.
Appointment ofsupervision teams will be required for projects
where the first application for a permit is made on or after the effec-
tive date of the Act.
While this supervision team does not apply to projects which had
already obtained a permit earlier, QPs are nonetheless encouraged
to adopt the supervision team where necessary.
Strict Regulation on Major Geotechnical Works
The Act imposes more stringent regulation of major underground
building works that have significant safety impact, in particular on
the design of Earth Retaining or Stabilising Structures (ERSS) in
excavations. The Act stipulates that the design of such ERSS be
carried out by a Registered Professional Engineer (PE) and
reviewed by a Registered Accredited Checker (AC). A PE is also
required to supervise the construction of ERSS.
In addition, the geotechnical aspects of major under-ground build-
ing works including ERSS in excavations more than 6m deep, will
also require the inputs from PEs and ACs who are specialists in
geotechnical engineering.
Appointment of Instrumentation Specialist Builder (ISB)
The Developer of the building works shall appoint a Specialist
Builder to monitor instruments measuring pore pressures for satu-
rated and unsaturated levels, ground water levels and ground
movements or building movements where the building works com-
prise wholly or partly of any underground building works.
Underground building works generally mean thefollowing:
A tunnel with a diameter or height of more than 2 metres
Excavation with a depth of more than 6 metres
Foundation works for buildings of 30 or more storeys high
Any of the above case would require the appointment of an ISB and
the Act stipulates that the appointment shall be made by the Devel-
oper.
Licensing of Builders
This is a licensing scheme to set minimum standards of profession-
alism for general builders and six selective specialist builders
whose works have significant safety impact.
To be licensed, builders must be financially sound, have good
safety records and appoint key personnel with suitable qualifica-
tions and experience to manage the firm and supervise the con-
struction works.
The licensing of builders came into effect on 16 December 2008.
There was a grace period of six months (till 16 June 2009) for build-
ers to apply for the licence. There are two types of licence the
General Builder licence and the Specialist Builder licence. After 16
June 2009, all builders who had been granted or to be granted a
permit to carry out general building works, as well as builders carry-
ing out work in the six selective specialists work areas must pos-
sess a licence issued by the Commissioner of Building Control.
With effect from 15 April 2011, BCA has increased the number of
key construction trades under CoreTrade from seven (7) to seven-
teen (17) to enable the building up of a larger pool of higher skilled
and experienced workers.
In addition, the following shall apply to construction projects for
which the permits to commence structural works are submitted to
BCA from 15 October 2011
: There will be 4 project categories (instead of 3) under Core-
Trade, in recognition of the distinct manpower needs of conven-
tional Civil Engineering (CE) works and CE works involving MRT
stations:

- New Building Works
- Addition & Alteration (A&A) Works
- Civil Engineering Works (General)
- Civil Engineering Works (MRT Station)
Increasing the CoreTrade Man-Year deployment requirements
General Builders Specialist Builders
Commence 16 Dec 08 Transition Phase till 16 Jun 09 Implementation Phase
Class 1: Unlimited
Paid up capital:
Not less than $300,000
Class 2: $6mil limit
Paid up capital:
Not less than $25,000
Approved Person Technical Controller
Criteria
1. Sole Proprietor
2. Partner
3. Director
Six Categories
1. Piling Works
2. Ground Works
3. Site Investigation Works
4. Structural Steelworks
5. Pre-cast Concrete Works
6. In-situ Post-tensioning
Works
LICENSING OF BUILDERS
Tradesmen
1. Construction Plant Operation
Works
2. Electrical Works
3. Plumbing & Piping Works
4. Tiling, Stone Laying & Floor
Finishing Works
5. Reinfored Concrete Works
7. Waterproofing Works
8. Cladding & Curtain Wall
Installation
9. Glazing Works
10. Drywall Installation
11. Suspended Ceiling Installation
12. Doors & Windows Installation
13. Joinery Works
14. Air-con Ducting Installation
15. Fire Protection Works
16. Gas Pipefitting Works
17. Lift Installation
Trade Foremen
Notes:-
1. Class 1 Builders with project
contract value of more than
$20mil have to submit to the
Commissioner of Building
Control a manpower program
showing the deployment of
CoreTrade personnel for the
duration of the project.
2. Deployment requirements for
3 classes of projects:-
a. New Building Works
b. A&A Works
c. Civil Engineering Works
(General)
d. Civil Engineering Works
(MRT Station)
CORETRADE
1. Electrical Works
2. Plumbing & Piping Works
3. Tiling, Stone Laying & Floor
Finishing Works
5. Reinfored Concrete Works
8. Cladding & Curtain Wall
Installation
9. Glazing Works
10. Drywall Installation
11. Suspended Ceiling Installation
12. Doors & Windows Installation
13. Joinery Works
14. Air-con Ducting Installation
15. Fire Protection Works
16. Gas Pipefitting Works
17. Lift Installation
Administrative expenses
Legal costs and disbursements
Demolition of existing building/s
Furniture, fittings and equipment (F.F. & E.) (unless otherwise
stated)
Operating equipment
Cost escalation
Goods and Services Tax
The codes and standards for each category of building vary from
country to country and do not necessarily follow those of Singa-
pore.
Registration of CoreTrade Personnel
With effect from 16 June 2009, all Class 1 General Builders*
undertaking a project of value which is $20 million or more will be
required to deploy a prescribed minimum number of construction
personnel who are registered under the CoreTrade Scheme.
The objective of this new requirement is to build up a core group
of locals and experienced foreign workers in key construction
trades to anchor and lead the workforce.
*Class 1 General Builder licence allows the holder to carry on the
business of a general builder for any project.
Enhance Independence of Parties in Construction Projects
To avoid any situations of conflicts on interest, the Act imposes
restrictions to insulate the QP and Contractor supervising the
structural works from the influence of the developer or builder by
requiring that the QP responsible for supervision should not be
associated with the developer or builder.
Standards on Environmental Sustainability
Please refer to Page 147 for details
.Maintenance of Barrier-Free Provisions
Please refer to Page 162 for details.
Stiffer Penalties for Non-Compliance
The penalties provided in the new Act are set at a higher level
than those found in the previous Act in order to align them with the
relevant provisions of the Workplace Safety and Health Act
(WSHA).
Statutory Duty on Developers to Report AnyContravention of
the Building Control Act and Regulations to the Commis-
sioner of Building Control(CBC)
Under the Act, the developer, who is one of the key parties in the
project, has a duty to report to the CBCof any contravention of the
Building Control Act/Regulations relating to the project that he
knows or ought reasonably to know.
Mandatory Higher Green Mark Standard forGovernment Land
Sales (GLS) Sites in Selected Strategic Areas
It was announced in BCAs 2nd Green Building Master-plan in
2009 that projects developed on GLS sites in the selected strate-
gic growth areas will be subject to higher Green Mark standards.
This requirement aims to maximize the potential for cost-effective
energy savings in our built environment.
Any new development located on land sold on or after 5 May 2010
under the GLS Programme in the following strategic areas will be
required to be designed to meet the prescribed Green Mark certifi-
cation:
SELECTED STRATEGIC AREAS
Exact Location to refer to the Building
Control (Environmental Sustainability)
Regulations 2008
REQUIREMENTS FOR BUILDING WHOLLY
OR PARTLY WITHIN AREA THAT IS ON
LAND SOLD UNDER THE GLS
PROGRAMME
Marina Bay
Jurong Lake District
Kallang Riverside
Paya Lebar Central
Downtown Core including areas within
the CBD located next to Marina Bay
Green Mark Platinum
Green Mark Gold
PLUS
Source: Building and Construction Authority as at 10 December 2010
For building works that are subject to this requirement, the QPs
need not submit their declaration of the Green Mark scores along
with the building plan submission. Instead, the QPs should ensure
that, prior to the building plan submission, an application is made
to BCA for the project to obtain the Green Mark Certification in
accordance with the BCA Green Mark Certification Standard for
New Buildings. Upon completion of the building works, the QPs
should submit the Green Mark Certification rating achieved for the
project along withhis application for Temporary Occupation
Permit(TOP) or Certificate of Statutory Completion (CSC).The
prescribed Green Mark Certification rating for the building has to
be obtained before a TOP/CSC can be granted.
The certification standard has been revised from 1 December
2010 in tandem with the changes in the Green Mark Criteria. The
compliance with the respective certification standards will be
based on the tender award letter issued by the Urban Redevelop-
ment Authority (URA) to the successful developer under the GLS
Programmes for the selected strategic areas and as stated in the
table below:
Green Mark Version 4.0 for New Buildings
On 31 August 2010, BCA announced that the Green Mark (GM)
Criteria will be revised to raise the standards of environmentally
friendly buildings in Singapore. This is a step forward in achieving
the target of greening 80% of the existing buildings stock by
2030.
The revised BCA GM Criteria for new buildings (Version 4.0) will
be implemented with effect from 1 December 2010. Some of the
key changes include enhance pre-requisites for higher GM
rating, increase in focuson passive designs, sustainable con-
struction practices, introduction of carbon footprint and a mini-
mum 10% energy improvement as compared to Version 3.0.
DATE OF TENDER CLOSED UNDER
THE GLS PROGRAMMES
COMPLIANCE STANDARD
From 5 May 2010 to 30 November 2010
From 1 December 2010 and onwards
BCA Green Mark Certification Standards
for New Building, GM Version 3.0, May
2010 issue
BCA Green Mark Certification Standards
for New Building, GM Version 4.0, August
2010 issue
Source: Building and Construction Authority as at 10 December 2010
An extract on the implementation timelines of BCA GM Criteria
Version 4.0 in other green building initiatives are outlined in the
table below:
More information on the Revised BCA Green Mark Criteria for
New Buildings (Version 4.0) can be found in BCAs website.
(http://210.23.8.172/einfo/Uploads/Circular/CBCA100902.pdf)
GREEN BUILDING INITIATIVES IMPLEMENTATION TIMELINE
Government Land Sales (GLS)
Programmes
Any new development located on land sold
under the GLS are required to attain Green
Mark Gold
PLUS
or Platinum Rating.
. e t a d e s o l c r e d n e t S L G e h t n o d e s a B
Projects with tender closing date on or after
1 December 2010 will be assessed and
certified using the Revised BCA Green Mark
Criteria for new buildings (GM Version 4.0).
Public Sector Taking the Lead
New public sector buildings with more than
5,000m
2
air-conditioned floor area are
required to attain the Green Mark Platinum
Rating.
Based on the date of tender notices for the
consultancy or design and build contract.
The revised BCA Green Mark Criteria for
new buildings (GM Version 4.0) will be
applicable to public sector projects with
tenders for design that are called on or after
1 December 2010.
Green Mark Gross Floor Area (GM-GFA)
Incentive Scheme
Incentives in the form of additional GFA can
be granted by URA if development attains
Green Mark Gold
PLUS
or Platinum Rating.
Based on the submission date of BCA-
GM-GFA application.
Projects with applications submitted on or
after 1 December 2010 will be assessed
and certified using the Revised BCA Green
Mark Criteria for new buildings (GM Version
4.0).
Source: Building and Construction Authoritys Circular dated 31
August 2010
Source: Building and Construction Authority as at 11 July 2011
ENERGY SAVINGS
GREEN
MARK
RATING
Gold
PLUS
0.65 30% 35% 30% $500,000
Certified
0.70
20% 25%
20% $150,000
Gold 15% 20%
Platinum 0.60 35% 40% 35% $1,500,000
AIRCON
SYSTEM
EFFICIENCY
(KW/RT)
CO-FUNDING
RATE
(BASED ON
EQUIPMENT
COST)
CAP
BASED ON
TOTAL
BUILDING
CONSUMPTION
BASED ON
TOTAL
LANDLORDS
CONSUMPTION
Green Mark Incentive Scheme for Existing Building (GMIS-
EB)
GMIS-EB was introduced by BCA in April 2009. The Scheme aims
to encourage private building owners to undertake improvements
and/or retrofits to their existing buildings to achieve substantial
improvement in energy efficiency. It provides a cash incentive
that co-funds up to 35% (capped at $1.5 million) of the costs of
energy efficient equipment installed for energy efficiency improve-
ment in their existing buildings. In addition, it will also co-funds up
to 50% of the cost for conducting a energy audit (Health Check
scheme) on the efficiency of the air-conditioning plants.
All building owners of private existing non-residential buildings
with gross floor area of 2,000m2 and above with central chilled
water air-conditioning plants or which will be graded to have cen-
tral chilled water air-conditioning plants are eligible for application
of the incentive. However, the eligible buildings must first achieve
at least BCA Green Mark Certified rating and air-conditioning
system efficiency of 0.7 kW/RT or better, with 15% energy savings
or higher. The amount of co-funding for building owners will vary
depending on the Green Mark rating, air-conditioning system
efficiency and energy savings that are achieved. The amount of
co-funding rate and cap amount are summarised as follow:
The cash incentives will be disbursed in two stages. The first
disbursement, set at 50% of the approved co-funding, will be
given out upon completion of the energy improvement retrofits.
The final disbursement of the approved co-funding will be given
out upon Green Mark certification and verification of air-
conditioning plant system efficiency and the energy savings
achieved.
The scheme is applicable with effect from 29 April 2009 and will
expire 5 years later on the 28 April 2014 or when the GMIS-EB
fund is fully disbursed, whichever earlier. Participation in the
scheme will be on a first-come-first served basis, subject to avail-
ability of funds.
For more information on the Scheme, please refer to BCAs web-
site for more details.
Green Mark Gross Floor Area (GM GFA) Incentive Scheme
The Green Mark Gross Floor Area (GM GFA) Incentive Scheme
came into effect on 29 April 2009 for a periodof 5 years with a
mid-term review after 2 years ofimplementation. The Scheme was
introduced toencourage building owners/developers to accelera-
tethe adoption of environmental-friendly green building technolo-
gies and building design practices that will contribute to the sus-
tainable development of Singapore.
Building owners/developers can enjoy additional GFA allowed
over and above the Master Plan (MP) Gross Plot Ratio (GPR)
should their buildings achieve GM ratings of Gold
PLUS
and above.
The quantum of GM GFA allowed under the Scheme is up to 1%
for Green Mark Gold
PLUS
and up to 2% for Green Mark Platinum,
subject to a cap of 2,500m
2
for Gold
PLUS
and 5,000m
2
for Plati-
num.
Development that are eligible for the GM GFA Incentive Scheme
includes:
Residential non-landed, mixed commercial and residential
development and others (approved on a case-by-case basis)
Non-Residential commercial, office, retail, business parks,
industrial, institutional, community building, hotel, hospital, white
site development and others (approved on a case-by-case basis)
New private developments, redevelopments and reconstruction
developments which includes major additions and alterations to
existing buildings and major retrofitting to existing buildings as
deemed suitable for the GM GFA incentive scheme at BCAs sole
discretion
Government Land Sales (GLS) sites, except for sites in which
GM Platinum or Gold
PLUS
standards are mandated as part of the
sales condition. For sites where the Gold
PLUS
standard is man-
dated, the developer will still enjoy an incremental GFA incentive
if the developer attained the higher GM Platinum standard
Applicants who take up the GM GFA Incentive Scheme will not
be eligible for the GMISThe method of determining the GM GFA is
based on the following:
Proposed GFA (sqm) Prescribed Green
Equivalent

X

=
(subject to MP allowable intensity) Premium ($/sqm)

Bonus GFA
Land Value ($/sqm) (determined by proxy using DC rates)
Note: The additional GFA is subject to payment of
differential premium or development charge,
whichever is applicable.
For more information on the Scheme, please refer
to BCAs website for more details.
Legislation on Environmental Sustainability for Buildings
Since the launch of BCA Green Mark Scheme in 2005, BCA has
enhanced the Building Control Act to include a minimum environ-
mental sustainability standard that is equivalent to the Green Mark
Certified Level for new buildings and existing ones that undergo
major retrofitting.
The Building Control (Environmental Sustainability) Regulations
2008 stipulates a minimum Green Mark score of 50 for affected
building works. It applies to:
All new building works with Gross Floor Area of 2,000m
2
or more
Additions or extensions to existing buildings which involve
increasing Gross Floor Area of the existing buildings by 2,000m
2

or more
Building works which involve major retrofitting to existing build-
ings with existing Gross Floor Area of 2,000m
2
or more
Alterations to existing buildings which does not involve major retro-
fitting works is not subject to the new requirements.
The effective date of implementation will be based on the first sub-
mission date for URA Planning Permission on or after 15 April
2008.
With effect from 1 December 2010, the minimumenvironmental
sustainability standard has been revised. The compliance with the
respective environmental sustainability standards will be based on
the firstsubmission date for URA planning permission as stated in
the table below:
The requirements on environmental sustainability of buildings will
be integrated with the Building Plan process. The Qualified Person
(QP) who submits the Building Plan and the other appropriate prac-
titioners will be responsible for assessing and scoring the building
works under their charge using the criteria and scoring methodol-
ogy spelled out in the Code for Environmental Sustainability of
Buildings.
Under the Legislation, Green Mark assessments are no longer
required to be conducted as an independent third party certification.
Compliance to the regulations will be based on QPs declaration
and random audit and site checks prior or during Temporary Occu-
pation Permit (TOP).
1
ST
SUBMISSION DATE FOR
URA PLANNING PERMISSION
COMPLIANCE STANDARD
From 15 April 2008 to
30 November 2010
Code for Environmental
Sustainability for Buildings,
1
st
Edition, April 2008 issue
From 1 December 2010
onwards
Code for Environmental
Sustainability for Buildings,
2
nd
Edition, August 2010 issue
However, third party assessment by BCA will be conducted to
award projects with Green Mark Gold rating and above.
The BCA Green Mark has assessment criteria for three main
categories:
New Buildings
Existing Buildings and
Beyond Buildings
New buildings refer to new developments,redevelopments, addi-
tions and alterations to existing buildings and major retrofitting to
existing buildings. Existing buildings refer to buildings under opera-
tions with no significant retrofitting works. Lastly, beyond buildings
refer to new parks design and development, existing parks, office
interiors, infrastructure with no significant retrofitting works and
district development.
In line with the above new regulations, the BCA Green Mark
Assessment Criteria for New Buildings has been revised and will
take effect from 1 December 2010 onwards. All Green Mark appli-
cations for new buildings that are submitted on or after this date will
be assessed and certified based on this new version.
Append hereunder are the various Green Mark categories:
BCA Green Mark for Non-Residential New Buildings (Version
NRB/4.0) Applicable for new buildings such as offices, commer-
cial, industrial and institutional buildings with or without air-
conditioning systems.
BCA Green Mark for Residential New Buildings (Version RB/4.0)
Applicable for new private and public residential developments.
BCA Green Mark for Non-Residential Existing Buildings (Version
NREB/2.1) Applicable to existing commercial, industrial and insti-
tutional buildings under operation.
BCA Green Mark for Existing Residential Buildings (Version
ERB/1.0) Applicable for existing private and public residential
developments.
BCA Green Mark for Existing Schools (Version ES/1.0) Appli-
cable to Ministry of Education main stream schools (excluding
International schools, Universities and Institute of Higher Learn-
ing: Polytechnics and Institute of Technical Education.)
BCA Green Mark for Office Interior (Version 1.0) Applicable for
tenant renovation and maintenance practices.
BCA Green Mark for Landed Houses (Version LH/1.0) Applicable
for landed housing projects.
BCA Green Mark for Infrastructure (Version 1.0) Applicable for
infrastructure projects (e.g. barrages, roads, bridges, etc.)
BCA Green Mark for District (Version 1.0) Applicable for district
projects.
BCA Green Mark for Restaurants (Version 1.0) Applicable for res-
taurants.
The Green Mark rates the environmental friendliness of a building
based on a point scoring approach. Depending on the score, the
rating is categorized in four levels Platinum, Gold
PLUS
, Gold and
Certified
GREEN MARK RATING GREEN MARK POINTS GREEN MARK POINTS
WITH EFFECT FROM WITH EFFECT FROM
1 DECEMBER 2010 1 DECEMBER 2009
VERSION 4.0 VERSION 2.1
NON-RESIDENTIAL & NON-RESIDENTIAL
RESIDENTIAL BUILDINGS EXISTING BUILDINGS
Green Mark Platinum 90 and above 90 and above
Green Mark Gold
PLUS
85 to <90 85 to <90
Green Mark Gold 75 to <85 75 to <85
Green Mark Certified 50 to <75 50 to <75
19 MAY 2011 4 AUGUST 2011
EXISTING RESIDENTIAL EXISTING SCHOOLS
BUILDINGS
Green Mark Gold
PLUS
85 to <90 85 to <90
27 MAY 2009 27 MAY 2009
OFFICE INTERIOR & INFRASTRUCTURE
LANDED HOUSES
Green Mark Gold
PLUS
85 to <95 80 to <90
GREEN MARK RATING GREEN MARK POINTS PRE-REQUISITES
WITH EFFECT FROM
29 OCTOBER 2009
VERSION 1.0
T C I R T S I D
Green Mark Platinum 90 and above At least one building (GFA
> 5,000m
2
) at Phase I to
achieve Green Mark
Platinum
Green Mark Gold
PLUS
80 to <90 At least one building (GFA
> 5,000m
2
) at Phase I to
achieve Green Mark
Gold
PLUS
Green Mark Gold 65 to <80 At least one building (GFA
> 5,000m
2
) at Phase I to
achieve Green Mark Gold
Green Mark Certified 50 to <65 Nil
GREEN MARK RATING GREEN MARK POINTS
WITH EFFECT FROM
12 SEPTEMBER 2011
VERSION 1.0
S T N A R U A T S E R
Green Mark Platinum 95 and above
Green Mark Gold
PLUS
85 to <95
Green Mark Gold 75 to <85
Green Mark Certified 50 to <75
More information on the BCA Green Mark Scheme can be found
in BCAs website. (http://www.bca.gov.sg/GreenMark/green_
mark_buildings.html)
TOTAL NO. OF

BCA GREEN MARK BCA GREEN MARK
BUILDINGS RATED CHAMPION PLATINUM CHAMPION
Green Mark Gold and above At least 10 At least 50
Green Mark Gold
PLUS

At least 3 At least 15
Green Mark Platinum At least 3 At least 15
BCA Green Mark Champion
The Green Mark Champion Award established in May 2008 was
an extension to the BCA Green Mark Award introduced in 2005.
This new award was created to recognize developers/building
owners with strong commitment towards corporate social respon-
sibility and outstanding achievements in environmental sustain-
ability. It is given to developers/building owners who achieve a
substantial number of Green Mark buildings at Gold level and
higher.
There are 2 categories for the award:
BCA Green Mark Champion
BCA Green Mark Platinum Champion
In addition to demonstrating strong commitment towards corpo-
rate social responsibility and environmentalsustainability,
developers/building owners must also meet the minimum criteria
set out below to qualify for the award:
Solar Capability Scheme (SCS)
In May 2008, the Clean Energy Programme Office (CEPO) (now
known as Energy Innovation Programme Office (EIPO)) of the Sin-
gapore Economic Development Board (EDB) announced the estab-
lishment of the SolarCapability Scheme (SCS). The primary purpose
of this scheme is to encourage the use of solar energy systems in
new developments, and also to build capacity within the local con-
struction industry for the implementation of such systems.
Under the scheme, building owners and developers may enjoy a
grant of 30% - 40% of the capital cost (capped at $1 million per proj-
ect) of installing solar energy systems in their new developments. It
is estimated that savings from the electricity generated by these sys-
tems will allow the owner to recover a further 50% of the capital cost
incurred. The initial budget for the scheme is $20 million, and the
quantum of grant is expected to be reviewed on a regular basis to
factor in changes in the prices of solar systems and energy prices.
Eligibility for the SCS is restricted to new buildings that have attained
a minimum Green Mark Gold standard (administered by the Building
and ConstructionAuthority), while buildings undergoing extensive
retrofit will be considered on a case-by-case basis. To qualify, a mini-
mum system size of 10kWp is required.
The following evaluation criteria determine the actual amount of the
grant:
a) Innovation
- Innovative application of solar technologies
- New products, technologies or solutions developed
b) Design
- Aesthetics of building and solar system design and integration
- Integration of solar technologies in the building's sub-system
c) Effectiveness
- Cost effectiveness of solar solutions
- Percentage of conventional electricity replaced
d) Skill Development
- Number of man-months of Singapore based staff involved in
solar related activities in the project
- Number of man-months of formal training
Disbursement of the grant is conducted in 2 phases as follows:
i. Capital Component:
70% of the grant to be disbursed from the start of the project
on a reimbursement basis
ii. Performance Component:
30% of the grant to be disbursed 2 years after the system
becomes operational, subject to the project meeting submitted
plans, including stipulated electricity output
CONSTRUCTION COSTS FOR SINGAPORE
.

TYPES
LOW HIGH
S$/m
2
S$/m
2
RESIDENTIAL
Terraced Houses 2,400 2,650
Semi-Detached Houses 2,550 3,000
Detached Houses 3,000 4,000
Average Standard Condominium 1,850 2,100
Mid Range Condominum 2,100 2,800
Luxury Condominium 2,800 4,200
OFFICE
Average Standard Offices 2,400 2,600
Prestige Offices 2,600 2,900
COMMERCIAL
Shopping Centres, Average Quality 2,600 2,800
Shopping Centres, High Quality 2,800 3,100
Theatres / Cinemas 1,950 2,200
CAR PARKS
Multi-Storey Car Parks 900 1,300
Basement Car Parks 1,300 1,750
OVERALL COST
INDUSTRIAL
Flatted Light Industrial Buildings 1,250 1,400
Flatted Heavy Industrial Buildings 1,400 1,850
Single Storey Industrial Buildings 1,150 1,300
Flatted Warehouses 1,150 1,300
Single Storey Warehouses 1,000 1,300
HOTEL (Including F.F. & E.)
Resort Hotels 2,850 3,100
3-Star Hotels 2,950 3,200
Serviced Apartments 2,200 2,850
HEALTH
Private Hospitals 3,750 3,950
Polyclinics 1,550 1,750
Nursing Homes 1,550 1,850
Medical Centres 2,900 3,100
With effect from 1 March 2010, the eligibility for the SCS has been
revised as follows:
a) SCS will offset up to 30% of the total capital cost instead of 30%
- 40% of the capital cost
b) New buildings have to attained minimum Green Mark Gold
PLUS

standard instead of Green Mark Gold standard
c) Minimum system size of 50kWp is required instead of 10kWp
Revised Strata Landed Housing Guidelines Allowable
Number of Units per Development
With effect from 3 February 2009, the maximum number of allow-
able units in strata landed housing developments will be capped
based on a minimum plot size per unit for the respective conven-
tional landed housing form.
Under the new guidelines, the maximum number ofunits allowed
for strata landed housing developmentscomprising only 1 type of
housing form will be determined by the following formula:
The maximum number of units allowed for mixed strata landed
housing developments comprising more than 1 type of landed
housing form will be determined by the following formula:
(B x Y
B
) + (SD x Y
S
) + (T x Y
T
) Total Site Area of
Development
Where,
B = proposed number of strata bungalow units
SD = proposed number of strata semi-detached house
units
T = proposed number of strata terraced house units
Y
B
,Y
S
,Y
T
= plot size control for the relevant landed
housing form
2
Note:
Development applications (excluding Outline applications) sub-
mitted prior to 3 February 2009 which results in a Provisional Per-
mission will continue to be evaluated under the old guidelines
1
Where the formula does not result in a round number, the number of allowable
units will be rounded down to cater for each unit having the minimum plot size for
the proposed housing form
2
Y
B
= 400 sqm for Bungalow; Y
S
= 200 sqm for Semi-detached house; Y
T
= 150
sqm for Terraced house
Where Y = plot size control for the relevant landed
housing form
2
Number of Allowable
Total Site Area of

Units
1
Development
Y
Source: Urban Redevelopment Authority
OLD GUIDELINES

NEW GUIDELINES
(WITH EFFECT FROM 1 JANUARY 2009)
GFA exemption apply to: GFA exemption rescinded for:
Bay windows Bay windows in all developments
Planter boxes Planter boxes within a residential
unit
GFA exemption continue to apply to:
Planter boxes provided within
non-residential developments
Planter boxes provided within the
communal areas of residential
developments
Changes to Gross Floor Area (GFA) Exemption Guidelines
GFA to include
i. Bay windows in all developments; and
ii. Planter boxes within a residential unit.
With effect from 1 January 2009, bay windows in all developments
and planter boxes within a residential unit are no longer exempted
from GFA calculations. This new guidelines do not apply to
approved developments and formal development applications
(excluding Outline Applications) with a valid Provisional Permis-
sion (PP) issued prior to the effective date. For approveddevelop-
ments with approved bay windows and planter boxes exempted
from GFA, these approved spaces will remain as GFA exempted
until the buildings areredeveloped.
The changes are summarised as follows:
Building and Construction Industry Security of Payment Act
2004
The Building and Construction Industry Security of Payment Act
(BCISOP Act) 2004 came into force in Singapore on 1 April 2005.
The BCISOP Act was enacted to facilitate payments for construc-
tion work done or for related goods and servicessupplied, under a
contract in the building and construction industry. The Act covers
quite a wide spectrum of services within the construction industry
relating to construction work which includes professionalconsul-
tancy services.
The underlining objectives of the BCISOP Act are to:
improve cash flow by expediting payment
provide a statutory entitlement to progress payments to contrac-
tors, sub-contractors and suppliers for work carried out, even if no
such entitlement is provided in their contract
provide a procedure of adjudication to claim payment; which is
intended to be a more cost and time efficient way of resolving
disputes on payment claims between the parties
provide remedies when adjudicated amount not paid
The BCISOP Act provides a new regime of claim,adjudication and
enforcement procedures which include the right to suspend work
for non-payment. It also renders unenforceable pay when paid
provisions in contracts. This benefits the sub-contractors and sup-
pliers.
The BCISOP Act is supplemented by the BCISOP Regulations
2005 where the Act confers power onthe Minister of National
Development to set out theregulations to facilitate the implemen-
tation of the Act.
However, the BCISOP Act is not applicable toconstruction work
and goods and services relating to residential property (defined
under Residential Property Act) not requiring approval under the
BCA Building Control Act, construction work carried outside Sin-
gapore, goods and services supplied to construction work outside
Singapore and employment contracts.
Notwithstanding the benefits arising from the enactment of the
BCISOP Act to facilitate payment in theconstruction supply chain,
it is essential for every player in the industry to have a good under-
standing of the Act from the operational and practical standpoint.
DLS has streamlined our in-house practices as well as assisted
our Clients/Developer organizations to review and make recom-
mendations in their internal operating procedures. Payment pro-
tocol with prescribed timeframe for payment claim, QS valuation,
consultantscertification, payment response and payment termw-
ere customized and established with the respective organization.
Workplace Safety and Health Act (WSHA)
The Workplace Safety and Health Act (WSHA)considers the
safety, health and welfare of the personsat workplaces. It imposes
specific duties on variouspersons (including Employer). It also pro-
vides a rangeof enforcement methods so as to enable appropriate
response to a failure to comply with the Act, depending on the
nature of the failure. This Act will replace the current Factories Act,
which stipulates that the legal liability for safety and health in a
factory lies primarily with the factory occupier.
The following incidents in year 2004 have shown a need for a better
work safety standard:
The Nicoll Highway collapse
The construction site accident at Fusionpolis
The fire in the vessel Almudaina at a shipyard
In order to put in place a new and more effectiveframework to
reduce accidents at the workplace, the Workplace Safety and
Health Act was passed inParliament on 17 January 2006 and came
into effecton 1 March 2006.
This Act will form the legal framework for the new Occupational
Safety Health regulatory system. It also contains a revised penalty
framework to reflect the cost of poor safety management. While the
maximum fine for the individuals remains at up to $200,000, the jail
term has been increased from 12 months to 24 months whereas for
corporations, they can be fined up to $500,000.
This new regulation will require employers to conduct comprehen-
sive risk assessment for all work processes, and provide detailed
plans to eliminate or minimise risks. In view of this, the Ministry of
Manpower shall work with the construction industries from the
design stage to identify potential risks, rather than wait till the plans
are submitted.
In addition, the Ministry of Manpower officers will also have a new
enforcement tool the power to issue Remedial Orders whereby
the officers will beempowered to compel worksites to remove a
workplace risk regardless of whether there is an imminent danger.
Any non-compliance can lead to stop-work order.
A greater responsibility and accountability will also be assigned to
everyone, from rank-and-file workers to managers and directors of
companies, even though they may not be directly involved at the
workplace or may not be able to physically police safety and health
on the ground.
The impact of these regulation changes especially with the strin-
gent regulations and additional requirement on Health and Safety
by the authorities has bearing on the overall construction costs,
particularly on preliminaries and temporary works associated with
construction.
With effect from 1 September 2011, all workplaces will be covered
under the WSHA. This latest extension bringson board more than
100,000 organizations with over1.6 million employees, or about half
of the Singapore workforce. Companies and employees now cov-
ered under the Act will need to take reasonably practicable mea-
sures to ensure their workplaces are safe. This includes proper risk
management or taking steps to identify and manage the existing
risks in ones workplace so as to prevent work incidents.
Apart from the coverage extension of the WSHA, other key
changes were also affected. These include:
Making the duties and obligations of the principals and the per-
sons at work more defined
Enhancing the definition of Occupational Diseases to include any
diseases that are attributable to chemical and biological agent
exposure at work
The WSH (Noise) Regulations taking effect on 1 September 2011
and will include all workplaces to be covered under the regulation
Workplace Safety and Health (WSH) (Construction) Regula-
tions 2007
With effect from 1 January 2008, the WSH (Construction) Regula-
tions 2007 replaces the Factories (BuildingOperations and Works
of Engineering Construction) Regulations (BOWEC).
The main changes of the Regulations are as follows:
Worksites with Contract Sum of less than $10 million are required
to appoint a WSH Coordinator who shall assist the occupier to
identify unsafe condition or unsafe work practice; recommend to
the occupier such reasonably practicable measures; remedy the
unsafe condition or unsafe work practice; and assist the occupier
to implement such reasonable practicable measures
Inclusion of the recommendations of the MOM-MND Joint Review
committee as follows:
- Imposing statutory duties on Professional Engineers (PEs)
undertaking design of temporary works
- Requiring safety and health training for all supervisors
- Instituting regular site coordination meetings
- Implementing a permit-to-work system for selected hazardous
work
Updating of the provisions to make it less prescriptive
Updating of all relevant terminologies
Clarifying the intended duty holder for the provision
Introducing offences and penalties provisions for the breach of
the Regulations
Code on Accessibility in the Built Environment 2007
The Code on Accessibility in the Built Environment 2007 imple-
mented with effect from 1 April 2008 replacesthe previous Code
on Barrier-Free Accessibility in Buildings 2002. The provisions of
this Code will apply to new buildings and existing buildings under-
going majorretrofitting works, where the Building Plans are sub-
mitted for regulatory approval on or after 1 April 2008.
The Code was first introduced in 1990 and aids tomake our build-
ings more user-friendly for the physically challenged. The Code
was last reviewed and expanded in 2002 to include more manda-
tory barrier-free features in the common areas of new buildings.
The current revised Code, which is in its 4th edition, contains addi-
tional requirements relating to theinterconnection between build-
ings and from buildingsto infrastructure and more mandatory
requirementson elder-friendly features to prepare for an ageing-
population. While the provisions in the Code are primarily meant
to improve mobility for wheelchair users, they will also benefit
others such as the elderly, parents with young children and people
with different disabilities.
Besides residential buildings, the revised Code has also
expanded to incorporate accessibility enhancement to public
parks, open spaces, vehicle parks, bus shelters and transport
stations.
Mandatory Water Efficiency Labelling Scheme (MWELS)
With effect from 1 July 2009, the Public Utilities Board (PUB)
implemented the Mandatory Water Efficiency Labelling Scheme
(MWELS) to further promote water conservation, accelerate the
adoption of water efficient fittings and products and encourage
suppliers to bring in more water efficient models.
The water fittings, appliances, apparatuses and products covered
under MWELS include the following:
a. Shower Taps and Mixers (except concealed shower taps and
mixers and concealed bath/shower taps and mixers which are
not covered under MWELS for the time being)
b. Basin Taps and Mixers
c. Sink/Bib Taps and Mixers
d. Dual Flush Low Capacity Flushing Cisterns (Dual Flush LCFCs)
e. Urinal Flush Valves
f. Waterless Urinals
PUB will oversee the registration of water fittings,appliances,
apparatuses and products under MWELSto which the labelling
and standards provisions apply, and will monitor to enforce com-
pliance with the scheme. All water fittings, appliances, appara-
tuses and products to be labelled under the mandatory and volun-
tary WELS shall comply with the standards and requirements
stipulated by PUB.
The Scheme requires the water fittings, appliances,apparatuses
and products covered under MWELS to be labelled for the pur-
pose of supply, sale or offer, display or advertisement for supply
or sale or installation or use in Singapore.
All water fittings, appliances, apparatuses and products that are
required to be labelled under MWELS will be rated. Zero Tick
label shall apply to water fittings, appliances, apparatuses and
products that do not meet 1 or more ticks requirements or have
not undergone test for water efficiency. In essence, the more
number of ticks, the more water efficiency the product is. (See
Figure 1 and Figure 2 below)
With effect from 1 October 2011, MWELS will be extended to
clothes washing machines intended for household use and show-
erheads will be covered under voluntary WELS.
Figure 1 : Mandatory WELS Label Figure 2 : Voluntary WELS Label
Source: Public Utilities Board (PUB) as at 1 July 2011
Market Development Fund for the Usage of Clear and Renew-
able Energy in Singapore
The Energy Market Authority (EMA) has set up the Market Devel-
opment Fund (MDF) to encourage the installation of clean and
renewable energy technologies/ systems in commercial or indus-
trial building/facility (i.e. non-residential).
To qualify for the funding support, the project must:
Demonstrate the use of clean and renewable energy
technologies/systems for power generation
Participate in the wholesale electricity market
Utilize clean and renewable energy technologies/ systems that
are supported by MDF, including:
i. Solar (Photovoltaic (PV), Concentrated Solar PV and Concen-
trated Solar Power)
ii. Wind turbines
iii. Hydrogen production and fuel cells

iv. Energy storage systems such as batteries
v. Microturbines (biogas)
vi. Integration of building or office energy management systems
that will improve energy efficiency
The MDF will co-fund 90% of the incurred market charges, subject
to a cap of $50,000 per project. The funding support will last for
two years but can be extended to a maximum of five years
(subject to approval).
The following market charges are applicable for reimbursement:
a. EMC Fees
b. PSO Fees
c. Reserve Regulation Charges (AFP)
d. Spinning Reserves Charges (if applicable)
e. Fixed Charges including:
i. Billing and Collection Charge
ii. Meter Reading and Data Management Fee
iii. Telephone Subscription For Meter Reading
iv. Wholesale Trading License
Note:EMC denotes Energy Market Company Pte Ltd. EMC oper-
ates Singapores wholesale electricity market. All of Singapores
electricity is bought and sold through EMC.
PSO denotes Power System Operator, a Division of the EMA and
is responsible for the secure supply of electricity to consumers
and operation of the transmission system. The Division operates
from the Power System Control Centre (PSCC) which is the nerve
centre of the electricity generation and transmission system in
Singapore.
Energy, Environment and Financial Impacts of Fuel Switch
Solutions for Domestic Water Heating Systems in Singapore
The National University of Singapore and ZEBTechnology Pte Ltd
Singapore have carried out an independent study for City Gas Pte
Ltd, Singapore to determine the financial and environmental
impact of fuel switch solutions for domestic water heating systems
in Singapore. The main objectives of the study are to compare the
energy consumption and the carbon reduction between gas and
electric type of domestic water heating systems in Singapore.
The key findings of the study are summarized as follows:
1. At the individual user level, the annual energy cost saving (in %)
may be as high as 91% for the conservative user, if one was to
convert from electric storage heater to the gas continuous flow
heater, and leaves the storage heater turn on for a period of
approximately 52 minutes before use. On the other hand, if one
was to switch from electric instantaneous heaters to gas continu-
ous flow heaters, the savings could range between 14% and 44%
of the total hot water energy use.
2. At a national level, the fuel switch from electric storage heater
to gas continuous flow heater may reduce the carbon emission
by up to 86%. This is equivalent to 0.5 million tons of carbon
emission annually. There is a potential savings of up to 64% in
energy use with respect to total energy use for hot water genera-
tion in Singapore when all households switch to using gas con-
tinuous flow heaters This translates to a saving of 700,000
MWh or S$149 million per year. This is equivalent to planting
about 500,000 trees per annum to provide the carbon sink for the
absorption of the same carbon; or equivalent to the removal of
72,780 cars from the road.
3. For new developments, the increase in installation cost for a
gas continuous flow heater may be recovered from energy
saving within 9 months for a small apartment to a maximum of
2.1 years for a large condominium. The payback period for a
retrofit scenario from electric storage heater to gas continuous
flow water heater ranges from 1.5 years to 3.2 years.
4. For Housing Development Board (HDB) developments, the esti-
mated capital costs are in the range from S$750 to S$1,100 for
3-room to 5-room apartments respectively when residents opt
for the gas continuous flow heaters. Generally, the payback
period is in the range of 0.75 to about 2 years.
COST BREAKDOWN FOR DIFFERENT BUILDING TYPES
BUILDING TYPES STRUCTURAL ARCHITECTURAL M&E SERVICES EXTERNAL WORKS
Bungalows 15% 47% 23% 15%
Condominiums 21% 50% 22% 7%
Offices 22% 44% 32% 2%
Hotels 19% 42% 35% 4%
Retails 23% 40% 32% 5%
Factories / Warehouses 30% 37% 28% 5%
Schools 25% 43% 22% 10%
Note:
a) Structural includes Piling, Foundation and Structure.
b) Architectural includes External walls, Internal Walls, Roof, Wall Finishes, Ceiling Finishes, Floor Finishes, Sanitary Fittings,
Windows & Doors and Joinery Fittings.
c) M&E includes Electrical Services, Fire Protection, Plumbing, Vertical Transport and ACMV
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Bungalows Condominiums Offices Hotels Retails Factories/ Schools
Warehouses
Structural Architectural M&E External Works
Sustainable Construction Capability Development Fund
The $15 million Sustainable Construction Capability Development
Fund (SC Fund) was established by the BCA to build up the capa-
bilities of industry players in adopting Sustainable Construction
(SC) practices,technologies and materials, and eventually steering
the industry towards self-sustenance in the demand and supply of
SC materials in Singapore. The SC Fund focuses on developing
capabilities in recycling of waste materials arising from the demoli-
tion of buildings and using of recycled materials for construction.
The incentive scheme operates on a co-funding basis (i.e. up to
50% of the total qualifying cost). The scheme came into effective on
15 April 2010 and will last for 5 years or till the $15 million is
exhausted, whichever comes earlier.
Firms that are registered and physically present inSingapore, will
be able to apply for the SC Fundby submitting their detailed
capability-developmentproposals to BCA, highlighting their
capability-upgrading plans through manpower development,
acquiring of equipment and engaging of external consultants, etc.
The fund can be used for:
Enterprise-Level Projects projects that improve business
capabilities
Industry-Level Projects projects by a group of companies
aimed at improving collective capabilities
Appended below are the types of project / firm eligible for the SC
Fund:
Demolition Contractors
(Note: For projects involving demolition protocol, funding is
capped at 2 projects of different building types per contractor and
min. project size of GFA = 5,000m
2
)
Construction and Demolition (C&D) Industrial Waste Recyclers
Ready Mixed Concrete (RMC) Manufacturers
Pilot studies to gain technology know-how and confidence in
adoption of new SC practices
Note: Further information can be found in BCAs website.
(http://www.bca.gov.sg/Professionals/GovAsst/govasst.html)
More information on the CPCF can be found in BCAs
website. (http://www.bca.gov.sg/CPCF/cpcf.html)
Construction Productivity and Capability Fund
With the emphasis on the need to boost Singapores productivity
level, the Government on 1 June 2010 launched a $250 million
Construction Productivity and Capability Fund (CPCF). The objec-
tive is to steer the construction industry towards higher productiv-
ity and build capability.
CPCF will also complement other regulatory changes such as the
foreign workers levy framework, the gradual reduction of the
Man-Year Entitlements (MYEs) quota and the enhancement of
BCAs buildability framework.
The CPCF focuses on the following three broad aspects:
Increase in Foreign Workers Levy
As part of the Governments strategy to achieve productivity-led
growth, the Government announced on 8 March 2010 that the
monthly levy for foreign workers would be raised in phases over 3
years starting from July 2010 to July 2012.
The Government have made an announcement on 21 February
2011 that the foreign worker levy (FWL) rates will be further raised
to enhance productivity and compe-tency of the construction
workforce and reducing reliance on low-skilled foreign workers.
The changes to the FWL rates and tiers will be phased-in from
January 2012 to July 2013, at 6-monthly intervals.
The salient changes are as follows:
(a) Introduction of New Skills Framework in July 2011
Unskilled Work Permit holders will be phased out
Introduce Higher Skilled tier (R1) for Work Permit holders
who possess the relevant certifications and experience
The criteria for R1 would include:
- CoreTrade Registered; or
- Have at least 4 years experience with additional/ special-
ised skills certifications
Re-classify existing Work Permit holders with only Skills
Evaluation Certification (Knowledge) as Basic Skilled (R2)
Retain MYE-waiver route but subject to higher levies
(b) Monthly Levy Rates

With effect from 1 July 2011:

- Higher Skilled Work Permit holders (R1)
$180 =
- Basic Skilled Work Permit holders (R2) $230 =
- MYE Waiver * $380 =

With effect from 1 January 2012:

$200 =
$250 =

With effect from 1 January 2013:
$280 =

$300 =
Note * -
The monthly levy rate applies to foreign workers from Non-Traditional
Sources or People's Republic of China in the construction and process
industries, who have been exempted from the requirement of Man-Year
Entitlements (MYEs). To be exempted from MYE, the foreign worker must
have at least two years' working experience in his respective industry and
his employer has applied for a Work Permit without any Prior Approval
support.
Non-Traditional Sources - India, Sri Lanka,Thailand, Bangladesh, Myan-
mar, Philippines, Pakistan
For more information, please refer to the Ministry of Manpowers website.
(c) MYE Reduction
- 1 July 2010 = 5%
- 1 July 2011 = 10%
- 1 July 2012 = 10%
- 1 July 2013 = 15%
New Measures to Reduce Noise
The National Environment Agency (NEA) announced on 9 March
2010 that with effect from 1 September 2010, no construction activi-
ties would be allowed from 10pm on the night before a Sunday or a
Public Holiday to 10am on the day itself. This new prohibition by
the NEA will apply to construction sites located within 150 metres of
residential areas and noise-sensitive developments.
The new measures will be implemented in 2 phases.
Phase 1 will be implemented with effect from 1 September 2010
whereby all new projects will have to stop work from 10pm on Sat-
urday to 10am on Sunday. This ban applies to any building project
within 150m of a residential areas and noise-sensitive develop-
ments. It also applies to the eve of Public Holidays and Public
Holidays.
Phase 2 will take effect from 1 September 2011 onwards, no con-
struction activities would be allowed from 10pm on Saturday or
eve of Public Holidays to 7am on the following Monday or day
after the Public Holidays.
This change in policy will inevitably create a need for construction
companies to reschedule their construction work programme. As a
result, it is anticipated that this could result in an increase in the
contractors pricing of the preliminaries cost.
Security of Water Storage Tanks
With effect from 1 July 2011, all Town Councils (TCs), Management
Corporation Strata Titles (MCSTs) and Building Owners are
required to strengthen the security of water tanks on their premises.
Accordingly, the following measures extracted from the Public Utili-
ties (Water Supply) Regulations must be strictly complied with:
a)Ensure that authorized persons are restricted to the
TCs/MCSTs/Building Owners staff or the managing agent
b) Ensure that personnel authorized to work at rooftops, pump/tank
rooms & enclosures and tanks are properly attired (e.g. identifi-
cation vests, badges, etc.) for easy identification as authorized
personnel to work in these designated areas
c)Conduct spot checks on works carried out at rooftops, pump/tank
rooms & enclosures and tanks, and keep proper records of these
checks
d) Ensure that the room/enclosure housing the water tanks, access
to high level tanks on the rooftop and the water tank inspection
manhole covers are properly locked with the use of high quality
padlocks or locksets (e.g. Abloy, Kaba, Medeco, Mul-T) to
deny unauthorized access at all times. The hinges and latches
should be of equally high quality and well secured
e) Ensure that keys to the access doors and the water tank inspec-
tion covers are restricted to only the authorized persons
f) Ensure that the keys to the locks to access doors and the tank
inspection covers shall be of a type that cannot be duplicated. To
provide separate keys for tank covers, pump room and roof
access. One master key each for:
Access doors of not more than 100 blocks

Tanks of no more than 20 blocks

Corresponding locks shall be replaced if key is lost
g)The keys for the locks for the tank inspection covers must be
housed in a dedicated keypress separate from the other keys
and access to these keypress must be strictly controlled by an
authorized person
h) Upon completion of work at the water storage tanks or at the end
of the day, whichever is earlier, the authorized person must
return the key to the office
i) In the case of suspected water contamination, to immediately:
Notify PUBs 24 hour call centre at 1800-284-6600
Isolate the water supply and collect water samples

Notify verbally, followed by written notice, all the
residents/occupants of the building not to consume or use the
water due to possible water contamination
Shut off the stopcock at the individual meter position of each unit
in the building
TCs/MCSTs/Building Owners are advised to segregate the water
storage tank area from other activities and services. PUB will also
work with the TCs/MCSTs/ Building Owners on further technologi-
cal solutions such as the use of alarm system and remote monitor-
ing, etc.
Members of the public are encouraged to report any suspected
unauthorized access to the premises where water tanks are located
to the respective TCs/MCSTs/ Building Owners immediately.
Note: On 30 June 2011, PUB announced the extension of the imple-
mentation date for the bolting of water tank covers and the replace-
ment of locksets to 31 December 2011. Most of the operational
measures to tighten water security, however, have/are being
implemented.Source: Public Utilities Board (PUB)
Implementation of Eurocodes in Singapore
The Building and Construction Authority (BCA) announced to the
construction industry in October 2006 their decision to align with
the practice in United Kingdom (UK) in adopting Eurocodes as the
structural design standards and together with SPRING formed
various technical committees to review the corresponding UK
National Annexes of the Eurocodes for adoption as our local stan-
dards.
In a recent BCAs circular (dated 26 September 2011), it has been
informed that almost all of these documents for the design of con-
crete and steel structures have been published as Singapore
Standards (SS ENs).
With effect from 1 April 2012, BCA plans to accept the Singapore
version of the Eurocodes (i.e. SS ENs and the Singapore National
Annexes). The date of implementa-tion will be informed once
Approved Documents is amended to include the SS ENs as the
acceptable standards for the structural design. To facilitate the
transition to the new SS ENs, there will be a co-existence period
of 2 years from the commencement date of adoption of SS ENs,
during which either the BS or Eurocode design standard will be
acceptable.
To familiarise the industry with the new SS Eurocode standards,
the BCA Academy, SPRING, participating professional associa-
tions and our local universities have been organising training
courses and seminars since 2006. Details of the various courses
and workshops organised by BCA Academy can be obtained at
the following websites:
www.bcaa.edu.sg (and doing a search under Eurocodes)
h t t p : / / www. b c a . g o v . s g / a c a d e my / c o u r s e s _ t e s t s .
aspx?txtCourseTestCode=eurocode
M&E COSTS FOR SINGAPORE
The above costs are at 4
th
Quarter 2011 levels.
ACMV ELECTRICAL
TYPES

S$/m
2
S$/m
2
RESIDENTIAL
Detached Houses 89 - 104 87 - 115
Average Standard Condominium 95 - 124 109 - 155
Luxury Condominium 115 - 192 154 - 252
OFFICE
Average Standard Offices 153 - 194 203 - 259
Prestige Offices 169 - 228 227 - 306
INDUSTRIAL
Flatted Factories 69 - 136 76 - 148
Warehouses 29 - 77 58 - 97
HOTELS
Resort Hotels 150 - 209 202 - 274
3-Star Hotels 164 - 216 218 - 293
5-Star Hotels 200 - 289 279 - 340
OTHERS
Multi-Storey Car Parks 18 - 36 15 - 39
Basement Car Parks 28 - 50 23 - 42
Shopping Centres 158 - 214 170 - 275
HYDRAULIC FIRE LIFTS BAS

S$/m
2
S$/m
2
S$/m
2
S$/m
2
64 - 89 0 - 4 - -
75 - 114 19 - 37 27 - 54 -
92 - 159 19 - 53 36 - 123 -

31 - 49 32 - 53 62 - 115 7 - 21
39 - 71 44 - 64 90 - 177 15 - 30
20 - 39 39 - 54 46 - 96 4 - 16
19 - 29 24 - 54 46 - 114 4 - 11
97 - 124 49 - 59 76 - 119 5 - 26
97 - 123 49 - 68 76 - 120 5 - 26
118 - 136 53 - 78 100 - 138 30 - 47
4 - 13 17 - 37 0 - 23 -
8 - 19 26 - 42 0 - 23 -
49 - 75 38 - 63 83 - 200 4 - 37
OFFICE M&E COST COMPONENTS
Electrical
ACMV
18%
12%
8%
20%
9%
5%
3%
1%
9%
3%
3%
9%
Chillers plant
Cooling towers
Chilled water pumps
Chilled water pipeworks
Condenser water pumps and pipeworks
Condenser water pipeworks
Chilled water AHU/FCU system
AC ductworks, diffusers and accessories
Split type air-conditioning units and ductworks
Mechanical ventilation fan system
MV ductworks, diffusers and accessories
Electrical and automatic control works
Sub-station, HV & LV switchgear
MATV/SCV system
Underfloor trunking system
CCTV/Guard patrol system
Power transformer
Public address system
Intercom/Card access system
LV mains & sub-mains distribution system
Lightning protection system
Luminaries
Earthing system
Final sub-circuit for lighting & power points
External lighting
Standby generator
Telephone distribution system
23%
2%
10%
1%
23%
3%
5%
3%
10%
2%
2%
2%
8%
2%
4%
Plumbing and Sanitary
Fire Protection
Water tank
Water pumps
Cold water distribution piping
Installation and connection of water piping to sanitary wares
Aboveground drainage piping system
Underground drainage piping system
Installation and connection of waste piping to sanitary wares
19%
28%
6%
27%
2%
11% 7%
45%
5%
4%
20%
4%
12%
10%
Automatic fire alarm
Fire extinguisher
External fire hydrant
Sprinkler
Hose reel
Wet riser
Dry riser
M&E COST CHARTS
Single Core PVC Cables
0
25
50
75
100
125
150
175
1 2.5 6 16 35 70 120 185 300 500 800
mm
2
$
/
m
1 x 1 Core 1 x 3 Core 1 x 4 Core
22kA MCCB
0
1,000
2,000
3,000
4,000
5,000
6 16 32 50 80 125 200 300 400 600 800 1,250
Amp
$
/
n
o
Triple Pole Four Pole
Pipework
0
50
100
150
200
250
300
15 20 25 32 40 50 65 80 100 150 200
Diameter (mm)
$
/
m
Galvanised Steel Black Steel UPVC
Ductwork
0
100
200
300
400
500
26 24 22 20 18 16
Gauge (SWG)
$
/
m
2
Galvanised Steel Stainless Steel 2 hr Fire Rated
Wall Mounted Direct Expansion
Fan Coil Unit
0
1,000
2,000
3,000
4,000
2.6 3.5 4.4 5.3 6.4
Cooling Capacity (kW)
$
/
n
o
Single Split Unit VRV
Condensing Unit
0
2,000
4,000
6,000
8,000
17.1 23.5 28.2
Cooling Capacity (kW)
$
/
n
o
Single Split Unit VRV
Valve
0
1,000
2,000
3,000
4,000
15 25 40 65 100 200 300
Diameter (mm)
$
/
n
o
Gate Valve Check Valve Globe Valve
Motor and Starter
0
2,000
4,000
6,000
8,000
0.38 0.75 2.25 3.75 7.5 15 22.5 37.5 75
Capacity (kW)
$
/
n
o
Motor Starter
COMMON STANDARD FORMS OF CONTRACT
IN SINGAPORE - CURRENT AS OF 2012
Articles and Conditions of Building Contract published by the
Singapore Institute of Architects, 9th Edition, Reprint August
2011 [Measurement Contract]
Articles and Conditions of Building Contract published by the
Singapore Institute of Architects, 9th Edition, Reprint August
2011 [Lump Sum Contract]
Articles and Conditions of Building Contract for Minor Works
published by the Singapore Institute of Architects, 1st Edition
1987
Conditions of Sub-Contract for use in conjunction with the Sin-
gapore Institute of Architects Main Building Contract, 4th Edition,
Reprint August 2011
REDAS Design and Build Conditions of Contract published by
the Real Estate Developers' Association of Singapore, 3rd Edi-
tion October 2010
FIDIC Forms of Conditions of Contract published by the Federa-
tion Internationale des Ingenieurs-Conseils, 1st Edition 1999
- Conditions of Contract for Construction for Building and Engi-
neering Works designed by the Employer
- Conditions of Contract for Plant and Design-Build for Electri-
cal and Mechanical Plant and for Building and Engineering
Works designed by the Contractor
- Conditions of Contract for EPC/Turnkey Projects - Short Form
of Contract
Public Sector Standard Conditions of Contract for Construction
Works published by the Building and Construction Authority, 6th
Edition December 2008
Public Sector Standard Conditions of Contract for Design and
Build published by the Building and Construction Authority, 5th
Edition December 2008
Standard Conditions of Nominated Sub-Contract for use in con-
junction with the Public Sector Standard Conditions of Contract
for Construction Works published by the Building and Construc-
tion Authority, 5th Edition December 2008
EXCHANGE RATES
Approximate current rates at 28 September 2011
Source: The Hongkong and Shanghai Banking Corporation
Limited
COUNTRY PER UNIT S$
Australia dollar 1.271
2 0 0 2 . 0 b m r a n i h C
8 8 4 7 . 1 r u e o r u E
Hong Kong 100 HKd 0.1655
India 100 rupees 2.63
Indonesia 100 Rp 0.0146
Japan 100 yen 1.688
1 1 0 0 . 0 n o w a e r o K
Malaysia ringgit 0.4075
Philippines 100 peso 2.98
Taiwan NT dollar 0.0424
Thailand 100 baht 4.18
United Kingdom pound 2.015
9 2 . 1 r a l l o d A S U
Vietnam dong 0.000062
CURRENCY FLUCTUATIONS
Ringgit Malaysia
S$ per 1 RM
02 03 04 05 06 07 08 09 10 11* 12
0.40
0.43
0.45
0.48
0.50
Sterling Pound
S$ per 1 STGP
1.8
2.0
2.2
2.4
2.6
2.8
3.0
3.2
3.4
02 03 04 05 06 07 08 09 10 11* 12
Note: *Currency fluctuation for 2011 is based on January 2011 to
November 2011
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
US Dollar
S$ per 1 US$
02 03 04 05 06 07 08 09 10 11* 12
1.2
1.3
1.4
1.5
1.6
1.7
02 03 04 05 06 07 08 09 10 11* 12
Japanese Yen
S$ per 100 Yen
Note: *Currency fluctuation for 2011 is based on January 2011 to
November 2011
RELEVANT WEBSITES
Singapore Government
Accounting and Corporate Regulatory Authority
Board of Architects Singapore
Building and Construction Authority
Central Provident Fund Board
Housing & Development Board
Inland Revenue Authority of Singapore
Integrated Land Information Service
Intellectual Property Office of Singapore
International Enterprise Singapore
Land Surveyors Board Singapore
Land Transport Authority
Ministry of Community Development, Youth and Sports
Ministry of Defence
Ministry of Education
Ministry of Finance
Ministry of Foreign Affairs
Ministry of Health
Ministry of Home Affairs
Ministry of Information, Communications and The Arts
Ministry of Law
Ministry of Manpower
Ministry of National Development
Ministry of the Environment and Water Resources
Ministry of Trade and Industry
Ministry of Transport
Monetary Authority of Singapore
National Parks Board
Professional Engineers Board Singapore
Public Utilities Board
www.acra.gov.sg
www.boa.gov.sg
www.bca.gov.sg
www.cpf.gov.sg
www.hdb.gov.sg
www.iras.gov.sg
www.inlis.gov.sg
www.ipos.gov.sg
www.iesingapore.gov.sg
www.minlaw.gov.sg/lsb
www.lta.gov.sg
www.mcys.gov.sg
www.mindef.gov.sg
www.moe.gov.sg
www.mof.gov.sg
www.mfa.gov.sg
www.moh.gov.sg
www.mha.gov.sg
www.mica.gov.sg
www.minlaw.gov.sg
www.mom.gov.sg
www.mnd.gov.sg
www.mewr.gov.sg
www.mti.gov.sg
www.mot.gov.sg
www.mas.gov.sg
www.nparks.gov.sg
www.peb.gov.sg
www.pub.gov.sg
Singapore Civil Defence Force
Singapore Department of Statistics
Singapore Economic Development Board
Singapore Government Website
Singapore Land Authority
Singapore Power Ltd Group
Strata Titles Boards
Urban Redevelopment Authority
Construction-Related Associations in Singapore
Real Estate Developers Association of Singapore
Singapore Green Building Council
Singapore Institute of Planners
Singapore Institute of Architects
Association of Consulting Engineers Singapore
The Institution of Engineers Singapore
Society of Project Managers
Singapore Institute of Surveyors and Valuers
Association of Property and Facility Managers
Singapore Institute of Building Limited
The Law Society of Singapore
Others
Davis Langdon & Seah Asia
www.scdf.gov.sg
www.singstat.gov.sg
www.edb.gov.sg
www.gov.sg
www.sla.gov.sg
www.singaporepower.com.sg
www.mnd.gov.sg/stb/
www.ura.gov.sg
www.redas.com
www.sgbc.sg
www.sip.org.sg
www.sia.org.sg
www.aces.org.sg
www.ies.org.sg
www.sprojm.org.sg
www.sisv.org.sg
www.apfm.org.sg
www.sib.com.sg
www.lawsociety.org.sg
www.dlsqs.com
About Us
Davis Langdon & Seah (Thailand) Ltd. was established in
1990 to operate in conjunction with our sister company LECE
(Thailand) Co.,Ltd. (Langdon Every Cost Engineering) which
was first established in 1984 to provide cost engineer-ing and
project management support services to the Oil Industry in
Thailand. In 1987, responding to popular demand, the activi-
ties were extended to cover the whole range of quantity sur-
veying / cost management services for the Building and Con-
struction Industry in general.
Davis Langdon & Seah (Thailand) Ltd.
LECE (Thailand) Co., Ltd.
Construction Costs for Thailand
Baht/m2
DOMESTIC
Terraced houses
Luxury Villa
OFFICE / COMMERCIAL
Shopping centres
HOTELS
Resort hotels
3-star budget hotels, inclusive of F.F.&E.
BANGKOK
17,500
24,850
34,850
29,000
22,500
30,000
28,000

68,000
41,000
58,000
PHUKET
N/A
N/A
N/A
64,000
N/A
N/A
26,500

74,000
N/A
68,000
PATTAYA
17,500
24,500
34,850
N/A
22,250
29,500
28,000

68,000
41,000
58,000
CHIANGMAI
N/A
26,500
34,850
N/A
21,500
N/A
24,500

68,000
41,000
58,000
KOH SAMUI
N/A
N/A
N/A
74,000
N/A
N/A
N/A

83,000
N/A
83,500

INDUSTRIAL
OTHERS
Basement car park (< 3 levels)
Elevated car parks (< 4 levels)
Primary and Secondary Schools
Student hostels
Sports clubs including F.F.& E.
18,000
N/A
18,000
N/A
20,500
10,500
N/A
N/A
N/A
18,000
N/A
18,000
N/A
20,000
10,000
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
10,000
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

N/A
12,000
N/A
N/A
N/A
Major Rates for Thailand
200.00
200.00
150.00
800.00
3,200.00
3,400.00
38.00
37.00
480.00
480.00
800.00
1,200.00
7,500.00

100.00
100.00
100.00
600.00
2,000.00
2,400.00
31.00
30.00
350.00
350.00
700.00
1,200.00
6,000.00
250.00
250.00
150.00
700.00
2,400.00
3,000.00
35.00
34.00
450.00
450.00
800.00
1,200.00
6,500.00
250.00
250.00
150.00
800.00
2,400.00
3,000.00
35.00
34.00
420.00
420.00
800.00
1,200.00
6,500.00
m
3
m
3
m
3
m
3
m
3
m
3
kg
kg
m
2
m
2
m
2
m
2
m
2

1. Excavating basement 2m deep
2. Excavating for footings 1.5m deep
3. Remove excavated materials off site
4. Hardcore bed blinded with fine materials
5. Mass concrete grade 15
6. Reinforced concrete grade 30
7. Mild steel rod reinforcement
8. High tensile rod reinforcement
9. Sawn formwork to soffits of suspended slabs
10. Sawn formwork to columns and walls
11. 112.5mm thick brick walls
12. Kliplok Colorbond 0.64mm profiled steel
sheeting
13. Aluminium casement windows, single glazed
DESCRIPTION
Baht
BANGKOK CHIANGMAI
KOH SAMUI PHUKET

and the like
15. Steelwork - angles, channels, flats and the like
16. 25mm cement and sand (1:3) paving
17. 20mm cement and sand (1:4) plaster to walls
18. Ceramic tiles bedded to floor screed (m/s)
19. 12mm fibrous plasterboard ceiling lining
surfaces
Average expected preliminaries
kg
kg
m
2
m
2
m
2
m
2
m
2
%

55.00
55.00
200.00
200.00
1,200.00
800.00
100.00
10 - 15

60.00
60.00
250.00
250.00
1,200.00
800.00
120.00
12 - 20

60.00
60.00
250.00
250.00
1,200.00
900.00
150.00
15 - 25

55.00
55.00
250.00
250.00
1,200.00
800.00
100.00
15 - 17

The above costs are at 4th Quarter 2011 levels, exclusive of contingencies and preliminaries.
Fit-Out Costs for Bangkok
DESCRIPTION
HOTELS

Public Area (Front of House)
3-star Hotel
20,000

- 30,000

4-star Hotel
30,000

- 45,000

5-star Hotel
45,000

- above
Guest Rooms :
3-star Hotel 400,000 - 800,000
4-star Hotel 800,000 -
5-star Hotel 1,400,000 - above
Notes:
1. Includes furniture, floor, wall and ceiling finishes,
drapery, sanitary fittings and light fittings.
2. Excludes partitioning, M&E works, building shell,
chandelier, operational items and equipment (e.g. bed,
cutlery, crockery, linen, television, refrigerator etc.),
opening expenses, stage equipment and computer
systems.

OFFICES
General office 15,000 - 20,000
Executive office 20,000 - 25,000
Prestige office 25,000 - above
Notes :
1. Local furniture allowed for general offices
2 Includes furniture, partitioning, minor alteration to air-
conditioning, fire services and suspended ceiling to suit
layout.
.
3. Excludes telephones, Local Area Network, office
equipment (e.g. computers, photocopies, fax machines,
UPS, etc).
RESTAURANTS

General dining restaurant
20,000 - 45,000
Fine dining restaurant 45,000
Notes :
1. Includes furniture, floor, wall and ceiling finishes, minor
alteration to air-conditioning and fire services installation
to suit layout, exhaust for kitchen but excludes exhaust
flue, operational items (e.g. cutlery, crockery, linen,
utensils, etc).

Bt/m
Bt/Room
2
Bt/m
2
Bt/m
2
1,400,000
above
-
Construction Material Price Index (Year 2005 = 100)
100.0
100.0
100.0
100.1
100.0
100.0
100.0
100.0
100.0
100.0
103.7
108.8
98.6
109.8
112.6
103.0
103.0
103.8
104.6
105.4
108.8
110.2
113.9
123.5
102.2
106.6
108.8
105.1
106.7
109.8 118.8
114.2
109.8
150.5
109.1
105.8
131.8
114.7
118.3
127.4
133.4
112.8
103.8
103.6
110.7
113.2
148.9
108.2
119.2
110.8
135.8
104.2
102.5
110.9
110.6
113.8
144.5
110.4
122.8
113.3
139.8
115.1
106.2
123.6
109.3
116.5
150.0
113.6
129.2
120.2
2006 2007 2008 2009 2010 2011 2005
All Commodities
Others
Electrical & Plumbing
Sanitary Ware
Paint
Tiles
Iron products
Concrete Ingredient
Cement
Timber Products
Source : Bureau of Trade and Economic Indices
Ministry of Commerce Thailand
50.0
70.0
90.0
110.0
130.0
150.0
170.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Construction Material Price Index (Year 2005 = 100)
Timber Product Cement Concrete Ingredient Iron Products Tiles
Paint Sanitary ware Electrical & Plumbing Others All Commodites
Source : Bureau of Trade and Economic Indices Ministry of Commerce Thailand
Percentage Change of Construction Material Price Index
Source : Bureau of Trade and Economic Indices
Ministry of Commerce Thailand
All Commodities
Others
Electrical & Plumbing
Sanitary Ware
Paint
Tiles
Iron products
Concrete Ingredient
Cement
Timber Products
0.00%
5.82%
2.46%
4.93%
3.09%
2.15%
-3.01%
2.35%
-6.45%
3.14%
3.70%
8.80%
9.80%
12.60%
2.90%
3.00%
-1.40%
3.80%
4.60%
5.40%
4.92%
1.29%
3.73%
9.68%
-0.78%
3.50%
10.34%
1.25%
2.01%
4.17%
17.10%
7.35%
0.70%
6.72%
3.52%
2.35%
38.33%
4.47%
7.03%
8.20%
-13.03%
0.76%
-5.67%
12.97%
6.99%
1.47%
-31.16%
-5.46%
-1.23%
12.29%
2.26%
3.02%
2.03%
-2.96%
0.53%
-0.09%
7.05%
-1.25%
-7.62%
1.80%
6.09%
5.21%
2.90%
3.18%
2.37%
-1.18%
11.45%
3.61%
10.46%
2.95%
2005 2006 2007 2008 2009 2010 2011
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Millions (Baht) 164,8 238,2 367,0 270,1 279,0 344,7 404,7 396,1 441,2 338,9 209,1 186,2 193,7 208,9 364,0 762,5 694,3 621,9 617,9 593,5 709,1 661,1 808,9
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
(
M
i
l
l
i
o
n

B
a
t
h
)
Land and Building Transaction Nationwide
Source : Bank of Thailand
LAND AND BUILDING TRANSACTION NATIONWIDE
Source : Bank of Thailand
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Residen al 23,102 16,593 11,546 4,569 3,806 4,886 6,393 10,215 13,206 16,111 14,448 13,695 12,917 12,494 10,974 12,471
Commercial 10,721 8,136 8,485 1,902 2,058 1,883 1,702 2,255 3,364 3,641 2,973 3,483 2,444 2,909 3,755 2,878
Industrial & others 2,963 2,020 1,715 971 769 835 864 1,421 2,002 2,947 2,213 2,394 2,002 2,088 2,258 2,610
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
m
2

(
'
0
0
0
)
Construction Areas Permitted in Municipal Zone
CONSTRUCTION AREAS PREMITTED
IN MUNICIPAL ZONE
LAND TITLES AND MEASUREMENT
Land Titles
Chanote Chanote is the only true title deed. The persons name
shown on the deed has the legal ownership to the land. The land
is accurately survey and plotted with unique numbered marker
posts set in the ground.
Nor Sor Sam Gor Nor Sor Sam Gor certifies the person named
on the certificate has the right to possess the land and use the
benefit of the land as an owner. The land is accurately survey and
the issuance of the title deed is pending.
Nor Sor Sam Similar to Nor Sor Sam Gor but not all of the
formalities to certify the right to use have been performed. The
land is not accurately survey and may subject to boundary
dispute.
Other forms of land title or rights are Sor Kor Nung, Por Bor Tor 6
and Sor Por Kor 4-01. Land with these type of titles or certificates
can neither be transferred nor obtained approval to build on.
Land Measurement :
1 Hectare is approximately 6.25 Rai
1 Rai = 1,600m2 = 4 Ngan
1 Ngan = 400m2 = 100 Wah
1 Wah = 4 m2
Exchange Rates
as at 20 December 2011

Country Currency THB 1 US $1
China rmb 0.20284 6.3657
Egypt pound 0.19138 6.0063
European
India rupees 1.71817 53.922
Indonesia rupiah 287.576 9025.2
Japan yen 2.48000 77.90
Qatar riyal 0.11586 3.6361
Russia rubles 1.01977 32.004
United States of
INTRODUCTION
publication of construction costs handbooks for countries such as
Hong Kong, India, Malaysia, Philippines and Singapore and is
also the editor of the Spons Price Book Series which comprise:
Spons Asia Pacific Construction Costs Handbook
Spons European Construction Costs Handbook
Spons Architects' and Builders Price Book
Spons Civil Engineering and Highway Works Price Book
Spons Mechanical and Electrical Services Price Book
Spons Landscape and External Works Price Book
(co-edited by Derek Lovejoy Partnership)
This version of DLS Handbook - Vietnam 2012, as other future
annually published handbooks, focuses on the construction cost
profile of Vietnam and those of the major cities in Asia.
The handbook is structured to serve as a general reference guide
on construction cost indicators in Asia.
The information contained in this handbook has been compiled by
Davis Langdon & Seah Vietnam Co Ltd. Any further information
and/or if advice relating to particular projects in specific region is
required, please contact any of the regional offices listed under
the Directory of Davis Langdon & Seah International Offices at the
end of this handbook.
Davis Langdon & Seah Vietnam Co Ltd
CONSTRUCTION MARKET 2012 OUTLOOK
2011 has been a year of economic cooling down and this is
reflected in the fact that GDP growth in 2011 was circa 6.3% com-
pared with 6.8% in 2010. It is most likely that construction output
will grow at a slower rate in 2011 than in 2010. Over the past 12
months there have been a range of fiscal constraints imposed
upon the Vietnam Economy in order to reduce economic over-
heating. The resultant effects of such overheating over the past
couple of years have been significant balance of payment deficits
and very high inflation. In order to cool down the economy the
central banks have been raising interest rates and reduced fund-
ing into the property market. Such actions have reduced money in
the property market and hence reduced demand and we observe
that these measure do seem to be having a positive effect on the
overall Vietnam balance sheet, past monthly trade deficits are
now becoming trade surpluses and inflation is starting to drop. We
suspect the current fiscal measure of high interest rates and
reduced funding into the construction / property sectors will con-
tinue until mid 2012.
Foreign Direct Investment commitments remains lower than in
2008 / 9 and furthermore the level FDI disbursement from previ-
ously committed projects has now reduced. We further suspect
Overseas Development Aid disbursement and Public Sector
investment to remain consistent with 2010 levels.
Owing to the above factors we suspect that 2012 construction
output growth will be similar or slightly lower than 2011.
Notwithstanding the current economic climate there is still growth
(albeit slower growth) in the construction sector and there are
some very notable projects commencing construction including:
Saigon Center Phase 2 & 3 in district 1 Ho Chi Minh City.
Vietsin Commercial Development in district 1 Ho Chi Minh City.
Ben Thanh Towers in district 1 Ho Chi Minh City.
VietinBank HQ in Hanoi
UNDP HQ in Hanoi.
The industrial construction sector is also growing significantly and
as is supported by focused lending in order to reduce Vietnam
trade deficits. The industrial sector seems to be attracting FDI and
there are a number industrial companies looking to establish
operations in Vietnam.
Although construction growth in 2011 have been at a slower rate
than previous years we note that construction prices have gener-
ally risen in 2011 and this is largely due to price rises in local ma-
terials namely; steel, cement and aggregates.
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011*
Registered Capital (bn US$) 5.10 2.57 2.84 3.14 3.00 3.19 4.55 6.84 12.00 21.30 71.73 22.63 18.60 12.70
Legal Capital (bnUS$) 2.47 0.98 1.31 1.71 1.27 1.14 1.22 1.97 4.67 6.04 11.50 10.00 11.00 10.05
No. of Projects 285 327 391 555 808 791 811 970 987 1544 1557 1155 969 919
0
200
400
600
800
1000
1200
1400
1600
1800
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
B
i
l
l
i
o
n
s

U
S
$
Annual Foreign Investment (1998-2011)
N
o
s
.

o
f

p
r
o
j
e
c
t
s
Taiwan Malaysia Japan S. Korea Singapore B.V.Islands Hong Kong Thailand Canada Brunei
Registered Capital 23.43 9.36 23.28 23.65 23.38 14.94 10.97 5.75 4.66 4.80
Legal Capital 9.97 3.77 6.63 8.13 9.71 4.75 3.61 2.58 1.00 0.99
No. of Projects 2,203.00 393.00 1,636.00 3,072.00 973.00 497.00 654.00 266.00 114.00 122.00
0
500
1000
1500
2000
2500
3000
3500
0.00
5.00
10.00
15.00
20.00
25.00
FDI by countries as of Nov 2011
B
i
l
l
i
o
n

U
S
$
N
o
s
.
o
f

P
r
o
j
e
c
t
s
(Source: Vietnam Investment Review)
Note: 2011 from Jan to Nov
Vietnam Annual ODA
(Source: Ministry of Planning and Investment)
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
9.00
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
ODA Commitment 2.20 2.21 2.40 2.06 2.10 2.48 2.27 3.48 3.10 2.17 5.43 8.06 7.90 7.40
ODA Disbursement 1.24 1.35 1.65 1.28 1.33 1.87 1.83 1.94 1.89 1.75 2.20 4.10 3.51 3.65
billion US$
Note: 2011 from Jan to Nov
73%
4%
23%
Agriculture & Forestry & Aquaculture Service
FDI by Sectors November 2011
Sector
No. of
projects

Registered
Capital
(mn US$)
Legal
Capital
(bn US$)

Registered
Capital
(%)

1 Industry and construction 9,932 164,219.72 55,174.15 81.8%
Manufacturing 7,938 92,081.11 34,223.59
Property 370 46,620.61 11,396.71
Cconstruction 815 12,438.91 3,929.68
Mining 69 2,974.77 2,370.11
Electricity, gas and water
production and distribution
68 7,396.15 1,660.97
Wholesale & Retail 646 1,998.79 1,033.00
Water supply & Waste treatment 26 709.38 560.09
2
Agriculture & Forestry &
Aquaculture
492 3,185.07 1,538.66 2.3%
3 Service 3,072 28,499.06 10,697.28 15.9%
Hotel & Restaurant 313 11,808.80 3,214.28
IT 698 5,242.89 3,109.61
Art & Entertainment 128 3,635.91 1,102.25
Logistics 314 3,249.77 1,009.12
Finance, Banking & Insurance 75 1,321.55 1,171.79
Health care 73 1,015.50 220.85
Science & Technology 1,104 969.16 496.65
Education and Training 150 354.56 123.53
Supporting services 104 187.69 96.30
Others 113 713.23 152.90
Total 13,496 195,903.85 67,410.09 100%
Vietnam Construction Output Table
(Collective data from General Statistics Office)
Year
Construction
Output
(US$ billion)

Proportion
of GDP (%)

Real
Construction
Output
Growth (%)

2000 1.63 5.35 7.51
2001 1.94 5.8 12.78
2002 2.07 5.89 10.57
2003 2.39 6.05 10.59
2004 2.82 6.23 9.03
2005 3.35 6.35 10.87
2006 4.09 6.62 11.05
2007 4.94 6.96 12.01
2008 6.23 6.61 0.02
2009 6.19 6.65 11.36
2010 7.13 7.03 11.06
2011 - 9mths 4.84 5.94 4.91
MATERIAL PRICE INDICES
(Source: Ho Chi Minh City Departments of Construction and Departments of Finance Year 2008-2011)
VND/T
Index
(Base
QI/2008)
Inflation $VND/m3
Index
(Base
QI/2008)
Inflation VND/kg
Index
(Base
QI/2008)
Inflation
I 11,200,000 100.00 0.00% 676,804 100.00 0.00% 976 100.00 0.00%
II 14,518,000 129.63 29.63% 790,476 116.80 16.80% 973 99.69 -0.31%
III 17,305,000 154.51 19.20% 904,000 133.57 14.36% 1,275 130.64 31.04%
IV 12,000,000 107.14 -30.66% 850,000 125.59 -5.97% 1,273 130.43 -0.16%
I 10,940,000 97.68 -8.83% 879,819 130.00 3.51% 1,255 128.59 -1.41%
II 10,990,000 98.13 0.46% 879,819 130.00 0.00% 1,255 128.59 0.00%
III 11,820,000 105.54 7.55% 879,819 130.00 0.00% 1,255 128.59 0.00%
IV 12,220,000 109.11 3.38% 879,819 130.00 0.00% 1,255 128.59 0.00%
I 12,452,500 111.18 1.90% 879,819 130.00 0.00% 1,255 128.59 0.00%
II 11,590,000 103.48 -6.93% 879,819 130.00 0.00% 1,218 124.80 -2.95%
III 12,830,000 114.55 10.70% 879,819 130.00 0.00% 1,209 123.87 -0.74%
IV 13,440,000 120.00 4.75% 879,819 130.00 0.00% 1,209 123.87 0.00%
I 15,030,000 134.20 11.83% 879,819 130.00 0.00% 1,241 127.15 2.65%
II 14,730,000 131.52 -2.00% 879,819 130.00 0.00% 1,263 129.41 1.77%
III 15,925,000 142.19 8.11% 970,000 143.32 10.25% 1,459 149.49 15.52%
IV 15,925,000 142.19 0.00% 970,000 143.32 0.00% 1,459 149.49 0.00%
2011
2008
Steelbar (D12-D25) Concrete (Grade 250) Cement (PCB40)
2010
2009
Year Quarter
80.00
90.00
100.00
110.00
120.00
130.00
140.00
150.00
160.00
I II III IV I II III IV I II III IV I II III IV
2008 2009 2010 2011
Steelbar (D12-D25) Concrete (Grade 250) Cement (PCB40)
IMPORT DUTIES
C
E
P
T
A
C
F
T
A
N
o
n
-
A
C
F
T
A
A
K
F
T
A
N
o
n
-
A
K
F
T
A
A
J
C
E
P

3
V
J
E
P
A

2
A
A
N
Z
F
T
A
A
I
F
T
A
Marble kg 10 0 10
(1)
15
(2)
20 22 25 20 10
Granite kg 10 0 10
(1)
15
(2)
20 22 25 20 10
Carpentry of Wood kg 3 0 5 - 5 - 5 4 5 4.5 10
Porland cement kg 34 5 - - - - - - 30 - 10
Ceramic building bricks,
flooring blocks

35 5 - - 20 - 33 35 30 35 10
Ceramic roofing tiles 45 5 - - 20 - 41 44 30 48 10
Ceramic floor, hearth, wall
tiles
m2 45 5 - - 20 - 41 44 30 48 10
Ceramic sanitary fixtures of
porcelain

unit 38 5 20
(3)
20 - 41 44 30 48 10
Multiple-walled insulatin
units of glass
m2 25 5 10 - - - 30 30 25 - 10
Glass mirror (unframed) kg 25 5 - - - - 30 30 25 - 10
Concrete steel kg 15 5 12.5
(4)
10 0 7 7 10 - 10
U,I or H section of steel
(height under 80mm)
kg 10 5 18 - - - 29 30 - - 10
Alluminium doors, windows,
frames and thresholds
m2 15 5 10 - 10 - 13 15 15 14 10
Air conditioner (window or
wall mounted) not
exceeding 26,38kW
unit 32 5 20
(5)
- - 33 35 30 29 10
Passenger lifts unit 10 5 5
(6)
5
(6)
7 8 10 8 10
Water pump unit 22 5 10 - - - 24 26 25 29 10
Electric genset not
exceeding 75KVA
unit 10 0 5
(1)
5 - 7 7.5 10 8 10
MFN/WTO : Most-Favored-Nation / World Trade Organisation
Normal Tax rate = Favoured Tax rate x 150%
CEPT/AFTA : Common Effective Preferential Tariff Scheme / ASEAN Free Trade Area
ACFTA : ASEAN-China Free Trade Area
AKFTA : ASEAN-Korea Free Trade Area
AJCEP 3 : ASEAN-Japan Comprehensive Economic Partnership
VJEPA 2 : Vietnam-Japan Economic Partnership Agreement
AANZFTA : Australia-ASEAN-New Zealand Free Trade Agreement
AIFTA : ASEAN-India Free Trade Agreement
(1)
: Cambodia, Thailand
(2)
: Thailand
(3)
: Cambodia, Malaysia
(4)
: Cambodia, Lao, Malaysia, Thailand
(5)
: Brunei, Cambodia, Philippines, Thailand
(5)
: Malaysia, Thailand
Where the MFN/WTO tax tariff of a goods item specified in the Import Tariff is lower than
Special tariff according to different trade agreement, the import tax tariff applicable to such
goods item shall be the MFN/WTO tax tariff.
V
A
T

T
a
r
i
f
f
Special Tariff
M
F
N

/

W
T
O
DESCRIPTION
(all figures)
Unit
ESTIMATING RULES OF THUMB
Concrete Strength (in accordance with TCVN 3118 - 1993)
CYLINDER
15cm x 30cm
CUBIC
15cm x 15cm
CYLINDER
15cm x 30cm
CUBIC
15cm x 15cm
Psi Mpa Mpa Mpa Psi Mpa
8,000 55 66 60 8700 50
7,000 48 58 50 7300 42
6,000 41 49 40 5800 33
5,000 34 41 35 5100 29
4,000 28 34 30 4400 25
3,000 21 25 25 3600 21
8,000 55 66 20 2900 17
15 2200 13
1.00MPa = 145.04 Psi
1.00 MPa (Cylinder 15cmx30cm) = 1.20 MPa (Cubic 15cmx30cm)
Reinforcement
Bar Dia. Weight/m Perimeter Area
(mm) (kg/m) (mm) (mm2)
6 0.222 18.85 28.27
8 0.395 25.13 50.26
10 0.616 31.42 78.54
12 0.888 37.70 113.10
16 1.579 50.27 201.06
20 2.466 62.83 314.16
25 3.854 78.54 490.88
32 6.313 100.53 804.25
40 9.864 125.66 1256.64
Composition of Concrete (per m3)
Mix Cement Sand Aggregate
1:3:6 216 kg 0.45 m
3
0.90 m
3

1:2:4 308 kg 0.43 m
3
0.86 m
3

1:1:2 540 kg 0.38 m
3
0.75 m
3

3

3

Barge 200 1,450 m
3

Dimensions for Standard Parking Space,
Loading / Unloading Bays and Lay-bys
Length Width
Minimum
Headroom
Private Cars, Taxis and
Light Vans
5 m 2.5 m 2.4 m
Lorries 11 m 3.5 m 4.1 m
Container vehicles 16 m 3.5 m 4.5 m
Structural Design - Concrete Ratios
superstructure design in Viet Nam

Concrete/floor area 0.4m
3
/m
2
to 0.5 m
3
/m
2
Formwork/floor area 2.2m
2
/m
2
to 3.0 m
2
/m
2
Reinforcement 160kg/m
3
to 250 kg/m
3
2
/m
2
Office 0.4 m
2
/m
2
Hotel 0.4 m
2
/m
2
2
/m
2
Office 0.5 m
2
/m
2
Hotel 1.5 m
2
/m
2
Air - Conditioning
Average 0.065 RT/m
2
of floor area
only. They do not account for buildings with special
shapes, configurations or particularly small footprints.
Indicative Dimensions for Sports Grounds
Length Width
Squash Court 13 m 6 m
Ice Rink 61 m 26 m
Soccer Pitch 110-120 m 70-80 m
The above dimensions are for a single court with
appropriate clearance. No spectator seating or support
area has been allowed
Densities of Common Materials
Concrete 2,400 kg/m3 Water 1,000 kg/m3
Cement 1,441 kg/m3 Softwood 700 kg/m3
Sand 1,600 kg/m3 Hardwood 1,100 kg/m3
Gravel 1,350 kg/m3 Aluminium 2,750 kg/m3
Steel 7,850 kg/m3 Soil (compact) 2,100 kg/m3
Minimum headroom means the clearance between the floor
and the lower most projection from the ceiling including any
lighting units, ventilationi ducts, conduits or similar.
BUILDING CONTROL AND PROCEDURES
Project Classification
Projects are categorized based on the scale, nature and source of
fund in accordance with Appendix 01 of the Decree 12/2009/
NDCP dated 02 October 2009. Special projects under the jurisdic-
tion of the Prime Ministers Office encompass the most national
important project and or top security project. Projects classified as
Group A under the jurisdiction of the Ministers of Ministries
encompass infrastructure and ports (sea-ports and airports), oil
and gas, cultural and sensitive projects to national defense and all
projects over VND 500 billion, or equivalent to USD 25 million.
Group B projects encompass all other projects and fall under the
jurisdiction of Provincial Peoples Commit-tees and require regis-
tration only for investment licenses and applies to projects with a
manufacturing and export earnings component. A full assessment
for investment licenses is required for all other projects. The table
on page 89 shows the step by step licensing required for projects
categorized as Group B requiring full assessment.
Project Investment Appraisal
Developers must carry out the project investment report
(feasibility study report) and the basic design for project invest-
ment appraisal including the Planning Certificate applied to the
Peoples Committee of the relevant province. The information of
basic design to be included encompasses address and descrip-
tion of land plot, function of land plot, red-line boundary and exit
and connection with the existing transportation and infrastructure
including power, water, storm water drainage , waste water treat-
ment, overall dimension and existing level, construction boundary,
construction density, plot ratio, schedule of land use area and
schedule of floor area, maximum floor height and building height,
parking lot ratios, principle of architec-tural, structure and infra-
structure design, environmen-tal impact plan, fire protection plan,
design standards and building codes. The project investment
appraisal is in accordance with the Circulation 03/2009/ TT-BXD
dated 26 March 2009.
Technical Design and Detailed Design
Developers using foreign design consultancies must ensure their
projects undergo a Design Evaluation Assessment to the Ministry
of Construction or the Chairman of the Peoples Committee of
relevant province who will delegate to the Ministry of Construc-
tion or provincial Construction Department. The Technical Design
and Detailed Design must be in line with the previous approved
basic design including the compliance of design standards and
building codes, the integrity of project, the well protection of
environ-ment and the safety in the event of fire circumstances.
Construction Permit
Under the Law on Construction investors must first obtain a con-
struction permit issued by the Provincial Peoples Committee
Construction Department prior to construction can commence.
The construction permit is not required for the projects of residen-
tial develop-ment, industrial and processing zones, hi- tech parks,
housing development of which the master plan 1/500 was
approved by authority. There are also a few exceptions to this in
case of residential developments which shall be governed by
newly published laws of Residential.
The investor of residential development projects shall submit an
application dossier of all the mentioned inclusion plus the certifi-
cate of EIA (Environment Impact Assessment) and Fire Protec-
tion, which are issued by the Provincial Department of National
Resources and Environment and Provincial Fire Police Depart-
ment respectively. An application dossier shall contain design
implementation drawings and land-use right certificates and land
rental contracts. The basic inclusions are mandatory and they are
location and description of works, storey height and height above
sea-level, site boundary demarcation, overall site plan, major
cross sections, main elevations, structural framing plans and
foundation designs, environmental and safety technical details,
principle of materials, schematic line diagrams of infrastructure
connection of power, telecommunication, water supply, storm and
waste water drainage system, and quantities for key compo-
nents.. Construction Permit applications will be checked against
various compliances in respect of boundaries and interference
with neighboring properties and approved planning (site cover-
age, plot ratio and car-parking). The issuing body should provide
timely notice to the investor of any non-compliance for their
remedy and resubmission to allow the implementation stage to
commence.
Site Clearance
A plan for site clearance and/or resettlement shall be submitted at
the same time as the application for the investment license and
resettlement carried out prior to site clearance taking place for
construction. The time limit for site clearance should comply with
the project implementation schedule. Resettlement is based on
the principle of providing similar or better conditions and govern-
mental regulations on principles, methods and a price framework
shall be adopted by the Peoples Committee for determination of
compensation levels. This is a matter for great uncertainty and
foreign investors are advised to seek vacant possession prior to
transfer of land use right to the joint venture.
Supervision of Construction
Independent Supervision of construction works by a competent
and registered firm is a mandatory requirement. The supervisory
role encompasses quality control and compliance checking,
schedule control, quantification control, safety and environmental
hygiene control during construction. The safety and environment
control are conducted regularly and continuously during the imple-
mentation phase. The Supervisor is also responsible for arranging
independent inspections witnessing of testing and commissioning
data and assistance in compilation of the dossier for putting the
building into operation and receipt of the Occupation Permit.
Commencement of Construction
Construction of works may only commence after satisfying the
following conditions : the site area being ready to be handed over,
either in whole or in section and free of encumbrances; a con-
struction permit; approved design drawings for execution of build-
ing; aconstruction contract; sufficient capital funds to ensure the
building schedule in accordance with the approved building
schedule in the investment license; measures to ensure safety
and minimum environmental impact during the construction pro-
cess. Construction All Risks and Third Party Liability Insurances
as well as all required insurances in accordance with conditions of
contract are recommended to be effected prior to commencement
of any physical construction works on Site.
contracts which are placed by the employer. This necessitates
effective cost management as the total construction budget is not
finalized until the final packages are let. The employer bears not
an insignificant risk in terms of price certainty, delays, disruption,
design and coordination problems. Clients adopting this approach
need to be conversant with the local environment and have the
requisite in-house skills to deal with issues as they arise.
c) Framework Agreements
Framework agreements referred sometimes as call-off contracts
between investors with a pipe-line of projects and contractors
can result in significant savings to both parties using any of the
procurement options above. The advantages are time reduced for
tendering and negotia-tions, improved processes and knowledge
transfer, bulk order costs savings, reduced confrontation and
economies of scale due to continuity of workflow. All these advan-
tages are extremely important in the Vietnam context because it is
of paramount importance to maintain healthy relation-ships
between employers and contractors as unforeseen events are
prevalent during the design and procurement stages in Vietnam.
d) Public Private Partnership (PPP)
PPP is the generic term for the relationships formed between the
private sector and public bodies often with the aim of introducing
private sector resources and / or expertise in order to help provide
and deliver public sector assets and services. The term PPP is
used to describe a wide variety of working arrangement from
loose, informal and strategic partnerships to design, build, finance
and operate type services contract and formal points of joint ven-
ture companies. The PPP mechanisms would help attract com-
mercial capital and other sources of capital that private investors
will seek for PPP projects. In that way, investment efficiency will
be improved while public debts controlled at safe levels. Investors
of projects will be chosen via competi-tive bidding in order to
maximize benefits and create equal opportunities for domestic
and foreign investors. On 9 November 2010 the Prime Minister of
Vietnam authorized the issue of detailed regulations covering the
piloting of investment in the form of Public Private Partnerships
(PPPs) in Vietnam. The PPP Regulations became effective on 15
January 2011 and will continue to be implemented over the next
three to five years. The Vietnamese Government intends to carry
out PPP programme according to a list of defined projects to
ensure that investors are provided with carefully prepared proj-
ects with a view to creating a real PPP commercial market in Viet-
nam. In the coming years the government will carry out some pilot
projects. The PPP projects in the country will concentrate on core
techni-cal infrastructure that requires much capital, and further-
more, mechanisms to mobilize private invest-ment: (i) Roads,
Road bridges, road tunnels, ferry road stations; (ii) Railway,
railway bridges, railway tunnels; (iii) Airports, sea ports and river
ports; (iv) Clean water supply systems; water drainage systems;
liquid and solid waste collection and treatment systems; (v) Power
plants, electricity transmission cables; (vi) Hospitals; (vii) Other
infrastructure projects.
Project Criteria Appropriateness of Contract Strategy
Paramter Objectives PPP Traditional
Management
Contracting
Construction
Management
Design
and
Construct
Prime
Contracting
Framework
Agreements
Timing Early Completion
Cost Pre construction price certainty
Quality Design prestige
Variations Avoid prohibitive cost of change
Complexity
Technically advanced or highly
complex building
Responsibility Single contractual link
Professional
Responsibility
Need for design learn to report
to sponsor
Risk
Avoidance
Desire to transfer complete risk
Damage
Recovery
Facility to recover costs direct
from contractor
Build ability
Contractor input to economic
construction

Table A - Procurement Strategy
INDICATIVE RISK ALLOCATION
Contract Strategy
Client Contractor
Public Private Partnerships

Design and Construct
Prime Contracting
Traditional
Framework Agreements
Management Contracting

Construction Management

Table B - Risk Allocation
CONTRACTOR SELECTION STRATEGIES
There are four tiers of contractor available for tendering foreign
investment projects, these tiers are not official classifications.
Tier 1 Foreign contractor from Japan, Korea, Singapore,
Hong Kong, Europe Australia
Tier 2 Foreign contractor from China, Russia, Taiwan and
Malaysia
Tier 3 Local private and Joint Stock contractors
Tier 4 State contractors
There is a considerable diversity between these tiers in terms of
general expertise, technological know-how, human-resource
skills and training which leads to a different risk profile for delivery
of buildings to time, quality and cost targets. The lowest tiers use
less modern equipment, machinery and system formwork and
have much lower human resource costs. This is inevitably leading
to higher tender returns. A rigorous pre-qualification procedure is
recommended with weighted scoring in line with project objectives
eg. lowest cost objective will have an inevitable impact on quality
and time.
A typical pre-qualification assessment might cover (indicative
weighting for Vietnam 1 through 10, 10 highest)
- Vietnam experience (if foreign) 8
- Project type experience (local and foreign) 7
- Financial capacity (particularly local) 8
- Plant and equipment inventory (particularly local) 7
- Direct labour strength (local and foreign) 6
- Proposed joint venture / sub-contracting arrange-ments (local
and foreign) 7
- Planning and programming capability (particularly local) 8
- Cognizance of international procedures, codes and specifica-
tions (local) 8
Financial capacity (local)
Local contractors now have access to bank funding but should not
be expected to finance projects by punitive cash-flow arrange-
ments. Most contracts are let with investors paying 10-15%
advance payments which is re-couped from subsequent mile-
stone or interim payments. Deductions for defective works and
liquidated damages may compound problems so careful diplo-
macy is often more productive. Claims for additional costs due to
prevailing market conditions are more common in todays climate
but also for misinterpretation of contract obligations making the
need for good quality contract documentation essential.
Plant and Equipment Inventory (local)
State firms tend to share or pool plant and equipment for example
tower-cranes and piling rigs. It is often impossible to determine
the true owner of plant and equipment on-site in the event of pre-
mature demobilization.
It is essential that the pre-qualification process determines that a
contractor owns plant of sufficient size, capacity and suitable
state of repair as contractors may not have full control of leased
equipment suddenly required on other job-sites.
Direct labour strength (local)
The source of labour supply, also being verified as labour
strength, may be topped-up by importing unskilled and
untrained workers from remote provinces, who often are not
legally resident at their working destination. Contractors should
be asked to prove their direct labour records and declare any
labour only sub-contracting arrangements. The tier 1 contractors
will not have any full-time dedicated labour on their payroll. Tier 2
contractors often import workers from their home country for the
project duration and shall be responsible for all associated costs
and taxes.
Labour is not usually permitted to reside on site. Contractors shall
provide details of training curriculums for each trade discipline
when tendering as well as health and safety programmes.
Proposed sub-contracting arrangements (local)
Sub-contracting is prevalent in Vietnam so it is essential to check
the percentage of work subcontracted out to ensure quality con-
trol issues are minimized. It is highly unlikely that any one firm will
possess the required human resource and plant and equipment to
complete a project using in-house resources. Foreign contractors
largely act as management function providing only project engi-
neers, site supervisors, health and safety officers and planners.
Both foreign and local contractors rarely directly employ foremen,
gang-leaders or indeed skilled and unskilled operatives. These
arrangements are perfectly normal and accepted but it is prefer-
able to know in advance the exact arrangements being proposed
to ensure no conflicts of interests with other projects and to under-
stand fully the amount of control the appointed contractor has on
the works he is engaged to undertake.
Planning and programming capability (local)
This capability needs careful verification from the lowest tier con-
tractors. The use of first principle time resourced planning is rarely
used. The approach adopted is often rule of thumb whereby
planners determine critical activity durations using their knowl-
edge of other projects. Floor/structure cycle times are often incon-
sistent and the lack of recording and reutilization of historical data
means the planning process can be crude at best. Time or delay
is a perennial problem in Vietnam sometimes due to employer
delays such as site clearance or permit issues or neutral delays
such as weather but contractor culpable delays should not be of
any surprise. The use of critical path analysis, planned impacted
analysis, window analysis and collapsed asbuilt are not widely
known in Vietnam. This means time recovery analysis and the
implementation of acceleration measures are not readily adopted
and time for completion can become unpredictable. The input of
experienced Project Management might be invaluable in reducing
delays and formulating time recovery plans.
International experience (local)
The influx of foreign invested projects has brought with it an influx
of different standards and procedures normally from the source
country. It is essential to determine the degree of exposure local
contractors have had to international standards, procedures and
indeed expectations. The Vietnamese Codes and Standards
whilst detailed need to be used concurrently with international
standards such as American, Australian, British or Japanese
standards and specifications as they are not comprehensive
enough to stand-alone on an international standard project.
There is no uniform and widely accepted standard or specifica-
tion. The nett result is a hybrid where every project has a unique
and bespoke set of standards depending on the investor and his
consultant source country. The appointed design team will natu-
rally look to use their familiar off the shelf specifications and ten-
dering contractors should be asked to list the standards they have
successfully built for the key trades and building elements.
There is a move to produce a set of consolidated Vietnamese
standards but this is some way off and the hybrid approach will
continue for some time to come.
However, no international standard shall over-ride any mandatory
Vietnam building code or standard. Design consultants should
provide a translated bi-lingual version of their specifications and
locally registered design firms shall provide localization of the
design to obtain local approvals. The contractors should also be
asked to list investments such as system formwork and their use
of recent technology and list previous employers and consultants
whom they have worked with.
PROPERTY OVERVIEW
OVERVIEW
Similar to the economic picture in 2010, Vietnams economy
witnessed both growth and macroeconomic instability in 2011.
The yearend growth rate was 5.89%, failing to meet the target of
6%. This is approximately 0.7% lower than the growth in 2010.
Inflation remained atop of many newspaper headlines during
2011, with the y-o-y average for the year ending at 18.58%. A nec-
essary consequence of this was the tightening of monetary policy.
Both factors contributing to the limited growth that was witnessed.
In 2011 there was a steep devaluation of the dong after Tet, with
the currency losing 9.3% of its value on Febru-ary 11 against its
USD peg. From an exchange rate of 19,500VND/US$ in early
January, the dong devalued to 21,021VND/US$ in late December.
In the fourth quarter the State Bank of Vietnam was slowly devalu-
ing the dong by approximately 10 dong per day.
With global economies showing signs of strain at the beginning of
2012, and Vietnam continuing to resolve macroeconomic instabil-
ity, many organisations are beginning the year by maintaining a
cautious approach to their business and investment models.
OFFICE SECTOR
At the end of 2011, average Grade A rents in HCMC were
US$32.16 psm per month, a y-o-y decline of just over 8%. The
continued decline, represented twelve straight quarters of rental
declines.
Demand in early 2012 is expected to be moderate as global
economies remain in limbo and as the Vietnam-ese economy con-
tinues to stabilise. Absorption 2011 will not come close to the
record net absorption seen in 2010. There will, however, be an
opportunity for corporate occupiers to obtain attractive rents
during this period of limited activity. Looking towards late 2012.
Grade A rents are expected to stabilise due to tight supply, and
possibly improve if there is sustained economic growth this is
despite possible new supply from Saigon One ( M & C) and Times
square.
If Vietcombank Tower, and the Ben Thanh Twin Tower project
come online as scheduled, within the next eight quarters, their
new supply would equal approximately 32% of current Grade A
supply. This will almost certainly put downwards pressure on rent-
als during the period. However, the Ben Thanh Twin Tower proj-
ect is currently only in the compensation phase, and progress on
the Vietcombank Tower is measured. Therefore, Grade A rents
could appreciate in the next eight quarters as the new supply
coming online in 2012 is absorbed, and future supply is a full two
years, or more, away.
The new Grade A projects coming online in the next eight quarters
are expected to set a new level of quality, which is desired by the
market and required by many multinational corporations to comply
with life, health and safety standards. In this respect, occupiers of
current Grade B projects are expected to take advan-tage of this
opportunity to relocate into the newer, higher quality space.
RESIDENTIAL SECTOR
The residential sector generated the most headlines during 2011.
Developers who had moved into the development cycle, with what
could often be considered speculative product, faced a market
with notable levels of falling confidence during 2011.
With macroeconomic policy tightening developers have had
limited access to capital and with buyer appetite being low,
numerous developers have faced cash flow issues through the
year. Sales velocities were less than expected and as such devel-
opers had to look to adjust strategies towards the year end. There
were a number of different options considered and deployed
which included, the postponement/slowing of construction, the
attempted sale of units en-bloc to investors, the transfer of units to
serviced apartment operators, the self operation of units or
discounts/incentives or various types. For a limited number of
developers the measures that have been taken have provided
shelter from the market conditions, but for many developers, cash
flow is still a concern and it is expected that in early 2012 that the
residential market will continue to provide headlines as develop-
ers navigate the tricky conditions being faced.
Despite the lacklustre market conditions it is noted that overall
asking prices have not fallen as much as some may have
expected. On the secondary market the greatest price falls were
seen in the mid-end sector where prices fell by 7.5%, where as the
affordable sector saw asking prices stay stable over the year. It is
however noted that the actual transactional price in both the
primary and secondary market has adjusted more than the asking
prices as sellers look to close prospects.
RETAIL SECTOR
In 2011 consumer confidence waned due to persistent high infla-
tion. Although the Governments efforts to contain inflation gradu-
ally worked their way through the economy, the high inflation seen
through the year stifled consumers appetite to spend.
Department store rents continued to climb as landlords felt they
could charge a premium. Parkson, which continued to expand in
2011, has seen success at a number of its outlet as consumers
and retailers alike have shown a preference for their format.
In the first half of 2012 retail sales are expected to remain flat.
Landlords, especially in shophouses and non-CBD shopping cen-
tres, will be forced by market realities to become more reasonable
with their rental rates. Department stores will be able to hold their
rental rates in the same period. New retail options will need to
offer attractive rents to attract retailers.
Through 2012 it is expected that the gap between what is pro-
vided by landlords and what is required by tenants will narrow,
with more attention paid to seemingly small things such as toilets
and taxi stands, foot traffic can be increased.
SERVICED APARTMENT SECTOR
The Serviced Apartment sector has proved to be one of the most
resilient, in what has proved to be a tough year for the majority of
sectors. Grade A rents have stayed stable, with less than 1%
change over the year, this is a reflection of stable demand and
limited supply. With the premium Times Square project expected
to come online in the second quarter of 2012, Grade A supply will
increase by approximately 20%. Despite this additional new
supply, Grade A rents are expected to be flat or possibly see
increases. This is due to the low vacancy, as most Grade A proj-
ects have seen vacancy rates less than 10% for the last six quar-
ters.
Projects that break the trend of maintaining high rentals in the pre-
mium CBD product sector, may have an opportunity to fill their
projects quicker than those that hold out for higher rents.
Through 2012 demand for serviced apartments is expected to
remain strong. Vietnam is an emerging destination for companies
looking to place expatriate staff, with an increasing standard of
living for foreigners but a lower cost of living compared to the
regional hubs of Singapore and Hong Kong. Vietnam is also
expected to capitalise on regional trends including the diversifica-
tion of manufacturing out of Japan after the earthquake and
tsunami, and the rising cost of doing business in China, where an
increase in the minimum wage is pushing manufacturers to look at
other areas for expansion.
Recent data reported by Oxford Economics indicates that textile
exports from Vietnam in the first eight months of 2011 were up
29% y-o-y, and coffee exports were up 9% y-o-y in the first seven
months of 2011. This all bodes well for Vietnam, but our forecast
of high serviced demand is tempered by the uncertainty surround-
ing the global economy at the turn of the year.As serviced apart-
ment demand depends heavily on expatriates continuing to be
posted to Vietnam, it is perhaps more directly affected by the
global economy than other sectors. Since our last forecast three
months ago there has been a significant increase in the likelihood
of a recession in the United States and a disorganised Eurozone
debt default. The uncertainty around the outcome of Greeces
sovereign debt crisis is increasing, and in the United States politi-
cal posturing abdicates the will to implement the reforms neces-
sary to stabilise the economy and promote growth. If the already
fragile global recovery falters, there may be a reduction in expatri-
ate staff, which would increase vacancy in the serviced apartment
market.
(Reproduced by kind permission of
CB Richard Ellis)
PROJECT CLOSED OUT PROCEDURES
Before an investor can receive rental income and occupy the
premises for its intended use, the receipt of approval must be
received by the provincial Construction Department or the Ministry
of Construction depending on the category and size of the project.
The Construction Department will receive a dossier complete with
independent testing and commissioning data (prepared by an
independent party not the original designer) for piling, structure,
electricity and earthing, environmental impact with regard to water
and waste disposal, final checking and approval of fire protection
requirement. The dossier needs to have Minutes to Put the Build-
ing into Operation signed by the Investor, Testing Body, Contrac-
tor and Designer including the Project or Construction Manager if
appointed.
TYPICAL SUBMISSION FLOWCHART
LOCAL PARTNER
ESTABLISHMENT OF LEGAL COMPANY
SUBMIT & OBTAIN IN-PRINCIPLE
APPROVAL OF THE LOCATION / PROJECT
FROM MASTER PLANNING DEPT.
SUBMIT & OBTAIN APPROVAL FOR THE
DEVELOPMENT PLANS (LAND USE) FROM
RESOURCES AND ENVIRONMENT DEPT.
REGISTER A JV COMPANY
- SUBMIT AND OBTAIN APPROVAL FOR RED BOOK TRANSFER FROM
LOCAL PARTNER TO JV CO. FROM RESOURCES AND ENVIRONMENT DEPT.
- SUBMIT AND OBTAIN APPROVAL FOR INVESTMENT LICENSE FROM DEPT.
OF PLANNING & INVESTMENT
Time indicated is based on past project experience and serve as a guide only Note:
FOREIGN PARTNER
SIGN A JV CONTRACT &
AGREEMENT FOR FUTURE
TRANSFER OF ASSETS
- SUBMIT AND OBTAIN APPROVAL FOR FIRE FIGHTING APPRAISAL FROM
FIRE FIGHTING DEPT.
- SUBMIT AND OBTAIN APPROVAL FOR ENVIRONMENTAL IMPACT
APPRAISAL FROM RESOURCES AND ENVIRONMENT DEPT.
SUBMIT AND OBTAIN APPROVAL FOR PLANNING TASK AND PLANNING
APPROVAL SCALE 1/500 FROM PEOPLE COMMITTEE OF THE DISTRICT
SUBMIT AND OBTAIN APPROVAL FOR BUILDING PLANS FROM
CONSTRUCTION DEPT.
PT: Preparation Time
AT: Approval Time
Legend:
PT: 1 month
AT: 1.5 month
Total : 2.5 months
PT: 0.5 month
AT: 2 months
Total : 2.5 months
PT: 0.5 month
AT: 3 months
Total : 3.5 months
PT: 0.5 month
AT: 1.5 month
Total : 2 months
PT: 1 month
AT: 4 months
Total : 5 months
PT: 1 month
AT: 2 months
Total : 3 months
PLOT RATIOS AND SITE COVERAGE FOR BUILDINGS
(Land area over 500m2)
Car Parking Space
Average number of
storeys
Maximum
of Site
coverage
(%)
Maximum of
Plot ratio
1 70 0.70
2 60 1.20
3 53 1.59
4 47 1.88
5 40 2.00
6 39 2.34
7 36 2.52
8 33 2.54
9 31 2.70
10 28 2.80
11 26 2.86
12 24 2.88
13 22 2.90
14 21 2.94
>=15 20 3.0 5.0

Type of building
1 space of carparking
(25m
2
) for
- Hotel from 3-Star
standard upward
every 5 guest rooms
- High-grade office,
foreign affairs offices
every 150m
2
floor area
- Super market, big
shops, conference centre,
exhibition, show room
every 75m
2
floor area
- High grade condominium
every apartment
KEY DESIGN CRITERIA
Plot Ratios and Site Coverage
I. High-rise building :
Pursuant to the TCXDVN 323 : 2004 promulgated to Decree 26
dated 2 November 2004 of Ministry of Construction on Design
standard for high-rise building and Decree No 21/2006/QD-BXD
dated 19 July 2006 of Ministry of Construction on amending and
supplementing articles of TCXDVN 323 : 2004 as follows :
Plot Ratios and Site Coverage:
- The site coverage of high-rise building must be less than 40%.
- The plot ratio is less than 5.0.
- Other cases will be applied to the detail planning approved by
authorities.
Parking space:
- Car parking space: 1 car parking space / 4 to 6 units with standard
area 25m2/car
- Motorcycle parking space: 2 motorcycles / unit with standard area
2.5 to 3m2/motorcycle.
- Bicycle parking space: 1 bicycle/ unit with standard area
0.9m2/bicycle.
Height from floor to ceiling soffit :
- > 3m but < 3.6m.
- In some high standard building, the height from floor to ceiling
soffit may be lower, but not less than 2.7m.
Road for fire protection :
- Width of road > 3.5m.
- Clearance Height > 4.25m.
- Area for making U-turn > 15x5m
II. Non High-rise building :
Pursuant to the Vietnamese building code volume 1 promulgated to
Decree 682/BXD-CSXD dated 14 December 1996 and Decree
04/2008/QD-BXD dated 03 April 2008 of Ministry of Construction on
amending and supplementing articles of TCXDVN 323 : 2004 as
follows :
Type of building
Ratio (%)
Maximum of
site coverage
Minimum of
Landscaping
ratio
1. Dwelling House
- Villa 30 40
- Condominium 50 20
2. Public building
- Kindergarten, School 35 40
- Hospital 30 40
- Culture house 30 30
- Religious constructions 25 40
3. Factory
- Scattered construction 50 20
- Combined block 70 20
BUILDING AREAS DEFINITIONS
The following guidelines are derived from the RICS Code of Mea-
suring Practice: A Guide for Surveyors and Valuers. 5th Edition'
and the RICS 'Standard Form of Cost Analysis, Principles, Instruc-
tions and Definitions.
Gross External Area (GEA)
Gross External Area is the area of a building measured externally
at each floor level.
Includes:
Perimeter wall thicknesses and external projections
Areas occupied by internal walls and partitions
Columns, piers, chimney breasts, stairwells, liftwells, and the like
Atria with clear height above, measured at base level only
Internal balconies
Structural, raked or stepped floors are to be treated as a level floor
measured horizontally
Horizontal floors, whether accessible or not, below structural,
raked or stepped floors
Mezzanine areas intended for use with permanent access
Lift rooms, plant rooms, fuel stores, tank rooms which are housed
in a covered structure of a permanent nature, whether or not
above main roof level
Outbuildings which share at least one wall with the main building
Loading bays
Areas with a headroom of less than 1.5m
Pavement vaults
Garages
Conservatories
Excludes:
External open-sided balconies, covered ways and fire escapes
Canopies
Open vehicle parking areas, roof terraces, and the like
Voids over or under structural, raked or stepped floors
Greenhouses, garden stores, and the like in residential property
Gross Internal Area (GIA)
Gross Internal Area is the area of a building measured to the inter-
nal face of the perimeter walls at each floor level.
Includes:
Areas occupied by internal walls and partitions
Columns, piers, chimney breasts, stairwells, lift-wells, other inter-
nal projections, vertical ducts, and the like
Internal open-sided balconies and the like
Structural, raked or stepped floors are to be treated as a level floor
measured
Horizontal floors, with permanent access, below structural, raked
or stepped floors
Corridors of a permanent essential nature (e.g. fire corridors,
smoke lobbies, etc.)
Mezzanine areas intended for use with permanent access
Lift rooms, plant rooms, fuel stores, tank rooms which are housed
in a covered structure of a permanent nature, whether or not
above main roof level
Service accommodation such as toilets, toilet lobbies, bathrooms,
showers, changing rooms, cleaners' rooms, and the like
Projection rooms
Voids over stairwells and lift shafts on upper floors
Loading bays
Areas with a headroom of less than 1.5m
Pavement vaults
Garages
Conservatories
Excludes:
Perimeter wall thicknesses and external projections
External open-sided balconies, covered ways and fire escapes
Canopies
Voids over or under structural, raked or stepped floors
Greenhouses, garden stores, fuel stores, and the like in residen-
tial property
Gross Floor Area (GFA)
Gross Floor Area is the total of all enclosed spaces fulfilling the
functional requirements of the building measured to the internal
structural face of the enclosing walls.
Includes:
Areas occupied by partitions, columns, chimney breasts, internal
structural or party walls, stairwells, lift-wells, and the like
Lift, plant, tank rooms and the like above main roof slab
Note:
Sloping surfaces such as staircases, galleries, tiered terraces and
the like should be measured flat on plan.
Excludes:
Any spaces fulfilling the functional requirements of the building
which are not enclosed spaces (e.g. open ground floors, open
covered ways and the like). These should each be shown sepa-
rately
Private balconies and private verandahs which should be shown
separately
Net Internal Area (NIA)
Net Internal Area is the usable area within a building measured to
the internal face of the perimeter walls at each floor level.
Includes:
Entrance halls
Notional lift lobbies
Kitchens
Built-in units, cupboards, and the like occupying usable areas
Ramps of lightweight construction to false floors
Area occupied by ventilation/heating grills
Area occupied by skirting and perimeter trunking
Areas severed by internal non-structural walls, demountable parti-
tions, whether or not permanent, and the like, where the purpose
of the division is partition of use, not support, provided the area
beyond is not used in common
Pavement vaults.
Excludes:
Those parts of entrance halls, atria, landings and balconies used
in common
Toilets, toilet lobbies, bathrooms, cleaners rooms, and the like
Lift rooms, plant rooms, tank rooms (other than those of a trade
process nature), fuel stores, and the like
Stairwells, lift-wells and permanent lift lobbies
Corridors and other circulation areas where used in common with
other occupiers or of a permanent essential nature (e.g. fire corri-
dors, smoke lobbies, etc.)
Areas under the control of service or other external authorities
including meter cupboards and statutory service supply points
Internal structural walls, walls enclosing excluded areas, columns,
piers, chimney breasts, other projections, vertical ducts, and the
like
The space occupied by permanent and continuous air-
conditioning heating or cooling apparatus, and ducting in so far as
the space it occupies is rendered substantially unusable
Areas with headroom of less than 1.5m
Areas rendered substantially unusable by virtue of having a
dimension between opposite faces of less than 0.25m
Vehicle parking areas (the number and type of spaces noted)
Building Footprint
Building Footprint is not a term defined by the RICS, but is gener-
ally understood to mean the area of the land upon which the build-
ing sits (excluding all basements), measured to the outside face of
external walls.
PROCUREMENT STRATEGIES
Overview
The primary consideration in the choice of procure-ment strategy
is the need to obtain overall value for money during the entire life
of the facility and each method has a different risk profile for the
employer and contractor. In Vietnam the following is currently
prevalent.
Traditional Lump Sum - high extent
Management Contracting - low extent
Construction Management - medium to high extent
Design and Construct - low extent
Prime Contracting - low extent
Framework Agreements - rising extent
Public Private Partnership (PPP) - new and promoted extent
Most if not all projects in Vietnam are tendered in competition and
the process is covered by the Law of Tendering promulgated in
2006 intended primarily for state projects defined as over 30%
total investment capital by a state entity and for Vietnamese
Privatefirms. Foreign Investors do not need to follow the Law of
Tendering although it is advisable. The law recog-nizes open ten-
dering, limited tendering and competi-tive tendering. For state
projects tenders are normally sought using a two-envelope
system i.e. technical and financial the former being opened first
to check for compliances.
Most foreign entities short-list tendering contractors by having a
robust pre - qualification procedure for check-ing financial and
technical competencies. Tenders are usually open for 90 days.
The FIDIC suite of contracts is widely used for Vietnam construc-
tion contracts with the 1999 Red Book being now widely
accepted. There are official translations of some of the FIDIC
forms and the Vietnam Consultant Association (VECAS) is an
official member of FIDIC. Most Official Development Aid (ODA)
projects in Vietnam adopt FIDIC also.
a) Traditional Lump Sum
Most contracts are let in Vietnam on a lump sum basis using a
modified FIDIC Contract which in its unamended form is a mea-
sure and value contract. This method requires appointment of
independent design consultants by the employer and a sufficiently
developed design preferably frozen prior to tender. Bills of
Quantities are usually provided for information only to the con-
tractor who normally provide their own quantities with their tender
for comparison purposes only and only the rates are contract
rates with any errors and omissions not being subject to remea-
surement after the lump sum is finalized. Prime costs sums for
nominated subcontracts for mechani-cal and electrical and lift
sub-contracts are widely used.
b) Construction Management
This form of procurement is often portrayed as fast-track as
tender packages are often let successively throughout the design
process with no need to wait until detail design is complete. A con-
struction management consultant is engaged normally for a fixed
percentage fee to procure and manage the individual trade
LANGUAGE
Vietnamese was declared the official language of Vietnam in
1945, as much as 70% of the vocabulary is borrowed from Chi-
nese and the intonation is similar to Cantonese. It is spoken by
approximately 90% of the Vietnamese population and ranked as
the worlds 15th most spoken language. English, however, is
widely used in the business community.
ACCOUNTING SYSTEM
Foreign-invested business entities are generally required to adopt
the Vietnamese Accounting System ("VAS"). If a company strictly
follows the VAS, registration with the Ministry of Finance ("MoF")
is not required. However, if the VAS is modified, a written approval
from the MoF is required before implementation.Accounting
records are required to be maintained in VND. A foreign-invested
business entity can self-assess to select a foreign currency to be
used for its accounting records and financial statements and notify
its local tax authority. Accounting records are required in Viet-
namese language, although a commonly-used foreign language
can be used at the same time along with the Vietnamese
language. The annual financial statements of all foreign-invested
business entities must be audited by an independent auditing
company operating in Vietnam. Audited annual financial state-
ments must be completed within 90 days from the end of the year.
WORKFORCE
The population of Vietnam is circa over 87 million (as the Popula-
tion forecast of Vietnam stating in the book edited by General Sta-
tistics Office) with a labour force estimated at 50 million, literacy
rates are one of the highest in the region. The Ministry of Labour,
Invalids and Social Affairs MOLISA for short is responsible for all
labour related issues and sets the minimum age for full-time em-
ployment is 15 years old. The minimum wage for FDI enterprises
is USD 96 per month (Pursuant to the Decree No. 07/2011/N-CP
of the Government dated 22nd August 2011), whereas the actual
monthly payment for FDI enterprises is as high as over USD 100
per month in Ho Chi Minh City. Working hours are 8 hours per
day, 6 day working weeks have largely been replaced by 5 day
working weeks and 12 days annual leave plus statutory public
holidays. Vietnam having strong socialist origins has quite heavy
protectionist policy for Vietnamese working for foreign entities and
employers must pay 16% of basic salary for Social insurance plus
3% of basic salary for Health insurance, and 1% of basic salary for
Unemployment insurance. The Social insurance rate will increase
by 17% from 2012 to 2013 as Article No.71 of Social Insurance
Law. Most staff will quote salaries net meaning their expected
take-home money. Thirteenth month bonus is discre-tionary but
largely expected.
SOME INTERESTING FACTS
Vietnams history can roughly be divided into the following peri-
ods:
Pre-history: from circa 400,000 years (Palaeolithic) to 4,000
years (Neolithic) ago, cultures in the area included Son Vi, Hoa
Binh, Bac Son, Ha Long, and Hoa Loc.
Proto-history: According to legends, Vietnam originated in the
seventh century BC when the Hung Kings founded Van Lang. In
the third century BC, King An Duong Vuong named founded Au
Lac and ruled until 179 B.C.
Chinese Occupation: Vietnam was occupied by China from the
first to the tenth century A.D.
Monarchy: Kings rules the area from 968 to 1945.
Independence: The Socialist Republic of Vienam was founded
after the 1945 revolution, when President Ho Chi Minh declared
independence.
French War: Vietnam battled French colo-nialism from 1858 to
the August Revolution in 1945, and from 1946 to the victory at
Bien Bien Phu in 1954.
American War: Vietnam fought America from 1954 to Ho Chi
Minhs victory on April 30, 1975.
From 1975 until now: Vietnam has been working towards devel-
opment and success.
VIETNAM KEY DATA
Government
Country Name : The Socialist Republic of Vietnam
Government Type : Socialist Republic
Head of Government : Prime Minister
Capital City : Hanoi
Administrative Divisions : 64 provinces and central cities
Independence : 2nd September 1945
Legal System : Based on Constitution of Vietnam
Official Language : Vietnamese
National Language : Vietnamese
Geography
Geographic Coordinates : 16 00 N, 106 00 E
Location : South East Asia
Border Countries : Cambodia 1,228 km, China 1,281 km,
Laos 2,130 km
Total Area : 331,210 sq km
Land Area : 310,070 sq km
Water : 21,140 sq km
Land use : arable land 20.14%
permanent crops 6.93%
other 72.93%
Irrigated Land : 30,000 sq km (2003)
Coastline : 3,444 km (excludes islands)
Land boundaries : 4,639 km
Natural Resources : phosphates, coal, manganese,
bauxite, chromate, offshore oil and
gas deposits, forests, hydropower
Climate type : tropical in south; monsoonal in north
with hot, rainy season (mid-May to
mid-September) and warm, dry
season (mid-October to mid-March)
Natural hazards : occasional typhoons (May to January)
with extensive flooding, especially in
the Mekong River delta
People
Total Population : 86.93 million ( 2010 est.)
Age structure from : 15-24 years 18.3%
15 years 24-49 years 61.4%
50 years and over 20.3%
Population Growth Rate : 10.3
Median Age : total: 27.4 years
male: 26.4 years
female: 28.5 years (2010 est.)
Life Expectancy : 71.94 years
male: 69.48 years
female: 74.69 years (2010 est.)
Urban Population
Hanoi : 6.56 million (2010 est.)
Ho Chi Minh City : 7.4 million (2010 est.)
Ethnic Groups : 54 Ethnic Groups
Kinh (Viet) 86.2%, Tay 1.9%, Thai
1.7%, Muong 1.5%, Khome 1.4%, Hoa
1.1%, Nun 1.1%, Hmong 1%, others
4.1% (1999 census)
People (Contd)
Languages : Vietnamese (official), English
(increasingly favored as a second
language), some French, Chinese,
and Khmer; mountain area languages
(Mon-Khmer and Malayo- Polynesian)
Literacy (definition: age : total population: 90.3%
15 and over can read male: 93.9%
and write) female: 86.9% (2002 est.)
Population below : 12.3% (2009 est.)
poverty line
Labor Force : 50.39 million
Labor Force by : Agriculture: 49%
occupation Industry: 22%
Services: 30% (2010 est.)
Unemployment Rate : 6.45% (2010 est.)
Economy
Monetary Unit : Vietnamese Dong
Currency Code : VND
Exchange rate to dong (VND) per
USD : 20,031 (2011 average)
Euro : 27,917 (2011 average)
British Pound : 32,155 (2010 average)
Average Consumer : 18.62% (from Jan to Nov 2011)
Price Index (CPI)
Fiscal Year : 1 January to 31 December
GDP (Official Exchange : US$ 85.37 billion
Rate) (First 9 months 2011)
GDP Growth Rate : 5.76% (First 9 months 2011)
GDP composition by : Agriculture: 21.5%
sectors Industry: 40.66%
Services: 37.84% (2011 est.)
Trade
Total Exports : US$ 87.2 billion
(From Jan to Nov 2011)
Major Exports : crude oil, marine products, rice,
coffee, rubber, tea, garments, shoes
Export Partners : US 17.7%, EU 16.8%, ASEAN 14%
China 9.86%, Japan 9.74%
Total Imports (USD : US$ 96.1 billion
billion) (From Jan to Nov 2011)
Major Imports : machinery and equipment, petroleum
Commodities products, fertilizer, steel products, raw
cotton, grain, cement, motorcycles
Import Partners : China 20.4%, ASEAN 18.3%,Korea
10.8%, Japan 8.7%, EU 6.3%
International Airports : Tan Son Nhat (Ho Chi Minh City), Noi
Bai (Hanoi), Da Nang (Da Nang)
Major Seaports : Saigon, Hai Phong, Da Nang, Cam
Pha, Phu My, Cai Mep
(Source: General Statistics Office)
BANKS
The Vietnamese banking system was restructured in the 1990s
separating the State Bank of Vietnam (Central Bank) from com-
mercial banks and paving the way for the entry of foreign banks
presently offering a range of banking services comparable to
overseas banking facilities. Today there exists the State Bank of
Vietnam, State Owned Banks, Joint Stock Commercial Banks,
Foreign Bank branches / representative offices and Joint Venture
Banks. The law allows foreign entities and individuals to hold
foreign currency accounts and local Vietnamese dong accounts.
Banks requires document applicable to foreign currency transac-
tions for domestic payment and cross border transfer via
capital/current account. Banks can provide customers with all of
the guarantee types commonly used in the economy such as bid
bond, a performance guarantee, a loan under guarantee by a
third party, a deposit guarantee , tax/custom guarantee ...Guaran-
tee fee will be regulated by each bank and depended on guaran-
tee amount and term. Letters of credit are the most commonly
used method of transaction for trade. Bank will blockade a part or
the whole money amount of client account upon receipt of deci-
sion or written request of a competent organizations according to
the provisions of law.
GOVERNMENT ADMINISTRATION
The National Assembly is the highest representative organ of the
people and the highest organ of the state power of the Socialist
Republic of Vietnam. Members are elected for a five year tenure
through nation wide elections. Sittings of the National Assembly
are held twice a year and have full constitutional and legislative
powers. The standing committee of the National Assembly is
responsible for enforcement of laws. Its functions are carried out
through the Ministries, State Committees and General Depart-
ments by promulgating and explaining the Constitution, law and
decree-laws.
The Countrys President is the head of state, elected by the
National Assembly from among its members to represent the
Socialist Republic of Vietnam in internal and foreign affairs. The
Vice President is proposed by the President and elected by the
National Assembly from the representatives. The National
Defense and Security Council has the duty to mobilize all forces
and potentials of the country to defend the Homeland.
The Government is the executive organ of the National Assembly
and shall report to the National Assembly, the National Assembly
standing committees and the Countrys President. The Govern-
ment consists of the Prime Minister, Deputy Prime Minister, Minis-
ters and Heads at ministerial level. The Prime Minister is pre-
sented by the President and elected by the National Assembly
and has the term of 5 years. The Deputy Prime Ministers are the
assistants of the Prime Minister and may be delegated by the
Prime Minister during his absence. The Ministers and Heads at
ministerial levels take on the State management of allotted
branches or fields.
The Peoples Supreme Court is the highest judicial organ of the
Socialist Republic of Vietnam. The court consists of the Tribunal
President, Vice Tribunal President, judges, the juror and the sec-
retary of the court. Moreover, the court is composed of the judge
Council, judge Committee, the Military Court and criminal court,
civilian court, the court of appeal and the assistant apparatus.
TAXATION
TAXATION IN THE REAL ESTATE INDUSTRY
I. Corporate Income Tax (CIT)
Organizations established in Vietnam deriving income from trans-
ferring or leasing property are subject to Corporate Income Tax
(CIT) at the standard tax rate of 25%.
In case of progressive advance payment for purchase of proper-
ties under development, real estate developers are required to
pay provisional CIT, either at 25% on provisional income if the cor-
responding expenses can be determined and matched with the
revenue, or 2% on revenue if corresponding expenses cannot be
determined.
Real estate developers generally cannot receive preferential tax
rates, tax holidays, or other tax reductions except certain projects
with available tax incentives, such as projects located in poor
social-economic regions, or projects of construction of residential
house for the poors or workers working at Industrial Park, etc.
In the event that a lessee pays advanced rent covering several
years, the lessor must allocate the advanced rent payment over
the number of years for which the lessee paid in advance, effec-
tively matching the income with the rental period for the tax pur-
pose. However, a recent draft Decree on CIT allows the lessor to
recognise revenue by two method s (i) on allocated year-by-year
basis or (ii) lump-sum basis in the advanced rental collecting year
with condition that the lessee shall bear all expenses incurred
during the use of the property.
Losses incurred in a given year can be consecutively carried
forward for 5 years; however, they may not be carried back to pre-
vious years. Losses from activities other than real estate cannot
be offset against real estate income in both the loss year and the
carried-forward period.
Land use rights (LUR) with indefinite term may not be depreci-
ated as deductible expense upon taxable income determination.
LUR with definite term, if accompanied by adequate invoices and
documents and lawfully established, which is used in production
and business activities, should be gradually amortized over the
prescribed land use duration.
II. Value Added Tax (VAT)
The transfer of land use rights (LUR) without infrastruc-ture is
not subject to VAT.
The transfer of LUR with infrastructure/building is subject to VAT
at 10%. However, the actual cost of land (or land rent), or the land
value at the government tariff (for the case the actual land cost
declared by tax payer is determined as not reliable) can be
excluded from the revenue subject to VAT.
Similar to the treatment of provisional advance CIT payable on
advances/deposits received by the developer, output VAT is also
fully payable on the advance/deposit.
All construction input VAT incurred can be claimed as input VAT
credit (or cash refund during the construction stage). However,
input VAT of the expenses related to the value of LUR transfer is
not creditable/refundable.
III. Stamp Duty
Stamp duty is payable at the transfer of title of real estate property
by the buyer. Some specific transfers may be exempted from the
stamp duty.
Stamp duty is imposed at 0.5% on the value of the property but
not exceeding VND500million (approx. USD25,000) per asset per
transaction.
IV. Foreign Contractor Tax (FCT)
Foreign companies with no legal entity set up in Vietnam (i.e. clas-
sified as Foreign Contractor or FC) supplying goods and ser-
vices to Vietnamese buyers and deriving income from Vietnam
(e.g. construction contractor or project management service) are
subject to Vietnam FCT.
VAT and CIT are the two components of the FCT. There are three
tax filing and payment options: (i) Full registration method with
maintenance of books and accounts in Vietnam under Vietnam
Accounting system; (ii) Deemed Withholding method and (iii) the
Hybrid method which consists of paying VAT on the conventional
deduction method like a Vietnamese company, but paying CIT on
a Deemed Withholding method basis.
The Deemed Withholding method is the most common one in
practice under which the contracting Vietnamese party is respon-
sible for registering, withholding, filing and paying the FCT due
from each payment made to the FC. The applicable rates vary
depending on the nature of goods and services provided. For proj-
ects having a substantial portion of local purchases, Hybrid
method is often applied via which the FCs can claim credit the
input VAT incurred on local purchase, and still pays the CIT on a
deemed basis.
V. Personal Income Tax (PIT)
Real estate property (other than sole residential property and
some other specific exempt transactions) transfer by individual is
subject to PIT. Property transactions subject to PIT include the
transfer of the right to buy, the transfer of the right to lease
A Vietnam tax resident has to pay PIT under one of the following
two methods:
(i) At 25% on the net gain assessed by the difference between the
transaction price less the cost and relevant expenses; or
(ii) 2% on the transfer price, if the cost can not be determined.The
recent update of the relevant tax regulations indicate that (ii)
above would apply in most cases.
Non-Vietnamese tax residents must pay PIT at 2% of the transfer
price.
(Reproduced by kind permission of KPMG)
IMPORT
Foreign invested entities are permitted to import materials and
equipment for their projects in accordance with the conditions laid
down in the foreign investment license as determined by the Min-
istry of Trade. Post licensing procedures involves obtaining an
export-import enterprise code from the Department of Customs.
Foreign entities must then submit an Import Plan annually to the
regional service of trade which should be fully encompassing and
detailed enough to avoid possible re-application and administra-
tive delays upon arrival to the Vietnam port of entry. Machinery
and equipment specified in the investment license may be
imported duty free in addition to other materials not available in
Vietnam otherwise foreign entities are subject to the common
import restrictions and tariffs as stated in The 2011 Export-Import
tax tariff and Value Added Tax on Imports, applicable from
01/01/2011 based on Decisions, Circulars issued by Ministry of
Finance, Free Trade Agreements and published by the HCM Gen-
eral Publisher. This book (readily available) has twenty-one sec-
tions covering minerals, foodstuffs, plastics, wood, textiles, stone,
plaster and glassware plus more and gives the applicable tariffs
for most favored nation status and special preferential treatments
namely ASEAN countries. In practice goods are imported under
the investors name and license with material and equipment and
quantity information provided by contractors.
INSURANCE
Overview
Most risks that a company would insure anywhere else in the
world can be adequately insured for in Vietnam. Rates and terms
are generally a function of the world market with due consider-
ation given to local factors however it should be noted that VAT of
10% applies to insurance premiums on policies written within Viet-
nam. While the overall ability to insure large or complicated risks
entirely within Vietnam is limited, the Vietnamese insurance
industry can nonetheless insure any size risk through reinsurance
arrangements with international reinsurance organisations. The
leading reinsurers and those who carry more than 10% have to be
rated at least BBB by Standards & Poors or B++ by AM Best or
Baa by Moody's or equivalent.
Vietnam passed a comprehensive Insurance Law in December
2000 which took effect on April 1, 2001. The Amendment of Insur-
ance Law has been passed last year and was effective as at July
1, 2011. The key changes are focused at keeping up with any
WTO commitments such as: the insurance market is profes-sional
& open, foreign insurers are allowed to establish a branch in Viet-
nam or issue an insurance policy into Vietnam. However, the law
gives the power to the government to release detailed guidance
and to license such transactions. These details are yet to be
released as of December 2011
Construction All Risks (CAR) insurance, including the covers for
the Contract Work & Third Party Liability, is popular in Vietnam.
Recently, owners of larger projects have shown interest in consid-
ering more technical coverages such as Advance Loss of Profit
(ALoP) / Delay in Start-Up (DSU) insurance to protect their antici-
pated profit/fixed costs of a particular project.Construction insur-
ance still tends to be left to the contractor to arrange rather than
the owner which can give rise to gaps in cover when projects are
delayed or split into smaller packages. There may also be gaps
when the project passes from construction to operation.
Compulsory Insurances in Vietnam
Compulsory insurances are regulated in insurance laws & some
specialised laws. Below is the consolidation:
Insurance Class Status
PI for Insurance Brokers Waiting for guidance
PI for Lawyers Waiting for guidance
PI for Securities Companies
(Stockbrokers)
Waiting for guidance
PI for Fund Management
Companies
Insurance Class Status
PI for Architects &
Engineers
Waiting for guidance.
Government project
owners often required &
referred to this regulation

PI for Auditing Firms Waiting for guidance
PI for Evaluation Firms Waiting for guidance
PI for Public Notary Offices Waiting or guidance
Construction Works
Insurance
Compulsory Fire &
Explosion Insurance
Effected. Compulsory
wordings & tariff
Environmental Liability
Insurance
Aviations LIaility
Insurance
limits
Compulsory Vehicle
Owners Civil Liability
wordings, limits & tariff
Travel Insurance for
Vietnamese travelling overseas
Technically there is no requirement for worker compen-sation
insurance. However since there is a liability regarding employees
under the Vietnamese labour law the purchase of worker compen-
sation insurance can act as a risk transfer method to protect
against these liabilities.
Market Players
Insurers
There are numerous domestic and foreign companies licensed to
provide non-life insurance, including insurance for construction
sectors in Vietnam.
State-owned:Vietnam Insurance Corp (Bao Viet), Bao Minh
Insurance Corp (Bao Minh)
Group-controlled: Petro Vietnam Insurance JSC (PVI),
Petrolimex Insurance JSC (Pjico), Post & Telecommuni-cation
Insurance JSC (PTI), Global Insurance Co. (GIC), Vietnam Avia-
tion Insurance JSC (VNI), Military Insurance Co. (MIC), SHB Vina-
comin Insurance JSC (SVIC)
Bank-based: Vietinbank Insurance Co. (VietInsco), BIDV Insur-
ance Co. (BIC), Agriculture Bank Insurance JSC (ABIC)
Private: Nha Rong Insurance JSC (Bao Long), Vien Dong Assur-
ance Corp (VASS), AAA Assurance JSC (AAA), Bao Tin Assur-
ance Corp (BAC), Hung King Insurance Corp (HKI), Great Moun-
tant Insurance JSC (GMIC)
Foreign: Gan-Groupama, QBE, Chartis, ACE, Liberty, Fubon,
MSIG, Cathay
Joint Venture: Bao Viet Tokyo Marine, United Insurance Co.
(UIC the JV among Bao Minh, Sompo & LG), Samsung Vina
Insurance (SVI)
There is only one reinsurer: Vietnam National Insurance Corp
(VinaRe).
Brokers
As insurance is best arranged through a licensed insurance
broker who can help companies to assess the underlying risks
and then arrange appropriate insurance on their behalf, there are
a number of licensed insurance brokers.
International: Jardine Lloyd Thompson (JLT), Aon, Marsh, Grass
Savoye Willis
Local: Viet Quoc, A Dong, Thai Binh Duong, Sao Viet, CIMEICO,
Nam A
(Reproduced by kind permission of Jardine Lloyd Thompson )
VIETNAM MAP
(Source: Wikimedia)
DOMESTIC ROUTES
DISTANCE
MILES/KMS OUTBOUND RETURN
HA NOI TO
Buon Ma Thuot 569/960 1:40 1:40
Cam Ranh - Nha Trang 646/1039 1:50 1:50
Da Lat 662/1065 1:40 1:40
Da Nang 377/606 1:15 1:15
Dien Bien 187/301 1:00 1:00
Ho Chi Minh City 707/1138 2:00 2:00
Hue 341/549 1:10 1:10
HO CHI MINH CITY TO
Buon Ma Thuot 162/260 1:00 0:55
Ca Mau 153/246 1:00 1:05
Con Son - Con Dao 130/210 1:00 1:05
Chu Lai 346/557 1:40 1:40
Da Lat 133/214 0:50 0:50
Da Nang 375/603 1:10 1:10
Ha Noi 707/1138 2:00 2:00
Hai Phong 691/1111 2:00 2:00
Hue 392/630 1:20 1:20
Phu Quoc 187/300 1:00 1:05
Pleiku 238/384 1:15 1:10
Quy Nhon 267/430 1:30 1:25
Rach Gia 121/194 0:50 0:45
Tuy Hoa 237/381 1:15 1:25
Vinh 549/883 1:45 1:45
DA NANG TO
Buon Ma Thuot 233/374 1:10 1:10
Ha Noi 377/606 1:10 1:10
Ho Chi Minh City 375/603 1:10 1:10
Pleiku 141/227 0:50 0:50
Quy Nhon 171/275 1:00 1:00
FLIGHT TIME
(Source: Vietnam Airlines)
RELEVANT WEBSITES
Government Office
Ministry of Public Security
Ministry of Home Affairs
Ministry of Justice
Ministry of Planning and Investment
Ministry of Finance
Ministry of Industry and Trade
Ministry of Agriculture and Rural Development
Ministry of Transport
Ministry of Construction
Ministry of Natural Resources and Environment
Ministry of Information and Communication
Ministry of Labor, War Invalid and Social Affairs
Ministry of Culture, Sports and Tourism
Ministry of Science and Technology
Ministry of Health
Ministry of Education and Training
Ministry of Foreign Affairs
State Bank of Vietnam
General Statistics Office of Vietnam
Directorate for Standards, Metrology and Quality
Vietnam National Administration of Tourism
Vietnam Customs Office
Vietnam Register Office
http://www.chinhphu.vn
http://www.mps.gov.vn
http://www.moha.gov.vn
http://www.moj.gov.vn
http://www.mpi.gov.vn
http://www.mof.gov.vn
http://www.moit.gov.vn
http://www.argoviet.gov.vn
http://www.mt.gov.vn
http://www.moc.gov.vn
http://www.monre.gov.vn
http://www.mic.gov.vn
http://www.molisa.gov.vn
http://www.cinet.gov.vn
http://www.most.gov.vn
http://www.moh.gov.vn
http://www.moet.gov.vn
http://www.mofa.gov.vn
http://www.sbv.gov.vn
http://www.gso.gov.vn
http://www.tcvn.gov.vn
http://www.vietnamtourism.com
http://www.customs.gov.vn
http://www.vr.org.vn

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14. Structural steelwork - beams, stanchions

Rates are based on projects in Bangalore and are nett of

300 24,000 N/A

Total Site Area of

With effect from 1 July 2011:

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