QUARTERLY

COST
PUBLICATION

Quarterly

Cost

Publication

Issue 14 : June 2012

Langdon & Seah Singapore Pte Ltd

On 18th May 2012, Davis Langdon &

Seah Singapore Pte Ltd has changed its
name to Langdon & Seah Singapore
Pte Ltd.

Cost Update

With the global economic outlook shrouded in uncertainty and volatility not least by the financial crisis in the
Eurozone, coupled with the prevalent depressed market sentiments and slowing down of tendering activities
in the private commercial and residential sector, the tender price level for the first quarter of 2012
remained stable and competitive. The price stability is notwithstanding the February 2012 announcement of
further reduction in the Man-Year Entitlement (MYE) by an additional 5% for new projects awarded with
effect from 1 July 2012. The latest announcement will result in a cumulative MYE cut of 45% by July 2013.
Consumer Price Index (CPI) registered a strong increase of 5.2 percent in March 2012 from a year earlier
which reflected the current inflationary pressure on the Singapore economy.
The construction industry once again needs to brace itself to face and surmount another round of new
challenges on the input cost drivers:
1.

Constraints in foreign labour supply

The Governments further tightening of the foreign labour policy to reduce the construction industrys
reliance on foreign workers, will see us facing yet another challenge caused by further reduction of
foreign labour coming to Singapore. Whilst the contractors productivity measures on the prefabrication,
formwork system and dry construction, etc. could reduce the reliance on foreign workers gradually, the
constraint of the foreign labour supply in both skilled and non-skilled workers would inevitably lead to
further hike in labour cost.

2.

Disruption in aggregate supply

As reported in The Business Times Weekend on 12 May 2012, the Singapore construction industry has
been hit by a shortage of granite due to disruption in the supply from Indonesias Karimun Island. Even
though the disruption is limited to specific source, the Ready Mixed Concrete (RMC) price recorded an
increase of around 5% in the last few months.
Whilst the actual cost impact on RMC is not definitive at this point in time, we note that the RMC price
has gone up by S$5/m3 S$10/m3 recently. For a ballpark cost indication, a S$10/m3 of RMC supply
price increase would equate to around 0.6% of a typical suburban condominium construction cost and
would vary according to the development type and design parameters.

3.

Reduction in earthworks disposal location

Due to the reduction in mainland earthworks disposal locations or dumping grounds, there has been a
surge in demand for the earthworks disposal offshore. The resultant longer queuing time at the
onshore/offshore dumping ground, leads to higher transportation cost for earthworks disposal. Recent
piling tenders revealed earthworks disposal unit rates that were as high as S$45/m3 S$50/m3
compared with S$15/m3 S$20/m3 previously. The cost impact would be an approximate 0.5% 1.5% increase in the construction cost and possibly higher for projects with deep basement.

Given the above factors and with the BCAs forecast of private sector construction demand at around S$8
billion S$12 billion which is around 41% of the total construction demand of S$21 billion - S$27 billion for
2012, we would recommend that developers allow for a construction cost escalation provision of 2% - 4%
for tenders to be called in 9 - 12 months time.

Copyright .

Issue 14 : June 2012

MICA (P) No. 027/12/2011

Quarterly
Construction Costs for
Different Types of
Development

Cost

Publication

1Q2012
(S$/m2 CFA)

Type
RESIDENTIAL
Terraced Houses
Semi-Detached Houses
Detached Houses
Average Standard Condominium
Above Average Standard Condominium
Luxury Condominium

2,400
2,550
3,000
1,850
2,100
2,800

2,650
3,000
4,000
2,100
2,800
4,200

OFFICE
Average Standard Offices
Prestige Offices

2,400
2,600

2,600
2,900

COMMERCIAL
Shopping Centres, Average Quality
Shopping Centres, High Quality
Theatres / Cinemas (excluding F.F. & E.)

2,600
2,800
1,950

2,800
3,100
2,200

CARPARKS
Multi-Storey Carparks
Basement Carparks

900
1,300

1,300
1,750

INDUSTRIAL
Flatted Light Industrial Buildings
Flatted Heavy Industrial Buildings
Single Storey Industrial Buildings
Flatted Warehouses
Single Storey Warehouses

1,250
1,400
1,150
1,150
1,000

1,400
1,850
1,300
1,300
1,300

HOTEL (Including F.F. & E.)

Resort Hotels
3-Star Hotels
4-Star Hotels
5-Star Hotels
Serviced Apartments

2,850
2,950
3,100
3,750
2,200

3,100
3,200
3,700
4,300
2,850

HEALTH
Private Hospitals
3,750

3,950
Polyclinics
1,550

1,750
Nursing Homes, non air-conditioned
1,550

1,850
Medical Centres
2,900

3,100
The construction costs above serve only 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, site conditions
and many other factors and may vary from the figures shown. The costs per square metre are
based on Construction Floor Areas (CFA) 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 (except otherwise stated) and are built on flat
ground, with normal soil conditions and minimal external works. The costs exclude the following:
Professional fees
Authorities plan processing charges
Land cost
Financing charges
Site inspectorate
Administrative expenses

Copyright .

Legal costs & disbursements

Demolition of existing building(s)
Fittings, furniture and equipment (F.F. & E.) (unless otherwise stated)
Operating equipment
Cost escalation
Goods and services tax

Issue 14 : June 2012

MICA (P) No. 027/12/2011

Quarterly
Mechanical and
Electrical Installation
Costs for Different
Types of Development

Type

Cost

Publication

1Q2012
M&E Cost (S$/m2 CFA)

RESIDENTIAL
Detached Houses
Average Standard Condominium
Luxury Condominium

240
325
416

312
484
779

OFFICE
Average Standard Offices
Prestige Offices

488
584

691
876

INDUSTRIAL
Flatted Factories
Warehouses

254
180

489
382

HOTELS
Resort Hotels
3-Star Hotels
5-Star Hotels

579
609
800

811
846
1,028

INSTITUTION
Hostel
School

260
161

451
308

OTHERS
Multi-Storey Carparks
Basement Carparks
Shopping Centres

54
85
502

148
176
864

The M&E installation costs above serve only as guide for preliminary cost appraisals and budgeting purposes. It must be
understood that the actual costs for M&E installation will depend on the system design, site conditions and many other
factors and may vary from the figures shown. The costs per square metre are based on Construction Floor Area (CFA). All
buildings are assumed to have no basement and the costs exclude the following:
Professional fees
Utilities connection charges
Decorative light fittings
Operating equipment
Diversion of existing M&E services
Fit-out works to tenanted areas
Cost escalation
Goods and services tax

Air Fabric
Ducting

Air fabric ducting is an alternative to traditional metal ducting and diffusers. Due to advances in technology, instead
of transporting air through steel ductwork, duct made of permeable fabric can also be used. The heat load
calculations and equipment sizing for the air fabric ducting remained the same as traditional metal duct system.
Fabric Ductwork versus Metal Ductwork
Traditional metal duct system discharges air through side mounted metal diffusers usually spaced 3m to 4.5m apart.
The air is directed to specific zones resulting in less efficient mixing of air in the occupied space, and often drafting
hot or cold spots. With fabric ductwork, air is discharged more uniformly along the entire length, and provides
consistent and uniform air dispersion in the occupied space, with better air mixing and indoor air quality.
Why Fabric Ductwork?
Fabric ductwork systems have many advantages, and can be helpful in attaining BCA Green Mark and LEED credits.
1.
2.
3.

4.

5.
6.

7.

Copyright .

Simplified Design/Uniform Air Dispersion: The entire system

is a diffuser; air can be supplied to the occupied space in a
more efficient pattern.
Cost Savings: The cost of a fabric ductwork is 20% to 30%
lesser as compared to traditional metal ductwork.
Lightweight/Easy to Transport: The weight of a fabric
ductwork system can be significantly less than a comparable
metal ductwork system. It also means lighter roof loads, ease
of handling, and reduced need for power lifting equipment.
Smaller and lighter packages reduce transportation costs and
damage.
Quiet: With a properly designed fabric air ducting system,
air is delivered quietly, and without moving parts and is
diffused at a lower velocity. In addition, fabrics provide noise
absorption benefits in the occupied space.
Air Porous: Air passing through the fabric may eliminate
condensation and deflect airborne dust from accumulating on
the surfaces.
Easy to Maintain/Clean: Cleaning metal ductwork can be
expensive. The fabric ducting can be easily removed, washed
and reinstalled when cleaning and maintenance is necessary.
This would be useful in places such as food preparation and
storage facilities.
Green: As compared to metal duct/diffuser, fabric duct cools
the occupied space faster and more uniformly to satisfy
temperature set points, which results in reduced mechanical
equipment runtime, thus saving energy in the process. The
fabric duct is made from textile with no harmful substances
which is environmentally friendly.

Issue 14 : June 2012

MICA (P) No. 027/12/2011

Quarterly

Cost

Publication

Tender Price Index (TPI)

L&S TPI is a measure of the comparative tender price movements based on the projects handled by Langdon & Seah Singapore Pte Ltd. The TPI reflects the
tender price level of contracts let out over the years. Other than material and labour costs, it takes into account the elements of competition, risk and profits.
155

Tender PriceIndex (BaseYear at 2005)

150

L&S

150.0

BCA*

145
140
135

131.6

130

137.3

125
120
115
110
105

112.9

95
90
85

122.5

113.3

108.4
105.0

100
100.7

107.6 107.3
104.8
100.2

120.9
116.8

108.0
98.9 100.0

102.4
91.8

95.6
90.4

91.2

88.9
87.9

80

88.1

90.6
89.9

96.9

112.7

123.3 123.3

114.0 114.0 113.3

103.2

100.0

91.4

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 4Q09 4Q10 4Q11 1Q12

Source: * Building and Construction Authority as at 15 May 2012

Note:
With effect from the 1st Quarter of 2009, BCA has implemented the new TPI series with Base Year 2005 = 100. The TPI chart
shown above has been amended accordingly to reflect the Base Year as Year 2005.

Langdon & Seah Project : Gardens by The Bay - Bay South Garden
Scheduled to open in June 2012, The Bay South Garden, with an overall area of 54 hectares, is part of the world class waterfront gardens being developed
under the Gardens by the Bay Masterplan by the National Parks Board. The Bay South Garden is located at the southern tip of Singapore and next to the
Marina Bay Integrated Resort.
The 54 hectares garden showcases three signature features the Conservatory Complex, Supertrees and the Horticultural Themed Gardens.
The Conservatory Complex comprises two cooled conservatories; namely the Flower Dome and the Cloud Forest. Each will be showcasing different species of
flowers and plants from various temperate zones around the world as well as sustainable energy technology. Enjoy a stroll through the Flower Dome where it
displays a diversified species of plants and flowers from the Mediterranean-type climate regions and then step into the Cloud Forest where you will be
greeted by a mountain walk which will bring you closer to many different species of plants and flowers from the Tropical Montane region.
The Supertrees are designed as big tree-like structures; each between 25 metres to 50 metres high with an aerial walkway linking two of the Supertrees.
There is also a restaurant outlet housed in the tallest Supertree where guests can wine and dine with a spectacular view of the entire gardens. When night
falls, the Supertrees will come alive in a spectacular displays of lights.
The Horticultural Themed Gardens include two collections of Themed Gardens, namely the Heritage Gardens and the World of Plants. The Heritage Gardens
include a collection of four gardens that reflect the cultures of Singapores main ethnic groups and the colonial heritage. The World of Plants; over six
different gardens based on the theme of Plants and Planets; each showcasing the vast webs of different relationships in the rainforests and the various
functions of plants life on the planet.
Langdon & Seah Singapore Pte Ltd is proud to be the Project Quantity Surveyor and Mechanical & Electrical Quantity Surveyor for this iconic recreational
development.

Photographs courtesy of National Parks Board

Cost Research Department
Eugene Seah, Ho Kong Mo, Cheryl Lum and Christine Chan

Cost Analysis & Research of tenders and its price indexing

Value Management & Engineering exploring schemes, architectural forms and

constructions methods towards achieving efficiency and buildability

Benchmarking Generic, Competitive, external and internal

Reinstatement Cost Assessment

Due Diligence Reporting

Mechanical & Electrical Quantity Surveying Department

Goh Chok Sin, Lorimer A. Doig and Sunny Li

Budget and detailed cost estimating

Tender and Contract documentation

Financial management of contract

Value engineering

Life cycle costing

Capital allowances taxation assistance

Dispute resolution and expert witness reports

Cost audit

Contact us at our Email; CostResearch@sg.langdonseah.com; M&Eunit@sg.langdonseah.com;

Langdon & Seah Singapore Tel. 65 6222 3888 or Visit our website at www.langdonseah.com
Langdon & Seah Quarterly Cost Publication provides a synopsis of cost information and issues in the construction industry and is intended for information purposes only. While Langdon & Seah endeavours to
ensure the accuracy and completeness of the information sheet, specific professional legal advice should be obtained and no reliance should be placed on any part of its contents. All rights reserved. Copying
in any form or by any means (electronic, photocopying or otherwise) is strictly prohibited without the written permission of Langdon & Seah.

Copyright .

Issue 14 : June 2012

MICA (P) No. 027/12/2011