Building a lab? Seoul, Paris and Rome are cheap, but try Jackson.
To better understand these variations, Haines Lundberg Waehler International (HLWI), a New York-based architectural/engineering/interior design firm, together with Accu-Cost Construction Consultants Inc., a New York-based cost-consulting firm, have developed a global index of construction costs for laboratories, animal research facilities, and process/pilot plants. This index represents costs compared to construction costs within the New York metropolitan area.
However, Robert Djerejian, HLWI's senior managing partner, cautions not to assume these construction costs are the sole indicator of development costs. "For instance, land prices in Tokyo, Hong Kong, Taipei, London, and Berlin are far higher than in New York, creating an overall higher development cost."
North America and Europe
The U.S., Canada, and a majority of European countries have well-established and predictable construction costs for their various regions. That's because these communities are satisfactorily serviced by many competing suppliers of laboratory and industrial products, and skilled construction labor is readily available.
Be aware, though, that "the methods of bidding and contracting vary between the two continents," says Stuart Pertz, HLWI's director of UK and European projects, "from a negotiated contract price in the U.S. to a quantity survey approach in most of Europe, with costs, construction timeframes, and product quality being nearly identical."
Conversely, the Pacific Rim is both unique and geographically diverse. It varies from the more predictable markets of Japan, South Korea, Taiwan, Singapore, and the Philippines, to the challenging and less predictable emerging nations, such as Malaysia, Vietnam, Thailand, Indonesia, and the People's Republic of China.
These emerging Asian nations have good growth potential in process/pilot plants and manufacturing facilities, but have little near-term expectations for new basic research facilities.
China represents the largest of these markets, with a practically limitless labor force that, by mandate, must be used. However, Chinese labor rates are regulated by the government and do not necessarily reflect actual wages nor the cost for training. Today, with few local suppliers of laboratory and industrial products, 60% to 80% of the building materials and construction equipment must be imported. An excise tax and import duty on all products raises what would be an abnormally low total construction cost to one that is just at or below U.S. and European price tags.
Many specialty finishes are difficult to achieve, and long construction periods can be expected, due to logistical problems related to the delivery of materials, especially inland. Accelerated, or "fast track" construction programs, are currently difficult to implement. The good news is that free trade zones have been established in selected coastal cities to promote faster development of the construction industry.
"The expected return on investment in China is four to five years, compared to nearly 20 years in the U.S.," says Yu-Heng Shang, HLWI's director of Asian projects. "Annual rents in the more attractive parts of many major Chinese cities are now approaching the base building construction costs."
Construction Cost Index for North America Anchorage 100 Atlanta 75 Baltimore, Md. 85 Billings, Mont. 60 Boston 90 Chicago 90 Cleveland 90 Dallas/Fort Worth 76 Denver 80 Honolulu 95 Houston 75 Jackson, Miss. 65 Los Angeles 100 Mexico City 70 Miami 70 Minneapolis 85 Montreal 95 New York City 110 Orlando, Fla. 70 Phoenix 75 Raleigh, N.C. 75 San Francisco 110 Salt Lake City 78 Seattle 85 Topeka, Kan. 69 Vancouver, Canada 92 Construction Cost Index For New York Metro Area (Dollars/gross [ft.sup.2]) Biotechnology lab 275 Chemistry lab 290 Process/pilot plant 310 Animal facility 340 Construction Cost Index For Asian Cities Beijing 85 Bangkok, Thailand 90 Bombay, India 95 Chungking, China 90 Hong Kong 80 Jakarta, Indonesia 95 Kuala Lumpur, Malaysia 90 Osaka, Japan 120 Sydney, Australia 90 Seoul, South Korea 83 Taipei, Taiwan 85 Tokyo 130
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|Title Annotation:||Jackson, Mississippi|
|Publication:||R & D|
|Date:||Oct 1, 1994|
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