Research article

Build cost & programme: time scales have increased

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Abstract

Latest SPECS indicators show pressure on logistics build costs

  • The latest indicators from the Savills ProgrammE and Cost Sentiment Survey (S.P.E.C.S) demonstrate that build costs and programme delivery time scales have increased slightly into into 2018.
  • For the construction industry this higher level of development and occupier demand is manifesting itself in a number of different ways. For small to mid box schemes we are seeing programme and cost pressure whereas on the larger schemes these are being absorbed for the time being.
  • We are starting to see strain in certain segments of the contractor market, and the beginning of some selection of tenders due to the volume of work. Splitting out development readiness works and smart procurement are helping to mitigate this.
Figure 29

FIGURE 29 | Build cost and timescale sentiment
Source: Savills Research, SPECS