High probability of increased construction costs in 1st Q of 2022.

US inflation / escalation has risen 7% in the last 12 months, a rate not seen in 40 years. Other countries are experiencing increased inflation & escalation rates, these increases will impact construction costs around the world as we move further into 2022. ?

The main culprits are:

• Energy costs (Oil / Gasoline / Petrol / Diesel / Electricity) - some of these costs have risen by more than 25% in the last 10 weeks.
• Food prices / Consumer goods, on average food / grocery items have increased by more than 23% in the last 3 months.
• Housing / Apartment Rental / Automobiles / Car Rental / Hotel Accommodation, increases of more than 20% have occurred in the last 12 weeks.
• Transportation / Freight - Domestic & Overseas / Express Mail costs, some of these costs have increased by more than 35% in the last 4 months.
• Shortages of some key construction materials / components such as windows, metal studs / framing, doors, lighting fixtures, plumbing components, process pipe fittings & valves and other items are driving up prices and causing delivery delays to site, an item that took 4 weeks to be delivered now can take 8 weeks or more. (some contractors are paying premiums for early delivery of construction materials & process equipment).

1.????In the USA the feedback we are getting is that construction materials & labor costs will continue to increase by 6% to 9% in the 1st Q of 2022

2.????In Saudi Arabia the reports we are getting is that construction materials & labor costs will increase by 11% to 13% in the 1st Q of 2022

3.????Feedback from Russia is that construction inflation will increase by 11% to 12% in the 1st Q of 2022.

4.????In Great Britain, the inflation rate rose to a 10-year high in November, this will impact construction material costs in the 1st Q of 2022.

5. Brazil is on track to see see 11% to 13% inflation in the 1st Q of 2022.

6. In Poland the feedback we are getting is that construction materials & labor costs will increase by 8% to 11% in the 1st Q of 2022

7. India is forecast to see it's inflation rate rise to between 8% and 11% in the 1st Q of 2022, this of course will impact construction material costs.

8. South Africa is on course to see 6% to 9% inflation in 2022.

9. Reports out of Nigeria is that inflation / escalation will range between 16% and 20% for 2022.

10.?? Worldwide, Energy, Food, Freight, Consumer Goods & Housing prices are escalating at their fastest rate in 14 years.

Estimators / Quantity Surveyors / Cost Engineers & all Construction Professionals need to be aware that we will continue to see increased construction materials prices & material shortages in the 1st Q of 2022 caused by global supply chain issues & the continuing COVID / OMICRON pandemic.

Our (8) 2022 Cost Estimating Databases are now available. You can order your copies on the links below.

We provide Construction Estimating Data for 125 countries, we forecast Engineering, Procurement & Construction cost for 2022, applying latest inflation / escalation values to our historical benchmark database.

The Construction Cost Databases provide current construction materials, labor costs, field in-directs / preliminaries, process equipment, A&E-CM billing rates, Square Foot / M2 Building costs (for 50 + facility types), country productivity values & (2) location factors for complex (high value) & less complex( indigenous) facilities.

Our data is focused on Oil / Gas, Chemical, Pipelines, Offshore, Manufacturing (Consumer Goods, Food / Beverage / Computer Chips), Commercial (offices, hotels, shopping centers, airports), Pharmaceutical / Clean Rooms & Infrastructure Facilities:

For more information contact John G. McConville CCP - Operations Director - Compass International - USA Telephone +1 (609) 577 4505

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