1997 Acta Structilia Vol 4 No 1

Sources of International

Cost Data

Kenneth K Humphreys

Summary

A good estimator can readily develop the estimate for a project in
the home country, but such is not always the case for other nations.
While cost engineers, quantity surveyors and project managers are
generally very familiar with major sources of cost data in their own
country, they are often unaware of useful sources of cost data and
related information in other countries. This problem is exacerbated
by lack of time to perform a proper search, publications in various
languages, and lack of information about key factors that can
impact the estimate for particular geographic locations.
Keywords: Cost data, international countries, estimate.

BRONNE VIR INTERNASIONALE KOSTE-DATA

Opsomming

'n Goeie kosteberamer ondervind min probleme om die koste van
projekte in sy eie land te beraam, moor dit is nie die geval waar werk
in die buiteland aangepak word nie. Terwyl kosteingenieurs,
bourekenaars en projekbestuurders meestal op die hoogte is met die
vemaamste bronne van plaaslik koste-data, is hulle redelik in die
duister oor nuttige data-bronne en inligting in die buiteland. Tydsdruk
vererger die probleem, gevolglik kan 'n behoorlike soektog nie altyd
geloods word nie. Publikasies in ander tale is soms onverstaanbaar en
moeilik bekombaar en verder bestaan door 'n algemene tekort aan
inligting oor sleuteldata wat 'n impak mag he op beramings
rakende besondere geografiese liggings van terreine van projekte.
Sleutelwoorde: Koste-data, buiteland, kosteberaming.

Keynote address presented at the NORDNET '97 Conference, "Qual
ity in Project Management", Reykjavik, Iceland 1997. Dr. Kenneth K.
Humphreys, PE CCE, Secretary-Treasurer, International Cost Engi
neering Council, 1168 Hidden Lake Drive, Granite Falls, NC 28630,
USA. His paper was originally presented at the Fourteenth Interna
tional Cost Engineering Congress, Guadalajara, Mexico, February,
1996. It received the Jan M. Korevaar Outstanding Paper Award
from the International Cost Engineering Council. The paper was up
dated and expanded for presentation at the 1997 NORDNET Confer
ence.

Humphreys/ Sources of International Cost Data

Introduction

I
ndustrial firms are increasingly multinational, and many
companies now build and operate plants in several na
tions. Economic cooperation agreements between na

tions, such as the European Economic Community (EEC),
the North American Free Trade Agreement (NAFTA), and
the General Agreement on Tariffs and Trade (GATTJ are
encouraging further industrial globalization.

It is therefore becoming increasingly important for project
control professionals to be familiar with techniques for esti
mating costs in other countries and to be able to compare
costs in different nations. The questions that are always be
ing asked are: "What will this plant cost in the U.S.?" "What
about Australia, Germany, Norway, and Mexico?" and
"Which location is the most attractive financially?"

A good estimator or cost engineer can readily develop the
estimate for a plant in the home country, but such is not al
ways the case for other nations. While cost engineers,
quantity surveyors, and project managers are generally
very familiar with major sources of cost data in their own
country, they are often unaware of useful sources of cost
data and related information in other countries. This prob
lem is exacerbated by lack of time to perform a proper
search, publications in various languages, and lack of infor
mation about key factors that can impact the estimate for
particular geographic locations.

The following discussion is far from complete but should pro
vide some insight into the availability of international cost
data and location factors. Included are:

1. Descriptions of multicountry data sources for prelimi
nary or conceptual cost studies,

2. Notation of major database sources of unit price/cost
data for specific countries, and

1997 Acta Structilia Vol 4 No 1

3. Presentation of some example data to illustrate the

kind of resources available for international project
studies.

Limitations of published data

The information sources described in this paper are primar
ily periodical publications of various types. Published infor
mation must always be used with care. Every location

factor or commonly available cost index has its own under
lying method of construction, with its particular inherent
components and weightings. It is vital for the estimator us
ing such quick-estimate data to understand how it was cre
ated,· and to recognize just what its limitations and
applications are. Published data also is often inadequately
explained and is frequently improperly dated. Date of pub
lication is meaningless because the data may be months or
years old and may require adjustment to current cost levels.
Equipment cost data may or may not include ancillaries
and/ or transportation and installation costs, etc. Too often it
seems that in the rush to complete the assignment, people
will grasp any number they can find without fully under
standing how it was derived, or what it represents.

With location factors, one must recognize that they gener
ally reflect only the relative cost to replicate a facility ex
actly in another location. The factors do not consider cost
effects which are introduced by unique site conditions such
as climate, earthquake and geological considerations,
etc. If the design is not identical in both locations, the cost
differences are not generally accounted for if location fac
tors alone are used.

Background sources

It is beyond the scope of this paper to discuss the many
complex problems that must be recognized in preparing
estimates for international projects. Nevertheless, due to

Humphreys/ Sources of International Cost Data

their importance, some mention of the available back
ground literature is appropriate.

In order for a proper estimate to be made of a particular in
ternational project, it is vital to understand the conditions
existing in the country or countries where a project is to be
located. In a 1978 paper presented at the Fifth International
Cost Engineering Congress, Utrecht, Netherlands, C.G.
Walker( 1) outlined the major economic system parameters
to be evaluated as follows:

Political

stability
attitude towards foreign investment
type of bureaucracy

Finance

banking system
insurance regulations
tax system
duties

Legal System

· laws governing conduct of business and
individual freedom

Social System

business ethics
education
language and religion

Geography

infrastructure and communication
climate

Industry

capacity
diversity
efficiency

Many other authors(2- l 0) have discussed site- or country
specific factors that can impact the cost schedule, and/or
price for an international project. These include: local ma
terial quality/availability, labor availability, equipment
availability, labor productivity, import duties, import li-

1997 Acta Structilia Vol 4 No 1

censes, local taxes, language, length of workweek, holi
days, inflation, fluctuating exchange rates, religious
customs, buy-local laws, shipping cycles, weather/climatic
impacts, workforce level of education, logistics, workforce
housing, and many other relevant factors. Regional varia
tions of these factors within a country must also be ex
pected, and remoteness/distance from major cities or
supply centers can often aggravate the above problems
even further.

A. Patrascu( 11-13) has proposed pre-estimate survey
checklists to help identify background concerns for foreign
construction projects. These checklists delineate a large
number of factors which must be considered, including
those described by Walker( 1).

For offshore projects, an excellent detailed checklist(14) is
available from the Association of Cost Engineers (ACE), Lea
House, 5 Middlewich Road, Sandbach, Cheshire CWl 1 9XL
United Kingdom. Based on North Sea oil field construction
experience, this publication provides a very detailed
breakdown for offshore work.

Many other practical references ( eg, 15-27) are useful in
preparation for estimating international projects. However,
background literature such as the publications mentioned
here cannot replace pre-estimate site visits, proper con
tract development, and talking with others who have expe
rience estimating work in the particular country or countries
of interest. Review of appropriate literature, however, can
help to ensure that all important factors for the project have
been considered in developing the estimate.

To this point, this paper has described the extreme com
plexity involved in costing out-of-country projects. The refer
ences mentioned, while far from being a complete list,
should nevertheless make the cost engineer aware of most
of the potentially important considerations which are
unique to international work.

Humphreys/ Sources of International Cost Data

International location factors

When little time is available or warranted to perform the
type of background studies suggested above, and de
tailed design and engineering has not been completed,
estimators must turn to published indexes, location factors,
or other sources of relevant data for help.

A location factor is an instantaneous, overall, total cost fac
tor for converting a base project cost from one geographic
location to another. This factor recognizes differences in
productivity and costs for labor, engineered equipment,
bulk materials, commodities, freight, duty, taxes, indirects
and project administration. The cost of land, scope/design
differences for local regulations and codes and differences
in operating philosophies are not included in the location
factor.

With the current rush of industries attempting to globalize,
use of location factors has become increasingly important.
Location factors should be used to factor a base estimate
for comparing costs at differing locations and not for the
funding estimate for the selected location. After selection,
a higher quality estimate should be developed for project
funding.

Many countries do not have the capability to manufacture
certain specialized equipment and routinely import this ma
terial. So the degree of local vs import and the relative cost
differences need to be part of the location factor calcula
tion. Many companies use U.S. costs and apply percent
ages for freight, import duties and customs and broker fees.

Two other issues that should be considered are:

a. importing of certain items because of quality or
scheduling problems; and

1997 Acta Structilia Vol 4 No 1

b. importing and paying the associated costs (if local
regulations so allow) of materials from another
country because local manufacturing costs are
high.

These items can greatly affect the material and equipment
costs for an actual project. The location factor needs to re
flect the above considerations and expected or known
strategies with the factors being adjusted accordingly.

Local monetary rates, productivity differentials and benefits
and burdens vary enormously in individual countries. Gov
ernmental employment regulations, rules for foreign work
ers, travel and support costs, and religious and cultural
differences must be carefully evaluated. All can impact a
location cost factor program. Table 1 shows some details
and location cost factors for a range of countries(78).

Table 2 contains a series of worldwide area productivity
factors(78). As indicated, the basic elements are weather,
culture and work ethic, trade skills, and numerous other fac
tors. The factors are conceptual numbers and considerable
judgement is required for their proper application.

In addition to the factors described above, Table 3 provides
a listing of international data sources.The references in Ta
ble 3 are examples of multicountry data sources. For con
ceptual studies these may be useful, depending on what
countries are of interest. Other references (eg, 6, 35, and
36) may also be of help. Various reports by banks, govern
ments, trade associations, etc also exist if one is willing to
search for them. An example is a report(37) that compares
building costs in a number of countries to those in Malaysia.
This special report was issued by a government task force
and provides a handy reference for those comparing build
ing costs in Pacific Rim countries.

Massa(3,4) has developed international cost location fac
tors based upon a weighting of 33.05 percent for a labor

Humphreys / Sources of International Cost Data

factor, 53.45 percent for an equipment and civil material
factor, and 13.50 percent for an indirect and home office
cost factor. He presents a detailed form for calculating
these three factors and the composite factor for any given
country referenced to U.S. Gulf Coast costs. Massa has also
provided labor factors for many countries. His factors are
presented in Table 4 along with a list of country location
factors previously reported by Bridgewater(5, 38). The
Bridgewater factors are for complete chemical plants and
are referenced to both the United Kingdom and the United
States. (Note: The Bridgewater factors were developed in
the late 1970's and reflect currency exchange rates, taxes
and duties prevailing at that time. They should not be used
without adjustment for changes which have occurred
since the factors were developed.)

In addition to these sources, another excellent source of lo
cation factor information is the AACE International "Loca
tion Factor" Committee. This committee maintains a listing
of industry contacts who are willing to share location fac
tors and foreign cost estimating data. The contact list in
cludes representatives of many multi-national firms. The
committee may be contacted via AACE International at
209 Prairie Ave., Morgantown, WV 26505; Phone (800)
858-2678 in the US or (304) 296-8444 (other countries); Fax
(304) 291-5728 or through the committee chairman, Mr. Ber
nie A. Pietlock, DuPont Engineering, Nemours 7440-6, 1007
Market Street, Wilmington, DE 19898, USA; Phone (302)
77 4-1191; Fax (302) 77 4-1347; E-mail: Bernard.A.Piet
lock@USA.DuPont.Com.

Country Cost Indexes

Cost indexes are valuable proven tools for adjusting costs
for changes over time and, in combination with appropri
ate location factors, can facilitate development of con
ceptual estimates. The AACE Cost Engineers' Notebook(39)
describes 28 indexes and index sources for U.S. and Cana
dian costs and 27 indexes and index sources for many other

1997 Acta Structilia Vol 4 No 1

countries, including Australia, Brazil. England, France, Italy,
Japan, Mexico, the Netherlands, New Zealand, and Ger
many. A description of each index or index source is given
in Table 5.

Cost data sources

Various compilers and publishers maintain databases of
costs which form the basis for their various cost publications.
A few of these are listed in Table 6. Of these, the Dutch Asso
ciation of Cost Engineers Pricebook( 61) is particularly valu
able as a source of information for European process plant
costs. The book reports actual installed project costs as re
ported by nearly 200 Dutch companies. A though the book
is published in Dutch, an English glossary of terms makes it
very easy to use by those who do not read the Dutch lan
guage.

The R. S. Means Company(33) publishes numerous cost
books for the US and Canada and distributes many for
other countries in cooperation with other publishers. Nota
ble are a Russian version of Means' well known Building
Construction Cost Data and an English language newslet
ter Construction Market Intelligence Russia which are pre
pared in cooperation with Co-Invest (79), a Russian firm.
Means also distributes Costos(80), a guide to Mexican build
ing costs and Square Meter Construction Costs in Mexico
(81 J in cooperation with BIMSA; Construction Investment
Guide for Vietnam in cooperation with Rawlinsons (82); and
Construction and Development in Vietnam in cooperation
with Davis Langdon and Seah, International (83).

Another major source of information is the Project and Cost
Management Forum or "TCMForum" on CompuServe and
its companion vendor forum, "TCMVen." Founded by
AACE International. these forums have attracted over
20,000 cost and project professionals who regularly use
them to share cost information and project experience.

Humphreys / Sources of International Cost Data

Beyond these, an invaluable source of information and
costs are the various cost engineering and project man
agement societies throughout the world. Their members
and employing firms are the most valuable network of inter
national cost information that exists anywhere.

At the time of this writing, the member societies of the Inter
national Cost Engineering Council (ICEC) represented, ei
ther directly or through their branches and chapters, over
40 countries. These societies have individual members in
well over l 00 countries, thus being an extensive worldwide
network of information sources. The International Project
Management Association (IPMA) similarly has about 26
member societies representing many nations. A list of the
members of ICEC and IPMA is given in Table 7. Many of
these societies do not have permanent headquarters of
fices. A complete list of all IC EC or IPMA members with con
tact addresses including e-mail and Internet homepage

links is available at all times on the ICEC Internet
homepage, <http://www.lCostE.org>. Alternately, ICEC or
IPMA may be contacted directly to obtain current address
information for any of their member societies.

Summary

The best summary for this discussion is from John R. Barry's
paper, "Ten Commandments of International Cost Engi
neering," presented at the 1993 Annual Meeting of AACE
International (25):

The reliability of available data is usually suspect, so test,
test, and retest it. Communication problems are difficult
across cultures, and sometimes language differences can
cause misunderstandings when soliciting data. The use of
international factors is a session all on its own. A few basic
principles for guidance include keeping in mind that a time
or place factor means nothing without an exchange rate
and date and that a base city must be identifiable, since
variation can exist within your home country.

1997 Acta Structilia Vol 4 No 1

The paper concluded with Barry's "Ten Commandments for
Worldwide Cost Engineering," which have appeared in
several of his articles over the years. They are a fitting con
clusion to this paper as well.

John Barry's Ten Commandments for Worldwide Cost
Engineering

l. Thou shalt not begin an international cost engineer
ing assignment without preparing for the differences
in culture and protocol.

2. Thou shalt not ignore investment objectives of the
target country's government.

3. Thou shalt not look at building your own facilities as
the only way to enter business in a country.

4. Thou shall not use biased estimated scope that does
not reflect technical, cultural, legal, and climate dif
ferences.

5. Thou shalt not ignore what equipment must be im
ported and the impact on cost and schedule.

6. Thou shalt not accept as gospel cost data for other
countries without thoroughly checking for under
standing and testing for reasonableness.

7. Thou shalt not ignore productivity, weather, religious
practices, and construction methods when calcu
lating labor cost.

8. Thou shalt not ignore the additional risks associated
with cost and schedule on international projects.

9. Thou shalt not forget that AACE and ICEC members
are valuable resources who are capable and willing
to help.

l 0. Thou shalt not ignore the previous nine command
ments.

Humphreys / Sources of International Cost Data

References and information sources

1. Walker, C.G., "Estimating Construction Costs Abroad,"
Transactions of the Fifth International Cost Engineering
Congress, Paper A.10, Dutch Association of Cost Engi
neers, The Hague, Netherlands, 1978.

2. Cran, J., "A Cost and Location Index Grid," AACE
Transactions, Paper F.2, American Association of ·Cost
Engineers, Morgantown, WV, 1984.

3. Massa, R.V., "A Survey of International Cost Indexes, A
North American Perspective," 1st European Cost Engi
neering Forum, International Cost Engineering Coun
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4. Massa, R.V., "International Composite Cost Location
Factors," AACE Transactions, Paper F. l, American As
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5. Humphreys, K.K., Jelen 's Cost and Optimization Engi
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6. Kharbanda, O.P., Process Plant and Equipment Cost
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7. Richter, I.E., International Construction Claims: Avoid
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8. Stallworthy, E.A., International Construction and the
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9. Kharbanda, O.P. and E.A. Stallworthy, How to Learn
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10. Kerzner, H., Project Management: A Systems Ap
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11. Patrascu, A., Construction Cost Engineering, Crafts
man Book Co., Carlsbad, CA, 1978, p. 55.

1997 Acta Structilia Vol 4 No 1

12. Patrascu, A., Construction Cost Engineering Hand
book, Marcel Dekker, Inc., New York, 1988.

13. Patrascu, A., "Pre-estimating Survey. The International
Aspect," AACE Transactions, Paper B.A, 1979, and
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Association of Cost Engineers, Morgantown, WV, 1989.

14. Estimating Check List for Offshore Projects, Association
of Cost Engineers, Sandbach, Cheshire, United King
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15. Foreign Labor Trends, U.S. Department of �abor, Bu
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16. Hanscomb/Means International Construction Cost In
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1175 Peachtree St., N.E., Atlanta, GA 02356.

17. Smith, K.A., "Forecasting Construction Costs for Inter
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American Association of Cost Engineers, Morgantown,
WV, 1978.

18. Grinberg, M., "Planning and Scheduling an Interna
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can Association of Cost Engineers, Morgantown, WV,
1981.

19. Milot, M., "Third World Estimating in Project Manage
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ciation of Cost Engineers, Morgantown, WV, 1984.

20. Sinclair, D.N., Estimating for Abnormal Conditions, In
dustrial Press, Inc., New York, 1989.

21. Ruddock, L., "Productivity in the UK Construction In
dustry," AACE Transactions, Paper L. l, American Asso
ciation of Cost Engineers, Morgantown, WV, 1991.

22. Hinojosa, L.C. and R. Vazquez del Mercado, "Mexico
Infrastructure Projects Cost Engineering Support,"

Humphreys/ Sources of International Cost Data

AACE Transactions, Paper G.3, American Association
of Cost Engineers, Morgantown, WV, 1992.

23. Watson, R.B., "Cost Control of Engineering Sources in
Buildings," (UK) AACE Transactions, Paper E.5, Ameri
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1992.

24. Hinojosa, L.C. and R. Vazquez del Mercado, "Para
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American Association of Cost Engineers, Morgantown,
WV, 1993.

25. Barry, J.E., "Ten Commandments of International Cost
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26. "Symposium INT" (Eight papers on international cost
estimating and cost management), AACE Transac
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27. Transactions of the 13th International Cost Engineering
Congress, Association of Cost Engineers, Sandbach,
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28. Mcconville, J.G., The 1996 International Construction
Costs and Reference Data Yearbook, John Wiley &
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29. United Nations Monthly Bulletin of Statistics, United Na
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30. Engineering News-Record (weekly magazine),
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31. Varela, Leopoldo, Costos de Construccion Pesada y
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32. E & FN Spon, Ltd., 2-6 Boundary Row, London SEl 8HN,
United Kingdom.

33. R.S. Means Co., 100 Construction Plaza, PO Box 800,
Kingston, MA 02364-0800.

1997 Acta Structilia Vol 4 No 1

34. Richardson Engineering Services, 17 42 S. Fraser Dr., PO
Box 9103, Mesa, AZ 85214-1903.

35. Woodward, P .N., Oil and Labor in the Middle East,
Praeger Publishing Co., One Madison Ave., New York,
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36. Bu-Bshait, K.A. and Manzanero, I., "A Look at Planning
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37. Fong, C.K., ed., "Report on the Cost Competitiveness

of the Construction Industry in Singapore," Construc
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38. Bridgewater, A.V., "International Construction Cost Lo
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39. Cost Engineers' Notebook, American Association of
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40. Building Cost Index, Australian Institute of Quantity Sur
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41. Construction Cost Index, Amax Australia Ltd., 200 St.
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42. Australian Builder, Australian Builder Publishing Co. Pty.
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43. Corde/I's Building Cost Book, Cordells Building Publica
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44. Monthly Summary of Statistics, Australian Bureau of
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45. Revista de Precos, Av. N.S. de Capacabana, 749 Gr
801, Rio de Janeiro, Brazil.

Humphreys / Sources of International Cost Data

46. Bo/etim de Custos, Rua Dana Mariana Nn. 2, Bota
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47. A Construcao, Rua Anhaia 964, CEP 01130, SaoPaulo,
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48. Conjuntura, lnstituto Brasileiro de Economic, Funda
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49. NTC-Associacao Nacional dos Transportadores de
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Brazil.

50. Statistics Canada, Prices Division, Ottawa, Ontario,
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51. A.C.E. Indices of Erected Plant Costs, Association of
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52. Price Index Numbers for Current Cost Accounting, De
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53. Index Coefficients, Roux S.A., 51 Ampere, 75017, Paris,
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55. Index, Centro Statistica Aziendale S.r.l., Via A. Baldesi
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56. Prezzi lnformativi Delle Opere Edili in Milano, Camera
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57. Construction Price Indices by Year, Price Indices of
General Machinery and Equipment, Non- Life Insur
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gadai, Chiyoda-ku, Tokyo, Japan.

1997 Acta Structilia Vol 4 No 1

58. MRC Monthly Standard Building Cost Indexes and Unit
Price Data Bulletin. Management Research Society for
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59. Cifras de la Construccion, Fuente Camara Nacional
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ico DF, Mexico.

60. lndice Nacional de Precios Al Consumidor, Fuente
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Mexico.

61. Dutch Association of Cost Engineers Prijzenboekje (Pri
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Netherlands.

62. Ministry of Works and Development Construction Cost
Index. Ministry of Works & Development, PO Box 12
041, Wellington North, New Zealand.

63. Monthly Abstract of Statistics, Department of Statistics.
Aorangi House. 85 Molesworth Street, Wellington, New
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64. Fachserie 17: Preise. Verlag W. Kohlhammer GmbH,
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65. Bureau of the Census. Construction Statistics Division,
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66. Construction Industry Institute. 3208 Red River St .• Suite
300, Austin, TX 78705-2650.

67. Whitman. Requardt & Associates. 2315 St. Paul Street,
Baltimore. MD 21218.

Humphreys / Sources of International Cost Data

68. Turner Construction Co., 150 E. 42nd Street, New York,
10017.

69. Smith, Hinchman & Grylls, Inc., 455 W. Fort Street, De
troit, Ml 48226.

70. Boeckh Division, American Appraisal Associates, Inc.,
525 E. Michigan St., Milwaukee, WI 53201.

71. Marshall & Swift, Inc., 1617 Beverly Blvd., Los Angeles,
CA 90026.

72. Chemical Engineering (bi-weekly magazine),
McGraw-Hill, Inc., 1221 Avenue of the Americas, New
York, NY 10020.

73. U.S. Dept. of Transportation, Federal Highway Admin
istration, Interstate Management Branch, HNG-13,
Washington, DC 20590.

74. U.S. Dept. of Labor, Bureau of Labor Statistics (BLS),
Washington, DC 20212.

75. Associated Equipment Distributors (AED), 615 West
22nd Street, Oak Brook, IL 60523.

7 6. The Building Economist, Australian Institute of Quantity
Surveyors, National Surveyors House, 27-29 Napier
Close, Deakin, ACT 2600, Australia.

77. Shenzhen Property and Building Price Yearbook (in
English and Chinese), Shenzhen Construction Quota
tion Price Management Department, West, 14th Floor,
Jianyi Tower, 6 Zhen Xing Rd., Futian, Shenzhen,
Guangdong Province, Peoples Republic of China.

78. Bent, J.A. and Humphreys, K.K., eds., Effective Project
Management Through Applied Cost and Schedule
Control, Marcel Dekker, Inc., New York, 1996.

79. Co-Invest, 79, Vernadsky Prosp., Room 1311, 117943
Moscow, Russia.

80. COSTOS Edicion Nacional, BIMSA Southam S.A. de
C.V., S6focles No. 118, Col. Chapultepec Polanco,

1997 Acta Structilia Vol 4 No 1

Deleg. Miguel Hidalgo, C.P. 11560, Mexico, D.F., pub
lished monthly.

81. L. Varela A., Costos Por Metro Cuadrado de Construc
cion (Square Meter Construction Costs), BIMSA
Southam, Mexico, D.F.

82. Rawlinson's, Rawlhouse Publishing Pty .. Ltd., P.O. Box
145, West Perth, Western Australia 6872.

83. Davis Langdon & Seah International, 21 st Floor, 2101
Leighton Centre, 77 leighton Rd., Hong Kong.

84. Empresa de Obras Publicas do Estado do Rio de
Janiero- EMOP, Campo de Sao Crist6vao 138, Rio de
Janeiro, Brazil.

Acknowledgement

A paper by this same title was coauthored by Kenneth K.
Humphreys and Barry G. McMillan for presentation and
publication in the transactions of the 6th Annual Meeting of
the Association Franc;:aise des lngenieurs et T echniciens
d' Estimation, de Planification et de Projets and 11 th Interna
tional Cost Engineering in Paris. Much of the information in
cluded in this paper is taken from the earlier paper. The
author thanks AFITEP for permission to include this material
and expresses his deep appreciation to Barry G. McMillan
for Mr. McMillan's invaluable contributions to the original
paper.

Humphreys / Sources of International Cost Data

TABLE 1

CONCEPTUAL ESTIMATING LOCATION COST FACTORS

Basis Imported Material (Average) Labor

Im- Local
ProdUC·

Loca-

Country
Exchange Duty, Freight VAT, ported Mate- $/ tivity Fae-

lion
rate/$ % % % Material rial In· hour Cost

Index dex
tor

Factor

Australia 1.42A$ Oto 7 15 20 1.35+ 1.3 24.80 1.6 1.4

Brazil 1.10Real 14 10 18 1.42 1.2 4.00 1.8 1.1

Canada 1.40C$ 0 5
7to

1.07+ 1.0 20.15 1.2 1.0
19.84

China 8.32 Rervn 8+ 10 17 1.35+ 0.7 3.00 3.0 1.0

France 5.8 Fr 0 5 18.6 1.236 1.2 19.83 1.2 1.15

Germany 1.72DM 0 5 0 1.05 1.15 36.57 1.1 1.2

India
36.4

65max 20 0 1.85- 1.1 2.01 3.0 1.0
Rupee

Japan 122.5 Yen 3.4 10 3 1.13 1.4 27.30 1.0 1.35

Mexico
8.2

7 5 10 1.22 1.25 3.38 1.7 1.0
New Peso

Poland 3.4 Zloty 14 10 22 1.46 0.8 10.33 1.7 0.95

Saudi Ara- 3.75
Oto 12 15 0 1.15+ 1.2 5.00 1.6 1.0

bia Riyal

South Af·
4.8 Rand 5 15 10 1.30 1.1 17.82 1.3 1.1

rica

United
3.67

Arab Dirham 1• 10 0 1.11 1.0 4.03 1.6 0.95

Emirates

United 0.60
0 10 17.5 1.275 1.3 42.58 1.2 1.4

Kingdom Pound

1997 Acta Structilia Vol 4 No 1

CONCEPTUAL ESTIMATING LOCATION COST FACTORS

Basis Imported Material (Average) Labor

Im-
Local

Loca-

Country
Exchange Duty, Freight VAT, ported

Material $/
Productiv- lion

rate/$ % % % Material
Index

hour i1y Factor Cost
Index Factor

Notes:
1. Duties for Australia and Saudi Arabia = O for imported materials which are not available

domestically.
2. Australian sales taxes of 20 percent apply to local material.
3. Canadian VAT varies from 7 percent to 19.84 percent depending upon the province or territory.
4. China duties are shown for the special enterprise zones. Duties are higher elsewhere in China.
5. India may grant concessional duties for major projects. Duties as low as 20% have been granted

for recent power projects. Although there is no VAT in India, a national sales tax of 4% plus state
sales taxes of 4 to 15% apply to local material.

6. United Arab Emirates duty is 4 percent minus a subsequent rebate of 3 percent for a net of
1 percent.

TABLE 2

INTERNATIONAL LABOR PRODUCTIVITY FACTORS

Basis: Southeast United States (Non Union) = 1.0.

United States Locations Non Union Union

Southeast (Carolinas, Florida, etc.) 1.0 -

Alabama/Georgia - 1.3

Alaska - 1.9

Arizona/California 1.1 1.2

Colorado/Utah/Wyoming - 1.5

Hawaii - 1.5

Illinois - 1.6

Northeast - 1.6

Northwest - 1.6

Texas 1.1 1.2

Other Countries Average Remote Areas

Australia 1.6 -

Belgium 1.3 -

Brazil 1.8 -

Humphreys / Sources of International Cost Data

INTERNATIONAL.LABOR PRODUCTIVITY FACTORS

Basis: Southeast United States (Non Union) = 1.0.

Canada 1.2 -

China 2.2 -

Eastern Europe 2.0 -

Finland 1.7 -

France 1.3 -

Germany 1.1 -

Great Britain 1.5 -

Hong Kong 1.5 -

India 2.5 -

Indonesia 1.9 -

Ireland 1.65 -

Israel 1.8 -

Italy 1.4 -

Japan 1.1 -

Kuwait 2.1 -

Malaysia 1.9 -

Mexico 1.5 1.8

Netherlands 1.35 -

New Zealand 1.5 -

Norway 1.75 -

Pakistan 2.2 -

Philippines 2.5 -

Poland 1.9 -

Russia 2.0 -

Saudi Arabia 1.6 -

Singapore 1.6 -

South Africa 1.4 1.9

South Korea 1.3 -

Spain 1.7 -

Sri Lanka 2.5 -

Sweden 1.35 -

1997 Acta Structilia Vol 4 No 1

INTERNATIONAL LABOR PRODUCTIVITY FACTORS

Basis: Southeast United States (Non Union) = 1.0.

Switzerland 1.5 -
Taiwan 1.3 -
United Arab Emirates 1.7 -
Venezuela 1.65 1.8
Productivity factors are heavily influenced by weather (rain,
cold/heat, etc.), culture and work ethic, religion, inherent trade
skills, available resources and infrastructure, and site conditions.
The above factors are averages only and must be adjusted as ap-
propriate for specttic conditions and location.
Adapted from J.A. Bent, Effective Pr�ect Management Through Ap-plied Cost and Schedule Control, K . . Humphreys, ed., Marcel
Dekker, Inc., New York, 1996.

TABLE 3

INTERNATIONAL DATA SOURCES: MULTIPLE COUNTRY

Foreign Labor Trends (15) - periodic reports of labor trends and costs for specific coun-
tries-includes key labor indicators
Hanscomb/Means International Construction Cost Intelligence Report (16) - newsletter -
provides comparative building construction cost information for many countries.
U.N. Monthly Bulletin of Statistics (29) - Includes a variety of production
Engineering News-Record (30) - weekly magazine - primarily U.S. and Canada
Costas de Construccion Pesada y Edificacion (Heavy Construction and Building Costs)
(31) - cost estimating database on building
Spon 's Architects· and Builders' Price Book (32) - contains a European section for ten-
dering and costs of labor and materials in 13 countries. Spon's European Construction
Costs Handbook provides coverage of 28 countries In Europe plus the United States and
Japan. Spon's Asia Pacttic Construction Costs Handbook provides similar coverage of 15
countries In Asia plus the United States and the United Kingdom. Spon's Middle East Con-
struction Price Book is a two volume set which provides detailed unit cost information for
6 Middle East countries. The two handbooks and the Middle East books are also dlstrib-
uted by the R.S. Means Co. (33) In North America.
R.S. Means Co. (33) - various cost books published annually for building and Industrial
construction In the U.S. and Canada.
Richardson Engineering Services (34) - unit cost database published for U.S. and Canada
building and �eneral construction; special estimating set for process plant construction;International onstruction Factors Location Cost Manual for 16 countries wortdwide.
lntematlonal Construction Costs and Reference Data Yearbook (28) - provides detailed information on
construction costs

Humphreys / Sources of International Cost Data

TABLE 4

SAMPLE LOCATION FACTORS

Massa's Labor Pro-
Bridgewater's Factors for Chemical Plants

ductivity Factors
(3,4)

(38)

Location US= 1.0 UK= 1.0 US=1.0

Algeria 1.82 - -

Australia 1.20 (0.96-1.45) 1.4 1.3

Argentina 2.00 (1.30-2.60) - -

Austria 1.60 (1.57-2.10) 1.1 1.0

Belgium 1.14 (1.14-1.50) 1.1 1.0

Canada, East 1.14 (1.08-1.17) - -

Canada, West 1.07 (1.02-1.11) - -

Canada - 1.25 1.15

Central Africa - 2.0 2.0

Central America - 1.1 1.0

Chile 2.70 (2.00-2.90) - -

China (imported ele-
ment)

- 1.2 1.1

China (indigenous
element)

- 0.6 0.55

Colombia 3.05 - -

Denmark 1.28 (1.25-1.30) 1.1 1.0

Egypt 2.05 - -

Finland 1.28 (1.24-1.28) 1.3 1.2

France 1.52 (0.80-1.54) 1.05 0.95

Germany (West) 1.20 (1.00-1.33) 1.1 1.0

Ghana 3.50 - -

Greece 1.49 1.0 0.9

India 4.00 (2.50-10.0) - -

India (imported ele-
ment)

- 2.0 1.8

1997 Acta Structilia Vol 4 No 1

SAMPLE LOCATION FACTORS*

Massa's Labor Pro-
Bridgewater's Factors for Chemical Plants

ductivity Factors
(3,4)

(38)

India (indigenous
element)

- 0.7 0.65

Iran 4.00 - -

Iraq 3.50 - -

Ireland - 0.9 0.8

Italy 1.48 (1.10-1.48) 1.0 0.9

Japan 1.54 (1.00-2.00) 1.0 0.9

Malaysia - 0.9 0.8

Mexico 1.56 (1.54-3.15) - -

Middle East - 1.2 1.1

Netherlands 1.25 (1.25-1.60) 1.1 1.0

Newfoundland - 1.3 1.2

New Zealand - 1.4 1.3

Nicaragua 2.67 - -

Nigeria 2.22 - -

North Africa (Im-
ported element)

- 1.2 1.1

North Africa (indige-
nous element)

- 0.8 0.75

Norway 1.23 1.2 1.1

Philippines 2.86 - -

Portugal 1.66 0.8 0.75

Puerto Rico 1.54 - -

Singapore 4.00 - -

South Africa 1.58 1.25 1.15

South America (N) - 1.5 1.35

South America (S) - 2.5 2.25

Spain 1.74 - -

Spain (imported ele-
ment)

- 1.3 1.2

Humphreys/ Sources of International Cost Data

SAMPLE LOCATION FACTORS

Massa's Labor Pro-
Bridgewater's Factors for Chemical Plants

ductivity Factors
(3,4) (38)

Spain (indigenous
element)

- 0.8 0.75

Sri Lanka (Ceylon) 3.50 - -

Sweden 1.18 (1.10-1.20) 1.2 1.1

Switzerland - 1.2 1.1

Taiwan 1.52 (1.52-7.20) - -

Thailand 2.82 - -

Turkey 2.32 1.1 1.0

United Kingdom 1.53 (0. 70-2.46) 1.0 0.9

Untted States 1.00 1.1 1.0

Venezuela 2.00 - -

* Note: Increase chemical plant factor by 10% for each 1 OOO miles or part of
1 OOO miles that the new plant location is distant from a major manufacturing or

import center or both. When materials or labor, or both, are obtained from more
than a single source, pro-rate the appropriate factors. Factors do not consider
investment incentives.

Note also that the Bridgewater factors reflect currency exchange rates prevailing
in the late 1970's. Appropriate adjustments must therefore be made prior to us-

ing these factors today.

TABLE 5

COUNTRY INDEXES

Country/Index Comments

Australia

Building Cost Index Construction labor and material costs (40)

Construction Cost Weekly earnings; building and nonbuilding materials ( 41)
Index

1997 Acta Structilia Vol 4 No 1

COUNTRY INDEXES

Country/Index Comments
Australia Builder Price information on raw materials (42)
Cordells Building
Cost Book Price information for non-residential building (43)

Monthly Summary of
Statistics

Manufacturing articles: materials, buildininon-building materials, metallic materials, wage rates; indexes ( 4)

Brazil

Revista de Precos CosVprice indexes for residential and non-residential construction; Portuguese (45)

Boletim de Custos CosVprice indexes for residential and non-residential construction; Portuguese (46)

A Construcao Residential and non-residential construction and project costs; Por-tuguese (47)

Conjuntura Indexes for industrial machinery and equipment; residential and non-residential construction material; Portuguese (48)
NTC-Associacao
Nacional dos Trans- Transportation rates for industrial materials; Portuguese (49) portadores de Car-
gas

Canada

Statistics Canada Variety of cosVprice indexes for construction costs and capital ex-penditures; English and French (50)

England
A.Cost.E. Indices of Indexes of erected cost of typical process plants (51)Erected Plant Costs
Price Index Numbers· Indexes for non-residential construction, machinery, equipmentfor Current Cost Ac-
counting (52)

France

Index Coefficients General index for building and machinery replacement costs (53)
Italy
lndicatori Mensili Government statistics and indexes; Italian (54)
Index Costs and indexes for various industries; Italian (55)
Prezzi lnformativi Indexes for residential and non-residential construction, consumer Delle Opere Edili in
Milano prices, raw materials, and wage rates; Italian (56)

Humphreys / Sources of International Cost Data

COUNTRY INDEXES

Country/Index Comments

Japan
Construction Price
Indexes by Year, Non-Life Insurance Institute publication for use by industrial insur-Price Indexes of
General Machinery ers In Japan; English (57)
and Equipment
MRC Monthly Stan-
dard Building Cost Cost Indexes of many comtonents of construction and certainIndexes and Unit building types; Japanese ( 8)
Price Data Bulletin

Mexico
Cifras de la Con- General construction index; Spanish (59) struccion
lndice Nacional de
Precios al Consumi- Consumer price index; Spanish (60)
dor
The Nethertands
Die Workwoeri Be-gratings rob emen Unit �rices for chemical plant construction in the Nethertands;in de hemische In- Dute (61)
dustrie (WEBCI)

New Zealand
Ministry of Works
and Development
Construction Cost Weighted construction cost index (62)
Index
Monthly Abstract of
Statistics

Variety of labor force indexes by industry; residential construction,
wage rates, other (63)

Germany

Fachserie 17: Preise Indexes for general machinery and building construction: German (64)

United States

1997 Acta Structilia Vol 4 No 1

COUNTRY INDEXES

Country/Index I Comments
General Purpose Indexes:
Engineering News-Record, 20-city construction cost
Engineering News-Record, 20-city building cost
U.S. Dept. of Commerce, composite (65)
BuRec, general building
Construction Industry Institute, construction price (66)
Factory Mutual, industrial building
Handy Whitman, building construction (67)
Lee Saylor, Inc., materiaVlabor
R.S. Means construction cost (33)

Selling Price Indexes, Building:

Fru-Con Corp., industrial
Lee Saylor, Inc., subcontractor
Turner, general building (68)
Smith, Hinchman & Grylls, general (69)

Valuation Indexes:

Boeckh, 20-city commercial/manufacturing (70)
Marshall & Swift, industrial equipment (71-72),

Special Purpose:

Nelson-Farrar refinery cost inflation index
Chemical Engineering, plant cost (72)
Federal Highway Construction Bid Price (73)
H_andy Whitman, public utility construction
BuLabor Statistics Consumer Price Index (74)
BuLabor Statistics Producers Price Index (65)
AED Average Rental Rates for Construction Equipment (75)

Humphreys/ Sources of International Cost Data

COUNTRY INDEXES

Country/Index I Comments
Note: Many of the above listed indexes for the United States are pub-

lished regularly in the Engineering News-Record "Quarterly Cost

Roundup" issues. (30)

TABLE 6

COUNTRY DATABASES FOR PROJECT COSTS

Country Source

Building Economist (76J, quarterly Australia Cordells Building Cost ook (43)
Rawlinsons (82), various books
A Construcao �) Brazil Conjuntura (48 , monthly
Empresa de Obras Publicas-RJ (84), various publications

Canada R.S. Means �33), various books Richardson ngmeering (34), data books
China Shenzhen Construction Quotation Price Management Department (77)

Costos de Construccion Pesada y Edificacion (31)
Mexico COSTOS Edicion Nacional (80)

Costas Por Metro Cuadrado de Construccion (81)
Netherlands DACE Price Booklet (Prijzenboekje) (61)

Russia Co-Invest (79J, various publications R.S. Means ( 3), various publications
United Kingdon E & FN Spon (32), various books

United States R.S. Means p3), various booksRichardson ngmeering (34), data books
Vietnam Construction Investment Guide, Rawlinsons (82)

Vietnam Construction and Development in Vietnam, Davis Langdon & Seah (83)
R.S. Means (33), various publications

1997 Acta Structilia Vol 4 No 1

TABLE 7

MEMBER SOCIETIES OF THE INTERNATIONAL COST ENGINEERING COUNCIL
(ICEC) AND THE INTERNATIONAL PROJECT MANAGEMENT ASSOCIATION

(IPMA)

Society Country
ICEC IPMA

Member Member

AACE-CANADA, The Canadian Association of
Canada Yes No

Cost Engineers

AACE International (AACE-1) (chapters in Can-
United Corporate

ada, Saudi Arabia, Japan, Australia, South Af- States
Yes Member

rica, Puerto Rico, Egypt and Norway)

Associacao Portuguesa de Gestao de Projectos Portugal No Yes

Associaci6n Espanola de lngenieria de Proyec-
Spain No Yes

tos (AEIPRO)

Association of Cost Engineers (ACostE) (chap- United Yes No
ters in Hong Kong and Siberia) Kingdom

Association Fran�ophone de Management de
Projet (AFITEP) (chapters in Belgium and Swit- France Yes Yes
zerland)

Association of Professional Project Managers Ireland No Yes

Association of Project Managers (APM)
United No Yes Kingdom

Association of South African Quantity Surveyors South Former
No

(ASAQS) Africa Member

Associazione Nazionale di lmplantistica lndus-
Italy No Yes

triale (ANIMP)

Associazione ltaliana di lngegneria Economica
Italy Yes No

(AICE}

Australian Institute of Quantity Surveyors (AIQS) Australia Yes No

Building Suryeyors Institute (BSI) Japan Yes No

Humphreys / Sources of International Cost Data

MEMBER SOCIETIES OF THE INTERNATIONAL COST ENGINEERING COUNCIL
(ICEC) AND THE INTERNATIONAL PROJECT MANAGEMENT ASSOCIATION

(IPMA)

Society Country ICEC IPMA Member Member

Chinese Association for Project Managers China No Yes

Cost Enginee�ng Association 11 countries in of Southern
Yes No

Southern Africa (CEASA) Africa

CSNK INTERNET Czech No Yes Republic

Egyptian Society of Engineers, Management
Egypt No Yes Engineering Society (MES)

Foreningen for Dansk Projektledelse (FDP) Denmark Yes Yes

Gepipari Tudornanyos Egyesiilet / MOszaki
Hungary Yes No

Ktiltsegtervezo Klub (GTE/MKK)

Gesellschaft fiir Projektrnanagernent (GPM) Germany No Yes

Hellenic Project Management Association Greece No Yes

Hong Kong Institute of Surveyors Hong Yes No Kong

Institute of Project Managers of Sri Lanka Sri Lanka Pending No

lnstituto Brasileiro de Engenharia de Custos
Brazil Yes No

(IBEC)

lnstituto de Costos de Construccion del Colegio
Venezuela Pending No

de lngenieros de Venezuela

Institution of Surveyors of Malaysia Malaysia Pending No

Iranian Association for Project Managers Iran No Yes

Korean Institute of Project Management and South Ko-
Yes No

Technology (PROMAT) rea

Macedonian Association of Project Manage- Macedo-
No Yes

rnent nia

Magyar Ftivallalkozok Sztivetsege Hungary No Yes

1997 Acta Structilia Vol 4 No 1

MEMBER SOCIETIES OF THE INTERNATIONAL COST ENGINEERING COUNCIL
(ICEC) AND THE INTERNATIONAL PROJECT MANAGEMENT ASSOCIATION

(IPMA)

Society Country
ICEC IPMA

Member Member

Nederlandse Stichting Voor Kostentechniek Nether-
Yes No

(DACE) lands

New Zealand Institute of Quantity Surveyors New Zea-
Yes No

(NZIQS) land

Norsk Forening for Prosjektledelse (NFP) Norway Yes Yes

Project Management Associates India No Yes

Project Management Association of Slovenia Slovenia No Yes

Projektitoimintayhdistys (PMAF) Finland Yes Yes

Projektmanagement Austria-lnstitut Austlia No Yes

Russian Association of Cost Engineers Russia Pending No

Russian Project Management Association
Russia No Yes

(SOVNET)

Singapore Institute of Surveyors and Valuers Singapore Pending No

Sociedad Mexicana de lngenieria Econ6mica,
Mexico Yes No

Financiera y de Costas (SMIEFC)

Svenskt ProjektForum (SPMS) Sweden Yes Yes

Swiss Society for Project Management (SPM)
Switzer-

No Yes
land

Ukranian Project Management Association
Ukraine No Yes

(UKRNET)

Verkefnastj6rnunarfelag _slands (VSFI) Iceland Yes Yes

Yugoslav Project Management Association Yugosla-
No Yes

(YUPMA) via

Humphreys / Sources of International Cost Data

MEMBER SOCIETIES OF THE INTERNATIONAL COST ENGINEERING COUNCIL
(ICEC) AND THE INTERNATIONAL PROJECT MANAGEMENT ASSOCIATION

(IPMA)

Society

ICEC Secretariat address:
1168 Hidden Lake Drive
Granite Falls, NC 28630, USA
Phone: 1-704-728-5287
Fax: 1-704-728-0048
E-mail: icec@ICostE.org
Internet: http://www.lCostE.org

I ICEC I IPMA Country Member Member
IPMA Secretariat address:
c/o Chris Seabury
PO Box 30, Monmouth NP5
4VZ, UK
Phone:44-1594-531-007
Fax:44-1594-531-008
E-mail: ipma@btinternet.com
Internet: http://www.ipma.ch