Supply chain issues impacting prices and availability of raw materials: Supply chain issues, such as disruptions, delays, shortages and price fluctuations, affect the prices and availability of raw materials in the construction industry. These materials, such as steel, cement, wood and sand, are essential inputs for buildings, plant and machinery.
Supply chain issues can result from factors such as natural disasters, war, pandemics, trade wars, tariffs, sanctions and environmental regulations. These factors can cause higher energy costs and disruptions in the production, transportation and distribution of raw materials, which can lead to higher prices and lower availability.
Need for more up-to-date verified data on costs and trends: The construction industry is dynamic and complex, with many variables and uncertainties affecting the cost to construct buildings, labor rates and plant and machinery costs. There is a need for more up-to-date verified data on costs, which can help industry stakeholders make informed decisions, plan effectively and manage risks.
Recent Kroll research found that 67% of buildings were underinsured by an average of 64%. This can be attributed to the wrong method being used when estimating declared values or appropriate up-to-date construction cost data not being used.
Lack of reliable sources for regional cost data : There is a lack of authentic sources for regional cost data, which can provide relevant and comparable information on the costs and trends of buildings, labor, and plant and machinery in different regions. The lack of authentic sources for this data can lead to inaccurate estimates in areas where detailed information is scarce.
In-country regional cost data sources are often overlooked, although the differences between the regions within the same country might be significant. For example, the same building constructed in Munich, Germany, can be more than twice the cost than if built in Emden, Germany.
