BTY Group report shows upward cost pressures won't start to hit until
VANCOUVER, Feb. 17 /CNW/ - The coming year will be the right one to kick
off construction, according to Vancouver's BTY Group report on
construction costs across Canada.
"The message is clear - 2011 is the year to get solid value before
pressure begins to push construction costs up again in 2012," said Joe
Rekab, Managing Partner at BTY Group. "In 2011 we expect balance -
investments in roads, bridges, and public buildings will push the
market up, while residential construction will continue to stay cool
and create downward pressure."
BTY annually reviews cost drivers in the construction industry, and the
factors behind the changing marketplace. The story for 2011 is a wave
of major new infrastructure projects that will continue to sustain
construction levels and stabilize costs. This will be boosted by the
federal government's extending until the fall the deadline for projects
under its $40 billion federal stimulus fund.
"The soft housing market in every province except B.C. and Alberta will
continue to moderate cost increases through 2011," Rekab said.
The expectation of only moderate construction wage increases is also
helping make 2011 a value year, according to research by the
Independent Contractors and Businesses Association of BC (ICBA), which
BTY Group consults on industry analysis projects. ICBA recently
surveyed its 1,100 members on wage and benefits expectations for 2011
and 2012. Forecast increases are 2.15% in 2011 and 3.47% in 2012.
"In the wake of the economic downturn, construction companies have had
to hold the line on costs and wages to stay competitive and
productive," ICBA President Philip Hochstein said. "With moderate wage
increases expected in 2011 - and higher increases the year after - it's
clear that the coming year is an opportunity to get the best bang for
your company's construction buck."
A full copy of the report is on BTY's website at www.bty.com/pdfs/BTY_Group_Market_Intelligence-2011.pdf.
About BTY (www.bty.com) BTY Group is one of Canada's most successful and experienced Cost
Management and Project Management consultancies offering Cost, Project
and Program Management; Project Monitoring; Lenders Advisor and Risk &
SOURCE Independent Contractors And Businesses Association of BC (ICBA)
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