Latest news with #Arcadis'
Sky News AU
3 days ago
- Business
- Sky News AU
'Long term health' of construction sector under threat as risky practice continues, Arcadis' Matthew Mackey warns
Builders across the nation continue to take on risks as limited potential work forces them to take action that could hurt the long-term health of the sector, new research has revealed. The latest report from consultancy Arcadis showed construction costs continue to soar in Australia as severe labour shortages and high insolvency rates plague the nation. Arcadis' executive director of cost and commercial management Matthew Mackey said contractors in some states where work opportunities had slowed down were taking more risks. Fixed-price contracts contributed to the rise of building insolvencies during and after the pandemic when costs ballooned. 'I would like to say that fixed price contracts are not as prevalent as they were. That would be lying though,' Mr Mackey said on Sky News' Business Now. 'We are seeing a change in attitudes in some states. 'Where workload has been picking up, clients have been more willing to look at collaborative-based-type contracts and look at rise and fall mechanisms to cover cost increases for certain materials. 'In other states, where there's been a bit of a contraction in terms of potential work opportunities, they're certainly moving back to more risk-based and more fixed price type contracts, which is not necessarily good for the long-term health of the sector.' The pipeline of work in New South Wales and Victoria has fallen compared to the states' respective booms over the past 10-15 years. Arcadis' report says persistent capacity constraints will plague Sydney's housing market, while a subdued private sector in Melbourne will limit future growth in Victoria. Mr Mackey said the rise in housing development was shifting to the nation's smaller cities amid Sydney and Melbourne's drop. 'We are seeing that shift now over towards Western Australia and Queensland, and Brisbane and Perth in particular,' he said. 'Perth has been extremely busy over the last couple of years. 'Costs in 2024 alone in Perth went up by about 11 per cent which shows the buoyancy of that market and how busy that market is.' Mr Mackey also noted the soaring materials costs from the pandemic had 'largely abated' throughout 2024 and the start of 2025, however, Aussies can still expect price hikes down the track. Melbourne prices are forecast to rise by 25.5 per cent between 2025-29, while Sydney prices are expected to jump 27.9 per cent over 2024-29. Costs in Brisbane are also expected to soar as the Queensland government begins its Olympic infrastructure program. Arcadis' report also warned Labor's $10 billion housing fund and expanded help-to-buy scheme could inject fresh demand that outpaces supply. "The ability to deliver on their agenda rests on the sector's capacity to overcome supply constraints, adapt to regulatory changes, and innovate in project delivery," Arcadis said.
Yahoo
13-05-2025
- Business
- Yahoo
Geneva reclaims title of world's most expensive city to build in, says Arcadis in latest International Construction Costs report
London falls to second place; Zurich, Munich, and NYC round out the top five most expensive cities. Labor shortages and regulatory complexity fuel cost escalation as new global dynamics shape development realities. Bright spots emerge in growth areas such as energy infrastructure and data centers as clients reallocate global resources to meet shifting demand. Public spending set to boost demand in healthcare and defense. Arcadis urges proactive design and planning to unlock project viability. AMSTERDAM, May 13, 2025 /CNW/ -- Geneva has once again overtaken London as the most expensive city in the world in which to build, according to the latest Arcadis International Construction Costs (ICC) Report, released today. Closely followed by Zurich (third), Munich (fourth) and New York City (fifth), the report highlights continued pressure on construction costs across major urban centers in Europe and North America, reflecting high demand, labor constraints and complex regulatory environments. The report underscores that while inflation has eased in some regions, particularly in major US cities such as New York and San Francisco, long-term borrowing costs, geopolitical uncertainty, and shifting trade policies are reshaping the investment landscape. Yet even amidst this volatility, Arcadis emphasizes that a proactive and well-informed approach to design and specification can still unlock value and ensure project delivery. Arcadis notes that growth opportunities remain strong in key sectors such as data centers, healthcare, and social infrastructure such as education and healthcare, despite persistent inflation in certain geographies such as Australia, Eastern Europe, and parts of Asia. The annual Arcadis International Construction Costs index covers 100 of the world's large cities across six continents. The cost comparison was developed covering twenty different building types, including residential, commercial, and public sector developments, and is based on a survey of construction costs, a review of market conditions and the professional judgement of Arcadis' global team of experts. The calculations are based in USD and indexed against the price range for each building type relative to Amsterdam. Juud Tempelman, Global President of Places at Arcadis, said: "Change drives opportunity and, in a world of rising complexity and constrained capital, the most successful projects are those that combine visionary ideas with robust planning and adaptable design. Even in challenging times, construction markets are diverse, and some areas can be expected to boom. From advanced manufacturing in the US, to energy transition programs in the UK and Europe, we are seeing the reallocation of resources to meet shifting demand. With the right brief, aligned to real market needs and supported by collaborative design and digital maturity, we can unlock viability and deliver lasting success." Arcadis outlines four important considerations for managing construction risk and maximizing project value in the current environment: Design for Long-Term Value: Focus on buildings that are adaptable, energy-efficient, and designed for evolving user needs. This was a key factor in Arcadis' approach to the design of River Grove Elementary School in Portland, Oregon. The building needed to be adaptable, energy-efficient, and resilient in the face of extreme weather events. By incorporating a microgrid system, which includes a photovoltaic array, battery storage, and generator to ensure independence from the grid during disasters, the new school embraces resilience and carbon neutrality, and can still function as an effective learning environment in an increasingly hot and wildfire-prone region. Design for Certainty: Leverage knowledge of the asset, the location and its market to ensure that a scheme represents the best development that can be delivered. Parametric design tools can help to de-risk planning, enhance investor confidence, and align the project with policy and market expectations. Design for Delivery: Ensure buildability and certainty of budget by working with integrated teams who manage end-to-end project details using coordinated digital platforms and proven delivery frameworks. This was critical during the renovation of the Tiffany & Co. Landmark store on New York's Fifth Avenue. As Architect of Record, Arcadis used digital tools to test and iterate design solutions throughout the lifecycle of the project, enhancing customer movement around the store while working within the constraints of the existing historical structure. Design in Collaboration: Recognize that no-one can do it alone. High-performing, cross-disciplinary teams with strong leadership and a culture of shared accountability are essential to unlock project potential. Mansoor Kazerouni, Global Director of Architecture and Urbanism at Arcadis, added: "Development is a hugely challenging undertaking. High levels of uncertainty triggered by economic and political change have created a tough environment for getting projects off the ground. We know that buildings need to work even harder to meet the needs of their users, and that means treating every part of a scheme as a chance to maximize impact. As designers, our role is to lead with insight, creativity and commitment at every stage of the project - unlocking potential, supporting our clients, and delivering spaces that are buildable, sustainable, and valuable for the long term." For more information, the full report can be downloaded here. ABOUT ARCADIS Arcadis is a global transformation partner, driving some of the most impactful projects of our time. We help clients make sustainable choices by combining digital innovation, human expertise, and future-focused skills across environment, energy, water, buildings, transport, and infrastructure sectors. Going beyond traditional design, engineering, and consultancy, we use data-driven insights to deliver tailored solutions in the spaces and environments we shape together. With over 35,000 people, we unite global expertise to tackle challenges like climate, energy affordability, and livable cities, improving quality of life through our presence in 30+ countries. In 2024, we achieved €5.0 billion in gross revenues. Learn more at Photo - - View original content to download multimedia: SOURCE Arcadis View original content to download multimedia:
Cision Canada
13-05-2025
- Business
- Cision Canada
Geneva reclaims title of world's most expensive city to build in, says Arcadis in latest International Construction Costs report
London falls to second place; Zurich, Munich, and NYC round out the top five most expensive cities. Labor shortages and regulatory complexity fuel cost escalation as new global dynamics shape development realities. Bright spots emerge in growth areas such as energy infrastructure and data centers as clients reallocate global resources to meet shifting demand. Public spending set to boost demand in healthcare and defense. Arcadis urges proactive design and planning to unlock project viability. AMSTERDAM, May 13, 2025 /CNW/ -- Geneva has once again overtaken London as the most expensive city in the world in which to build, according to the latest Arcadis International Construction Costs (ICC) Report, released today. Closely followed by Zurich (third), Munich (fourth) and New York City (fifth), the report highlights continued pressure on construction costs across major urban centers in Europe and North America, reflecting high demand, labor constraints and complex regulatory environments. The report underscores that while inflation has eased in some regions, particularly in major US cities such as New York and San Francisco, long-term borrowing costs, geopolitical uncertainty, and shifting trade policies are reshaping the investment landscape. Yet even amidst this volatility, Arcadis emphasizes that a proactive and well-informed approach to design and specification can still unlock value and ensure project delivery. Arcadis notes that growth opportunities remain strong in key sectors such as data centers, healthcare, and social infrastructure such as education and healthcare, despite persistent inflation in certain geographies such as Australia, Eastern Europe, and parts of Asia. The annual Arcadis International Construction Costs index covers 100 of the world's large cities across six continents. The cost comparison was developed covering twenty different building types, including residential, commercial, and public sector developments, and is based on a survey of construction costs, a review of market conditions and the professional judgement of Arcadis' global team of experts. The calculations are based in USD and indexed against the price range for each building type relative to Amsterdam. Juud Tempelman, Global President of Places at Arcadis, said:"Change drives opportunity and, in a world of rising complexity and constrained capital, the most successful projects are those that combine visionary ideas with robust planning and adaptable design. Even in challenging times, construction markets are diverse, and some areas can be expected to boom. From advanced manufacturing in the US, to energy transition programs in the UK and Europe, we are seeing the reallocation of resources to meet shifting demand. With the right brief, aligned to real market needs and supported by collaborative design and digital maturity, we can unlock viability and deliver lasting success." Arcadis outlines four important considerations for managing construction risk and maximizing project value in the current environment: Design for Long-Term Value: Focus on buildings that are adaptable, energy-efficient, and designed for evolving user needs. This was a key factor in Arcadis' approach to the design of River Grove Elementary School in Portland, Oregon. The building needed to be adaptable, energy-efficient, and resilient in the face of extreme weather events. By incorporating a microgrid system, which includes a photovoltaic array, battery storage, and generator to ensure independence from the grid during disasters, the new school embraces resilience and carbon neutrality, and can still function as an effective learning environment in an increasingly hot and wildfire-prone region. Design for Certainty: Leverage knowledge of the asset, the location and its market to ensure that a scheme represents the best development that can be delivered. Parametric design tools can help to de-risk planning, enhance investor confidence, and align the project with policy and market expectations. Design for Delivery: Ensure buildability and certainty of budget by working with integrated teams who manage end-to-end project details using coordinated digital platforms and proven delivery frameworks. This was critical during the renovation of the Tiffany & Co. Landmark store on New York's Fifth Avenue. As Architect of Record, Arcadis used digital tools to test and iterate design solutions throughout the lifecycle of the project, enhancing customer movement around the store while working within the constraints of the existing historical structure. Design in Collaboration: Recognize that no-one can do it alone. High-performing, cross-disciplinary teams with strong leadership and a culture of shared accountability are essential to unlock project potential. Mansoor Kazerouni, Global Director of Architecture and Urbanism at Arcadis, added: "Development is a hugely challenging undertaking. High levels of uncertainty triggered by economic and political change have created a tough environment for getting projects off the ground. We know that buildings need to work even harder to meet the needs of their users, and that means treating every part of a scheme as a chance to maximize impact. As designers, our role is to lead with insight, creativity and commitment at every stage of the project - unlocking potential, supporting our clients, and delivering spaces that are buildable, sustainable, and valuable for the long term." For more information, the full report can be downloaded here. ABOUT ARCADIS Arcadis is a global transformation partner, driving some of the most impactful projects of our time. We help clients make sustainable choices by combining digital innovation, human expertise, and future-focused skills across environment, energy, water, buildings, transport, and infrastructure sectors. Going beyond traditional design, engineering, and consultancy, we use data-driven insights to deliver tailored solutions in the spaces and environments we shape together. With over 35,000 people, we unite global expertise to tackle challenges like climate, energy affordability, and livable cities, improving quality of life through our presence in 30+ countries. In 2024, we achieved €5.0 billion in gross revenues. Learn more at
