Mechanical and electrical (M&E) costs, in particular, have risen by approximately 30% from pre-pandemic times, says Ho. M&E costs typically account for around 25% to 40% of the total construction cost, says Ho to The Edge Singapore.
Mega-projects in the pipeline, such as Changi Airport's Terminal 5 and new developments at Singapore’s two integrated resorts, are likely to push up construction costs in Singapore next year, according to Surbana Jurong (SJ).
These upcoming large-scale projects will mean greater demand for contractors, pushing prices upwards, says Ho Kong Mo, senior executive director, project and cost management, SJ.
