HONG KONG REPORT - Rider Levett Bucknall

HONG KONGREPORTJUNE 2013FEATUREAPPLICATION OF THE “APPROXIMATE ORDER OFCONSTRUCTION COSTS IN HONG KONG ANDSELECTED CITIES IN CHINA”T h e c o s t ra n g e s g i ve n i n t h eApproximate Order of ConstructionCosts in Hong Kong and Selected Citiesin China of this report should be usedwith care, as they are average figuresderived from a wide spectrum ofprojects, exclusive of site specific anddesign specific costs.Unit costs per m 2 of Construction FloorArea (CFA)First of all, the unit costs in the reportare based on Construction Floor Area(CFA) which is measured to the outsideface of external walls (or in the absenceof such walls, the external perimeter)of the building and includes all liftshafts, stairwells and E&M rooms butexcludes lightwells and atrium voids.Gross Floor Area (GFA) (or plot ratioarea) for planning / building approvalpurposes should be converted to CFAbefore adopting any of the unit cost.The conversion ratios of GFA to CFAare generally in the region of 10% to20%, but ratios outside this range arenot unusual. Most importantly, theratios do not cover refuge floors, plantfloors, sky gardens, carpark, loading /unloading bays and the like, clubhouse,balconies and utility platforms, whichshould be allowed for separately.General inclusion and exclusion itemsThe range of costs generally includesnormal foundations, structure, façade,general builder’s works and finishes,building services and lifts. In hotels andclubhouses, the cost of fitting out,furniture and equipment is howeverincluded.- Abnormal foundations (underpinning,deep piling foundations, piling onslope, etc.);- Basement construction;- Car parking, loading/unloadingfacilities;- External works, landscaping, features,covered walkway, footbridge, lifttower, etc.- Green building features;- Design fees, specialist consultants’fees, cost of site staff, projectmanagement fees, reimbursable andthe like.Cost adjustmentsProject specific costs are generallyoutside the cost ranges. The followingcost adjustments may have to beconsidered: -- Iconic features;- Development close to MTR protectionzone;- Building height;- Development scale;- Development location/accessibility;- Special site constraints.Each project is unique. In building upthe project cost based on theApproximate Order of ConstructionCosts in this report, all exclusion itemsshould be considered carefully andadded to the project cost whereappropriate. The standard of the designas well as any site specific items shouldalso be considered. If in doubt,professional advice should be sought.Major exclusion items which should beconsidered are summarized below:-- Site formation such as bulk siteexcavation, slope works, site drainage,retaining structures, soil anchors, treetransplant, protection and felling,access road/ramp, etc;8