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According to the latest global cost index by U.K. professional services consultant Turner & Townsend, the U.S. is considered the most expensive country for construction with six American cities ranked among the list’s top 10. “More construction activity is driving up competition and bidding conditions, and now more than half of the top 10 most expensive cities to build are in the States,” says John Robbins, USA managing director and North America head of real estate at Turner & Townsend. New York City ranks highest on the list, followed by San Francisco, Boston, Los Angeles, Chicago, and Seattle.
“Labor shortages and supply chain issues continue to drive prices up as well. “The competition for skills to deliver a pipeline of contending programs across sectors and state boundaries is compounding the escalation of labor costs,” Robbins says. “Another component in rising prices is the trend to de-risk supply chains with a near-shoring of material procurement. While reducing disruption on one hand, we’ve seen a knock-on impact on costs and availability due to capacity constraints in the chain.”
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