Construction Costs

Construction Costs

Construction costs over the past 5-6 years have increased but not as dramatically as have land values. A bag of cement in 2006 cost $4.50 whereas in 2013 it costs almost $10. The cost of a block of cement (4 inches) has almost doubled whereas the cost of a skilled construction worker has increased from approximately $22/$25 a day to about $30/$35 a day. As a general rule, construction materials consume about 60% of the building budget whereas about costs account for 40%.

The cost to construct a high quality house in Coronado as of mid-2013 is approximately $1100-$1200 per square meter which works out to about $100 to $110 per square foot. Five years ago the cost was perhaps in the $750 to $850 per M2 range.

At the present time, in greater Coronado area, there exists a major shortage of skilled labor. It’s reasonable to expect additional pressure to increase wages for skilled workers in the near term. This shortage is the result of a significant increase in the number of new residential projects and commercial projects. It also has a lot to do with the fact that Panama has been growing by double digit or almost double digit percentages for more than 5 years with no end in sight.

In particular, there is a huge shortage of construction workers skilled in the “finishing details” of a high end house. It frequently takes 2-3 months to put the roof on a 4000 square foot high end house and another 2-3 months to complete the finishing details with a much smaller crew. Another distinct shortage is for highly skilled construction workers willing to supervise a construction crew and take responsibility for setting daily tasks, ensuring a flow of building materials and performing quality control tasks at a preliminary level.

Quality control is a critical construction activity and should ideally be performed by a person not involved in the day to day construction process. The architect sometimes acts in this role but typically the architect is not on site sufficiently often leading to additional costs if errors are not caught early. The good thing is that replacing a floor tile that is not perfectly level or has a hollow sound because of poor bonding is a relatively low cost task. Of course if your tile gang makes such errors often then the entire gang has to be replaced.

In summary, over the past 5-6 years, construction costs have not quite doubled whereas land prices in Coronado have often tripled and in some cases quintupled.

18 thoughts on “Construction Costs

  1. minecraft

    What i don’t understood is if truth be told how you’re not actually a lot more smartly-preferred than you may be now.

    You are very intelligent. You know therefore significantly in the
    case of this subject, produced me for my part believe it
    from numerous varied angles. Its like men and women aren’t fascinated except it is one thing to accomplish with Lady gaga!
    Your own stuffs great. Always maintain it up!

  2. minecraft

    I’m impressed, I have to admit. Seldom do I encounter
    a blog that’s equally educative and entertaining, and let me tell you, you’ve hit the
    nail on the head. The problem is an issue that not enough people are speaking intelligently about.
    I’m very happy that I stumbled across this in my search for something relating to this.

  3. minecraft

    I’m now not positive where you’re getting your info, but great topic.

    I needs to spend some time studying much more or working out more.
    Thank you for fantastic info I used to be searching for this
    info for my mission.

  4. minecraft

    Hello, i think that i saw you visited my blog thus i came
    to “return the favor”.I’m attempting to find things
    to improve my website!I suppose its ok to use some of your ideas!!

  5. Coconut Oil

    My brother suggested I might like this blog.
    He was totally right. This post truly made my day.
    You can not imagine simply how much time I had spent for this info!

  6. Sling TV

    Hmm it appears like your blog ate my first comment (it was super long) so I guess I’ll just sum
    it up what I wrote and say, I’m thoroughly enjoying your blog.
    I too am an aspiring blog blogger but I’m still new to everything.
    Do you have any recommendations for first-time blog writers?
    I’d certainly appreciate it.

  7. Sling TV

    Hi there! Quick question that’s entirely off topic. Do you know how
    to make your site mobile friendly? My web site looks weird when browsing from my apple
    iphone. I’m trying to find a theme or plugin that
    might be able to correct this problem. If you have any recommendations, please share.
    With thanks!

  8. Sling TV

    Remarkable issues here. I’m very satisfied to see your article.

    Thank you so much and I’m looking ahead to
    touch you. Will you kindly drop me a mail?

  9. Sling TV

    Hmm it seems like your blog ate my first comment (it was
    super long) so I guess I’ll just sum it up what I submitted and
    say, I’m thoroughly enjoying your blog. I as well
    am an aspiring blog writer but I’m still new to everything.
    Do you have any tips and hints for newbie blog writers?
    I’d genuinely appreciate it.

Leave a Reply

Your email address will not be published.

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>