AFRICA PROPERTY & CONSTRUCTION COST GUIDE

1 PROPERTY & CONSTRUCTION COST GUIDE19 20 AFRICAAECOM AFRICA PROPERTY & CONSTRUCTION COST GUIDE 2019/20 30th EDITION 2019/20 ISBN 978-0-6398024-0-4 AECOM SA (Pty) Limited. All rights learn more about how AECOM is delivering a better world go to: our: Without Limits AppAlso follow us on:Twitter: @aecomLinkedInFacebookInstagramAECOM was built to do just that. With a deep and experienced global team, we design and deliver infrastructure and services that unlock opportunities for clients and communities and protect our environment and improve people s urban centres to remote villages, our work is transformative.

2 We make a positive and lasting impact by applying our global reach, connected expertise and delivery excellence to solve complex, evolving difference that we help our clients make is felt in every region of the world. Clean water for developing communities, iconic skyscrapers that swell a nation s pride, power and security to fuel economic prosperity, transportation that brings people together and thoughtful planning that sustains cities and natural clients face tough, interrelated challenges that can only be solved by a company like ours - one with deep roots, diverse perspectives and an innovative approach. One with the people, technology and vision to deliver what others can only are AECOM.

3 Imagine it. it. s one thing to imagine a better world. It s another to deliver from the Director, Cost Management AFRICA 6 Section 01 AFRICA has Risen 8 Improving Lives 9 Global Unite 10 Building Information Modelling 12 Sustainability 15 Research Support 17 Mobile App Enabled Candidacy Support and Mentoring Programme 18 Section 02 Our Services 20 Quantity Surveying/Cost Management 20 Engineering Cost Management 23 Building Ser vices Cost Management 24 Section 03 AECOM in South AFRICA 26 Broad-Based Black Economic Empowerment 26 Section 04 South African Cost Data 27 Key Factors Influencing Building Cost

4 Rates 27 Approximate Inclusive Building Cost Rates 32 Section 05 Global Sentiment and Building Costs 41 AFRICA Outlook 2018 41 AFRICA in Figures 43 AFRICA Building Costs 47 Global Building Costs 49 Section 06 International Prestigious Office Rental Comparison 51 Section 07 Building Cost Escalations 54 Section 08 Method for Measuring Rentable Areas 62 Section 09 Return on Investment 67 Residual Land Value 71 Section 10 Directory of Offices in AFRICA 73 Section 11 Bureau for Economic Research 746 AECOMM essage from Dean NarainsamyDirector - PCC, AfricaWelcome to our AFRICA PROPERTY & CONSTRUCTION Cost GUIDE 2019/20.

5 As a company committed to building a better world, we re always looking to improve and strengthen how we do things from our delivery of projects to the research we conduct and conversations we share with colleagues, clients and organisations. Our goal is to unlock the transformational change and innovation required to move the industry forward. From a Cost Management point of view, we continue to develop and enhance our 5D BIM capabilities. With access to industry leading software already in our toolkit, our focus over the last year has been one of collaborating with the various design disciplines at AECOM. Through this, we have been able to further our understanding of the requirements of each discipline, and in turn, we are able to advise the design teams on the requirements to achieve a 5D-friendly design environment.

6 This collaboration has been enhanced by our global reach, with our teams sharing knowledge and developing our capabilities alongside our colleagues in the US, UK, and the Middle East. Our commitment to innovative collaboration has already resulted in practical solutions to some of the challenges of moving into a digital world and has allowed our teams to focus on providing a fuller service offering for our clients. We are proud to report that we have maintained our Level 1 B-BBEE Scorecard in terms of the Department of Trade and Industry s Revised Codes; a reaffirmation of our commitment to contribute to a better South AFRICA . AECOM fully embraces diversity and inclusion and sees this as a fundamental ingredient in support of the National Transformation Agenda.

7 I am happy to report that we have made key appointments in our Commercial, Oil & Gas and East AFRICA business which support the creation of a diverse workforce. 7 AECOMBest Regards,Corporate Social Responsibility (CSR) is an area that we hold dearly to our hearts with various members of our teams involved in charitable giving and with key social projects on a pro-bono basis. The health and safety of our staff and commitment to delivering a quality service to our clients remain a cornerstone of our business ethos. In late 2018, our AFRICA operations merged with those of the Middle East, a move that has been well received by our employees and clients alike.

8 Pooling our resources over a broader region is allowing us to bring the best of AECOM to our clients and accelerate growth in our key markets. We remain invested in AFRICA and are expanding our reach and local knowledge that we have gained over the years with a measured and focused approach aimed at developing opportunities throughout the continent in all sectors. I would also like to take the opportunity to include a brief introduction to the Bureau for Economic Research (BER) at the Stellenbosch University whom we deem as a strategic partner, in our yearly publication. Their respected Building Cost Reports provide credibility to our cost escalation forecasting.

9 To conclude I would like to convey the message that whilst our business has evolved over the years, we continue to offer services that influence the key drivers of value, cost and time in all our clients projects, a commitment that we value as we move into the future. 8 AECOMA frica has RisenOur operations in AFRICA boast around 800 people, predominantly in South AFRICA . However, we have a growing number of permanent offices in key African offer services to clients across the continent and maintaina project presence in more than 40 African countries. With top- level professionals in multiple strategic locations, we understand AFRICA s specific infrastructure needs, as well as its challenges inherent in working on our wonderfully diverse, vibrant and complex multidisciplinary teams of award-winning engineers, planners, architects, environmental specialists, scientists, consultants, quantity surveyors (cost managers) and project and programme managers are committed to delivering projects that improve the quality of life for AFRICA s Section9 AECOMI mproving LivesAECOM is committed to the principles of good governance and corporate citizenship.

10 As an industry leader with a range of built environment professionals, we strongly believe in investing our resources to improve the quality of life for corporate social investment approach includes programmes undertaken to uplift communities in general and those that have a strong developmental and educational strategy is aimed at facilitating the empowerment of talented individuals within a variety of interventions through university and into the workplace. We believe that in providing these opportunities to the identified individuals, they will realise their potential and be able to successfully enter the built environment 2017, AECOM established the AECOM Educational Trust with the objective of providing bursaries to young, black women to further their tertiary education in the built environment the skills divide Disabled Learnership ProgrammeAECOM s Learning and Development department, in partnership with Enigma Skills College, launched its second 12-month Disabled Learnership Programme in 2018.