Construction Services Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Every organization and its procurement team look forward to negotiating the best deal while procuring a set of products or subscribing to services. Rate benchmarking involves price/cost comparison of more than one set of products/services to analyze the most efficient combination that can potentially help the procurement team in getting the optimum rate.

When analyzing rate benchmarking of construction services, the type of property to be constructed, location, and services provided play a crucial role. In our study, we have analyzed the rate of different properties in countries such as the U.S. The rate of the home was around USD 348,079 in 2022. The rate of commercial properties has been on the rise due to increasing demand for office space. In Q1 2023, the average price of U.S. offices was around USD 38/square foot. The price of retail was on an average of USD 18.09/square foot.

In Japan, Retail prices in 2022 experienced a downward trend, whereas Office and Apartment prices witnessed an upward trend. Regionally, the price changes showed a similar trend to the nationwide change. Notably, Office prices in Tokyo, including suburbs, exhibited a significant increase of 12.5% in 2022 compared to the previous year.

According to the Office of National Statistics report, over the span of 12 months until March 2023, the average house prices in the UK experienced a 4.1% growth, marking a decline from the 5.8% rise observed in over the span of 12 months until February 2023.

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Labor cost is one of the key components of the total incurred costs while offering a product or service. Therefore, an organization must decide on whether the focus category should be retained in-house or outsourced if the organization is providing its products or services at competitive prices. If the organization decides in favor of outsourcing, it must understand the difference in the salary structures of suppliers before selecting a supplier and formulating a negotiation strategy.

According to our research, the contract manager at Bechtel Corporation receives a 5% - 6% higher base salary compared to the salary received by the contract manager working in companies such as Fluor Corporation, DPR Corporation, and Kiewit Corporation. However, the year-on-year increment rate in all these companies majorly depends on the Key Result Areas (KRAs).

Organizations may find it cumbersome to continuously track all the latest developments in their supplier landscape. Outsourcing the activities related to gathering intelligence allows organizations to focus on their core offerings. At this juncture, our newsletter service can help organizations stay updated with the latest developments and innovations and subsequently assist in preventing disruptions in the supply chain. We have identified the following developments within the construction services category over the last two years:

In July 2023, Trillium a construction service company acquired American Craftsmen a construction staffing firm. This will help Trillium in expanding its presence in Pacific Northwest.

In May 2023, Apollo, an American private equity firm, acquired United Living, a social housing maintenance and construction service company. The acquisition would help them to strengthen their capabilities in infrastructure and social housing.

In March 2023, Sensat, a construction digital twin company, developed an integration along with Autodesk Construction Cloud to enable construction teams to send files from Autodesk Docs to Sensat for user visualization of key construction documents.

In December 2022, The project management consultancy for TROJENA, a mountain destination located in the NEOM region of Northwest Saudi Arabia, was assigned to Bechtel Corporation.