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Cost factors

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EFFICIENCY

Value engineering to reduce costs at height

There are factors other than pure height which are at least as important in driving costs and efficiencies. This can even help teams deliver tall, iconic buildings at less than the cost of shorter buildings, when applied as a cost per unit of floor area. These range from the façade specification and the MEP strategy to substructure design and the extent of amenities provision.

Every market must tailor the design, procurement and construction of tall buildings to its own situation - but the fundamentals are set by getting the shape and height of the building optimised. The structural solution must work with the architectural design and façades that reflect the quality of a tall building while maximising economies of scale.

“Height alone does not drive cost. When shape, structure and systems are optimised, tall buildings can deliver exceptional efficiency.”

FORM

Shape is key

Shape and height have a profound effect upon the structural solution and the cost of the façades. They will also have an important bearing on the ease and speed with which the scheme can be constructed and will determine the pool of contractors/specialists that possess the experience and capabilities to undertake the project.

The impact of shape can be seen clearly by looking at the wall:floor ratio, which represents the amount of wall area that has to be constructed for every unit of floor area. From a cost perspective, lower is better. This chart plots the effect of different ratios on the cost of the façades.

$47/ft2	$55/ft2	$63/ft2	$71/ft2	$79/ft2	$87/ft2	$95/ft2
0.30	0.35	0.40	0.45	0.50	0.55	0.60

COST FACTORS ACROSS CITIES

London

🔴 Highest impact | 🟡 Medium impact | 🟢 Mild impact

Shape An efficient massing can reduce façade area by up to half compared to a highly inefficient shape.	🔴 High due to a medieval street pattern and modern town planning constraints driving inefficient shapes.
Building height Impacting the lifting strategy, structural design, MEP approach, and construction planning and logistics.	🟡 More important for residential towers, where design and regulatory factors result in distinct cost increase at various height thresholds.
Façade specification As well as representing the aesthetics of a high-profile building, a tower’s façades must be high performing and buildable.	🟡 London has developed a deep understanding of façade technologies and an ability to deliver them relatively cost effectively.
Superstructure The taller and more complicated the building, the more its structural and architectural designs must be developed in unison, with a variety of strategies (and costs) possible.	🔴 The array of architectural forms invites various structural solutions, with a wide range of costs. A new focus on reducing whole-life carbon has resulted in new structural solutions that can increase costs.
Substructures Cost factors include the depth and size of basements; geological conditions; constrained sites; de-watering requirements; and archaeology.	🟢 London sites are generally constrained and irregular, with buildings above around 20 storeys requiring deep piles to reach Thanet Sands. However, the challenges are consistent and well-known.
Amenities Eg. Terraces and other outdoor spaces cafes, restaurants, shops, gyms, spas, auditoria and communal break-out spaces. The public offering can be a key commercial driver, such as elevated viewing galleries; restaurants; educational facilities; and cultural spaces.	🟡 The current intense emphasis on amenities and user experiences has elevated this to a more important cost driver. London towers must make a public offering too, such as a viewing gallery or other accessible spaces.
MEP Eg. plant locations and distribution, pressure break strategies, fire suppression and containment, air filtering, and sustainability measures such as rainwater harvesting and low energy systems.	🟡 London towers have raised the bar of sustainable and healthy design over the last two decades, making high specifications the norm.
Client set-up, market dynamics and procurement strategy The need to develop a procurement strategy that suits the client/project and responds to market conditions.	🟡 London has well established procurement strategies and an experienced supply chain. However, the supply chain has become more constrained and cautious, elevating this factor to a more critical cost driver.
Vertical transportation (VT) strategies How elevators are planned and managed is fundamental to the efficiency of building operation.	🟢 A tighter range of solutions than elsewhere because of the relatively more straightforward mix of uses and narrower height band.

Seoul

🔴 Highest impact | 🟡 Medium impact | 🟢 Mild impact

Shape An efficient massing can reduce façade area by up to half compared to a highly inefficient shape.	🔴 Ever taller, higher-quality towers make it vital to consider shape from the outset of design.
Building height Impacting the lifting strategy, structural design, MEP approach, and construction planning and logistics.	🔴 Supertall buildings need to get their core designs optimised and construction well planned.
Façade specification As well as representing the aesthetics of a high-profile building, a tower’s façades must be high performing and buildable.	🔴 Raised performance requirements and more articulated aesthetics are encouraging new expensive solutions façades.
Superstructure The taller and more complicated the building, the more its structural and architectural designs must be developed in unison, with a variety of strategies (and costs) possible.	🔴 Increasing height of buildings creates structural complexity in a seismic zone.
Substructures Cost factors include the depth and size of basements; geological conditions; constrained sites; de-watering requirements; and archaeology.	🟡 Alluvial layers and fractured rock require costly solutions. High-rises close to the Han River need de-watering and retaining walls.
Amenities Eg. Terraces and other outdoor spaces cafes, restaurants, shops, gyms, spas, auditoria and communal break-out spaces. The public offering can be a key commercial driver, such as elevated viewing galleries; restaurants; educational facilities; and cultural spaces.	🟢 The tower product is beginning to be differentiated through more generous amenities, but not yet to the extent of elsewhere.
MEP Eg. plant locations and distribution, pressure break strategies, fire suppression and containment, air filtering, and sustainability measures such as rainwater harvesting and low energy systems.	🔴 New performance and environmental requirements are pushing up the cost of MEP systems. World-class office HQs require high specifications.
Client set-up, market dynamics and procurement strategy The need to develop a procurement strategy that suits the client/project and responds to market conditions.	🟡 Seoul benefits from large, capable contractors with experience in building tall, complex buildings at home and around the world.
Vertical transportation (VT) strategies How elevators are planned and managed is fundamental to the efficiency of building operation.	🟡 The taller buildings of Seoul demand higher speed elevators.

Tokyo

🔴 Highest impact | 🟡 Medium impact | 🟢 Mild impact

Shape An efficient massing can reduce façade area by up to half compared to a highly inefficient shape.	🟡 Tokyo towers tend to avoid extravagant, tapering forms and set-backs, remaining efficient.
Building height Impacting the lifting strategy, structural design, MEP approach, and construction planning and logistics.	🟡 There are many tall and super-tall buildings in Tokyo but the supply chain is experience in managing this.
Façade specification As well as representing the aesthetics of a high-profile building, a tower’s facades must be high performing and buildable.	🟡 Performance requirements as other locations but repetition provides economies of scale.
Superstructure The taller and more complicated the building, the more its structural and architectural designs must be developed in unison, with a variety of strategies (and costs) possible.	🔴 For towers exceeding 300 metres, structural design becomes a major cost driver.
Substructures Cost factors include the depth and size of basements; geological conditions; constrained sites; de-watering requirements; and archaeology.	🟡 Alluvial soils are not ideal for tall buildings, meaning that deep piles are used to reach load-bearing layers. Base isolations systems are common to deal with seismic risks.
Amenities Eg. Terraces and other outdoor spaces cafes, restaurants, shops, gyms, spas, auditoria and communal break-out spaces. The public offering can be a key commercial driver, such as elevated viewing galleries; restaurants; educational facilities; and cultural spaces.	🟢 Tower designs do incorporate green spaces and amenities but not to the extent and complexity of other locations.
MEP Eg. plant locations and distribution, pressure break strategies, fire suppression and containment, air filtering, and sustainability measures such as rainwater harvesting and low energy systems.	🔴 Air conditioning, water supply pumping equipment, and high-voltage power systems are a key cost driver, along with specifications required by sustainability initiatives.
Client set-up, market dynamics and procurement strategy
Vertical transportation (VT) strategies How elevators are planned and managed is fundamental to the efficiency of building operation.	🟡 High-speed elevators with destination control for mixed-use towers. Separate lift cores for residential and commercial zones.

Mumbai

🔴 Highest impact | 🟡 Medium impact | 🟢 Mild impact

Shape An efficient massing can reduce façade area by up to half compared to a highly inefficient shape.	🔴 Floor plate optimisation is critical for premium towers. Efficient massing maximises saleable space.
Building height Impacting the lifting strategy, structural design, MEP approach, and construction planning and logistics.	🔴 Above 40 storeys, structural design, façade systems, and VT all enhanced. Compliance with DCPR height norms and aviation clearance also a factor.
Façade specification As well as representing the aesthetics of a high-profile building, a tower’s façades must be high performing and buildable.	🔴 Double-skin façades / high-performance glazing to manage heat and glare invoke large cost increases.
Superstructure The taller and more complicated the building, the more its structural and architectural designs must be developed in unison, with a variety of strategies (and costs) possible.	🔴 Mega columns, outriggers, and high-strength cores are essential due to Mumbai’s wind load and seismic zone requirements. Coastal humidity also demands corrosion-resistant materials.
Substructures Cost factors include the depth and size of basements; geological conditions; constrained sites; de-watering requirements; and archaeology.	🔴 Mumbai geology is unhelpful: reclaimed land and coastal soil conditions require deep foundations and waterproofing. There are also dewatering challenges during monsoon season.
Amenities Eg. Terraces and other outdoor spaces cafes, restaurants, shops, gyms, spas, auditoria and communal break-out spaces. The public offering can be a key commercial driver, such as elevated viewing galleries; restaurants; educational facilities; and cultural spaces.	🟢 Amenities are yet to feature as an integral part of design differentiation, though they are beginning to be introduced slowly.
MEP Eg. plant locations and distribution, pressure break strategies, fire suppression and containment, air filtering, and sustainability measures such as rainwater harvesting and low energy systems.	🔴 High-end HVAC systems with humidity control are required for Mumbai’s coastal climate. Air filtration is needed for luxury residences and Grade-A offices. Energy-efficient chillers and heat pumps are also being integrated.
Client set-up, market dynamics and procurement strategy The need to develop a procurement strategy that suits the client/project and responds to market conditions.	🔴 More, taller buildings in an extremely constrained and congested city will place pressures on the supply chain and on construction logistics.
Vertical transportation (VT) strategies How elevators are planned and managed is fundamental to the efficiency of building operation.	🟡 High-speed elevators with destination control for mixed-use towers. Separate lift cores for residential and commercial zones.

New York

🔴 Highest impact | 🟡 Medium impact | 🟢 Mild impact

Shape An efficient massing can reduce façade area by up to half compared to a highly inefficient shape.	🔴 Historically efficient forms are being supplemented by more shapely towers. Stringent building codes, complex permitting processes, and high insurance charges add to costs.
Building height Impacting the lifting strategy, structural design, MEP approach, and construction planning and logistics.	🔴 Taller buildings have significantly higher costs due to increased structural requirements, advanced systems, and additional safety measures.
Façade specification As well as representing the aesthetics of a high-profile building, a tower’s façades must be high performing and buildable.	🟡 Designs usually look to take advantage of economies of scale, with high repetition of rational modules that play to supply chain capabilities.
Superstructure The taller and more complicated the building, the more its structural and architectural designs must be developed in unison, with a variety of strategies (and costs) possible.	🟡 Volatility in material costs and global trade uncertainty has an impact.
Substructures Cost factors include the depth and size of basements; geological conditions; constrained sites; de-watering requirements; and archaeology.	🟢 The hard rock of New York provides a solid and supportive base for high-rise construction, assisting time and cost.
Amenities Eg. Terraces and other outdoor spaces cafes, restaurants, shops, gyms, spas, auditoria and communal break-out spaces. The public offering can be a key commercial driver, such as elevated viewing galleries; restaurants; educational facilities; and cultural spaces.	🟢 Notwithstanding some outliers, such as high-quality HQs for global corporations, speculative office towers are sensible in their approach to amenity provision.
MEP Eg. plant locations and distribution, pressure break strategies, fire suppression and containment, air filtering, and sustainability measures such as rainwater harvesting and low energy systems.	🟡 Like other elements, MEP design has tended to use tried and tested systems. Local law 97 and stricter sustainability regulations may start to have an impact on overall cost.
Client set-up, market dynamics and procurement strategy The need to develop a procurement strategy that suits the client/project and responds to market conditions.	🔴 Manhattan remains the most expensive borough, with prices substantially higher than national averages due to logistical challenges and land values. NYC has high labour rates and a significant union presence, which drives up overall construction expense.
Vertical transportation (VT) strategies How elevators are planned and managed is fundamental to the efficiency of building operation.	🟢 VT strategies remain efficient, as even tall buildings are predominantly designed in efficient forms.

Dubai

🔴 Highest impact | 🟡 Medium impact | 🟢 Mild impact

Shape An efficient massing can reduce façade area by up to half compared to a highly inefficient shape.	🔴 Taller buildings will have slender profiles and higher wall:floor ratios. The hot market means that contractors may prefer schemes that are easier to deliver.
Building height Impacting the lifting strategy, structural design, MEP approach, and construction planning and logistics.	🔴 The tall, megatall and supertall pipeline will continue to test structural designs and innovation.
Façade specification As well as representing the aesthetics of a high-profile building, a tower’s façades must be high performing and buildable.	🟡 Specialist contractors are in short supply. Designs will need to fit to manufacturing capabilities to keep costs down, though labour costs are low.
Superstructure The taller and more complicated the building, the more its structural and architectural designs must be developed in unison, with a variety of strategies (and costs) possible.	🟡 There is a well-established concrete supply chain that is experienced and expert in delivering tall buildings.
Substructures Cost factors include the depth and size of basements; geological conditions; constrained sites; de-watering requirements; and archaeology.	🟡 Deep piling techniques overcome weak ground conditions to reach stronger strata. High groundwater and corrosive soils require high-performance concrete.
Amenities Eg. Terraces and other outdoor spaces cafes, restaurants, shops, gyms, spas, auditoria and communal break-out spaces. The public offering can be a key commercial driver, such as elevated viewing galleries; restaurants; educational facilities; and cultural spaces.	🟡 A renewed focus on luxury and branded residences and hotels is encouraging the incorporation of generous amenities and high-quality finishes.
MEP Eg. plant locations and distribution, pressure break strategies, fire suppression and containment, air filtering, and sustainability measures such as rainwater harvesting and low energy systems.	🟢 Tried and tested systems are the norm there is less appetite for pushing the boundaries of environmental innovations.
Client set-up, market dynamics and procurement strategy The need to develop a procurement strategy that suits the client/project and responds to market conditions.	🔴 A hot market that is close to capacity, with selective contractors, makes project set-up and procurement strategies vital.
Vertical transportation (VT) strategies How elevators are planned and managed is fundamental to the efficiency of building operation.	🟢 A sensible approach to specifications and the scale of trade packages supports a competitive market and cost efficiency.

KEY TAKEWAYS

The keys to project success are universal

While every global region has its own unique context and challenges, the fundamental question for developers in this complex environment is how to reconcile inherent and intensified tensions between cost, time, carbon and quality.

Follow established steps to ensure a successful outcome:

1. Test the brief pre-execution

Plan properly; design for construction; optimise the concept; minimise unnecessary materials; and spend more time at the outset to do all this, as a team.

2. Strengthen upfront planning

Tall projects demand rigorous early alignment because of zoning, transit adjacency, and logistical constraints.

3. Benchmark from experience

Proactively look back on previous projects both within and outside of market; identify good precedents – marrying ‘delight’ in design with commercial effectiveness – and implement them going forward.

4. Focus on viability

Anchoring a strong concept early helps ensure long term value and builds an aligned project team, focused on the fundamental value and cost drivers. Everyone must be clear and agreed on objectives, scope, constraints, opportunities, risks, and governance in that context.

5. Balance key criteria

Make design decisions based on the balance of more nuanced criteria – such as capital costs versus operational costs and embodied carbon versus operational carbon. Material strategies can reduce carbon without compromising structural performance.

6. Procure strategically

Early engagement with specialised trades is key. Proactive market warming and clear procurement strategy will help navigate capacity constraints.

7. Embrace digital tools:

Collaborate more effectively, track progress, flag potential issues early, and make data-led decisions.

8. Build high-performing teams

Share good practice, collectively respond to challenges and cross-fertilise ideas. All major projects rely on cohesive, experienced teams. Success is enabled by coordinated leadership and collaborative execution.

LEADERSHIP

A global and local mindset

The common global nature of many of the key tall building challenges, while presenting significant headwinds, offer opportunities too. This is the moment to bring together best practice, new approaches and proven keys to success, to help ensure that towers are conceived, design, procured and delivered on time, on budget and in accordance with their objectives.

Tall, complicated projects need equivalently robust controls and team expertise. Success will come from effective and inspirational leadership that galvanises teams. Ultimately, as complexity grows, clarity of vision becomes even more important.

“As these projects have to address an increasingly long list of requirements, then compromises will inevitably have to be made. Success will depend on the best fit between short-term and long-term costs and carbon, with quality being represented by so many more considerations – inside and outside the building – than ever before.”

Steve Watts Global Tall Buildings Lead

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