Building gets more expensive

The prices of construction firms have shot up by well over 10 pct within the past year. Most developers have come to terms with this; others have tried to manage without general contractorsPiotr Kroenke, the managing director of Globe Trade Centre states that: "Each of our projects is a little different, but when you take a closer look at the costs of constructing office buildings this year and last, it is immediately evident that they have risen between 10 and 15 pct on average". Marcin Klammer, managing director of EC Harris describes the situation: "I know of an office project which was to have begun in the spring of 2004. Then it was impossible for several reasons, and now that work has started, the difference between the previous and present prices comes to all of 12 pct. The project changed very little over the past dozen months or so, and the same companies were bidding in the same tender. This is not an isolated incident, and is happening over the whole market.&q