Since 2024, there has been a structural upward shift in the cost of contractors in the domestic construction market, with the average combined cost rising steadily from approximately $480 per square metre in previous years to between 535 and 705 yuan, with the main structural labour, management and compliance taxes being the main source of cost increases。
This change is not a single price increase, but a direct reflection of the transformation of the construction industry from “bold construction” to “standardization, digitization and greening”。
Core jobs such as steel and carpentry have increased prices by about 5 to 8 per cent over the past year。
The full implementation of the labour name system, social security contributions and wage-holders system has made it easier for labour companies to simply pay for their work, while assuming formal labour, compliance and auditing responsibilities, resulting in higher administrative costs。
The landing of such systems increases workers ' income security and limits the incidence of job theft and wage arrears。
For the constructioners, profit space could have been obtained by compressing labour costs, and it is now necessary to adhere to a tight labour compliance system like the railway, with increased cost transparency and a general increase in the price of the lump sum。
The general offer for steel mechanics ranged from $950 to $1,200 per ton, with the conversion of approximately $75 to $90 per square metre and the cost of carpentry between 160 and 195。
It is noteworthy that the aluminium simulation process has increased its frequency in the main structure, with a high turnover rate, saves working hours and increased market demand for skilled aluminium simulations, allowing carpentry to move up the price curve。
The price of concrete and shelf workers has been maintained at between 28 and 35 yuan per square metre, and between 12 and 18 yuan per square metre。
In terms of labour structure, the price increases for all jobs have been moderate, but the ageing of the population and the decline in the youth labour force are long-term factors。
Many construction enterprises in the region have reported a sharp decrease in the proportion of workers under 30 years of age and that the average age of skilled workers is over 45。
This directly increases the cost of labour because of insufficient young labour, long training cycles and unstable job efficiency。
The secondary structure and the rougher parts, although not increasing in unit prices, are still affected by changes in schedule and usage。
Construction, dusting and ground search for equal jobs were maintained at a range of between $95 and $125 per square metre, but in detail, the price of construction work increased to between $55 and $70, and even the most basic plastering work required between $38 and $45。
Building has shifted from a rough “turn-in-room” standard to a more balanced and visual quality, with high process requirements leading to more time input。
The cost of ancillary materials and small and medium machinery fluctuates between $40 and $60。
The prices of materials such as wire, welds and demodels have been affected by fluctuations in upstream steel and chemical raw materials, which have risen significantly since 2024。
The green construction policy calls for the replacement of traditional waste materials such as low-volatilization paints and dust-proof template oil, which, while performing better, increase procurement prices by about 20 per cent。
The construction unit had to comply with the green evaluation criteria, otherwise it could not pass acceptance, which made the ancillary items a rigid expenditure。
In addition, higher maintenance costs for generators, mixers and minor upgrades used on the ground, shorter depreciation cycles of equipment and a mechanical depreciation subsidy of between $12 and $18 is normally added to the construction unit's offer to meet actual consumption。
The most significant increase was in management costs and on-site funding, with an increase of approximately $10 to $15 per square metre。
The construction of intelligent sites requires that the construction site be equipped with video surveillance, a pylons anti-crash system, dust-surveilling stakes and real name lockers, and that the installation and operation of the system bring about a fundamental change in the previous pattern of “simplified site control”。
Each project requires a digital security officer to manage the platform, and the related labour costs and equipment rental expenditures are reflected in the daily management costs。
The salaries of field managers were raised to approximately $25 to $35 per square metre, while the security-civilization construction and logistics items were maintained in the range of $10 to $15 and $8 to $15, respectively。
The summer heat has led to the mandatory distribution of summer cooling fees, improved living conditions for workers and a significant increase in logistical expenditures, which are no longer “optional”, but must include rigid elements of costs in the evaluation process。
Profits and taxes are partly stable and structural changes are significant。
Profit space is maintained at 8 to 10 per cent, at around $50 to $60 per square metre, but the introduction of the generic tax model and the four-phase gold tax system effectively invalidated the previously existing “hidden outsourcing” and “note credit”。
Businesses must have a real track record for deductions and compliance costs increased by approximately $5 to $10 per square metre。
While the tax rate has not changed, the pressure on cash flows has increased and fiscal transparency has made the clearing company more cautious in its offer。
In combination with expenditures, the total unit of labour for the construction of the shear wall is currently in the range of $535 to $705。
Industry research shows that small projects of up to 3,000 square metres tend to fall in the higher range because the cost of sharing and managing the machinery is difficult to dilute; large-scale housing projects can be reduced to about $550 by the size effect。
Labour costs continue to account for about 60 per cent of total costs, but compliance, management and taxation have increased from 10 per cent to nearly 20 per cent。
This is a mirror of structural change in the construction industry。
This cost evolution in the construction industry stems from several social dynamics。
The reduction of skilled labour is one of the underlying factors。
On the one hand, the young labour force tends to enter the service or logistics industries in order to avoid high-intensity labour, while on the other hand, the long-term seasonal use of the construction industry and unstable incomes make it less attractive。
Compliance reforms have forced businesses to move from temporary recruitment to long-term contracts, which has increased expenditures but also enhanced the safety and welfare of workers。
At the policy level, the implementation of the law on safe production has been stepped up, especially in high-level housing and urban sites, where a negative vote on site safety has become the norm。
In order to avoid risk, enterprises have to have additional budgets for protection and control。
Such mandatory standards have effectively contained accidents but have also raised project management costs。
The digitalization of tax regulation has led to transparency, the elimination of false billings and the loss of space for small businesses to survive on “grey profits”, and the clean-up industry has moved from the chaos of the past to a more regulated market environment。
For construction enterprises, responses in the coming year will focus more on organizational efficiency and technological innovation。
Digital sites can increase managerial precision, and shortening the duration of work is the only way to offset the artificial increase。
Some enterprises have attempted to improve their labour efficiency through worker performance incentives and technical training, to reduce the number of job failures and back-to-work, to introduce robotic binding systems and automatic measuring devices in some sites and to mechanize labour-intensive links。
For construction practitioners, it is not simply a bad thing to increase the unit price of the lump sum。
Norms bring protection, transparency leads to stability, and a shift from low-cost to quality competition in the industry will promote the transformation of construction enterprises over the long term。
The key point in future clean-up contracts is no longer the unit bargaining, but the time standards, quality acceptance and compliance records。
Partnerships between owners and constructioners will become more contractual, relying no longer on human and experience but on data and evidence。
The bottom logic of the construction industry is being reshaped。
The rise in costs is a short-term pressure, and the deeper significance is that the industry is moving away from its rough past towards a safer, more environmentally friendly and more regulated direction。
While it is difficult to reduce the cost of the clean-up as a result of a well-developed system of digital regulation, the quality of the works, worker security and social trust will rise simultaneously。
For every person involved, from business owners to ordinary workers, this was a structural transformation, a restructuring of the value chain。
This is the true meaning of the current change in the cost of building contractors — behind which the cost rise is a solid step towards modernization for the entire industry。
