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Research Methodology

This research examines the relationship between oil price movements and construction costs by comparing historical crude oil prices with key construction material cost indices. All datasets were indexed to a common baseline to assess relative movements over time.

To estimate potential impacts in the current market, 2022 was used as a reference period due to similarly elevated oil prices. Historical material cost responses from that period were used to inform indicative ranges. Findings are directional and should not be considered forecasts, as material prices are influenced by multiple factors.

Material-level impacts were translated into sector-level cost implications using typical cost breakdowns for data centre and hotel projects derived from proprietary historical project data. Material price movements were weighted according to their share of total project costs and aggregated to estimate the potential effect on overall construction costs for each sector.

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This is research carried out on behalf of Currie & Brown. It is provided for general guidance and information purposes only. The views expressed herein are those of the authors only and the information in it should not be relied on in any way or construed as professional, investment or financial advice. Whilst every reasonable effort has been made to ensure the content of this report is accurate at the time of publication, some errors or mistakes can occur. All information in this report is provided as is and to the maximum extent permitted by applicable laws and regulations. Currie & Brown Holdings Ltd and subsidiary companies disclaims all representations, warranties, conditions and guarantees, whether express, implied, statutory or of other kind, nor does it accept any duty to any person, in connection with this report.