The cost of construction for hospitals has increased rapidly over the past twelve months, but at a slightly slower pace than in the previous two years. The cost rise for 2006 was in the range of 12% - 15%, compared to an average of 18.5% per annum for the preceding three years. While in previous years the increase in construction cost for healthcare projects was significantly in excess of that experienced by most other building types, cost escalation in the past twelve months has been more in line with the level of escalation seen in other large complex construction project types, such as laboratories, museums, and performing arts centers. Subcontractor bids continue to be very volatile, with some projects experiencing signifi cant diffi culty getting adequate bid coverage in all trades.