Professional Documents
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TO MAKE
BUILDINGS COST-
EFFECTIVE.
BUILDING ECONOMICS-I
Construction costs in India are increasing at around 50 per cent over the average
inflation levels.
INTRODUCTION With inflation rates getting into double digits of around 10 per cent (April 1995),
the construction costs have registered increase of up to 15 per cent over 1995,
Primarily due to cost of basic building materials such as steel, cement, bricks,
timber and other inputs as well as cost of labour.
As a result, the cost of construction using conventional building materials and
construction forms range from Rs. 3000 to Rs. 4000 per sqm for housing.
This is only in respect of the standard types of housing.
Higher cost levels are registered for using better finishes and amenities.
Construction cost of this order is beyond the affordability of the economically
weak and low-income groups of population as well as a large cross section of the
middle - income groups.
Therefore, there is a need to adopt cost-effective construction methods either by
upgradation of traditional technologies using local resources or applying modern
construction materials and techniques with efficient inputs leading to economic
solutions.
This has become the most relevant aspect in the context of the large volume of
housing to he constructed in both rural and urban areas and the consideration of
limitations in the availability of resources such as building materials and finance.
Construction cost / Initial cost- Initial cost A project's initial costs are
those that are incurred during the design and construction process. They
can include any of the following: Planning, preliminary engineering, and
project design. In short cost which goes into making of the Building.
TYPES OF COST • Land costs (land costs, stamp duty, lawyers’)
• Site clearance & earthworks earth works
Construction Cost
• Infrastructure
Maintenance Cost
• Building works
Operational Cost
• External works
• Landscape works
• Preliminaries
• Design risks & contingencies
• Professionals Fees & Lawyers Fees
• Administration
• Financial (for loan purpose)
• Contribution to Local Authorities
Maintenance cost - 'Maintenance expenses' is the costs
incurred to keep an item in good condition and/or good
working order. When purchasing an item that requires
upkeep, consumers should consider not just the initial price
tag, but also the item's ongoing maintenance expenses.
• Material
• Labor
• Spare parts
• Maintenance Resource
• Management and Costing
• Behavior
• Budget
• Impact of Maintenance
• Down time (production loss)
• Overhead
• Consumables
• Hand tools, power tools and equipment
Operational cost - Operational costs are the expenses which are
related to the operation of business, or to the operation of a device,
component, piece of equipment or facility. They are the cost of
resources used by an organization just to maintain its existence.
• Building services:- HVACs, lift, escalator etc.
• Administration (Accounting and legal fees)
• Marketing(Sales and marketing costs) •Bank charges
• Travel expenses
• Electricity ,water, other bills charges
• Rent
• Repair and maintenance costs
Factors affecting cost of building?
Similar Construction Projects: For the construction estimate, the best
reference will be similar construction projects. The final cost of those similar
projects can give the idea for the new construction project cost calculation.
The final cost of past project needs to be factored with current construction
cost indices.
Labor Wage Rates: Labor wages varies place to place. So, local wage rate
should be considered in calculation. If the project has to be started after
several months of estimating the project cost, the probable variation in wage
rates has to be considered in the calculation .
Construction Site Conditions: Project site conditions can increase construction
costs. Site conditions such as poor soil conditions, wetlands, contaminated
materials, conflicting utilities (buried pipe, cables, overhead lines, etc.),
environmentally sensitivity area, ground water, river or stream crossings, heavy
traffic, buried storage tanks, archaeological sites, endangered species habitat and
Factors similar existing conditions etc. can increase the project cost during construction
phase if these variations are not considered during estimation.
affecting cost Project Schedule: Duration of construction project is affects the cost. Increase in
of building? project duration can increase the construction project cost due to increase in
indirect costs, while reduction in construction cost also increases the project cost
due to increase in direct costs. Therefore, construction project schedules also need
to be considered during project cost estimation.
FOUNDATIO WALL
N
LINTEL ROOF
FOUNDATION The foundation cost comes to about 10 to 15 % of the total building.
It is adopted for single or double storey building.
It is recommended to adopt a foundation depth of 2ft. For normal soil like gravely soil, red
soils etc.
Suggested to adopt arch foundation in ordinary soil for effecting reduction in construction
cost up to 40%
In the case black cotton and other soft soil it is recommend to use under ream pile foundation
which saves about 20 to 25% in cost over the conventional method of construction.
ARCH FOUNDATION –
Arch foundations require less digging, material, and being a relatively labour -
intensive process, put more laborers to work.
Precast R.C.C. frames can save 25 to 30 per cent cost when composed with
wooden frames. Instead of wooden shutters particle board shutters may be
used.
FLOORING
PRECAST STRUCTURE CONST.TECHNIQUE Low cost housing flooring may be with soil cement base, thin clay tiles,
bricks on edges or with flagstones.
SHAPE OF THE HOUSE
• Square shaped structure has more advantages than a rectangular-shaped
structure. It saves almost 15 -20% walls than a rectangular shape of the same
structure.
• Have a floor plan/layout which is square/rectangular shaped (having lower
perimeter). Square/rectangular shaped floor plans usually consume lesser materials
(20-40%) as compared to a H shaped and L shaped layouts as they consume more
materials per unit built up area.
WALL SIZE
• The cost can be reduced by making outer walls thicker than the inner walls.
• Optimise cement consumption by using the right cement grade. OPC cement is
usually slightly costlier than PPC cement. OPC cement is usually recommend for
RCC structural work (like foundations, columns, roof and beams) and PPC cement is
recommended for non-structural works (Like Plastering, Tiling etc.,).
• For optimising the cement consumption in structural concrete, you can mix fly ash
judiciously (15 to 25% as part replacement to cement) with OPC 53 cement. This will
not only decrease the costs but will also be durable (since degree of permeability
will be low)
ROOF TYPE
The roof is one of the most expensive material and labor line items in your budget.
This is why the simpler the roof system, the less expensive it will be. The most
inexpensive roof is a simple, single ridgeline with a shallow pitch. More
complicated roof systems, called hips and valleys with a steeper pitch, are more
visually interesting. But they are also a lot more expensive.