Construction Cost Analysis in Residential Sector

8/10/2019 Construction Cost Analysis in Residential Sector

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Corporate Office:-5thFloor, Fine House, Anandji Lane, M.G.Road, Ghatkopar (East), Mumbai !"""##.

Phone:-$%& '' '5"%'"&" Fax:-$%& '' '5&5"%" E Mail:- info@neelkanth rou .com

Costs as on date

(Residential) % basic medium'end residentialgroup housing pro(ect would incurconstruction cost o) *s.+"# ps).

dministrative & -))ice overheads

would be etra.

% /y providing a car park )or every+### s0. )t. the construction cost

goes up by *s. +$#'"# ps). 1his

increases even more i) a

basement car park is considered.

1his is eplained in the net slide.

% 1he tabulated cost is on built'up

area which increases by +#2 i)

calculated on 3aleable area.
mailto:[email protected]:[email protected]


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Major concern: Parking

costs 4))icient layout56" s0. )t. per car park

7ost per car park5 *s. 6.+8 lacs

4))icient layout5

6" s0. )t. per car park

7ost per car park5 *s. 6.99 lacs


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Basic material rates as on

date7ement ' *s. "8:;' per bag

3teel ' *s. 8$;' per kg.

3trand ' *s. ";' per kg.

3and ' *s. 9##;' per m6

Metal ' *s. 9##;' per m6Kota ' *s. ";' per s0. )t.

ranite ' *s. +6#;' per s0. )t.

la


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Comparative statement of rates for 2! " 2#


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Comparative $scalations (Residential): 2!%2# All specifications remaining same& average annual increment 'as een 2*!+


7/11Corporate Office:-5thFloor, Fine House, Anandji Lane, M.G.Road, Ghatkopar (East), Mumbai !"""##.


,ensitivity Analysis (Residential)

1he cost o) any *esidential building is highly sensitive to the items;materials mentioned below5

=or +#2 increase in item cost, the corresponding impact on construction cost is shown.

>tem 2 increase in construction cost

7ement " 2

3teel +.?

3and +. 2

1iling #. 2

luminum #. 2

7opper #.? 2

1imber #." 2

@abour ".# 2

@i)ts #." 2

Plumbing )ittings #." 2

TOTAL IMPACT 9.75 %




$scalation sno-all effect% 4scalation in 7ivil & structural costs have been to the tune o) almost +"'+82 annually

% 4scalation o) overall construction cost )or )inished products in the residential segmenthave been to the tune o) +"2 annually.

% verage in)lation rate in this same period o) last 8 years has been 9'?2 Athis year it issupposed to have crossed +#2 alreadyBC

% ence, in the last three years alone the construction costs in civil and structural areashave gone up a clear #2B

% 1o top it all, the compensation revisions in the entire cross section o) sta)) ;pro)essionals retentions has also gone up by "##2. 1his has increased theoverheads )rom 2 6 years ago to +"2 as on dateBB




.inance costs " /a0es

=inance angle5

% 7ost o) )inance plays a ma(or role in costing depending on the type o) construction.

% 1he turnover time o) the pro(ect also becomes a very important )actor whileconsidering the )inance cost.

E1 & 3ervice 1a5% 1he ta structure & its implications )or each (ob work ought to be evaluated be)ore

)inali




Conclusion

% 7osts have gone up by #2 in the last 6 years.

% With supply o) contractors not matching the ecess in demand, decent

contractors today are demanding a minimum o) 6#2 margins thereby

)urther increasing the construction costs.

% We need to be ready )or this trend to continue at least in the near hori



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Construction Cost Analysis in Residential Sector

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