A ready reckoner on building cost

An overview of consumption of materials and unit rates is needed. One quick way to assess the cost is to use the square meter or square feet rates, writes S.Krishnamurthy

 

Courtesy: http://www.hindu.com/pp/2008/05/24/stories/2008052450010100.htm

 

There have been regular reports about the rise in material and labour costs. As clients and users we are left wondering how much is the rise and how it affects our budget. Any little information and thumb rule to understand the situation would be of much help. An overview of material consumptions, unit rates would help us navigate through the maze of construction estimates. Here is an attempt to help you follow the process of cost estimates. A quick way to know how much it costs is to use the square meter or square feet rates. In order to arrive at this, a broad understanding of how much material is required to construct a square meter is necessary. Table 1 roughly indicates the material consumption. Based on this one can work out the cost of construction. Table 2 explains how the building cost is calculated.

Services include water supply, sanitary, and electrical works with minimum normal grade fittings. This rate can be considered for estimation. It may vary with the location, type of soil met with in foundation, period / season of execution, changes in terms of finishing materials and so on.

For example, ceramic tile flooring would be at Rs.565/sq.m. Instead if you replace it with marble it would cost about Rs.1200 per sq.m.

The above-mentioned broad rates are only for load bearing structure that is constructed without columns. For a framed structure with GF +2 floors, that is construction with columns, it may cost 25 to 30% per cent more than a load bearing type of construction. It will also vary with the number of floors and provision of lift etc. For example, an apartment with ground and two floors may cost Rs.10500/ sq.m. on an average. The unit rates mentioned here will not be applicable to porch, covered / open sit-outs in upper floors etc.

Now having obtained the unit rates, one can calculate how much the entire building will cost. Once you arrive at the overall figure, you can subdivide it in terms of components of construction or stages of construction. This will help you manage your cash flow better, control your budget and finishing the building within estimate. The Table 4 and 5 explains the cost in terms of percentage of components of construction. The above-mentioned rates and steps are to be used as a rough guide. The exact estimates can be worked out only after you finalise your specification in consultation with your architect or engineer.

Escalation clause

The rise in material cost during execution affects the unit rate and our estimate. For example, if we had worked out cement cost at Rs 250 per bag and during construction time it rises to Rs.270 this would amount to an increase of about Rs 84 per sq.m.

Normally a clause to cover price escalation is introduced in the construction agreement with the contractor. In case you are buying an apartment look for this clause and be satisfied with the terms. If it is not there discuss it with your developer.

A firm agreement about the modalities of intimation and settlement of cost difference must be arrived at upfront. This may avoid any hardships during the completion and handing over of the building.

The author is former Superintending Engineer P.W.D and approved Valuer.