Rising cost of cement, steel push up construction cost up by 40%
According to information, the steel cost has increased from Rs 46,000 to Rs 48,000 per tonne to Rs 69,000 to Rs 72,000 per tonne.
According to information, the steel cost has increased from Rs 46,000 to Rs 48,000 per tonne to Rs 69,000 to Rs 72,000 per tonne. The “sand is not available at a price not less than” Rs 1,100 per tonne. Similarly, the cost of cement too shot up. The cement used to cost Rs 280 to Rs 300 per bag depending upon the quality and brand. Now, it costs Rs 400 to Rs 450 per bag. The costs of other fixtures such as electricity, plumbing and tiles have also increased. As a result, the cost per sq ft has gone up to Rs 4,500 to Rs 5,500. It was about Rs 3,500 per sq ft a few months ago, sources in the construction industry say.
When contacted, R.V. Swamy, Convenor (Public Relations and Media Affairs Committee), the Confederation of Real Estate Developers Associations of India (CREDAI) says that the cost of construction of a unit has gone up by about 40%. Earlier, a flat used to cost Rs 40 lakh depending upon the factors such as sq ft area etc. Now, the builder has to sell a flat at Rs 45 lakh to Rs 50 lakh if the rise in prices of raw materials were to be taken into account, he explains.
As the builders have already entered into an agreement with the buyers under the Real Estate (Regulation and Development) Act (RERA), they are clueless as to what to do. For new projects, the increase in prices can be passed on to the buyers but it may not be possible for already existing agreements under the RERA. The construction sector was already hit by the pandemic and related restrictions. The industry is now facing blow with the steep rise in cost of materials. The government has to take proactive steps to resolve the issue, he says.
As per the industry sources, there are about 8,000 to 10,000 ongoing projects across the State. In Vijayawada and Visakhapatnam, about 1,200 to 1,400 projects each are under progress. Remaining are in cities and towns such as Guntur, Tirupati, Kurnool, Rajahmundry, Kakinada etc. The flat space falls in the categories of 800ft, 1,000ft, 2,000ft and 3,000ft. In all, 2,500 to 3,000 builders have crossed their fingers.
Handling concrete better
Efficiently handling the transportation and placement of concrete is essential to help maintain the quality of construction, meet project timelines by minimising downtimes, and reduce costs – by 5 to 15 per cent, according to Sandeep Jain, Director, Arkade Developers. CW explores what the efficient handling of concrete entails.Select wellFirst, a word on choosing the right equipment, such as a mixer with a capacity aligned to the volume required onsite, from Vaibhav Kulkarni, Concrete Expert. “An overly large mixer will increase the idle time (and cost), while one that ..
Elevated floors!
Raised access flooring, also called false flooring, is a less common interiors feature than false ceilings, but it has as many uses – if not more.A raised floor is a modular panel installed above the structural floor. The space beneath the raised flooring is typically used to accommodate utilities such as electrical cables, plumbing and HVAC systems. And so, raised flooring is usually associated with buildings with heavy cabling and precise air distribution needs, such as data centres.That said, CW interacted with designers and architects and discovered that false flooring can come in handy ..
The Variation Challenge
A variation or change in scope clause is defined in construction contracts to take care of situations arising from change in the defined scope of work. Such changes may arise due to factors such as additions or deletions in the scope of work, modifications in the type, grade or specifications of materials, alterations in specifications or drawings, and acts or omissions of other contractors. Further, ineffective planning, inadequate investigations or surveys and requests from the employer or those within the project’s area of influence can contribute to changes in the scope of work. Ext..
Latest Updates
