| In today's difficult economic scenario where most | | | | successfully utilized to construct prebuilt units at a |
| activity in the construction industry has drastically | | | | fraction of the cost of those of conventional |
| diminished, it is especially relevant to look at ways | | | | homes. Moreover, time taken in the build process |
| and means of scaling down costs. This might go | | | | can be shortened considerably. |
| some distance in the contributing to the revival of | | | | An often ignored reason for the high cost of |
| the sector which we are all so keen do well. The | | | | construction, particularly within house building, is |
| foundation of cost saving be laid during the | | | | the lack of government encouragement in the |
| planning and design phase. | | | | development of moderately priced housing. |
| How we factor in the costs taking into account | | | | Instead of support, most governments bow to |
| the entire life cycle of the facility to be built is | | | | the demands of neighborhood groups who are |
| critical. We must remember that construction cost | | | | bent on preserving the exclusivity of their area. |
| forms only one part of the life cycle cost, and it | | | | These groups are not keen on the development |
| will be the owner of the facility who will have to | | | | of mid rise apartment projects in their vicinity - |
| bear the costs after the construction phase. | | | | nor would they like to have retired folks and |
| Therefore it is important to remember that any | | | | young people in their midst. This creates |
| savings in costs at one stage should not be at the | | | | exclusivity, which pushes up the price of real |
| expense of quality, which may come back to | | | | estate. |
| haunt the owner at a later stage. | | | | A very direct and emotional component of the |
| While it is always a good idea to | | | | construction cost equation is that of labour costs. |
| compartmentalize a project, it is essential that the | | | | One good method of reducing construction costs |
| level of communication between the divisions is | | | | is to reduce the cost of labour. This being the |
| clear and effective, in order that tasks are carried | | | | emotive issue that it is, it has to be handled with |
| out with synergy. Productivity enhancement | | | | extreme care as public backlash from laying off |
| measures such as use of new technologies and | | | | workers is something every company would wish |
| automated construction processes are also to be | | | | to avoid. There are a number of innovative |
| investigated and implemented, provided they bring | | | | methods to reduce labour costs which are |
| down the cost and are in tandem with the | | | | beyond the scope of this article, however these |
| project objectives. Since it is the owner or the | | | | can be innovative, and negate the need for |
| user will live with the outcome, all efforts should | | | | workers to take substantial pay cuts. They could |
| be to keep the quality levels high, which include | | | | for instance be made to work staggered hours |
| optimization and rationalization of the costing. | | | | so that their skills are optimally utilized. As labour |
| There are certain fundamental methods which can | | | | costs can amount to very high percentages of |
| reduce construction costs by a substantial | | | | the total cost of construction, any savings |
| amount. Opting for prebuilt units is one such way. | | | | achieved can have major impact on overall |
| For many low and moderate income American | | | | project costs. |
| families, buying a home has become something of | | | | Cost of construction is a complex issue and it |
| a dream given the current state of the real | | | | varies with the type of industry and the |
| estate market. Under the prebuilt mechanism, | | | | geographical location. However, the scope for cost |
| house are constructed off site and subsequently | | | | rationalization is often overlooked to the detriment |
| assembled on site, rather than being built from | | | | of the project in question and its ultimate |
| the ground up in the traditional style. | | | | beneficiaries. Money saved by exercising caution |
| For example, in California, non-profit housing | | | | and discretion is money released towards greater |
| developers are allowed to buy tax defaulted | | | | growth and prosperity. |
| properties. These empty lots can then be | | | | |