Current practice in the market for construction cost estimation depends on the average construction cost per square foot. However, this type of construction cost estimation is not ideal for all situations. This method of calculating construction cost can lead to increased expenses as it ignores the fact that the price can be flexible. Tweaking a few elements in the process with the help of a professional building services company can significantly reduce the cost of construction.
Several factors such as location, climatic conditions, local authority regulations, land profile/topography, soil type, specification of the materials used, the design elements, framed (with columns/pillars) or load-bearing walls, basements, number of floor rises, the height of floors, built-up area, nature and type of structure, other services (MEP) requirement, transport influence the construction cost estimation.
There is a common misbelief that choosing a general contractor over a professional building company can save cost. But the truth is that registered builders are far more reliable and dependable as they can secure competitive pricing on materials by purchasing in bulk and through their networks. Building companies always have more than required workers and a professional approach which reduces completion time and avoids errors adding up to the cost-savings in the construction of your project.
Moreover, professional builders include the building of compound walls, underground tank, overhead tank, solar water provisioning in the packages, which can also reduce your cost of construction.
An open discussion about your budget constraints and your financing options beforehand can also save you time and money. Preliminary calculations of the cost related to Stamp duty, Registration charges, Loan processing, Bank charges, Modifications/Alterations, Interiors, Furniture, GST, Govt. deposit charges for water/electricity, Housewarming, Maintenance/Operations, Interest on loans, Pre Payment, Late Payment, Brokerage, Inflation etc. can be estimated well in advance to have complete control on the expected cash flows.
The initial planning phase helps in determining the fixed and variable costs, which allow us to be flexible in design, execution methodology, products selection etc. A continuous track of the plans will yield a better and cost-effective building.