Developers turn to tech innovations to cut costs
The Hindu Business Line, May 4, 2009, Page 3
Realty players change construction materials ‘without compromising on quality’.
A file picture of flats under construction in Kochi.
Anjana Chandramouly, Bangalore
The slump in the real estate market has forced developers to look within and think smart.
They are now taking a re-look at their strategies and tweaking them at the design stage to bring down costs of construction. Reduced costs would mean a good price for buyers and better bottom lines for developers.
“Ozonegroup saves 20 per cent on overall costs purely on changes in design, optimisation and material selection, which is passed on to the customers,” says Mr K.S. Sudarshan, Chief Operating Officer, Ozonegroup.
What aids developers is technological innovation in terms of mechanising construction, he says. For instance, try to get as much pre-fabricated structures as possible. These are economical, give better finish, reduce wastage by maintaining quality and finish, and enable faster delivery.
“All these bring down costs, and the customer is also happy,” says Mr Sudarshan.
Space and cost
Mr Abhinand Patil, General Manager-Sales & Marketing, CSC Constructions, which launched three projects in Bangalore in the Rs 4-18 lakh category, says: “It is important to manage costs by working with suppliers. We follow the just-in-time approach for effective inventory management. There should be a balance between space and cost.”
Some measures this company plans to adopt are a simplified and standardised design, no basement with maximised ground floor/stilt parking, shared walls and shafts, simplified façade, maximum FSI, and higher efficiency of built-up area.
Parking problems
“Though basement versus stilted parking is still a debate, basement parking could be avoided if it is not a high-rise building. A stilted parking could save 40 per cent of the cost of construction of parking slot. Where it is not possible to do away with basement parking, developers can opt for semi-stilted basement parking where it is enough to excavate only a part of the land,” says Mr Sudarshan.
Developers, who opted for the expensive machine room-less lifts (MRLs) till now, could go in for regular lifts with machine rooms, 40 per cent cheaper than MRLs.
Standardising unit and room sizes could help in optimising design, thus reducing costs and drastically reducing wastage in tile-laying. “Compared to non-standard sizes, it is possible to save 20-25 per cent costs,” he says.
CSC Constructions has two bedroom units of 600-700 sq.ft instead of the till-now preferred 1,000 sq.ft. This could also help increase the number of units in a floor. “Increasing the number of shared walls and shafts in the new blocks, unlike earlier, makes it more economical,” says Mr Patil.
Changes are being made in the choice of materials without compromising on the quality and appeal of the finished product, says Mr B.K. Dhar, CEO, Mfar Constructions.
Cheaper Options
Some options include changing paint specifications – distemper over plastic emulsion paint results in 20 per cent savings in painting costs of interiors, and cement paint over water-proof paints saves 35 per cent of exterior painting costs – and tiles – terrazzo tiles over vitrified tiles saves 20-25 per cent of flooring costs.
Concrete door-frames instead of wooden/aluminium frames (50 per cent savings); reducing floor-to-ceiling height from nine ft to 8.5 ft in high-rise buildings (10 per cent savings); reducing common area in buildings from six ft to four ft; optimising electrical circuit design within units (20-25 per cent savings); standardising the size of tiles used (20 per cent savings); and standardised bathroom fittings and fixtures (15-20 per cent savings) also help developers get a better price.
The Hindu Business Line, May 4, 2009, Page 3
Realty players change construction materials ‘without compromising on quality’.
A file picture of flats under construction in Kochi.
Anjana Chandramouly, Bangalore
The slump in the real estate market has forced developers to look within and think smart.
They are now taking a re-look at their strategies and tweaking them at the design stage to bring down costs of construction. Reduced costs would mean a good price for buyers and better bottom lines for developers.
“Ozonegroup saves 20 per cent on overall costs purely on changes in design, optimisation and material selection, which is passed on to the customers,” says Mr K.S. Sudarshan, Chief Operating Officer, Ozonegroup.
What aids developers is technological innovation in terms of mechanising construction, he says. For instance, try to get as much pre-fabricated structures as possible. These are economical, give better finish, reduce wastage by maintaining quality and finish, and enable faster delivery.
“All these bring down costs, and the customer is also happy,” says Mr Sudarshan.
Space and cost
Mr Abhinand Patil, General Manager-Sales & Marketing, CSC Constructions, which launched three projects in Bangalore in the Rs 4-18 lakh category, says: “It is important to manage costs by working with suppliers. We follow the just-in-time approach for effective inventory management. There should be a balance between space and cost.”
Some measures this company plans to adopt are a simplified and standardised design, no basement with maximised ground floor/stilt parking, shared walls and shafts, simplified façade, maximum FSI, and higher efficiency of built-up area.
Parking problems
“Though basement versus stilted parking is still a debate, basement parking could be avoided if it is not a high-rise building. A stilted parking could save 40 per cent of the cost of construction of parking slot. Where it is not possible to do away with basement parking, developers can opt for semi-stilted basement parking where it is enough to excavate only a part of the land,” says Mr Sudarshan.
Developers, who opted for the expensive machine room-less lifts (MRLs) till now, could go in for regular lifts with machine rooms, 40 per cent cheaper than MRLs.
Standardising unit and room sizes could help in optimising design, thus reducing costs and drastically reducing wastage in tile-laying. “Compared to non-standard sizes, it is possible to save 20-25 per cent costs,” he says.
CSC Constructions has two bedroom units of 600-700 sq.ft instead of the till-now preferred 1,000 sq.ft. This could also help increase the number of units in a floor. “Increasing the number of shared walls and shafts in the new blocks, unlike earlier, makes it more economical,” says Mr Patil.
Changes are being made in the choice of materials without compromising on the quality and appeal of the finished product, says Mr B.K. Dhar, CEO, Mfar Constructions.
Cheaper Options
Some options include changing paint specifications – distemper over plastic emulsion paint results in 20 per cent savings in painting costs of interiors, and cement paint over water-proof paints saves 35 per cent of exterior painting costs – and tiles – terrazzo tiles over vitrified tiles saves 20-25 per cent of flooring costs.
Concrete door-frames instead of wooden/aluminium frames (50 per cent savings); reducing floor-to-ceiling height from nine ft to 8.5 ft in high-rise buildings (10 per cent savings); reducing common area in buildings from six ft to four ft; optimising electrical circuit design within units (20-25 per cent savings); standardising the size of tiles used (20 per cent savings); and standardised bathroom fittings and fixtures (15-20 per cent savings) also help developers get a better price.
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