How To Reduce Construction Cost

Owning or building a house is a dream for everyone. However, budgeting is a crucial factor in determining whether you can achieve your dream. In India, it is possible to build a house for Rs.12 lakh. It can vary depending on the materials and labor costs. This blog covers smart ideas on how to reduce house construction costs. 

Plan Right to Reduce the Cost of House Construction

To reduce the cost of your construction, it is important to determine the budget that is required in each phase. This includes expenses for labor, materials, unseen costs, and permits. 

Utilize the cost calculator to determine the necessary expenses for construction. Keep in mind that the amount for construction includes registration charges and stamp duty.

Additionally, consider the interior needs—plumbing, flooring, painting, and tiling—before finalizing the estimate. It is also best to ask your friends about the cost of the materials, as it helps you determine the range. The last but foremost mindset is not to deviate anywhere from the required budget and end up unnecessary overspending. 

How Much Do Professional Builders Spend on House Construction?

You may have a blueprint in your mind regarding finance, but how much do pros spend on achieving this goal of yours? Well, here is something that will help you to understand the figures that experts spend on house construction.

According to the Cost of Doing Business Study in 2004, the cost breakdown for building a house in the U.S. is listed below:

• The low cost of the finished building accounts for 20% to 25% of its total selling price, with half of the cost covered by driveways and other utilities.
• The cost of the building materials, starting from flooring to foundation, contributes 35 to 30 percent of the total cost.
• The labor cost contributes 20-25%.
• About 6% contributes to general overhead.
• The cost of finance contributes to only 2% of the total price. 

However, it is important to keep in mind that if you are to build your own home, the labor cost will be higher and several jobs need to be considered. 

Smart Ways to Reduce Construction Costs

Here is a breakdown of some of the smart ways to reduce construction costs:

Select the Right Building Materials and Plot

It is important to consider plots or land that are even and on road level. If not, then you might end up spending money on leveling the ground. Moreover, it is smart to buy materials such as steel, bricks, and cement from local sources, and if you have enough space to store the construction materials and equipment, it is wise to get them in bulk. 

This will help you to save money. On the other hand, it is crucial to keep an eye on the expenses that are needed for flooring, paint choices, and furniture. Opting for concrete bricks or fly ash bricks compared to clay bricks will also help in reducing the cost.

Consider Life Cycle Cost 

It is also important to consider the initial cost and the total cost that it needs for its entire life. Consider at least the maintenance cost for 30 to 40 years.

Consult with your architect and contractor to make sure that the building materials last for a long period. Moreover, the cost of repair and replacement should not affect your future expenses. Hence, opt for green construction materials, such as blended cement, to make sure the overall maintenance cost is reduced.

Choose Experienced Architects and Builders

The baseline of cost-effective building is not to cut down on the entire cost or to compromise on its quality. Hiring a good architect or contractor may seem like a waste of money, but it’s  worth every penny. 

The contractors normally charge between 8-12% of the total construction cost, which is a reasonable payment to manage the hirers and execute the project. They have experienced manpower, a well-laid-out plan, and minimal material waste while focusing on finishing the project with the desired budget. 

Stock Plan

Compared to a stock plan, custom plans are quite expensive; hence, choosing a stock plan can be cost-effective. Stock plans offer pre-determined structures that can expedite construction and reduce design costs.

On the other hand, a custom plan needs specific changes or alterations; accordingly, the cost may vary depending on the revisions and complexity of the design. 

In this case, it is good to discuss with your contractor, and they will give you an overview of the labor cost, material cost, and contractor cost, so you can plan your house construction around that budget too. 

Focus on Necessities

Prioritize completing the basic functional needs of your building over luxury features. This focus will keep your budget on track, avoiding inflation from unnecessary expenses. Luxurious items can always be added later if your budget allows.

Don’t Change Your Plan Midway

Make every effort to avoid making significant changes to your plan midway through construction, as this can lead to cost overruns and project delays. Mid-project adjustments may require additional materials and labor, extending your construction timeline.

Low-Cost House Significance

At present, it is a great deal for a larger population to afford their own house. Hence, low-cost construction gains significant importance. To reduce your financial burdens, you can opt for home loans and focus on long-term payments. 

Conclusion

It is important to build your dream house effectively within your budget. Make sure to follow the steps and own your house within your finances. Choose well-trained and experienced builders and laborers, and stick to the plan. These will help you achieve your dream house within your budget. 

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