Cost Efficient Construction

Lecture 2
 Major Causes of High Building Costs
•Rising Cost of Construction & cost of materials
•Government charges
•Delayed approval of projects /building plans
•Lack of access to finance
•Outdated technologies
•Lack of necessary building skills
• Lack of guidelines in selection of appropriate building packages
• Designs
• Materials
• Methods
• Equipment 2
 Cost Reduction Methods

• Affordable housing is a term used to describe dwelling units whose

total housing cost are deemed “Affordable” to a group of people
within a specified income range.
• Affordable housing policies seek to house as many people as
practical at the lowest cost, leading in the past to overcrowding.
 Various aspects for cost reduction
 Optimization of land use
 Functional design of buildings
 Optimum use of building materials
 Rationalization of specifications
 New construction materials and techniques
3
The need for cost effective techniques in design and construction of
buildings
 Shelter problem( affordability)
• Homelessness
• Slum, Squatter and informal settlement
 Sustainability(social,economic and
environmental) problems
• Energy
• Buildings are largest consumer
of energy(50%)
 Resource/ material and water
 Economic/ money
 Cost and Life cycle of building

Cost effective living or cost effective building/housing?

Life cycle costs

 INITIAL COST( MAKING OF BUILDING)

 OPERATION COST
 MAINTENANCE COST
 DISPOSAL AND DEMOLISHING COST

Values ; Sustainability,inclusiveness,participation,innovation,integration,resilence,compactness,saftey
 Initial Building Project cost comprises of:

• Cost of Land, Land Registration, Land survey

• Cost of Designing, Plan approval
• From surveying to plan approval
• Cost of developing Site
• Temporary electric, water connection
• Cost of Construction
• Structural, Electrical, Sanitary and other component constructions
• Miscellaneous costs
• Insurance
• The cost till occupancy
Building Life cycle
cost
 What is cost efficient construction/ Building?

• Is it lowest first-cost structure that meets the program?

• Is it design with the lowest operation and maintenance costs?
• Is it building with the longest life span?
• Is it facility in which users are most productive?
• Is it building that offers the greatest return on investment?

 Cost efficient construction/ Building is a building which

will minimize cost not only at initial stage but, also in the
whole life cycle of building.
 Possible factors for cost of building
• Shape,
• Size,
• Story heights,
• Total height,
• Fenestration and
• other building characteristics.
• users wishes,
• planning and Building Regulations requirements
• Site factors and aesthetic requirements
• Form of contract
• Period for completion,
• Structural form,
• Extent of Prefabrication and Standardization,
• Consideration of maintenance
 Forms of contract

1. Lump-sum Contract
2. Cost Plus Fixed Fee Contract
3. Cost Plus Bid Fee Contract
4. Unit Price Contract
5. Design Build
6. Design bid-build
 Lump-sum Contact
 Traditional method of contract
 The contractor offers to do the whole work for a total stipulated
sum of money as shown in drawing and described by the
specification.
Cost Plus Fixed Fee Contract
 All cost for the work according to the specification is
reimbursed by the owner to the contractor.
 Contractor is paid a fixed sum which represents the profits.
 The variation on the lump-sum fee is percentage fee wherein
fees is established by percentage of total cost incurred by the
contractor.
 Usually it is fixed as a sum.
 Cost Plus Bid Fee Contract
 Owner invites proposal from qualified contractor in terms of
past experience, performance…..
 All cost for the work according to the specification is
reimbursed by the owner to the contractor.
 The bid fee is calculated on the basis of project scope.
Unit Price Contract
 Based on the estimated quantities of the items involved in the
work.
 The cost per unit item is given by the contactor and the
estimated quantities of items are given by the owner.
 The total cost of work can only be calculated only after the
completion of the work because measurement is made on the
basis of work actually done.
 Design Build
 It is a method to deliver a project in which the design and
construction services are constructed by a single entity known
as the design builder or design-build contractor.
 Design-build relies on a single point of responsibility contract
and is used to minimize risks for the project owner and to
reduce the delivery schedule by overlapping the design phase
and construction phase of a project.
Design Bid-Build
 It is a method to deliver a project in which the design and
construction services are constructed by separate entity
 Cost reduction methods

 Design-- Adopting optimum Design solutions-

 Materials cost-effective local materials, pre-cast,

prefabricated , re-cycled materials ,

 Technologies--Using technology to save on time , labor, space

materials and money

 Management--Managing construction in most optimum manner

 Time-Using minimum Time for construction and completion of

building/project
 Green- For optimal use of resource, water and energy
 Cost reduction method through design

• Optimizes land and space utilization

• Optimizing climate, orientation
• Optimizing space planning
• Optimizing building envelope
• Optimizing structural layout
• Optimizing service design
Morphological Factors and
Cost
 Plan
shape
Architectural form Structural layout/form
“Architectural form/plan refers “Structural form is a building’s
primarily to a building’s external primary or most visually dominant
outline or shape, and to a structural system mainly
lesser degree references its columns, walls, beams and
internal organization and slabs”
unifying principles”
 Plan
shape
Shape determining factors

1) The client , site ,concept and design approach

may determines/influences the building shape;
2) The building shape may determines a kind of
building material;
3) Material may determines kind of construction.

• The shape affects the areas, perimeters and sizes of

vertical components of the building.

 All these affects the cost of the whole building

by
affecting different components of building
construction
 Plan
shape
• The shape of a building has an important effect on cost.

• As a general rule the simpler the shape of the building the

lower will be its unit cost.
• As abuilding becomes longer and narrower or its outline is
made more complicated and irregular accompanied by
a higher unit cost.

Shapes may be
• Regular or irregular
• Regular with different geometries
 Plan
shape
Regular vs. Irregular
• The more complex and irregular the building shape
is
the more expensive it is to construct.

• Compared two buildings of rectangular and irregular

shapes, each of which have the same floor area.
 Plan shape
Shape complexity

Irregular shaped building where there is

more external walls to enclose the
same floor area,
Irregular and • Setting out Cost
complex shapes • Excavation cost
have higher • Drainage cost due to extra man holes
costs and longer pipes
• High roof costs due to corners &
material
cutting wastages.
• Constructability problems that come
with complexity, plus
• increase in building elements like
external walling with associated finishes
like cladding, roofing, setting out
costs, foundations, mechanical and
electrical
services among others.
 Plan
shape
 In building B where there is six
per cent more external wall to
enclose the same floor area,
A
• Setting out costs are increased
by about fifty percent,
• Excavation costs by about twenty
per cent
B • Drainage Costs by approximately
twenty-five per cent (two meters
of additional 100mm drain
and two extra manholes).
 Plan shape
Geometry
A. High perimeter-
to-floor ratio

high unit construction • High quantities of finishes and decorations like

costs paints and plaster.
• Increased volume of external enclosing block
walling
• Increased heat loss surface area.
• Change in foundation quantities
• Longer service and waste pipes
• Chances of extra doors & windows
 Plan shape
Plan shape and other Design variables
• The need to maintain a balance between various design criteria,
cost, function and appearance.

• It is pointless for to submit cost-saving alternatives which could not

function satisfactorily or which would or which would be aesthetically
undesirable
 Plan shape

• There are occasions when the site itself will

dictate the form or shape of the building.

• The shape of a building may also be influenced by the manner

in which it is going to be used.

Plan shape has to bee seen integrally with other

Design variables of cost
 Plan shape
Plan shape and other Design variables
• Although the simplest plan shape, that is a square building.
will be the most economical to construct it would no always
be a practicable proposition.
• Square structure would contain areas in the center of the building
which would be deficient in natural lighting.
• Although a rectangular shaped building would be more expensive
than a square one with the same floor area because of the
smaller perimeter/floor area ratio, nevertheless practical or
functional
aspects, and possibly aesthetic ones in addition, may dictate the
provision of a rectangular building.
Effect of plan shape on different components of
building construction
 Plan shape

Effect of plan shape  foundation as a proportion of total

on substructure building cost can vary from 8 to 18%
and tend to decrease with increases in
the number of storys.
 The nature of the soil determines type of
foundation
• Setting out cost, foundation layout will
be affected by plan shape

• Soil condition can cause quite different

foundation cost for otherwise similar
building.
  Walls and partition with associated
Effect of plan shape windows and doors constitute a major
on walling item of expenditure of a building.
• In some housing, these
components can accounts for about
20% from total cost

 Cost of walling affected by plan shape

because plan shape affects the
perimeter floor area ratio
 Plan shape
 Plan shape affects the way columns
Effect of plan shape arranged and the number of columns
on Cost of frame  The size of beams and columns and also
structure the reinforcing of slab

 Irregular plan shape will have irregular

shaped roof which will not easy for
construction
Effect of plan shape  The higher the perimeter floor area ratio the
on Cost of Roof higher the cost roof by increasing the
structure amount of roof material and the work
 Plan shape
 buildings with more complex shapes require
Effect of Plan Shape an additional arrangement for acoustics,
on Cost of Services lightning and ventilation,
 The more irregular shape and high
perimeter to floor area ratio buildings the
more the cost of services

 Irregular plan shape increase cost of

Effect of plan shape finishing
on finishing  The higher the perimeter floor area ratio the
higher the cost of finishing
Thank you