How to Calculate Construction Cost Per Square Feet
Concept about construction cost per square foot and its importance
The construction cost of the house refers to the total money that has been required to build one square foot of covered space in the house. The cost of construction of a house includes all expenses from land to a move-in-ready house, for example:
1. The building material costs like steel, cement, bricks, sand and others.
2. The labour costs for carpenters, masons, electricians, and plumbers.
3. Professional fees for project managers, architects and engineers.
4. Statutory costs, for example, permits, utility charges, and approvals.
5. Project overhead costs include contingency fund, site maintenance costs, and insurance.
The construction cost estimation is important during a building construction project, as it is easy to compare different quotes. The construction cost estimation process helps to plan large building projects. This construction cost estimation process has also been used by banks and lenders for loan disbursement.
Discuss the factors that impact the construction cost of the residential building per square foot
Numerous factors significantly impact the overall construction cost of the building structure, which are as follows:
Designing and planning
The cost of the construction has been significantly impacted by the design and planning of the house. With proper planning and design, the overall construction cost of the building can be saved. In this context, it is important to work with an experienced architect to create building designs that are both budget-friendly and visually appealing. In the case of distinctive architectural designs, intricate detailing and innovative features, specialised building materials and labourers are required, which enhances the overall construction cost. On the other hand, if there are complex structural elements, for example, unconventional shapes or cantilevered sections, extra engineering expertise and materials are required, which also leads to higher expenses.
Total size of the property
A larger floor area has more expenses than a smaller house. In the case of adding a first floor or additional floors to the property, there is about a 40 to 60 % increase in the construction cost.
The quality of the building materials
The material’s quality used in the construction project also impacts the overall construction cost of the house. In the case of using high-quality materials, which may cost upfront, it can save costs in the long run by decreasing the maintenance costs of the building structure. It is important to maintain a balance between the cost and quality of the building materials, to ensure getting the best value for money.
Labour costs
On the basis of the local wage rates and the availability of skilled workers, the labour costs can vary. Skilled labour and efficient project management help to influence the construction timelines, thus reducing the overall construction cost of the house.
Location of the construction project
Location is another important factor that impacts the construction cost. In the case of constructing a house in a metropolitan city, the construction cost will be higher than in a smaller town.
Taxes
The local taxes and goods and services taxes should also be accounted for while estimating the construction cost.
Builder or contractor fees
The builder or contractor fees can also vary from 5% to 20% of the overall construction cost of the house.
Government regulations
The governmental rules and regulations should also significantly impact the construction costs of the house per square foot. While constructing the house, the local building codes should be adhered to, as any kind of non-compliance leads to substantial fines or necessitates costly modifications. The necessary permits and approvals for the building should also be secured from local authorities, as this can impact the project timeline and budget.
Process of estimating the construction cost of one room
To estimate the construction cost of a one-room, the step-by-step process is as follows:/p>
1. At first, all direct and indirect construction costs should be summed up.
2. In the next step, the total square footage of the room needs to be calculated.
3. In the next step, the construction cost has been estimated per square foot by following this formula:
Construction cost per sq ft = Total Estimated Cost ÷ Built-Up Area.
Providing exercise
Learn about the way to keep building construction costs under control
To control the building construction costs, there are several ways, which are:
1. The entire cost of construction should be split into civil, finishing, MEP (mechanical, electrical, plumbing) and landscaping.
2. The milestone-based payment method should be followed to control the overall construction cost. In this context, payment should be done after key stages of construction, like the foundation stage, superstructure stage and finishing stage.
3. The construction material cost should be tracked properly. In this context, the local material cost should be compared to the branded suppliers.
To learn more, watch the following video tutorial.
Video Source: Life is Awesome Civil Engineering Plans
4. The construction process should be done in the right season. In this case, monsoon construction should be avoided to avoid construction delay and cost overrun.
5. Local experts should be hired during the construction process to save travel costs, logistics costs, and emergency fixes.
