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Builders try new tricks to cut costs
Posted by Srini Uppala | May 11, 2008 | 403 views
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Loading ...Builders have adopted innovative methods to reduce construction costs in the wake of the sudden spurt in the prices of steel and cement. Several of them are using fly ash based cellular lightweight concrete and prefabricated material to cut costs without compromising on quality.
The rise in prices of steel and cement has hit the small and medium sized construction firms the most. The price of steel which was Rs 30,000 per tonne in January 2007 surged to about Rs 35,000 per tonne in a year. In the last three months the price has gone up to Rs 50,000 a tonne.
Similarly, cement prices have gone up from Rs 180 for a 50 kg bag in January 2007 to Rs 230 a bag. Earlier, steel and cement used to constitute just 20 per cent of the construction cost but now it has touched 35 per cent. To reduce costs, major firms such as Larsen & Toubro, Hiranandani Constructions, Rahejas, Unitech, DLF and Kalpataru are thinking of using fly ash based cellular light weight concrete for certain projects.
Red Fort Capital has also tied up with Nagarjuna Constructions and DLF to use cellular lightweight concrete, which will reduce the weight of cement needed in beams and columns, making them more durable. It could help them save Rs 100 to Rs 200 per square feet. “Using appropriate technology is extremely important in any project,” said Mr K. Vishal Kumar, general manager of DLF. “We use concrete technology that helps in quality improvement and reduces costs by five-seven per cent.”
The use of alternative technologies such as tunnel form technology and table forms is also gaining momentum. Other builders are using hollow concrete blocks, rubble filler blocks, stabilised mud-based blocks and interlocking bricks. “Construction costs can be reduced by 10 to 15 per cent in terms of material and up to 20 per cent in terms of time and labour costs,” said Mr Kumar and adds, “Pre-fabricated roof and floor trusses can be assembled quickly, which will save both time and money.” Builders are also worried whether the escalation of prices of steel and cement would jack up the cost of other material. They believe that if the government abolishes the 25 per cent import duty on steel, domestic prices will stabilise in the long term.
SOURCES:
Deccan Chronicle
Topics: Dream Home, Construction, Real Estate |
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