FACTORS AFFECTING CONSTRUCTION COST OF BUILDING

Real estate is an expensive business venture, and anyone who tries to keep up with home construction needs to be aware of the complexities involved in this process. In general, construction costs depend on many factors and can be strongly influenced by external factors. Before you begin to determine the cost of home construction, it is important to have a building plan. Without a good construction plan, it is almost impossible to do a cost analysis. The price of a house depended largely on two main factors: the location of the house and the cost per square foot to build a house in that area, as well as the total square foot of the house. 

Major factors influencing the construction cost of building are discussed below:

1) Location of the project: Construction cost of building is directly related to the location of the building. If the home is an urban, or metropolitan area or a marketable place, a school, a nearby railway station, the price will be higher compared to a rural house.

2) Size of the project: Generally, the construction cost of

building a home is measured in square meters. A large size

project requires more staff and additional building materials.

Thus, construction costs will vary greatly depending on the

size of the project. For example, a house of 1000 sq ft will

incur lower development costs compared to a house of 5000

sq ft.

3) Land Excavation: Project sites can have a significant

impact on construction cost of building. Site conditions such

as poor soil, pipeline availability, unequal land, archeological

site, water resources and natural hazards may increase

project costs. 

The following factor affects costs: -

*Type of work (cleaning, folding, digging etc.)

* The amount of soil to be removed

* Season (summer, rain, cold seasons)

4) Foundation and Framing: The foundation begins next to

excavation. It holds the house and the framing gives shape

and divides the rooms as well.

The cost of the foundation will vary depending on the

following types: -

- Concrete Slab - Concrete cost, low maintenance.

- Beam

- Basement

The cost of the framework will depend on: -

 Number of carpentry work

 The size of the house

5) Cost of Material: The cost of building depends largely on

the materials used in the construction. The cost of the

property will vary according to the size and type of the

house. All these factors are related. If you build a home in a

rural area where building materials are not readily available,

the cost will vary.

6) Labour Wages: Labour wages vary according to the size of

the house. Different states have different wage rates.In some

areas it is charged on hourly basis whereas in some areas it is

charged on daily basis. Thus, it is important to understand

the wage norms before estimating the construction cost.

7) Approvals: Approvals from the local authorities can be

costly as well as time-consuming.

8) Additional Features: It includes electrical and plumbing cost

mainly. Quality and quantity of products being used decide

the cost of construction.

9) Project Delays:The cost of building a project also depends

on the speed of the project. Construction delays due to

unforeseen circumstances could significantly affect the

specified budget.Some of the problems that can cause

construction delays include:

 Increase in rental cost of equipments.

 Contractor and employee salaries may increase

 Inefficient use of equipment that may result in additional

costs

 Prices for material goods may rise at the moment.

 The cost of storing supplies.

10) Finishing: Exterior finishing includes exterior walls, roofing and installation of doors and windows. The price and environment of the exterior appearance, doors, and windows will affect these costs.Interior finishing can include drywall, insulation, paintings, interior trim, electrical appliances, lighting, and flooring.

Cost of building can also vary depending on a few other factors such as the number of building storey, the type of roof, design features, and finishing. If you are planning to add something extra to your dream home, it will also add extra costs.