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Total Construction Increase in January

January 12, 2022

Construction of the dream home is a milestone in most of our lives. But with the current increase in the land costs, construction material prices and labour charges, it is becoming difficult to fulfill their dream of living in their own homes. So, here some of tips that can be helpful to build the house of their dreams.

The cost of construction of a house can be mainly divided into 7 categories.

1. Land Cost: Includes land/plot cost, registration charges, taxes, etc.

2. Design Costs: This includes architectural and structural design of the building

3. Laisoning Costs: Includes fees for government approvals like plan approval, Sanitary and water supply, BESCOM- Temp & Permanent Power, etc.,

4. Material Procurement Costs: Includes purchase of materials like cement, steel, sand, aggregate, bricks, blocks, tiles and other finishing materials.

5. Labour Costs: This includes the manpower costs for construction of RCC structure, brick work, plastering, other finishing works and external development works.

6. Final Fixtures: Includes Light fixtures, bathroom accessories, Solar heater, etc

7. Interior & Fit-outs: This includes Kitchen Cabinets, wardrobes and movable furniture’s.

Now where you can reduce the cost of construction purely depends on your lifestyle choices. You can create a barely minimalist building or an exotic bungalow to live in. Here are my few tips for reducing the cost of construction.

Land Cost (Choose the right plot for construction)

  1. choose a land which is too low compared to the level of the road. If the level of the plot is much lower than the road level, then the quantity of filling material required will be more this will increase the total cost of construction.

  2. Check for water supply and sanitary connection, this will avoid cost for bore-well and connected works, Construction of Septic tank and soak pit, etc.

  3. Access or approach to the site, make sure the site to have decent approach so the construction materials can reach the site easily.

Architectural And Design Costs

  1. A professional architect and structural designer will help you save upon the overall costs by optimizing design of the building and not over/under designing it.

  2. A good designer value engineers your construction by which you can not only save costs on materials but also save future recurring and maintenance costs (a well-lighted and-ventilated design, green material and low maintenance fixture and fittings).

  3. Have detailed designs done to avoid less confusion/misinterpretation at site, thereby avoiding rework cost and time overrun.

  4. Have a floor plan/layout which is square/rectangular shaped (having lower perimeter). Square/rectangular shaped floor plans usually consume lesser materials (20-40%) as compared to a H shaped and L shaped layouts as they consume more materials per unit built up area.

Material Procurement


  1. Go for local/regional branded cement. Most of the local branded cements like ACC, Dalmia, Chettinad cement, Ramco cement, etc., are of good quality and are offered at better prices.

  2. Optimize cement consumption by using the right cement grade. OPC cement is usually slightly costlier than PPC cement. OPC cement is usually recommend for RCC structural work (like foundations, columns, roof and beams) and PPC cement is recommended for non-structural works (Like Plastering, Tiling etc.,). This will not only save you costs but also enhance the quality of construction by reducing cracks (Due to less heat of hydration).

  3. For optimizing the cement consumption in structural concrete, you can mix fly ash judiciously (15 to 25% as part replacement to cement) with OPC 53 cement. This will not only decrease the costs but will also be durable (since degree of permeability will be low).

Bricks and Blocks

  1. Buy locally available bricks. Compare the cost of first-class red clay brick and fly-ash brick in your locality. Go for a brick which costs you less. Both fly ash bricks and red clay bricks are equally good in strength.

  2. In case you have not planned for more than 2 floors, you can stick to load bearing wall design and it will reduce your overall cost by 30% (E.g. Use Porotherm Vertical perforation clay bricks – less weight, durable, higher compression strength).

  3. Even it is framed structure you can still use Porotherm Horizontal perforation clay blocks and it will reduce dead load of the structure, you still save significant amount of steel and concrete volume.

  4. In case you are going for a structure of more than 3 floors, then use Porotherm Horizontal perforation clay blocks instead of bricks. Although Porotherm blocks are costlier than bricks, they are light weight. This will decrease the steel & Concrete consumption per unit built up, as dead load reduced to one-third. Also as Porotherm n clay blocks blocks have low thermal conductivity, they can help you save electricity costs for cooling your rooms.


  1. Make sure your masonry and concrete works done in proper line and level, so that the plastering thickness will be uniform and avoid excess thickness of plastering.

  2. Purchase plastering grade sand which is normally sieved (Zone 4) and washed, this will reduce the time and wastage from Manual sieving at site.

Doors And Windows

  1. Avoid Wooden windows. Instead go for Aluminium or UPVC windows which can save up to 20% of the cost, and more of efficient weather and sound proof and less maintenance compare to wooden windows.

  2. Avoid Wooden Door frames. Instead go for Engineered doors (with complete set of frame, shutter, and hardware) which can save up to 15% of the cost for Conventional wooden doors.

  3. Use PVC doors for Bathrooms and other wet areas like dry balcony etc.,


  1. Use vitrified tiles instead of marble or granite for general flooring will reduce you cost by 30% and less maintenance.

  2. Go for locally available granite for Kitchen platform and stair case steps. Use cut/waste piece of tiles in steps riser

Light Fitting

  1. Go for Light fittings that are not only economical to your pockets initially but also save up on the electricity charges and maintenance costs in the future.

Avoid False Ceiling

  1. False ceiling although will act as good insulation but is quite expensive. Go for a simple POP finish to the roof.


  1. Use Semi-acrylic paint for internal and external walls which can save upon the cost.

Plumbing CP Fixtures & Sanitary

  1. The cost of sanitary and CP fixtures varies depending upon the type and quality of products used in the building and its cost reduction is left to the individual choice and liking.

  2. We recommend you to choose economical local/regional brands. Plumbing and Sanitary fixture can be easily replaced anytime without any dismantling in future. So replacing them later with the fixtures of your choice will not cost you much

Labour Costs

  1. Hire Experienced Contractor: A resource full team will help you save time and ensure quality at affordable cost. An inexperienced labour contractor may quote low initially but will turnout to be costly when you will be spending on rectifications and maintenance.

  2. Choose Simple Elevations: Many are obsessed with the front elevation of the building. Yes, a great front elevation gives a rich look for the building but will burn holes through your pockets. Don’t use unnecessary structural elements just for beautification of the elevation.

  3. Avoid Change Orders: Avoid any last minute changes in design or material selection. These change orders usually have a high impact on the cost of construction and can sometimes deter the quality of the structure.

  4. Hire An Experienced Turnkey Contractor:An experienced turnkey contractor may cost you a bit more initially but can prove more value during the execution of the work. They will keep the change orders to minimum since they manage everything from design to construction. Also, they ensure that the quality of construction is up to the mark which will reduce your future maintenance costs considerably.

  5. Ensure Proper Cash Flow: A proper cash flow avoids (leading bank to provide loan for home constructions) multiple mobilizations of the contractors. Usually contractors charge for re-mobilizations if the delays are because of the improper cash flows.

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