COST OF BUILDING

Lecture# 2

LECTURER : SANA ALEEM

MSc Architecture and Environmental
Design
BSc Architecture Engineering
Introduction

Cost of building viewed in two contexts

1- Initial Cost of building- --short term cost
2- Life cycle cost of building--- Long term cost

Initial Cost
Cost which goes into making of the building

Whole life cost of building includes:-

Cost which is incurred over the entire life span of building and includes–
The initial cost of building
Operational cost of building- HVAC, lighting, water supply etc
Cost of maintenance -- parts replacement cost
Disposal cost or salvage value
Depends on useful life of building
Introduction

• To promote economy in building - Life cycle

cost of building would be critical
• Life cycle cost helps in promoting cost effective
living rather than cost-effective housing
Cost of Building Project – Initial cost

Initial Building Project cost comprises of:

• Cost of Land, Land Registration, land survey
• Cost of Designing , plan approval
• Cost of developing Site
• Cost of Construction
• Cost of Money
• Carrying Charges
• Government fees and Taxes
• Cost of Advertisement
• Legal expenses
• Cost of Supervision
• Cost of Manpower and Security
• Cost of Equipment and Furniture
• Transportation and Travel Charges
• Cost of Making buildings Green, Energy efficient
• Cost of Time
• Contractor’ Margin
• Builder’s Margin xvii
• Miscellaneous and Unforeseen Charges
Cost of Building Project – Initial cost cycle

• Initial Cost of the BUILDING means the total cost spent on land, planning,
designing and construction till the time of occupancy.
• The components of Initial cost include:

1- Land Cost:
Cost incurred in acquiring land and Registration. It Includes( when land directly
purchased from landowners)
Cost of land
Cost prior to registration
Cost of Documentation
Bank Charges – transaction –charges for making payment of land
Registration Charges of land
Other statutory Charges and fees
Miscellaneous Charges
Cost of Building Project – Initial cost cycle
2. Cost of Designing Building
includes:
• Cost of Surveying
• Cost of testing soil/ bearing capacity/water table
• Fee of the Architect
• Building Plan Approval fee/ charges - Scrutiny fee
• Debris Fee
• Labour
• Superseded Plan Scrutiny fee
• Revised Building Plan Scrutiny Fee
• Cost of Structure Design
• Cost of designing Public Health services
• Cost of designing Electric Services
• Cost of Designing HVAC
• Cost of mechanical services, fire services
• Cost of other Consultants-Green Rating of Building/ waste management etc
• Cost of Feasibility Analysis Report
• Cost of Environment Impact Studies
• Miscellaneous
Cost of Building Project – Initial cost cycle
3. Cost of Developing Site:

• Cost of developing the site includes

• Clearing the site,
• Cutting and filling
• Providing temporary roads, water supply( water storage) lighting, fencing,
• Getting temporary water connection
• Getting Temporary electric connection.
• Providing site utilities
• Cost of Providing space for Parking
• Cost of providing shelter to the workers
Cost of Building Project – Initial cost cycle

4. Cost of Construction of Building :

• Total cost of construction of building
• Cost of civil construction
• Cost of MEP services
• Cost of materials
• Cost of labour
• Cost of Transportation
• Cost of Hiring Equipment
• Government fees .
Cost of Building Project – Initial cost cycle

5. Cost of Money
• Amount of money involved
• Amount of money garnered from own resources
• Amount of money raised from market, financial institutions etc
• Rate of Interest of borrowed money
• Time duration of projection
• Amount of Interest to be paid
• Penal interest to be paid
• Interest charges on construction loan till project completion
• Contingency funds
• Cost of money involved to be kept low to promote economy in building
Cost of Building Project – Initial cost cycle

6. Cost of owning of project

• Cost of maintaining site in order before / during construction

7. Government Charges and Fees include:

• Cost of approvals of projects
• Change of land use
• Cost of obtaining licenses, extension of license
Life Cycle Cost Analysis

• Life cycle cost Analysis

Life Cycle Cost Analysis

• LCCA is a process of evaluating the economic performance of a building over its

entire life. Sometimes known as “whole cost accounting” or “total cost of
ownership,” LCCA balances initial monetary investment with the long-term
expense of owning and operating the building
Life Cycle Cost Analysis

• LCCA is based upon the assumptions that multiple building design options can
meet programmatic needs and achieve acceptable performance, and that these
options have differing initial costs, operating costs, maintenance costs, and
possibly different life cycles.
• For a given design, LCCA estimates the total cost of the resulting building, from
initial construction through operation and maintenance, for some portion of the
life of the building
Life Cycle Cost Analysis

WHY LCCA IS IMPORTANT

• As the chart below illustrates, over 30 years of a building’s life, the present value of
maintenance, operations, and utility costs is nearly as great as the initial project
costs.
Life Cycle Cost Analysis
Life Cycle Cost Analysis
FOR ANY QUESTIONS ,
comment in Google classroom, or drop an email @
sanaaleem7@gmail.com