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2019-06-24

What Costs are Included in the Construction Cost?

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Many are interested in the question: what does the cost of building modern residential complexes consist of? This question is especially delicate for two categories of people: developers and ordinary citizens who decided to buy a home. If developers hire individual specialists to elaborate a budget and monitor the cost of materials and work to assess costs at different stages of construction, an ordinary person can only guess how the cost of a square meter is formed.

In general, the cost of construction can be divided into several main topics: the value of the land, project documentation, preparatory work, the organization of construction, civil works, internal and external engineering networks, general plan and landscaping, marketing.

The choice of land is the first and most important stage in the construction of a residential complex. Depending on the cost of acquiring a plot of land, the total cost of the entire construction can be determined. That is why developers are carefully looking at certain areas, analyze their attractiveness, to understand how profitable the investment could be because the location of future housing and the availability of social infrastructure significantly affect the final cost per square meter.

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Design work usually takes from 3 to 5% of the total construction estimate, however, the quality and correctness of design decisions affect the cost of all other expenses. Also, the accordance of design documentation with current building norms is important when passing an examination and obtaining permits for construction. That is why the choice of a design company is crucial not only for the cost of the facility but also for the construction of the building.

Moreover, the quality of design decisions determines the fate of further operation and the comfort of living in residential complexes. Here it's necessary to pay attention to the choice of the design scheme, wall materials, equipment for utility networks, types of facade decoration, decoration of common areas and apartments, energy efficiency level, types of elevators, etc.

Preparatory work includes dismantling and excavation. The organization of construction is also an important stage of construction. However, the main costs of the construction expenses are in civil works and internal engineering networks.

Special mention deserves the implementation of external engineering networks. The location of the construction site is important since the availability of necessary communications in the vicinity, or the need to build new engineering networks and structures significantly affects the total cost of the residential complex and square meter in particular.

Territory improvement is an important factor affecting the attractiveness of the property for potential buyers of apartments. It's impossible to imagine a modern residential complex without equipped parking areas, children's play areas, and recreation areas. However, some developers are trying to maximize the comfort in their residential complex, adding attributes such as pet walking areas, park areas and barbecue places, bicycle paths, etc.

Alexandr Kushniruk

Project manager