What should be the material contract price for enclosed buil

Murthyin
Posts: 32
Joined: May 21st, 2015, 3:04 pm

What should be the material contract price for enclosed buil

Postby Murthyin » August 4th, 2015, 2:28 pm

Hi All,

I had finalized the plan about to start construction.

Please suggest what is the current price going on if I give a material contract for the construction of a house for


1. enclosed builtup per sqft

2. semiopen builtup per sqft

3. open per sqft.

This is required as I am going to finalize a contractor.

Please provide your valuable input.

Thanks,
Pradeep.K

Praveenb
Posts: 31
Joined: July 27th, 2015, 8:41 pm

Re: What should be the material contract price for enclosed

Postby Praveenb » August 4th, 2015, 5:52 pm

Hi Pradeep,

According to me, Below are the Current quoting prices from Contractors.
Low - ~1500 Rs/sqft
Medium - ~1700 Rs/sqft
Optimum - ~2000 Rs/sqft

Quotes will vary according to the specifications.
Normally, this does not include any interior works, Compound wall, Gate, Cladding etc.

The above prices are for actual built up area. for areas like Car parking, it would be 25% less (My contractor agreed for this)

Thanks,
Praveen

Murthyin
Posts: 32
Joined: May 21st, 2015, 3:04 pm

Re: What should be the material contract price for enclosed

Postby Murthyin » August 5th, 2015, 11:59 am

Thanks for the reply Praveen. Can I you please PM me your contractor details so that I can just talk to him and see.

My architect told me that for its 2000/- for enclosed builtup per sqft and 1200/- for semiopen builtup.

So asked for these.

Thanks,
Pradeep

karjagir
Posts: 25
Joined: September 18th, 2015, 5:30 pm

Re: What should be the material contract price for enclosed

Postby karjagir » September 25th, 2015, 9:05 pm

Hi Pradeep,

I would agree 2000 rupees per sqft would be optimal. I started by construction in May2015 but I have given only labour contract and will be supplying the materials myself. If you can spare the time and effort, you should give only a labour contract since for the same price you can supply better quality materials. Most contractors would use inferior or average quality materials if you give a full contract

For example, when I went to but Red sal wood for my window frames, I was shown 3 qualities. The seller told me the cheapest was apartment quality, the mid one was contractor quality and the best one was individual customer quality. Most contractors would charge you the best quality price and use average quality materials.

I also used JSW steel for my construction which was about 45K per ton when I started (now it should be about 42K). Most contractors tend to use other brands like Prime Gold etc which are cheaper by 2-3K per ton in the contract.

These are some examples which I have learnt till this stage of my construction (currently outer wall plastering is going on)

All the best for your construction and do reach out to the forum for any queries.

Karthik

hegde19
Posts: 56
Joined: May 20th, 2014, 4:26 pm

Re: What should be the material contract price for enclosed

Postby hegde19 » October 10th, 2015, 1:18 pm

Hi Karthik,

Very good points. Are you keeping track of cost incurred for each items? Can you please post if you dont mind? How is the quality of JSW steel compared to INDUS? we were using INDUS, and someone recommended JSW, I felt I could save about ~3k/Tonne - so planning to go for it for rest of the building (currently in lintel stage);

Thanks

karjagir
Posts: 25
Joined: September 18th, 2015, 5:30 pm

Re: What should be the material contract price for enclosed

Postby karjagir » October 10th, 2015, 8:23 pm

Hi Hegde,

JSW is much better than Indus is what I was able to glean from one of my steel suppliers who is a pretty reputed supplier in Bangalore (Unfortunately, I cannot give his name since his reputation with steel companies will take a hit). He said a lot of dealers will push other brands since the margins are higher. As per him, only a few brands like Tata, JSW, SAIL etc will meet international standards. When I started buying steel from him, JSW was costlier compared to Indus by about 1000 rupees per tonne. But when he realized I was constructing a house to live in for myself and I was supplying the materials as well, he gave me JSW at the same price as Indus. He is so confident about the quality of JSW etc that he was willing to give me samples of all brands which I could get tested independently anywhere. So, all in all, you can go for JSW over Indus anyday.

One thing you need to keep in mind is that Tata, JSW etc are much harder than Indus and other brands. Some of my steel workers started saying that since this is hard it will break etc. I don't think those points are valid. They just want steel that is easier to work with. So, if you face the same challenge, don't listen to them and insist that this is what you will provide

As for the cost incurred per item, currently I am maintaining a diary and don't have any Excel sheet unfortunately. Also, the cost of materials fluctuates a bit (JSW was about 45K when I started but I paid only 41K for my previous load). But my estimate of 2000 per sqft still stays for a good finish

Thanks,
Karthik

pchowhan
Posts: 15
Joined: June 9th, 2014, 2:55 pm

Re: What should be the material contract price for enclosed

Postby pchowhan » October 12th, 2015, 12:09 pm

On the topic of Steel... I visited ACE yesterday and was speaking to few large Steel TMT manufacturers which I thought would be worth sharing...

1) The steel to be used for house should be "virgin" steel which has been manufactured from Iron Ore.. Which means steel from JSW / Tata are the only ones which can give better products..
2) Producers like Indus / Meenakshi all manufacture based on scrap material in which quality is not that great. They spend a lot in marketing.. I udnerstand that every bar bender that you talk to will vouch for Indus since they get commission based on that. The commission on Indus is about 3 rps kg to the guy.. Also above certain load they get gifts... hence they are spending money on marketing and not on product....

3) JSW steel is available for 41 per kg while Indus might be quoted at 43 rps now....JSW you need to purchase in minimum of 5ton hence only good quality guys can purchase the same.

4) I got to know that there is somethings for Ready Fix by Sunvik Steel. They actually do Bar bending with a computerised machine... hence the angles are all perfect and they also avoid wastage... They are quoting 41 for bar bended material.... Which is a great saving. I dont know if anyone in the group has used them.. I liked the concept but dont know if someone has bought from them.. this will save on barbending time and also quality of bending will be good...

Please advise....

karjagir
Posts: 25
Joined: September 18th, 2015, 5:30 pm

Re: What should be the material contract price for enclosed

Postby karjagir » October 12th, 2015, 2:10 pm

Chowhan,

Are you saying that the customer needs to purchase atleast 5 tons of JSW steel or the steel supplier ? If it is the customer, it should not be the case since I have purchased in small lots of even 0.5 tonnes. If it is the supplier, then your point makes sense.

I think Sunvik will also have the same problem with the scrap material. So, I would recommend that you continue with JSW. Generally, most barbenders would complete the work in 1 day for each floor roofing so that time saving is not significant. Also, if you give a labour/material contract, barbending expense is already included there and you don't need to spend any extra money on that. So, my 2-cents is that go for JSW instead of Sunvik or Indus. I think Tata steel will be a little more expensive than JSW. If you are ok with it, go for Tata.

Thanks,
Karthik


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