Delivering ‘value’ is usually the end goal of any construction project. Value creation happens at several stages of the construction supply chain. Once the development is in use, the value creation justifies the investment made on the project.

Building value while maintaining cost is a key decision in construction projects. While value creation is something that happens during and after construction, costs are primarily established in the planning phase. During the construction phase, the key task is to reduce or cope with the planned work to ensure the project runs smoothly.

There are several factors that drive costs in the Indian construction industry. These include, but are not limited to:

Labour costs: The Indian construction industry relies heavily on manual labour, making it one of the most significant cost drivers. With the growing demand for skilled workers, the cost of labour has also been increasing steadily.

Material costs: The cost of construction materials such as cement, steel, aluminium, copper etc. must be factored into construction costs. The prices of these materials tend to fluctuate depending on several factors like supply and demand, transportation costs, global market scenario and government policies.