ART 4 0 6
BUILDING ECONOMICS AND
SOCIOLOGY
MODULE 3
Dr. Sambath R D
Prof. Fathima Shibili K P
SYLLABUS
Economic Analyses of Projects Cost –
Control, Cash - Flow Analyses, Cost – Projection, Cost – Benefit,
Feasibility, Estate Investments & returns, Valuation, Law relating to
properties and buildings – undivided share, super built-up area, carpet
area.
COST
• In production, research, retail and
accounting a cost is the value of money
that has been used up to produce
something and hence is not available for
use anymore.
• “Cost” means the benefits given up in
terms of money to acquire goods or
services.
• Cost represents the resources that have
been or must be sacrificed to attain a
particular objective.
• Cost are often underestimated, resulting in
cost overrun during execution.
COST ANALYSIS
IMPORTANCE / NEED FOR COST ANALYSIS
• Cost analysis is an economic evaluation
technique that involves the systematic
collection, categorization, and analysis of
different types of cost.
• It is useful to know the cost per unit of the
product manufactured.
• If proper analysis of the cost spent on each
and every aspect is estimated and calculated
and that helpful in proper arrangement.
•
STAGES OF COST ANALYSIS
COST ANALYSIS OF A PROJECT
• A well-planned project is essential for the project success.
• Important elements / issues to be considered for managing a project:
• Size of the project.
• Required resources.
• Resources allocation.
• Interface with satellite systems or projects.
• Using managerial tools.
• Periodic team meetings.
PROJECT MANAGEMENT
• It is the discipline of planning, organizing, motivating and controlling resource to achieve
specific goals.
• The primary challenge of project management is to achieve all of the project goals.
• The primary constraint are scope, time, quality and budget.
• The secondary challenge is to optimize allocation of necessary inputs and integrate
them to meet pre- defined objectives.
PROJECT COST MANAGEMENT
• Project cost management includes the processes required to ensure that the project is
completed within an approved budget.
• Project cost management may be defined as management of the processes involved in
planning, estimating, and controlling costs so that the project can be completed within
the approved budget.
IT INCLUDES THREE FACTORS
• Cost Estimating
• Cost Budgeting
• Cost Control
PROJECT COST MANAGEMENT
Cost Estimating
• Developing an approximation or estimate of the costs of the resources needed to complete a
project.
• Includes identifying and considering various costing alternatives.
Cost Budgeting
• Allocation of overall cost estimates to individual work items in order to establish a cost baseline
for measuring project performances.
Cost Control
• Controlling changes to the project budget.
• Influencing the factors which create changes to the cost baseline to ensure that changes are
beneficial.
• Determining that the cost baseline has changed with in acceptable units
• Managing the actual changes when and as they occur
COST CONTROL
Objectives of cost control
• To have a knowledge of the profit and loss of the
project throughout the duration of the project.
• To have a comparison between the actual project
performance and that conceived in the original
project plan.
• Provides feedback data on actual project
performance to future project planning
Tools and techniques of cost control
• Earned value management
• Estimate to complete
• Forecasting
• Cost variance
• Cost performance index
TOOLS AND TECHNIQUES OF COST CONTROL
Earned value management
• The earned value technique uses the cost control contained in the project management plan
to assess project progress and the magnitude of any variations that occur. The earned value
technique involves developing these key values for each schedule activity, work package, or
control account.
• It compares the amount of work that was planned with what was actually earned with what
was actually spent to determine if cost and schedule performance are as planned.
TOOLS AND TECHNIQUES OF COST CONTROL
• Planned value (PV)-PV is the budgeted cost for the work scheduled to be completed on
an activity or WBS component up to a given point in time.
• Earned value (EV)-EV is the budgeted amount for the work actually completed on the
schedule activity or WBS component during a given time period.
• Actual cost (AC)-AC is the actual cost incurred in accomplishing work on the schedule
activity or WBS component during a given time period. This AC must correspond in
definition and coverage to whatever was budgeted for the PV and the EV (e.g. direct
hours only, direct cost only, or all costs including indirect costs).
TOOLS AND TECHNIQUES OF COST CONTROL
Estimate to complete
• The PV, EV, and AC values are used in combination to provide performance measures of
whether or not work is being accomplished as planned at any given point in time.
• The most commonly used measures are cost variance (CV) and schedule variance (SV).
• The amount of variance of the CV and SV values tend to decrease as the project reaches
completion due to compensating effect of more work being accomplished.
• Predetermined acceptable completion can be established in the cost management plan.
TOOLS AND TECHNIQUES OF COST CONTROL
Forecasting
• Forecasting includes making estimates or predictions of conditions in the project’s
future based on the information and knowledgeable available at the time of the
forecast. As the project progresses, the forecasts are adjusted.
• Formula: BAC=total cumulative PV t the completion
• Forecasting technique parameters to assess the cost or the amount of work to complete
schedule activities is called the EAC.
TOOLS AND TECHNIQUES OF COST CONTROL
Cost variance
• CV equals earned value (EV) minus actual cost (AC). The cost variance at the end of the
project will be the difference between the budget at the completion (BAC) and the
actual amount spent.
• Formula: CV=EV-AC
• these two values, the CV and SV, can be converted to efficiency indicators to reflect the
cost and schedule performance of any project.
TOOLS AND TECHNIQUES OF COST CONTROL
Cost performance index
• A CPI value less than 1.0 indicate accost overrun of the estimates. A CPI value greater
than 1 indicates a cost under-run of the estimates. CPI equals the ratio of the EV to the
AC. The CPI is the most commonly used cost-efficiency indicator.
• Formula: CPI=EV/AC
• CPI is widely used to forecast project costs at completion.
CASH FLOW ANALYSIS
• Cash flow statement reports the inflows and outflows of cash and its equalents of an
organization during a particular period.
• It reports the cash receipts and payments classified according to the firm’s major
activities - Operating, Investing and financing.
• It shows the net cash inflow or net cash outflow for each activity and for the overall
business of the firm.
• It reports from where cash has come and how it has been utilized.
CASH FLOW ANALYSIS
Objectives of Cash flow analysis
• To provide information about the cash flows of an enterprise
• To enable the users of financial statements to evaluate the ‘Timings and certainty’ of
the generation of cash flows
• To classify the cash flows on the basis of Operating, Investing and Financing activities
• There is a possibility of using cash very properly through preparing cash flow statement
• To take management decisions regard to short term finance
ADVANTAGES OF CASH FLOW ANALYSIS
• Assessment of firms ability to generate cash flows: Cash flow statement helpful in
assessing the ability of the firm to generate cash and cash equalents and also timing and
certainty of such cash flows
• Classification of cash flows: Cash flows are classified on the basis of major activities i.e.,
Operating, Investing and Financing. It helps to assess the effectiveness of the
management policies relating to each of these major activities.
• Historical analysis as guide to forecasting: It presents in detail the movement of cash in
the recent past. This can provide clear indication for the cash flows in the future period,
thus helping in forecasting the future commitments and needs.
ADVANTAGES OF CASH FLOW ANALYSIS
• Effective cash Management: Cash flow statement can act as a guide for coordinating
the inflows and out flows of cash. The matching of the future cash receipts and
payments results in effective cash management.
• Liquidity position: It reveal the liquidity position of the firm by highlighting the various
sources of cash and its uses.
• Short term financial decision: Short range financial decisions like repayment of
overdraft or loans, payment of bonus, advertising campaign etc., may be taken on the
basis of the analysis provided by the cash flow statement
LIMITATIONS OF CASH FLOW ANALYSIS
• Cash flow statement discloses inflows and out flows of cash alone
• The scope is very limited compared to fund flow statement which reveals the changes in
working capital or the income statement which displays the overall financial position.
• Cash flow statement reveals the cash balance only.
• Non cash items of expenses and incomes are excluded, it cannot provide a
comprehensive picture of a firm’s financial position.
PROJECT MANAGEMENT
Format of cash flow statement
COST-BENEFIT ANALYSIS
[Link]-Benefit Analysis (CBA) is a tool used to weigh
the costs and benefits of a project. The goal is to
ensure that the benefits are greater than the costs
for the project to be worthwhile.
[Link] in Business: A company needs benefits that
outweigh the costs to succeed, especially when it
comes to information systems (MIS).
[Link] is CBA?: CBA helps decide if a project, like
building a dam, is a good idea by comparing its costs
and benefits. It tries to calculate values where there
is no market price.
[Link] Making: Individuals might rely on intuition,
while companies look at finances. Governments
must consider financial, social, political, and
environmental factors.
COST-BENEFIT ANALYSIS
Costs & Benefits of Information Systems: Costs include equipment, software, and staff;
benefits include improved productivity and lower costs.
Example: A steel plant might have costs like pollution, but benefits like creating jobs and
boosting local trade.
CBA Method:
• Cost - Benefit Analysis Method Identify all possible alternatives.
• Prepare table showing life of the project i.e. year to year basis.
• Establish Cost of project during the year including capital, operating and maintenance costs,
social and other tangible costs Establish total benefits to be obtained from project by way of
sales of goods and services including value of social benefits.
• Cost calculated at rate of interest such that NPV = Zero Ranking in order of [ benefit – cost ]
or [ benefit / cost ]
COST-BENEFIT ANALYSIS
COST-BENEFIT ANALYSIS
COST PROJECTION
• Cost Projection is the process of estimating future costs for a project, business, or
investment. It involves predicting expenses based on historical data, trends, and
assumptions about the future.
• It’s the act of estimating how much money will be spent on a project or operation
over a certain period.
• It Helps businesses or organizations plan their budgets and ensure they have enough
resources to cover future expenses.
How Does It Work?
1. Gather Data: Collect past costs (materials, labor, overhead, etc.).
2. Identify Trends: Look at patterns, inflation rates, and expected changes.
3. Estimate Future Costs: Based on past data and trends, estimate what the costs
will be over time.
COST PROJECTION
Types of Costs in Projections:
1. Fixed Costs: Stay the same over time (e.g., rent, salaries).
2. Variable Costs: Change with production or sales (e.g., raw materials, utilities).
3. Semi-Variable Costs: A mix of both fixed and variable (e.g., hourly wages for some
staff).
Benefits of Cost Projections:
1. Budget Planning: Helps set realistic budgets.
2. Financial Decision-Making: Provides data for making informed business decisions.
3. Risk Management: Identifies potential future cost overruns or savings.
FEASIBILITY
• Feasibility is the process of evaluating whether a project is practical and achievable, considering
various factors such as financial, technical, and operational requirements.
Purpose: It helps to assess whether a project can be completed successfully and if it’s worth pursuing.
Example:
Suppose a company is thinking about building a new manufacturing plant.
A feasibility study would assess:
• Financial Feasibility: Do they have enough funds or financing options to cover the costs of
land, construction, and operations?
• Technical Feasibility: Do they have the technology and expertise to build and run the plant?
• Operational Feasibility: Can the plant operate efficiently with the available workforce and
resources?
• If the study shows the project can be completed within budget and time, and meet the operational
goals, it’s deemed feasible.
ESTATE INVESTMENTS & RETURNS
Estate investment
• Estate investment refers to putting money into real estate properties such as land, residential
buildings, or commercial properties, with the expectation of earning a return.
Returns from estate investments come from two primary sources:
1. Capital appreciation (increase in property value)
2. Rental income.
Purpose: The goal is to generate a profit through long-term appreciation in property values and steady
income through rentals or sales.
Example:
Suppose an investor buys an apartment building for $1 million. They might:
• Earn rental income of $100,000 per year from tenants.
• Sell the property after 10 years for $1.5 million, making a $500,000 capital gain.
ESTATE INVESTMENTS & RETURNS
In this case, the return on investment (ROI) could be calculated from both the rental
income and capital gain. The investor makes money by either holding the property for a long
time or selling it at a higher price.
VALUATION
• Valuation is the process of determining the current market value of an asset, such as real estate,
a business, or other investments.
• There are different methods for valuation, including market comparison (looking at similar sales),
income approach (projecting future income), or asset-based valuation (considering the value of
the assets owned).
Purpose: The goal is to determine a fair price for buying, selling, or investing in an asset.
Example:
• Let’s say a person wants to sell their house. A real estate appraiser would use the market
comparison method to look at similar houses in the neighborhood that have recently been
sold. If similar houses are valued at $300,000, the appraiser might value the house at around the
same price.
• Alternatively, for a business, valuation might involve the income approach, where the value is
based on projected future profits or earnings, or the asset-based method, where the
business’s value is determined by its assets (e.g., machinery, property, and inventory).
BUILDING BYE-LAWS
LAW RELATED TO BUILDINGS
Necessity of Building Bye- Laws
• Building bye-laws, also known as building codes or regulation.
• A bye-law is the local law framed by a competent authority.
• Every locality has its own peculiarities with respect to the
climatic conditions, geological conditions, i.e. availability of
materials for construction, labor etc.
• If a building is built in a definite planned way, the construction
becomes economically sound and safe.
• As such there must be a law or regulations on the part of the
owner while building his own house.
• If not, the house-owner under his ‘ownership’ right will
construct the house, which may affect the interests of others in
respect of health and convenience.
SALIENT FEATURES OF THE BUILDING BYE LAWS
The 2016 Model Building Bye-Laws address key issues like environmental hazards, public
safety, and technological advancements in construction. Key features include:
• Public Safety: Focus on structural integrity, disaster management, and earthquake
prevention.
• Green Initiatives: Emphasis on eco-friendly measures like rainwater harvesting, solar
panels, and wastewater treatment.
• Accessibility for All: Inclusion of wheelchair access, lifts for seniors, and child safety
measures.
• Swachh Bharat Mission: Improved sanitation and hygiene in public spaces.
• Technological Advancements: Adoption of modern construction methods for safety
and efficiency.
• Ease of Doing Business: Regulations ensuring safer and well-equipped commercial
establishments.
BUILDING BYE- LAWS
Pre-planning of building activity
• Allow orderly growth and prevent haphazard
development.
• Provisions of by-laws usually afford safety against
fire, noise, health hazard and structure failure.
• Provide proper utilization of space to achieved
maximum efficiency in planning.
• They provide health, safety and comfort to the
people who live in building.
• Due to these bye-laws, each building will have
proper approaches, light, air and ventilation.
BUILDING BYE- LAWS
The bye-laws are necessary to achieve the following main purposes or objects:
• Ensure uniform development of buildings in societies as well as towns
• Affirm public safety against noise, fire, health hazards and structural failures
• Ensure optimum utilization of space
• Follow approaches which safeguard complete health, safety and comfort of residents,
such as proper ventilation, air, light and other essentials
BUILDING BYE- LAWS
Building bye laws include norms related to the following:
• Floor Area Ratio (FAR), ground coverage and Density
• Basement and parking spaces
• Setbacks and projections
• Area and its usage
• Building height and other service spaces
• Provision for lifts and basement area
• Site design and service design– facilities related to sewerage, power and water supply, rainwater harvesting,
and waste management, among others
• Building line
• Amalgamation
• Preparedness against natural and man-made disasters
• Green and open spaces
• Provision of amenities in a project
• Overall safety measures
FUNCTIONS OF LOCAL AUTHORITY
• A local authority is a body created by law and it has to carry out various functions
and obligations in connection with community life.
• One of the important duty of a local authority to frame suitable building bye-laws
and to provide suitable machinery for Its successful implementation.
• For this purpose, It should form a department to receive plans of proposed buildings.
• The department checks every detail on the plan and defects, If any, pertaining to
prevailing bye-laws, are pointed out for rectification.
• Only those plans are approved which comply with the requirements of prevailing
bye-laws.
APPROVAL OF BUILDING PLAN
It means the acceptance of local authority of the following requirements only:
1. arrangements of stairs, lifts, corridors, doors, windows and parking;
2. height of building and its various story's;
3. minimum requirements of high-rise building or low-rise building as the case may be;
4. minimum requirements of sanitary facility;
5. minimum requirements with respect to areas of rooms;
6. permissible built-up area;
7. permissible FSI;
8. permissible open spaces and set-back;
9. permissible use of buildings; and
10. provision for light and ventilation.
APPROVAL OF BUILDING PLAN
The approval of plan by the concerned local authority does not mean the following:
1. easement rights;
2. structural reports and structural drawings;
3. title of the land or building;
4. variation in area from recorded area of a plot or a building;
5. workmanship and soundness of materials in construction of the building.
EFFECTIVE IMPLEMENTATION OF BUILDING BYE- LAWS
The important points to be remembered in connection with the building bye-laws can be
enlisted as shown below:
• The authority concerned should provide more field staff for the effective implementation of
the bye-laws.
• The bye-laws causing undue hardships to the public at large should be immediately removed
or rectified.
• The procedural requirements should be brought down to the minimum possible extent.
• The professional institutions, engineers and staff should be consulted at the time of framing
or changing the bye-laws.
• There should not be frequent changes in the basic requirements of the bye-laws.
• They should aim at the socio-economic housing conditions.
• They should be given proper publicity through various popular mediums.
APPLICATIONS OF BUILDING BYE -LAWS
1. Additions and alterations to a building: If the owner desires to make certain
additions, alterations, modifications or extension to a building, the plans showing the
proposed work should be got prepared from the licensed person for submission to
the concerned authority. The owner can carry out such additions, alterations, etc. only
after getting his plan approved by the concerned authority.
2. New construction: The plan showing the project proposed to be constructed on a
particular site has to be suitably sanctioned before commencing the work.
3. Requirement of open space: The open space shown on plan and provided in
conformity with the bye-law cannot be covered and it has to be kept permanently
open. If the bye-law is subsequently amended and 'if it becomes legal to cover the
Open space, the same can be carried out only after getting the approval of concerned
authority.
BUILDING BYE-LAWS
• Floor Area Ratio (FAR): 0.5 to 3.0 (build 0.5 to 3 times the size of your land).
• Setback: 1 to 6 meters (distance from the boundary to the building).
• Height Limit: 10 to 60 meters (maximum building height).
• Plinth Area: Ground floor area minus walls, e.g., 800–900 sqm for a 1000 sqm plot.
• Open Space: 20% to 40% of the plot (space left open for light and air).
• Building Line: 3 to 10 meters from the property line.
• Permissible Coverage: 30% to 70% of the plot (area allowed to be built upon).
• Zoning Regulations: Rules about what can be built (residential, commercial, etc.).
• Safety Standards: Ensure the building is safe, with proper materials and exits.
BUILDING BYE-LAWS
• Ventilation: At least 10% of floor area should be open to air and light.
• Parking Requirements: 1 parking space for every 2–3 homes.
• Environmental Impact: Green spaces and water-saving measures may be required.
• Building Materials: Must be strong and fire-resistant.
• Construction Permits: Required before building; can cost from a few hundred to
thousands of dollars.
• Fire Safety: Includes alarms, sprinklers, and exits, especially in tall buildings
LAW RELATED TO PROPERTIES
• Property may refer to things that people own, but from a legal perspective,
• A legal right is essentially a right that a court will recognize and enforce.
• The owner of land has the right to occupy it. The owner of other kinds of property has
the right to physically control it.
1. Rights to use: The owner of property can use it in all sorts of ways. Of course, the
right to use can’t be absolute because one person’s use of her property may interfere
with others’ use of their property.
2. Rights to exclude others: An owner can keep others from using or invading her
property.
3. Rights to transfer: An owner can transfer her legal rights in whole or in part to
other people.
PROPERTY LAW
Property law includes the study of some contracts, torts, constitutional clauses,
procedures, and maybe even some crimes — grouped together because they all concern
property.
• Torts: Interferences with property rights are torts. Torts related to property law include
nuisance, trespass, conversion (taking or wrongfully keeping someone else’s property),
and waste.
• Contracts: Much of property law is about contracts that transfer and shape property
rights. Covenants and easements contractually adjust property rights. Contracts
transferring property rights include leases, purchase agreements, deeds, and mortgages.
• Statutes: Property law also includes some statutory law related to property, including
oil and gas laws, zoning laws, marital property laws, landlord/tenant laws, finders' statutes,
recording statutes, and mortgage and foreclosure laws.
PROPERTY LAW
Property Categories & Ownership
Types of Property
1. Real Property: Land and attached structures (e.g., buildings).
2. Personal Property: Movable items, including chattels (tangible assets) and
3. intangible property (patents, copyrights, trademarks).
Ownership Duration & Sharing
• Ownership can be individual or shared.
• Different owners may have rights at different times.
Estates & Leaseholds
1. Estate: Ownership for a specific period (lifetime, years, etc.).
2. Leasehold: A tenant’s right to use property under a lease agreement.
ACQUIRING ORIGINAL PROPERTY RIGHTS
Anything that’s owned must have a first owner. Here are some of the ways that a thing
first becomes owned as property:
• Sovereign acquisition: In the U.S. legal system, all land was originally owned by a
government. As, federal, state, and foreign governments originated title to lands by
asserting sovereign claims based upon discovery and conquest. Governments originally
own land through discovery and conquest.
• Adverse Possession: If someone openly and continuously occupies property for a long
time, they gain legal ownership.
• Capture: Natural resources (wild animals, underground water, oil, gas) become owned
when lawfully captured or extracted.
• Taking Possession: Ownership can be acquired if property is abandoned or mislaid,
giving the finder certain legal rights.
TRANSFERRING PROPERTY RIGHTS TO ANOTHER
• One of the basic rights of property ownership is the right to transfer your rights to other
people. An owner can give away just some of her rights but remain the owner, such as by
giving someone an easement to use her property.
• An owner also can transfer her entire ownership — the basic rights to possess, use, and
exclude. Following are some ways she can transfer her ownership rights:
1. Deed: An owner can transfer his/her ownership by delivering a valid deed to a grantee.
2. Will: An owner can transfer her ownership at her death by a will.
3. Mortgage: In some states, a mortgage is treated as a conveyance of title to the mortgagee;
in others, it’s merely a lien, the legal right to sell the property to satisfy an unpaid debt. In
either case, if the mortgagor defaults on the debt that the mortgage secures, the mortgagee
can foreclose, hold an auction sale, and have the title transferred to the high bidder.
UNDIVIDED SHARE OF LAND
• It refers to the portion of the total land area that is assigned to an individual apartment
owner in a multi-unit residential or commercial complex.
• When you buy an apartment, you are not just purchasing the built-up space but also a
proportional share of the land on which the entire building stands.
• Since multiple apartment owners co-own the land, UDS does not have a physically
demarcated portion and remains undivided among all unit holders.
UNDIVIDED SHARE OF LAND
Why is UDS Important?
[Link] Rights: UDS ensures that the apartment owner has a legal share in the
land.
[Link] Benefits: If the building is ever demolished or redeveloped,
compensation is based on UDS, not just the apartment size.
[Link] Valuation: A higher UDS means better appreciation of the property value
over time.
[Link] & Registration: Banks consider UDS while approving home loans, and it is also
mentioned in the sale deed during registration.
UNDIVIDED SHARE OF LAND
UNDIVIDED SHARE OF LAND
Factors Affecting UDS Calculation
[Link] Built-up Area: Larger apartments will have a higher UDS.
[Link] Land Area: More land means a higher UDS allocation.
[Link] Amenities: If the builder allocates part of the land for amenities (like a
clubhouse or garden), UDS per unit may reduce.
[Link]’s Share: If the builder retains certain units, the calculation changes based on
the remaining available units.
Understanding UDS in Real Estate Transactions
• Buying an Apartment: Ensure the sale deed mentions the UDS clearly.
• Selling an Apartment: The value of UDS impacts the resale price.
• Redevelopment: If a building is reconstructed, compensation and new property allocation
depend on UDS.
• Legal Cases: In property disputes, ownership is determined based on UDS rather than
built-up area.
SUPER BUILT-UP AREA & CARPET AREA
Carpet Area
• Carpet area is the net usable space inside an apartment, excluding external walls but
including internal partition walls. It covers bedrooms, living rooms, kitchens, bathrooms,
and balconies, but excludes common areas like staircases, lifts, and corridors.
• It is defined by the Real Estate Regulation and Development Act (RERA) as “the net
usable floor area of an apartment, excluding the area covered by the external walls but
including the area covered by internal partition walls of the apartment.”
Built-Up Area vs. Super Built-Up Area
• Built-Up Area: Carpet area + thickness of walls and other enclosed spaces
within the apartment.
• Super Built-Up Area: Built-up area + proportionate share of common areas like
lobbies, staircases, and amenities such as clubhouses and swimming pools. Also known as
the saleable area, this is typically used to calculate property prices.
SUPER BUILT-UP AREA & C ARPET AREA
Key Differences
• Carpet Area: Usable space inside the home.
• Built-Up Area: Carpet area + walls.
• Super Built-Up Area: Built-up area + common spaces.
Property Pricing & Measurements
• Developers price properties based on the super built-up area, which increases the cost per square
foot. However, a larger super built-up area does not always mean more usable space. Carpet
area can be measured using a tape or laser device, while built-up and super built-up areas are
calculated by the builder, allocating common spaces proportionally.
Tips for Buyers to Negotiate a Fair Price
1. Research Market Rates: Compare similar properties to determine a fair price.
2. Request Detailed Plans:Verify room dimensions and wall thickness.
3. Ask for a Cost Breakdown: Ensure transparency in pricing for different areas.
4. Negotiate Based on Carpet Area: Focus on actual usable space, not just the saleable area.
DIFFERENCE BETWEEN C ARPET AREA, BUILT-UP AREA, SUPER
BUILT-UP AREA AND C ARPET AREA
REFERENCE
• [Link]
area/
• [Link]
• Key areas of economic analysis of projects an overview- ECONOMIC ANALYSIS AND OPERATIONS
SUPPORT DIVISION (EREA)
• [Link]
• [Link]
THANK YOU