Factors impacting construction cost of high-rise building in India

Abstract

The construction of high-rise buildings in India is a critical aspect of urban development, driven by rapid urbanization, population growth, and the increasing demand for residential and commercial spaces. However, the cost of constructing these towering structures remains a significant challenge, influenced by a multifaceted set of factors. Understanding these determinants is essential for effective project planning, cost control, and sustainable development. High-rise construction is a complex and resource-intensive process influenced by numerous cost-driving factors, particularly in a dynamic and diverse economy like India. This research aims to identify, analyze, and quantify the primary factors impacting the construction cost of high-rise buildings in India. An extensive literature review identified 24 critical factors, including vertical transportation of materials, structural requirements, services installation (e.g., MEP, HVAC, fire protection), labor safety, equipment usage, and geographical considerations, among others. A two-tier methodology was employed: first, expert surveys were conducted to refine and prioritize the factors, narrowing them down to 10 key determinants. Subsequently, a detailed expert questionnaire assessed the cost weightage of these factors in the overall project budget. The study also explores indirect costs, such as insurance cost, supervision cost, legal and regulatory compliance which significantly influence project expenditures. Findings from this research provide a comprehensive understanding of the cost dynamics in high-rise construction projects, offering valuable insights for project managers, contractors, and policymakers to optimize resource allocation, improve cost forecasting, and enhance decision-making in the Indian construction sector.