Why should we hire a construction company to build our house?

One of the most frequently asked question by a layman is why should they hire a professional construction company or a builder to build their house or for the construction of their commercial building. What will be the financial benefit of doing so? What will be the other benefits associated with getting your work done by the professionals? In this article we will briefly explain how a professional team can assist you in not just building your house technically sound but also building it cost effectively.

Over the years construction has changed dramatically. Houses built before were simple and of somewhat same design and category.

Old Construction

The issues that we face today weren’t entirely there at that time. The issues with material, its quality is not that same. As the demand for material increased the quality started to decrease. Technical issues, the houses built before did not require structural drawings, or other technical expertise that we need in today’s buildings. Modern houses are complex and to build them you need to have its expertise and time.

Modern Houses

Modern Home

Most commonly a person gets to build a house once in a life time and it’s very important that it’s done correctly. Generally people think that if they hire a professional construction company or a skilled builder their house will cost more than if they would have made it themselves. We believe it is not like that, reality is somewhat different than this. To build a house we have three main things that we need and  have to cater for and they are as follows

We need good quality material purchase and suppose it is takes about 70% of the total cost.

We need good and skilled labour and let’s suppose it is 20% of the total cost.

And then let’s suppose the supervision charges are 10% of the total cost if in case you’re getting the house built by a professional company.

Let’s discuss the material purchase first. Suppose that company procures your material for Rs 70 /- out of 100 of a particular quality, a particular brand and of a particular price range whereas if you procure that same material of the same quality, brand name and price range it will cost you more than Rs 70/-. The main reason of that would be that the client purchases the material for his house once or maybe twice but the builder’s purchase is far more frequent and they get special discounts on bulk buying but let’s suppose that the client gets the same amount of material with same quality in Rs 70 (same as the builder got).

Then we have the skilled labour that we supposed will cost Rs 20 out of Rs 100 for the builder. Again the skilled labour will cost the builder lesser as compared to the client but we will suppose that even the labour will cost both the builder and the client same amount of money.

Therefore it will cost both the builder and the client Rs 90 to build the house. Now if any of them wants to build a cheaper home they will have to compromise on the quality of the house as there is no other way.  Right amount and quality of material will cost a particular amount and the same way right skilled labour will cost a particular amount so if there is any way to save cost that is to compromise on the quality of the house. For instance if steel required in the house is of 5 tons the amount of which is about Rs 500 000/- and instead of 5 tons, 4 ton is installed of about Rs400 000/- now Rs 100 000/- is saved in just steel but the quality of the house is compromised. Likewise there are a lot of ways to save money but the more you save from the required amount the quality will be compromised.

Similarly cheap labour is also available in the market but the qualities of work of these labours are far more inferior than the quality labour. Selection of cheap labour will give you poor quality of finish and their work will not be up to mark.

So by reading this we get to the agreement that we cannot save money from procurement of material and labour unless we drop our quality. We will now move on to our final point of supervision. You can save money in this by building your home by yourself. The issues a client may face in this will be that they will have zero experience in procuring material. Therefore it results in expensive material purchase and low quality material. It is a common practice to hire a labour contractor (thekedar) hand the maps over to him and ask him to start the construction. This is wrong. Over the period of time construction has vastly revolutionized. Long gone are the days where houses were built in a same way, same techniques and same designs. Home designs have revolutionised but the contractors have not. They still believe in the conventional way of construction. So to tell them the new ways of construction the client should have experience of house construction or hire a professional company to do so.

Now if you secure the first two steps i.e. Procurement of the material and hire a professional labour within the same price as the contractor you now need to save the next Rs 10/- and in order to do that you need the experience to build the house, you need the expertise to guide the labour through a proper way and process of building a house. To know the proper steps and techniques to build a house actually saves most in form of finance, speed at which the house is being built and material wastage.

By hiring a professional company you can improve your purchase and save a lot by gaining from the builder’s discount, you can improve the work with their skilled labour and you can be saved from all the technical blunders. The only responsibility you will have on you would be to cross check the contract/agreement that you will have with that professional company.

In these times where life moves at a rapid pace it is very difficult to spare time from work and to give your house time and see all the matters. It may only cause discomfort and failure to do both i.e. your work and look after your house construction. We would strongly suggest that you look at the ways and point on how to make a proper contract with the builder (as shown in our videos and articles) and hire a good builder or a professional company and make your dream house with the best available material. As we have repeated multiple times that the grey structure is the backbone of the house so we strongly recommend that you strictly build your grey structure with premium plus quality only. As all the material in finishing of the house are replaceable.

In the end we would again stress on the contract that you do with your builder should be comprehensive, written and legal. Please make sure that your market research is complete before finalizing the builder to get into any discomfort in the later stages of the construction.