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Tag: construction

Green Building Construction to gain major momentum in Bihar

Patna, 25 Sept 2024: CII Bihar and Indian Green Building Council Patna, organised the 3rd edition of ‘Bihar Green Conclave’ with theme Greening Residential, Office and Interior Spaces at Hotel Lemon Tree, Patna.

Speaking on the occasion, Nitin Nabin, Minister, Urban Development & Housing Department realised the need of green construction in the state and said, “the state government would encourage the green construction practices being a promoter of the concepts to encourage all the stakeholders from the building industry.” He stressed on two factors which would be instrumental in making government a promoter of green building practices – Scope in converting the existing government projects and mandating the new upcoming projects as green compliant and bringing suitable policies to encourage green construction in the state. He further mentioned on exploring various policies on incentivising green buildings by other states in the country and adopting best suitable policy for Bihar. The minister invited all the relevant parties such as CII-IGBC, CREDAI, IIA to join hands with Urban Development & Housing Department and help in finalising the most suitable policy for the state. He also mentioned few of the existing practices at city and municipal level towards making Bihar a sustainable built state such as segregation of waste, water conservation etc.

Dr. Satyajit Kumar Singh, Chairman, CII Bihar State Council, Director, Ruban Memorial Hospital spoke about sustainability in healthcare facilities. He said, “Introducing green concepts in the healthcare facilities can help address National issues like infection, epidemics, handling of bio-medical waste, water efficiency, energy efficiency, reduction in fossil fuel use for commuting, consumer waste and in general conservation of natural resources. Most importantly, these concepts can enhance patients’ health, recovery and well-being”.

Spearheading the green building movement in India from over two decades, CII-IGBC with the support of all the stakeholders has facilitated India to become one of the top three countries in the world in terms of largest registered green building footprint. As on date, over 14,400 green building projects, amounting to over 12 billion sq. ft. are adopting IGBC green building rating systems.

Sudip Kumar, Chairman, IGBC Patna Chapter and Chairman, LaaCasa Developers said, The need of certifying the project ultimately becomes the end result of the overall efforts put in by many stakeholders in a project, starting with the vision of the developer/project owner, design team, MEP team, HVAC team, the other consultants involved in the projects to the end users which feel satisfying in investing in those projects. Hence the achievement of a green certification for a project becomes an aspiring and encouraging factors for all of them to do better and keep improving the building performance on energy, water, environmental parameters.

Sachin Chandra, Chairman, CREDAI Bihar and MD, Swadha Developers urged the minister to consider and support in bringing a robust policy which could drive the adoption of green building concepts more practically. He further highlighted on various policies by the other state governments in the country.

Gaurav Sah, Vice Chairman, CII Bihar and Director, L V Best Pvt Ltd while speaking on sustainable industrial practices urged to the CII members and other industrial facility owners to envision their green mission and make their factories, manufacturing units, supply chain, warehouses etc as green complaint and contribute to the sustainable development of the state and the country.

Abhishek Sharma, Co Chairman, IGBC Patna Chapter and Principal Architect, PRAYOG concluded the inaugural by highlighting all the deliberations and assured the minister that a team comprised of CII, IGBC, CREDAI, IIA would meet him and his department to brainstorm on the best possible policy framework for the state to consider and further implement.

The conclave was attended by over 90 key stakeholders from the building industry such as developers, architects, engineers, government officials, academicians and other industrial and corporate leaders.

The cost of construction in India is expected to go up by 6% in 2024: JLL

Mumbai, 23rd April 2024: The overall construction cost in the country will experience an average increase of 6% across various sectors in the Financial Year (FY) 2024, according to JLL’s latest Construction Cost Guide released recently.

Among the cities, Mumbai continues to be the most expensive city with costs higher while Chennai offers a more cost-effective option. The higher costs in Mumbai can be attributed to the increased prices of essential construction materials like cement, reinforcement steel, structural steel, and stones. The guidebook provides valuable insights into market trends and construction costs of real estate assets in major Indian markets. It includes a cost matrix that represents different styles and quality levels, along with an analysis of market trends for major building materials.

Jipu Jose James, Managing Director, Project Development Services (PDS), JLL India said “Businesses today are reassessing their real estate choices to optimize spending. While the exact impact of the pandemic on construction cost is still a topic of discussion, the general trend is evident – construction cost is on the rise. As a result, customer expenditure is expected to prioritize aspects that enhance the end-user experience. Understanding and effectively managing cost are crucial in maintaining budget control and delivering economically viable, high-quality projects.”

Confidently looking ahead, he expressed strong belief in the growth of construction activity in India.

Labour cost to go up

While various factors influence the cost of construction in India, labour emerges as a critical driver of economic growth too. Hence, as construction expands into non-metropolitan and rural areas, the supply-demand gap is narrowing, resulting in a more stable labour market and reduced wage disparities. Presently, labour rates are experiencing an average annual increase of 6% over the past three years, impacting construction cost by roughly 2%. The industry heavily relies on its workforce as evidenced by its expansion to approximately 71 million employees in FY2023, up from 63.98 million the previous year, owing to urbanization and growing infrastructure demands. However, this growth is primarily observed in unskilled labor, exacerbating the shortage of skilled workers. The deficiency of vocational training institutions further impedes skill development.

Looking ahead

Evidently, construction cost is anticipated to experience a global increase in the coming year. Even in the face of uncertainties, opportunities for industry transformation persist. The construction and real estate sectors remain focused on sustainability, digitization, and adaptability, shaping their future. By investing in enhanced agility and efficiency, lasting value can be created beyond 2024.

Anticipating increased government investment in infrastructure, urbanization, and real estate, as well as the expansion of data centers and the semiconductor industry. However, caution is warranted as investors navigate the upcoming countrywide elections in 2024. On a positive note, the potential of digital technologies to reduce project cost and generate added value shines bright.