BH construction cost – is it the time to embark on building a BH? (Part 2)

For your information, last year the standalone BH (RC structure type) construction cost (excluding land cost) was in the range of RM 40 per ft² to RM 60 per ft², depends on the location.

From what I have analysed lately, the construction cost for a typical BH now (not inclusive of sound systems, M & E, CCTV, alarm system and piling costs) is around RM 25 per ft².

The piling cost depends on the soil condition of the site. Soggy and softer ground in the location like paddy field will incur higher foundation cost, as compared to more solid laterite and sandy bay.

Anyway, for a three stories high BH, the piling (150 x 150 RC square pile) cost normally should be around RM 4.90 to RM 7.80 per ft².

After adding in the sound system, M & E costs and the consultancy fee, the total overall construction cost should fetch around RM 42.50 per ft² to RM 46 per ft² with the assumption that 20% of profit margin to be paid to the contractor or consultant.

Therefore, you can see that if you are able to DIY your BH, it can easily save you a great amount of money. How much you can save? I think your calculator should be able to tell you that.

If you are able to supervise the work, better still, you will have peace of mind on the quality of the contractor’s works and in the same time no need to employ a supervisor or a clerk-of-work to inspect the contractor’s works on behalf of you.

If the quotation given is lower than RM 40 per ft², it may likely be a scam, higher than RM 60 per ft², I will be a "con" because with this price you should be able to build a terrace house for human-dwelling! If you encounter this, you should fly kite the contractor or dismiss the idea to proceed further, otherwise he will laugh all the way to the bank due to your ignorance.

Again please take note that the price stated above is for your reference only. The rate is based on Penang’s market price and built-up according to a typical BH’s standard specification. The price may vary in different locations & specification and it will change from time to time. You are advised to carry out at least a cost comparison exercise (by enquiring a few quotations) prior to making the final decision.

Also, when we talk about the BH construction cost, it does not capture permit application cost (from the authorities), management & supervisory costs, professional consultancy (architect, C & S engineer) costs if you want to obtain OC or CCC, finance cost, operating & maintenance cost and other relevant costs, which I will further share with you soon under the article of BH development cost.

FYI, until the posting of this article, concrete (location: Bukit Mertajam) G25/20 price has been reduced to RM 164 per m³ and it will drop some more as the cement’s price is given more rebate by the suppliers (price per bag of OPC going down from RM 13+ to RM 12+). Last year the price was about RM 198 per m³.

I believe that and as I mentioned earlier, the building material cost has gone down a lot as compared to last year, so it is expected that the contractor by now should be able to offer you a very reasonable fair price.