Mastering Cost Control & Management for High-Rise Buildings: A Guide for Civil Engineers

Constructing high-rise buildings, especially G+45 towers, is a complex endeavor where even minor financial missteps can lead to massive budget overruns, delays, or compromised quality. In Dubai, a 50-story residential tower faced a 20% budget overrun due to unplanned piling changes and delays in MEP approvals. Such scenarios highlight the critical need for robust cost control strategies. The Cost Control and Management for High-Rise Buildings course by BHADANIS Quantity Surveying Training Institute equips civil engineers and project managers with the tools to navigate these challenges effectively.

Why Cost Control is Critical in High-Rise Construction

1. Budgeting & Estimation

Activity-Based Budgeting: Break down costs for each phase:
- Foundation: ₹12 crore for raft foundation, piles, and waterproofing.
- Superstructure: ₹45 crore for reinforced concrete, formwork, and labor.
- Finishes: ₹20 crore for façade, MEP, and interior works.
Example: Prepare a budget for a G+45 tower in Riyadh, factoring in local labor rates (₹800/day for masons) and material tariffs (₹65/kg for TMT steel).

2. Cash Flow Management

S-Curve Analysis: Forecast monthly expenditures and align them with milestones.
- Case Study: A Mumbai high-rise reallocated funds from delayed finishes to structural works during monsoons, avoiding liquidity crises.

3. Procurement Strategies

Bulk Purchasing: Negotiate annual rate contracts for cement (₹300/bag) and steel.
Just-in-Time Delivery: Use IoT-based tracking for precast slabs to reduce storage costs by 15%.

4. Subcontractor Cost Control

Contract Models: Choose lump-sum for elevators (₹1.2 crore/unit) or unit-rate for cladding (₹1,800/sq.ft).
Example: Define exact specs for aluminum composite panels to avoid disputes with subcontractors.

5. Variation & Claim Management

Change Orders: Process variations like additional basements using FIDIC clauses.
Escalation Costs: Calculate delays due to crane procurement delays (₹5 lakh/day penalty).

6. Value Engineering

Cost vs. Performance: Use aluminum formwork to save 15% on labor vs. traditional timber.
Case Study: Optimized HVAC design in a Dubai hotel cut energy costs by 30%.

7. Risk Management

Risk Registers: Mitigate labor shortages (hire from multiple states) or currency fluctuations (hedge forex).
Contingency Reserves: Allocate 5–10% of the budget for unforeseen expenses.

8. Quality-Cost Balance

Non-Conformance Costs: Rectifying defective shuttering costs ₹5 lakh/floor.
Preventive Checks: Daily inspections for rebar spacing (100mm) and concrete cover (40mm).

9. Excel-Based Tools

Templates: Track cash flow, material reconciliation, and earned value metrics without specialized software.

Why This Course is Essential

1. Middle East & India Relevance

Aligns with Dubai Civil Defence, Saudi Building Code (SBC), and Indian IS codes.

2. Career Growth

Roles: Cost Manager, Project Controller, Estimation Lead.
Industries: Real estate, hospitality, infrastructure.

3. Practical Learning

Real-world case studies from Gulf and Indian projects.

FAQs

How to handle material price hikes?
Use escalation clauses and maintain a vendor pool for competitive pricing.
What if subcontractors delay MEP works?
Impose liquidated damages (LDs) and deploy backup teams.
How to reduce overheads?
Optimize site layouts and adopt prefabrication.

Suggested Courses from BHADANIS

Quantity Surveying & Estimation
Rate Analysis & BOQ Preparation
Billing Engineering & Contract Management
Construction Project Planning

Sat May 31, 2025