Skip to main content

Whom to approach for House Construction?

 

Architect, engineer, or contractor - whom to approach?

 

Like any other skillful project, construction of house also involves lot of technicalities and expertise. Thus, you should be very careful while undertaking the work of construction. You need to select an architect, a skilled engineer and a capable contractor considering their significant role at different stages of construction. Here we are describing their importance in the process of construction.

Role of an Architect

Undertaking the task of planning and constructing a house without an architect is like a non-technical person trying to do the job of a technically qualified person. Lack of a realistic architectural plan could result in the project turning out very different from what was planned. The architect assumes the responsibility of coordinating all the aspects that go into building a house and designs the building around parameters such as location, acoustic needs and specific requirements of the client.

The Council of Architecture set up under the Indian Architecture Act of 1972 regulates architects in India. The fee structure and the employment of architects in public and private sectors are also stipulated by Council of Architecture and the Indian Institute of Architects, which is a professional body. Thus, you can check the fee structure stated by the Council. Over and above this, the allied workers and contractors for structure, plumbing and electricity may charge the client separately for material and labour. Some architects have their own in-house allied consultancy and provide the contractors. In those cases, architect will charge a consolidated fee for the planning and for the cost of material and labor.

It is the architect who draws a building plan incorporating his/her client's style and tastes. He can also prepare estimate with list of materials, their descriptions and quantities, based on you can obtain quotations from contractors and decide. Consulting an architect generally works out to be 8% to 10% more expensive than working independently, but most of the people believe that hiring an architect is worth the extra expense.

Role of a Contractor

Similar to that of an architect, the role of a contractor is also very important in the process of construction. While hiring a contractor, it is advised to contact your friends and neighbors who had undertaken the work of construction. You can also visit home improvement stores and building supply stores as they have ongoing relationships with contractors.

It's usually a good idea to ask two-three contractors to estimate the costs of your project. This is normally a free service and it helps prepare you for negotiating a final contract. Make sure that the bids detail the scope of the work, the types of the materials that will be used, and the total cost of the project. Contractors can furnish information on the materials and cost of project through the contracts, which are mainly of two types:

Labour Contract : Under Labour contract, workmen or employees are hired through a contractor. Contract workmen are indirect employees; persons who are hired, supervised and remunerated by a contractor who, in turn, is compensated by the owner. If a contractor hires contract labor, he can provide the cost estimate of the Labour cost depending on the time taken to build a house. In India, the contract Labour is regulated by the Contract Labour (Regulation and Abolition) Act, 1970.

Material Contract : A material contract is a contract providing for the procurement of supply and material at cost. Under this contract, the customer agrees to pay the contractor for all the material used at every stage of the construction.

Normally, the costs of a project are either set at a fixed price or "cost-plus." In a fixed price bid, the contractor promises to do the work specified at a certain cost. Any subsequent changes would have to be negotiated with the contractor separately. In a "cost-plus" bid, the contractor does the work- submits all the invoices and Labour charges to the client, and adds a certain percentage for contractor's profit and overheads, typically 20%. If you are borrowing money for the job, it could be a good idea to discuss the bids with the lender.

Signing a contract

Once you have carefully analyzed and compared all the bids, select a bid that favors you the most and get it in writing. A contract should be written and explicit in detail. It should include:

  • An exact description of all the work to be performed
  • A list of the materials to be used which defines textures, brands, colors, sizes, and models
  • The total cost on which the contract is signed and a schedule for payments. Be very cautious about a contractor who demands a large payment up front (50% or more). Contractors are accustomed to pay-as-you-go schedules or waiting until after the job is done.
  • Any promises made by the salesperson/contractor
  • Responsibility for getting the necessary building permits
  • The starting and completion dates
  • Any warranty and a hold back clause which allows you to withhold final payment until sometime after the job's completion to allow you some time to inspect the job. If there are any problems, this can serve as an incentive for the contractor to fix them.
  • Cleanup. This item is often neglected, but it should be considered especially if a good deal of debris will be generated.
  • The contractor's signature as well as your own.

Role of an Engineer

The role of an engineer comes into play after the owner signs a Labour and Material Contract with the contractors for the construction of his/her house.

To build a house you need plenty of free time to source the materials. You need to identify the contractor, negotiate the prices, place orders, follow up with the supply, check the quality and quantity when delivered and pay the suppliers. Secondly, the buyer needs to know how to check the quality and quantity of every material of construction. Here, you require the services of an experienced diploma engineer to supervise the work and assist in the certification of the quality of construction materials.

An engineer will also be helpful in explaining the drawing to the labourers who may not be capable of reading the drawings. 
Do not get carried away with the visible progress of the construction in the early months. With the foundation, walls and the roof complete, the house is only 30% complete.

Many owners, in the excitement, use more cement and steel than required only to realize later that the budget has overshot without any added benefits. Do not listen to every worker or laborer at the site and keep changing the plan. Every time the plan is changed back and forth, precious money is wasted.

Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds

Top 10 Tax Saving Mutual Funds to invest in India for 2016 or Best 10 ELSS Mutual Funds in india for 2016

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. Franklin India TaxShield

4. ICICI Prudential Long Term Equity Fund

5. IDFC Tax Advantage (ELSS) Fund

6. Birla Sun Life Tax Relief 96

7. DSP BlackRock Tax Saver Fund

8. Reliance Tax Saver (ELSS) Fund

9. Religare Tax Plan

10. Birla Sun Life Tax Plan

Invest in Best Performing 2016 Tax Saver Mutual Funds Online

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

---------------------------------------------

Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Leave a missed Call on 94 8300 8300

Popular posts from this blog

Understanding Your Cibil Credit Information Report

   WE ARE all familiar with the anxiety and uncertainty that we feel when applying for a loan. After all, it's the lender who decides whether we can own our dream home, our first car, or whether our children can pursue higher education. In a nutshell, a better life depends on the lender's decisions.    While other factors do play a part in the lender's decision, the Cibil Credit Information Report ( CIR ) plays a crucial role in a lender's decision to approve a loan application.    Previously, lenders would treat all loan seekers equally. Each applicant, if approved by the lender's internal credit policy, would be charged at the same interest rate for a particular loan size and purpose. The lenders would charge a higher interest rate to all the borrowers, in order to compensate for the possible default of a small portion of the loan disbursed. In other words, it's like a professor (the lender) punishing an entire class (borrowers) for the mischief played b...

Myths about Exchange Traded Funds (ETFs)

1) ETFs Are Similar to Individual Stocks: Like MFs, ETF consist of an underlying portfolio of securities that's designed to follow a specific index or investment strategy. Hence, they are as diversified as various mutual funds. 2) ETFs Only Invest in Equity: Since they are listed on the exchange, the general belief is that ETF only consists of equity asset class. Globally, ETFs are available across asset classes – equity, debt, commodities, real estate and so on. In fact, over the past couple of years, India has also seen the emergence of Gold ETFs. 3) All ETFs Are Index Funds: ETF started as a fund which used to track indices and hence they were branded as index funds that are listed. However, ETFs have progressed rapidly and are no longer associated only with passive index funds. Globally, we have seen the launch of actively-managed ETFs. In India, also we recently saw the emer gence of fundamentally-weighted ETFs on Nifty, which busts the myth that ETFs are index funds and can...

What are the factors affect the changes in Interest Rate of Fixed Deposits?

  What are the factors affect the changes in rate of Fixed Deposits? Fixed Deposits are now considered to be a very old fashioned method of saving, but still attract many investors since they have guaranteed returns at the end of the tenure of the investment at a decent interest rate. There are various factors that affect the rates of interest for a Fixed Deposit. Policies of the Reserve Bank of India   - The several norms and restrictions posed by the Reserve Bank of India , in order to gain optimum control over credit and inflow and outflow of fund throughout the country. The repo rate changes, cash reserve ration tends to change and these changes affect the banking products like Fixed Deposits, loans etc. Recession   - When unemployment in a country crosses the benchmark set Recession hits, and slowly the country faces an economic slow movement, affecting the purchasing power of the people in the country, forcing the Reserve Bank of India to release more funds in the financial marke...

REC Tax Free Bond Issue

Tax Saving Mutual Funds Online Current open Infra Bond Application form   Download REC Tax Free Bond Application Forms REC (Rural Electrification Corporation) is going to issue tax free bonds and the issue will open on March 6 2012 and will close on the 12th of March 2012 When you buy 80CCF infrastructure bonds, the amount you invest in those bonds get reduced from your taxable income but in these bonds that's not going to be the case. The interest on these bonds will be tax free and they are similar to the other tax free bonds like the HUDCO, NHAI and PFC issues. For the two of you interested in knowing this – these bonds are tax free under Section 10(15)(iv)(h) of the Income Tax Act. Now on to the issue itself and let's start with the high credit rating that the issue has got. The REC tax free bond issue has been given the highest rating by all issuers since the government owns the majority stake (66.8%) in REC, it has been consistently profit making,  this is a se...

Mutual Fund Review: ING Dividend Yield

  ING Dividend Yield's small assets enable the fund manager to churn in impressive returns… Strategy The aim of the fund is to invest in stocks which offer a high dividend yield. This fund deploys a value based strategy which aims to gain from investing in fundamentally strong and free cash flow generating businesses. The scheme focuses not only on growth but also on the cash generated by the business, which mostly leads to stable returns even in volatile markets. This fund has a low volatility because of its investment in high yielding stocks. The scheme tries to include stocks that yield dividend above the dividend yield of the Nifty and stocks with liquidity, which throws up a universe of 150 stocks.   Our View Launched in October 2005, this fund invests at least 65 per cent of its assets in high dividend yield stocks. The fund has consistently maintained a mix of stocks across varying market capitalisation, with a higher tilt to mid caps compared to small caps. Howev...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now