Complete Guide to House Construction Cost: Techniques, Tips & Calculators | Brick&Bolt

Feb 09 2024

Archana Ajith Beena

Home !!! 

How soothing this word is !!!  And if it comes to owning a home, it’s like a dream of millions of people. But, when it comes to home construction, it sounds like a complex and expensive venture. So, if you want to jump into this venture, you must have a thorough knowledge of house construction costs. It helps you manage your budget effectively and make informed decisions during the construction process.   

Hence, Brick&Bolt presents a detailed guide on home construction costs. It covers all the significant aspects of construction cost, like what it is, its importance, how to calculate the cost, sample calculation, construction cost calculator, low-cost construction techniques, low-cost building materials, etc. 

So, let’s start the journey!!!

What is the House Construction Cost?

As we know, construction is a costly venture; each penny you spend to build a home is your house construction costs. In detail, the following expenses count as a new home construction cost.

  1. Architect's and contractor’s fees
  2. Plan approval and permit charges
  3. Material cost
  4. Labour Cost
  5. Equipment and Machinery Cost
  6. Site preparation cost
  7. Contingency charges
  8. Operational charges, etc.

What is the Importance of House Construction Cost Calculation?

It is essential to have a good knowledge of construction costs before starting any building project. Making a comprehensive budget that covers all costs necessary to complete the project gives you a clear idea about managing your finances for your dream project. It also helps in determining the feasibility and scope of your construction project.

You can make an appropriate plan if you are fully aware of the construction expense. That can save you from many problems, such as overspending, delays, compromising quality, financial headaches, etc. Therefore, it is imperative that you calculate building costs precisely for an easy and effortless construction process.

So, let's look at how much it will cost to build a home.

Home Construction Cost

How Much It Will Cost to Build a House

Construction cost estimation is a challenging process because you have to consider all the construction expenses along with the location of your site, the complexity of the design, and the condition of the market. Hence, for your ease, we have listed major expenses to calculate a new home building cost precisely:

Construction cost estimation is a challenging process because you have to consider all the construction expenses along with the location of your site, the complexity of the design, and the condition of the market. Hence, for your ease, we have listed major expenses to calculate a new home building cost precisely:

  • Design Cost 

 You can start your house construction cost calculation from the design cost. For your house design selection, you have two options. 
First, you can hire an architect and get your customised house design; for that, you have to pay architect charges. This cost depends on your location, the architect's expertise and market value. 

Second, you can choose a pre-designed option for your house design. Nowadays, many readymade home designs are available on different design service platforms, both online and offline. It will cost you less than the customised design option as it doesn't require hiring an architect.

  • Builder or Contractor’s Cost 

You must consider the builder or contractor’s cost; they play the most important role in your construction project. They execute the plan and complete your project within the timeframe and budget. 

  • Construction Materials Cost 

As we all know, construction demands a huge range of construction materials like cement, aggregate, sand, bricks, steel, etc., and finishing materials like tiles, marble, wood, paint, putty, etc. Apart from these materials, you also need some machinery, like a concrete mixture machine, excavator, backhoe loader, etc., to ease the construction process. You can take these machinery on rent. Hence, the material cost is significant for the overall cost.

  • Labour Cost 

You must consider labour costs while cost estimating because you require different types of skilled labour to complete your house construction. For instance, you require a mason for constructing walls and slab casting, helpers for material handling and site preparations, plumbers, electricians, painters, etc. Labour cost is the most variable cost as it depends on the size of the work and market demand.

These four costs are the major expenses in home construction, but you also have to consider the cost of government permits and approvals and the cost of contingencies. 

But, before you start the calculation, you must know the factors affecting construction cost.

Factors Affecting Construction Cost

Many factors influence the new home construction cost and significantly impact the entire budget. So, you must have a thorough understanding of all the factors. The following are the major factors that significantly affect the cost. 

  • Size of a house
  • Physical condition of a construction site
  • Location of site
  • Client’s requirements
  • Material cost
  • Labour cost
  • Complexity of design
  • Method of construction
  • Delay in construction
  • Registration and approval cost
  • Market fluctuation

Now, you are ready to calculate your house construction cost per square feet, but manual estimation is very complicated and tedious. So, let us introduce you to Brick&Bolt’s free house construction calculator for your ease.

Free House Construction Calculator in India 

You can estimate constriction costs independently, but as we mentioned, it’s a very complex process. So, you can hire a professional cost estimator to do so on your behalf, but it will cost you more. They will calculate the building cost per square foot as well as the building cost per square metre. Hence, Brick&Bolt presents a House Construction Cost Calculator for you to estimate your construction cost without any hassle and spending money on it. It can calculate your construction cost per square foot.

This calculator is very useful and simple and doesn’t require any construction experience to use. Its only requirement is your location, built-up area, required car parking unit and balcony and utility area. You have to enter all these details in the respective field in the calculator, and your detailed cost estimation will be ready within a few minutes. 

But remember that the calculator’s cost ranges are only for estimation purposes because the actual building cost per square foot could vary based on your area of construction, location and the finishing materials you select. 

The Brick&Bolt team can work with you to modify the project configuration to fit your budget if you are operating under a strict spending plan. 


Please schedule a free consultation appointment with one of our technical experts by calling +91 7505-205-205 or visiting our website at for more accurate pricing information.

For your convenience, below is an example of a house construction cost calculation to help you grasp the idea.

Construction Cost For 1200 sq. ft. House

First, you need the plot size and basic requirements criteria to calculate the construction cost for a 1200 sq. ft. house. So, let’s assume your plot size is 30*40 feet, and you need all the basic facilities such as master bedrooms, a common bathroom, a well-ventilated kitchen, a living room, a balcony, a parking area, a terrace, etc. Then, your basic construction cost of a 1200 sq. ft. house can range between 1200 to 2200 rupees/sq. ft. However, it depends on your location, design complexity, labour cost and quality of materials you choose for the construction. From the overall construction cost, a minimum of 40% goes under labour costs, while the remaining 60% goes under material costs. For instance, your construction cost per square foot is 1500 rupees; hence, your total cost would be (1500*1200) 18 lakhs. In which 40% (7.20 lakhs) would be labour cost and 60% (10.80 lakhs) would be material cost. 

Suppose you want to include some additional work like interior design, woodwork, false ceiling, wardrobes, etc. In that case, you need to add these requirements to the package when you finalise your contractor and design, as these are not included in the construction cost.

Have you found this cost too high???  Are you running with a strict budget??? 

Then, don’t worry!!!

Know how to construct a low-cost house in India.

How Do I Construct a Low-Cost House in India? 

You can minimise construction costs using efficient construction techniques and low-cost home construction materials. In addition, you can also take advantage of low-cost housing schemes to build your dream home at a low cost in India. 

So, first, let’s look at low-cost house construction techniques which you can easily incorporate into the construction process.

Low-Cost Construction Techniques

  • Choose the right property.
  • Choose low-cost building materials.
  • Use load-bearing structure
  • Choose an experienced contractor
  • Choose a reputed construction company like Brick&Blot
  • Use prefabricated building components

Along with these techniques, know some very, very beneficial low-cost housing schemes in India:

7 Low-Cost Housing Schemes in India

  1. Pradhan Mantri Awas Yojana-Urban (PMAY)
  2. Pradhan Mantri Gramin Awas Yojana (PMGAY)
  3. Rajiv Awas Yojana(RAY)
  4. Delhi Development Authority Housing Scheme
  5. Tamil Nadu Housing Board Schemes
  6. Maharashtra Housing and Area Development Authority Lottery Scheme (MHADA)
  7. NTR Housing Scheme

As we discussed, material costs make up a major part of the overall construction cost. Hence, you must know about low-cost construction materials so that you can use them and reduce your overall home construction cost. 

What Are the Low-Cost Building Materials in India?

Most people think of typical building materials like cement, wood, sand, concrete, and bricks when they think about construction. These traditional materials are quite costly, so it’s important to know about their alternatives, which are cheaper than those and help to save cost.

So, here we have listed the top 10 low-cost home construction materials which can reduce your material cost. In addition, some of them are also eco-friendly, so you can contribute to saving the environment as well.

Top 10 Low-Cost Home Construction Materials

  1. Bamboo
  2. Fly Ash Bricks
  3. Hollow Concrete Blocks
  4. Filler Slab Materials
  5. Pre-fabricated Materials
  6. Compressed Earth Block
  7. Precast Concrete Panels
  8. Glass Fibre Reinforced Gypsum Panel
  9. Shipping Container Homes
  10. Autoclaved Aerated Concrete Or AAC 

These are all the cheaper alternatives to the costly traditional construction materials. Some might suit your new stand-alone home, while others are suitable for apartments. It depends on your local building codes, location and weather conditions.

On a final note, the house construction cost term is vital itself. To understand it, you must have a thorough knowledge of the construction materials cost, labour cost, design cost, architect and builder’s cost, necessary permits and approval cost and contingency cost. But that’s not all; along with these costs, you have to understand the factors that affect the construction cost. 

In short, construction cost estimation is a very complex process. Hence, we recommend using a house construction cost calculator for a precise cost estimate. You can also hire an experienced contractor or reputed proffesionals like Brick&Bolt Construction Services to complete your project within budget and hassle-free way.

We hope this detailed guide on house construction costs proves beneficial for you to understand what your dream house costs.

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