How do we calculate the square feet cost of construction?
It can never really be worked backwards. As in general practice the contract is given to a contractor to build at e.g., 800/- per square feet. This is calculated at an assumption of a certain constant rate of materials like steel, sand and cement. Even in a genuine situation of increase in the basic raw materials of sand, cement and steel, there would be no basis for recalculation leading to losses on one side whether in money or quality. Since there is no basis for the rate calculation, the rate of 800/- per sq ft cannot be adhered to. This can lead to a lot of compromises on either side. There would be misunderstandings, confusions and losses in quality and money. Therefore the square feet cost is only a dividend of the total cost divided by the square feet constructed and not a base for any contract.
