Cost Benefits of Steel Compared To In-Situ Concrete in Sri Lankan Building Construction

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Cost Benefits of Steel compared to In-situ Concrete in Sri Lankan Building


Construction

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Proceedings of the Seventh FARU International Research Symposium - 2014

Cost Benefits of Steel compared to In-situ Concrete in Sri Lankan Building


Construction

Chandanie H.
Department of Bulding Economics, University of Moratuwa, Sri Lanka
chandanieqs@yahoo.com

Kandemulla L
Department of Bulding Economics, University of Moratuwa, Sri Lanka

Abstract

Ever increasing building construction activities involve high technologies and innovations to overcome the challenges in front of the process.
Among the key challenges of building construction, cost of construction is prominent. However the construction industry constantly experiment
innovative solutions which may offer favorable cost benefits for building construction. Most of developed countries draw attention on material-
wise solution together with better administration and co-ordination within construction environment. Concerns on steel as a cost effective
material for construction is one of an ideal example which suggested having the ability to offer better answers for future construction challenges.
Steel buildings are designed, fabricated and constructed to meet the needs of the customer and to be cost effective. With steel construction,
delays in construction are less, and unexpected costs that often associated in traditional constructions are reduced or eliminated. Properties of
steel and vantages of steel construction also have been influenced in erection of steel structures such as skyscrapers, high-rise building and other
small buildings in the developed countries. Future adaptability with easy connection systems, minimum waste, long life, reduced disruption at
sites, suitability for confined sites are some benefits of using of steel as the main construction material. Eventually, above-mentioned benefits of
steel will be afforded indirect cost benefits of steel building construction.

The aim of this research is set as to identify the cost benefits of steel building construction in terms of factors of production in Sri Lankan
construction industry. In achieving the above aim the method followed comprises of a comprehensive literature survey followed by a
questionnaire survey. Data collection was done through the questionnaire survey to gather expertise knowledge and experiences of professionals
in the industry. Through the questionnaire, related cost influence factors of production were compared between steel and in-situ concrete
construction. Questionnaires were distributed among 44 construction industry professional and received 30 responses. The collected data was
analyzed using RII, binomial test and median and approach to two major outcomes. Cost factors were identified which were offered cost
beneficial and not cost beneficial separately in steel building construction compared to in-situ concrete building construction. It was found out
that labour, material related costs are beneficial factors of steel construction over in-situ construction. In-situ construction is ahead of steel in
terms of cost benefits in the areas of land, standards and technologies related cost factors whereas maintenance cost shows no significant
difference. Therefore it can be concluded that steel construction offers cost benefits over in-situ construction as labour and material contributes
to a higher proportion of project cost.

Keywords: Buildings; Cost Benefits, Sri Lanka, Steel Construction,

1.0 Introduction

Building is one of the most important activities in any economy and it consumes a large amount of national resources
for the construction and maintenance of buildings (Stone, 1983). Building construction needs ordered and planned
assembly of materials, which are assembled at outdoors through a large number of diverse constructions. Therefore,
Building construction is a complex process with its unique characteristics (Mehta, Scarborough, & Armpriest, 2008).
The proper selection of materials can influence the cost of construction, maintenance cost, durability and its
appearance. Materials, which are used to construct structural elements of the building, are in wide varieties. Woods,
concrete and steel are commonly used construction materials in many parts of the world because of their inherent
properties of construction (Mrema, Gumbe, Ghepete, & Agullo, 2011).

Steel is increasingly becoming a more popular material for building construction in recent years and uses as a major
construction material in building construction for most of structural elements in buildings. Abesuriya (2007) stated “the
common structural form of a multi-story steel building consists of steel H sections as columns, wide flange sections or I
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Proceedings of the Seventh FARU International Research Symposium – 2014

sections as beams, and concrete floors” (p.22). In addition, Abesuriya (2007) mentioned that walls could be block, brick
or glass curtain walls for facades of buildings. Therefore, steel buildings are normally constructed as composite
buildings, with the involvement of number of various construction materials (Panchal, 2010).

Steel buildings are designed, fabricated and constructed to meet the needs of the customer and to be cost effective.
With steel building construction, delays in construction are less, and unexpected costs that often associated in
traditional constructions are reduced or eliminated (Noton, 2010).

There are some landmark steel buildings in the world, such as the Empire State Building, which is the tallest of
buildings in New York (Post World Trade Centre). Its height is 381m and is currently functioning as an office building.
Contractor have been managed to build this steel framed structure in a record time (thirteen months). The Aon Centre
building is the third tallest among all-steel buildings in the world which is located at Chicago. There are some more to
be given as examples for popular use of steel material as, John Hancock Centre Chicago high-rise office building and
Minsheng Bank building China with 68 floors (ITP Business Publish, 2010) being some good example.

Properties of steel and vantages of steel composite construction also have been influenced in erection of steel
composite structures such as skyscrapers, high-rise building and other small buildings in the developed countries. Steel
Framing Alliance (2013) reported that steel is considered as a green material because of its recyclable ability. According
Abesuriya (2007) Report of Annual Transaction of Institute of Engineers Sri Lanka (IESL) the construction time can
be reduced with pre-fabrication and erection method of steel construction and higher quality can be maintained. Future
adaptability with easy connection systems, minimum waste, long life, reduced disruption at sites, suitability for confined
sites are some benefits of using of steel as the main construction material in steel construction.

As explained, unlike Sri Lanka, steel composite building constructions are famous in intentional construction industry.
Because of that, steel composite construction benefits as a material and in construction operation at the site. Eventually,
above-mentioned benefits of steel building construction will be afforded indirect cost benefits in composite steel
building construction.

1.2 Problem Statement

The pre-fabricated steel or turnkey type buildings will be the future in the world construction industry with the ever-
increasing building materials cost and the time consuming factor. In addition, the strength and durability of steel as a
construction material is well known and these qualities also help reducing the cost of steel buildings by ensuring the
longevity and sustainability of such structures (Tuknov, 2012).

However, there are less numbers of steel building constructions in Sri Lankan construction industry while steel building
constructions are well known worldwide due to its above-mentioned benefits. Therefore, it is important and vital study
whether steel building construction is economical in Sri Lankan construction industry.

Cost effectiveness of steel building construction need to be considered based on land, labour, capital and
entrepreneurship that are being the factors of production in construction industry (Colaner, 2008). The factors of
production will define the total cost of the products. Therefore, the cost benefits present under these categories would
be leading steel into a conclusion that steel as a cost beneficial material in the construction. With such background, the
research considers it as an important study to do some scientific investigation to check steel building constructions as a
cost beneficial solution for Sri Lankan building construction.

1.3 Aim

Based on the background study, the aim of this research is to identify the cost benefits of steel building construction in
terms of factors of production in Sri Lankan construction industry.

1.4 Objectives

 Explore different cost aspects under the four factors of production in construction of building.
 Identification of factors affecting to the cost, related to factors of production in building construction.
 Compare the cost aspects of steel building construction with in-situ concrete construction.
 Identify steps to reduce the construction cost through usage of steel in building construction.

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Proceedings of the Seventh FARU International Research Symposium - 2014

2.0 Literature Review

2.1 Introduction to Steel Building Construction

Composite steel construction are falling into two categorize as “composite steel and concrete building construction”,
and “composite steel building construction”. Composite steel and concrete building construction is a type of steel
building construction done with structural members who formed bonding concrete components to steel member
(Ellobody & young, 2010). Whereas, composite steel building construction considers steel as the main construction
material and some elements of the building are constructed out of different material such as brick or block masonry for
walls, precast concrete units for slabs and in-situ concrete for foundations (Abesinghe, 2007). This research “benefits of
steel composite building construction” explores the benefits of composite steel building construction (hereinafter the
term “steel building” is used for “composite steel building” construction).

The structural frame of a steel building is constructed by assembling prefabricated steel components at site. Structural
steel sections such as I beams, H sections , angle irons, circular and square hollow sections etc, have been used widely
in the global building construction industry (Abysinghe, 2007). A unique feature of steel building structure is that the
assembly details. Details of the connections between steel components are not prepared by architecture or structural
engineer, but done either by independent detailing company or by an in-house outfit of a steel fabricator (Mehta,
Scarborough & Armpriest, 2010). Therefore with such unique characteristics it could be hypothesized that steel
building construction would have provides different and strong benefits to the construction project.

2.2 Structural framing construction process

Nunnally (2007) stated that structural framing construction is the most significant part of the steel building
construction. Therefore structural framing construction process is a well-established planning assembly process with
the several distinct stages. They are identified in steel building constructions process given as in Figure 1.

Figure 1:
Steel building frame construction process
Source: (Mehta, Scarborough & Armpriest, 2010)

Preparation the preliminary layout involves careful integration of structural consideration with several nonstructural
considerations, such as HVAC, the building envelop, fire resistance, interior finishes, aesthetic, and cost. Unlike
masonry and site cast concrete construction, structural steel components are brought to the site in a prefabricated and
finished state, ready for erection and assembly. Detailing should be done in the most economical manner and in a way
which is best suited for the erection, scheduling, and the condition of the site. Fabrication of steel components included
cutting plates and angles to the required size, punching plates and angles, drilling holes of the required diameters and
spacing. The erection of the structural steel frame at the site may be performed by the fabricator or by a separate
erection company. In most cases, the general contractor will seek separate bids for fabrication and erection. Fabricator
and erector can be selected on the basis of a competitive bid (Mehta, Scarborough & Armpriest, 2010; Nunnally, 2007).

2.3 Relationship between Steel and In-situ Construction Cost and Factors of Production

According to economics theories, factors of production are the inputs of a product or a service namely land, labour,
capital, and entrepreneurship. These factors determine the final cost of a product or a service in any industry (Colander,
2008). In the construction industry, cost of each factors of production can be illustrated with regard to different aspects
in different steps involve in a process.

Land cost is comprised the cost of all natural resource which are used in production, including non renewable and
renewable resource and land itself. Labour cost, includes cost of all working people ranging from the unskilled worker
to the most highly trained workers. Capital cost includes the cost of all the manufactured inputs for the construction
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Proceedings of the Seventh FARU International Research Symposium – 2014

process such as machinery, material together with indirect cost. Entrepreneurs are individuals who are prepared to take
risks and mange all above three factors of production inputs (Cooke, 1996).

The construction cost of building may be varied according to method of construction. The identical factors of
production are subjected to cost comparison with the cost significant factors in the building construction process. This
cost comparison in relation to steel and in-situ is based on Standard Method of Measurement (SMM7) work sections
for the buildings. Building construction works are classified in element wise in the SMM7 as earth work, foundation,
column/beam, slabs, roof, walls, finishes and service installation.

2.3.1 Land

Land plays a significant role in building construction that determining the ultimate cost of the construction output.
Figure 2 shows the cost accumulating factors in building construction process with regard to land.

Figure 2: Common use of land with regard to construction project


Source: (Harvey and Jowsey, 2004)

Above factors are influencing the ultimate cost of the construction output. The final product cost will be changed
according to the type of construction (Stone, 1983). Therefore, construction methods (whether its steel building
construction or in-situ concrete building construction) would be having different land cost influences due to above
factors.

Major cost adding and deducting factors related to land in the steel building construction process is recognized in the
Figure 3. The factors of land are identified comparatively to the in-situ concrete construction process. Cost
“Deducting” factors are represent cost saving and “Adding” factors are the additional cost of the steel building
construction process.

Enables reuse, material efficiency and less waste


DEDUCTING

Slender columns resulting in maximizing floor area

LAND

Jobsite layout will be constrained access and locating cranes


A D DI N G

(Mincks and Johnston, 2004).


Constrained lay down large steel members in the site (Mincks
and Johnston, 2004)
Figure 3: Cost components comparison of land

2.3.2 Labour
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Proceedings of the Seventh FARU International Research Symposium - 2014

“Labour” is a highly cost significant factor in a construction project (Briscoe, 1988). Popescu, Phaobunjong and
Ovararin (2003) stated that “ the labour cost component of a construction project often ranges from 30% to 50%, and
can be as higher as 60% of the overall project cost”(p108). Pricing labour is one of the most difficult tasks in cost
estimate, as pricing labour involves high number of variables to be in concern. It is also a subjective factor in cost
estimating unlike pricing materials or equipment (Briscoe, 1988). Further, there is a high involvement of labour gangs
which are specialized in performing in different construction trades. Each group under any category would be having
different cost influences to the project. Major cost adding and deducting factors of labour in the steel building
construction process is recognized in the Figure 4. The factors of labour are identified comparatively to the in-situ
concrete construction process.

Less labour involvement in the substructure construction


DEDUCTING

Frame construction involved less activates and few number of


skilled craftsmen
Steel deck slab involves less workmanship
Service installation is easy

LABOUR

Need skilled craftsmen in the erection process (Georgiades,


A DD I N G

2010)

Figure 4: Cost components comparison of labour

2.3.3 Capital

There are three major categories of capital good in the construction industry as structures and overhead, equipment and
inventories of inputs. Structures and overhead cover construction firms, accommodation buildings, job site personals
etc. Equipment is the durable goods like automobiles, tools and computers and capital are the capital items inventories
of inputs such as material use for the construction. Frequently firm use their own capital goods but some capital goods
have to be rented in externally (Nordhaus, 2005).

Cost of materials

Material is a high cost significant input of the construction industry. Material cost related attributes in each construction
technologies are given in Table 1.

Table 1: Material cost accumulation components

Element Steel building In-situ concrete


-Concrete, reinforcement, -Concrete, reinforcement,
Foundation (eg:-shallow formwork and Gunny bags Formwork and Gunny bags
foundation) -Transportation and Storage -Transportation and Storage
material
-Steel members, nut and bolts, -Concrete, Reinforcement,
angles, plates and stabilizers Formwork and Gunny bags
-Detailing steel members -Transportation and Storage
Beams and Columns -Fabrication members material
-Handling in each stages
-Transportation and Storage
material

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Proceedings of the Seventh FARU International Research Symposium – 2014

Element Steel building In-situ concrete


-Steel decking, concrete, -Concrete, Reinforcement,
reinforcement Formwork and Gunny bags
Slab systems
-Transportation and Storage -Transportation and Storage
material material

Cost of equipments

Equipment cost rank second after labour costs in construction due to their high involvement in modern construction
projects and the unpredictable nature of production of a construction project (Stone, 1983). Equipment can be acquired
through three methods purchasing, renting or leasing (Gransberg, Popescu & Rayan, 2006). Machineries which are
used in steel and in-situ building construction process are given separately in the below Table 2.

Table 2: Plants and equipments use in the construction

Element Steel building In-situ concrete


Foundation (eg:- -Poker vibrator -Poker vibrator
shallow foundation) -Pump car -Pump car
-Tower crane, and man lifts -Poker vibrator
Beams and Columns -Mobile crane -Tower crane
-Welding plants and generators -Pump car
-Tower crane and, man lifts -Poker vibrator
Slab systems -Mobile crane -Tower crane
-Welding plants, and generators -Pump car

Structures and overhead

Structures and overhead are the indirect cost for the construction work, which is not a directly involving cost
component to the construction work at the site. Firm and the temporary site accommodation facilities are considered as
structure cost. Rental, taxes and running cost are major cost element of the structures. Overhead cost includes
mobilization cost, job site personal cost and cost for the site utilities (Smith & Jaggar, 2007). Cost attributes of structure
and overhead of the two types of construction are presented in Table 3 (Steel frame vs. In-situ concrete building).

Table 3: Cost components of structures and overhead

Construction stage Steel building In-situ concrete


Bonds -Bonds, insurance, permits -Bonds, insurance, permits
-Taxes required in the contract -Taxes required in the contract
general conditions general conditions
Mobilization -Field buildings -Field buildings
-Horizontal structures (roads, -Horizontal structures (roads,
parking, fences, and gates) parking, fences, and gates)
Job site personals -Wages and fringe benefits -Wages and fringe benefits
-Project related travel expenses -Project related travel expenses
Construction period -General use equipment (eg:- -General use equipment (eg:-
crane, hoist) crane, hoist)
-Site utilities in job duration -Site utilities in job duration
-Whether protection of -Protective aids and safety
completed works or works in measures for workers
progress
-Protective aids and safety
measures for workers

Major cost adding and deducting factors of capital in the steel building construction process is recognized in the Figure
5.

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Proceedings of the Seventh FARU International Research Symposium - 2014

DEDUCTING Material requirement is less in foundation construction


Hollow core and steel deck slabs can be cost optimizing
Shorter operation period of equipments and machineries
Off site manufacturing result less use of site utilities
Shorter construction period offers less maintenance and rentals
Less cost for safety measures
Variation is easy and less cost

CAPITAL

Lack of knowledgeable technicians for supervision the final


assembly and high cost charges (Lobo & Wildt, 2003)
A D.D I N G

Steel can be damage in fire, it required to carry insulation beyond


the minimum needed for structural safety (Lobo & Wildt, 2003)
Insurance cost of construction is high comparatively (Bonenfant,
2008)

Figure 5: Cost components comparison of capital

The factors of capital are identified comparatively to the in-situ concrete construction process.

2.3.4 Entrepreneurship

Construction entrepreneurs are significantly involving various ways in the construction industry and take many
directions and field into construction such as sustainable construction entrepreneurs or by working more on the design
side as an architect entrepreneur (Burke, 2011).
DEDUCTING

Industry standard details in design offer economy


New technology all the aspects of its processes and engineering
modeling tools
Freedom for expression or functionality

ENTREPRENEURSHIP

Technologies are not spread everywhere in the regions (Lobo &
A D.D.I N G

Wildt, 2003)

Figure 6: Cost components comparison of entrepreneurship

Burke (2011) and Hedley (2013) stated that the construction industry entrepreneurs are involving several areas. They
are suppliers of innovations based on various technologies to the construction industry. Construction entrepreneurs
innovates successful experimentation, development and introduction of new products, processes, combinations,
services or organizational forms. Further entrepreneurs have the ability to be scaled up to change or replace current
practices in the sector which results in reduced deterioration of the human environment and natural resources while at
the same time retained or improved economic competitiveness. Major cost adding and deducting factors of
entrepreneurship in the steel building construction process is recognized in the Figure 6. These factors of
entrepreneurship are identified comparatively to the in-situ concrete construction process.

2.4 Best Practices to Reduce Steel Building Construction Costs

There are many potential economies to using a structural steel frame. Economy begins with an efficient design and
layout by the structural engineer, and can be maintained or increased during fabrication and erection by careful
coordination and communication by all parties. Site layout and construction sequencing will influence equipment

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Proceedings of the Seventh FARU International Research Symposium – 2014

requirements and cost, as well as the speed of erection. The cost reduction factors are discussed under the design stage
and construction stage below.

Design stage

In construction management, design-build project delivery methods, the steel contractor may be in a position to
provide early input into the design, which may lead to design that is more economical. The quality of the contract
documents has a significant impact on the ability of the estimator to determine precisely what is required for the
project. Incomplete or poor detailed planes require the steel contractor’s estimator to guess at the designer’s intentions.
To be protected from risk of future modifications or (bulletins), the estimator will naturally increase the price
(Mrozowski, Syal & Kakakehe, 1999).

Construction stage

Following list of cost-saving measures can be practiced in the steel building construction process. These measures
provide more efficient construction environment in the steel building construction process.

The specification of special coatings will add significant cost to the project. Preparation of the surface, painting,
handling, and paint touch-up, are all increased by the use of special coatings. Where architecturally exposed steel is to
be used on the project, these coating may not be avoidable. However, fabricators should be consulted during
preparation of specifications to determine the appropriate coatings and their ability to apply them. When steel is to be
completely enclosed, painting may not even be necessary (Mrozowski, Syal & Kakakehe, 1999).Site layout and
configuration, as well as construction sequencing, are important elements in establishing the type of equipment and the
time required to erect the structure. Close coordination by the erector, fabricator, and contractor in project planning for
construction can increase the efficiency of the erection crew and consequently reduce erection costs. Avoid connections
which require extensive field welding when possible. When the design is such that field welding is necessary,
connections should be designed to avoid awkward or overhead welding angles. Steel shapes, which have cost
premiums, should be avoided when possible. Some structural shapes, such as bent and tees require fabrication to
achieve the shape. The use of angles instead of bent plates may save project costs (Mincks & Johnston 2004).

3.0 Research Methodology

This research falls in to post positivism paradigm philosophically. Therefore survey approach was most suitable to
achieve the research objects. The simple random sampling method was adopted to select sample from the population.
The professionals who have experienced in steel building and in-situ building construction practices were the
population of the research. These professionals should have knowledge and understanding in steel building and in-situ
building construction practices and cost aspects of processes. Therefore the professional quantity surveyors and
engineers were belongs to the population of this research. The questionnaire survey was implemented with thirty
professionals using a respond scale.

The collected data was analyzed using descriptive statistics analysis methods, relative important index (RII), binomial
test and median. MS-Excel computer base software was used to calculate the RII value. This has been identified as a
data analysis technique in order to rank the factors and identify the most significant factors. The binomial test shall be
used at the circumstance of dealing with nominal categorical data and the population may be classified only into two
categories. If the probability of obtaining an element is being “p” probability of second sample shall be “1-p” (q) in this
type of data distribution. The null hypothesis (H0) shall be rejected if calculated probability is small than α= 0.05.
Median is the best method to ordinal data analysis which is concern on distribution of data set. The data were to be
presented in graphical manner using Microsoft offices excel.

4.0 Research Findings and Discussion

4.1 Respondents Details

Questionnaires were distributed among professional quantity surveyors and engineers who engaged in building
construction works, where they were randomly selected from consultancy and contracting organizations. Response rate
was 68%. According to the responses categorization consultants and contractors organizations are represented
respectively 33% and 67%. Among them 27% were Engineers and Quantity surveyors were 73%.

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Proceedings of the Seventh FARU International Research Symposium - 2014

4.2 Identification of Cost Benefits of Steel Building Construction

It is a query whether the cost benefits exist in steel building construction in the Sri Lankan construction industry.
Among the collected questionnaires 87% of them were responded as steel building construction is cost beneficial
material in building construction and 13% responses as in-situ concrete building construction is cost beneficial. Mover
over the collected data from this section shall be tested for the population using binomial test. Sample probability of
cost benefits of steel is 87%. According to sample probability steel building construction can be considered as cost
beneficial as it is more than 50%, which is the critical value. Even though collected data set should be tested for
population, where Binomial test can be applied because which is nominal categorical data analyze method.

4.5 Comparison of Importance of Identified Cost Factors in Steel Building Construction Compared to In-situ
Concrete Building Construction

Respondents were given their responses comparing each cost factors (CFs) and marked in the response scale of the
questionnaire provided. RII values of 23 CFs for steel (X) and in-situ (Y) building construction were calculated using
the collected responses. Thereafter, the cost factors are ranked base on RII value difference (X-Y) as given in Table 4.

Table 4: Respondents’ relative importance index (RII)

RII
No Cost Factors (CFs) Steel In-situ Deference Rank
(X) (Y) (X-Y)
Labour cost involve in the substructure
1 4 37 -33 2
construction
Labor cost involve for the frame
2 construction such as beam, columns and 7 35 -28 3
satire ways
Labor cost involve of slab construction
3 11 33 -22 6
process
Labour cost involve for the service
4 4 22 -18 7
installation
Material cost of the foundation
5 9 31 -23 5
construction process
Material cost for frame construction
6 34 8 26 21
process (eg:- column and beams)
Material cost for slabs construction
7 10 25 -15 8
process
Operational cost for equipments and
8 16 21 -5 12
machineries in the construction
Cost of site utilities in the construction
9 10 24 -14 9
period
Maintenance cost and rentals of site
10 7 33 -26 4
offices and other temporary buildings
Cost for consideration of safety
11 17 11 6 17
measures in the site construction process
Cost for provision of changes and
12 10 21 -11 10
variation in the construction process
Cost for providing insurance for the
13 16 11 5 15
construction works
14 Cost allocation for price escalation 10 19 -9 11
Cost allocation for risk in the
15 27 9 17 19
construction
Cost for finding the industry standard
16 19 15 5 14
details in design
Cost for technological aspects of its
17 processes and engineering modeling 25 11 14 18
tools

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Proceedings of the Seventh FARU International Research Symposium – 2014

Cost for expression functionality and


18 14 15 -1 13
aesthetic of design
Cost for find available technologies in
19 32 4 28 23
the regions
Land cost for access and handling heavy
20 13 7 6 16
machineries
Land cost for the material storage and
21 27 6 21 20
lay down in the site lay out
22 Cost of maintenance the building 29 3 26 22
23 Cost of demolition and removing debris 4 45 -41 1

Sum of RII (X-Y) is calculated deducting RII value of steel (X) from in-situ (Y). Factors which have high cost for in-
situ concrete building construction they become high negative RII values, likewise factors which have high cost for
steel building construction, they become large positive RII values as shown Table 4.

4.5.1 RII analysis

Relative importance index (RII) was calculated for each cost factor in the section separately for steel building
construction (X) and in-situ concrete building construction (Y) in the Table 4. These RII values shall be plotted to
acquire following Figure 7 against rank of RII value difference.

A B

Figure 7: Steel (X) and in-situ (Y) RII values for cost factors

Blue and Brown colored lines are representing respectively RII values of steel and in-situ building construction against
ranked cost factors. Green colored hatch area (A) is represented that RII value of in-situ is larger than steel and yellow
(B) colored hatch is presented that RII value of steel is larger than in-situ. According to the Figure 7 green colored
hatched area is larger than yellow colored area (A>B).

RII value is representing comparative cost of each factor given at Table 4. If RII value increases for a particular side
comparative cost of a CF will be increased. The first (1) ranked CF which is demolition and removing debris has less
RII value for steel building construction side compared to in-situ building construction side according to Figure 7.
Therefore this factor having high cost for in-situ building construction compared to steel building construction.
RII value of steel building construction factors are regularly increasing according to blue color line in Figure 7.
However, it is not exceeding the brown colored line up to 13th ranked CF which is functionality and aesthetic of design.
After that CFs have greater cost for steel compared to in-situ building construction.

4.5.2 Construction cost factors analysis by median

The middle value of data distribution will be taken as median when data set established in ascending or descending
order. Here thirty (30) respondents have been considered for analysis. According to the number of respondents,
median can be taken as the 15.5 position of the data set however that position cannot be interpreted. Therefore
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Proceedings of the Seventh FARU International Research Symposium - 2014

response weightage value is taken relevant to 15th and 16th (fifteen and sixteen) positions as particular median of each
CF. Medians were calculated using MS office excel computer base software.

Median analysis for labour related cost factors

Labour intensive cost factors are separately considered their responses Table 5 with their median position by
highlighting. Microsoft Excel spread sheet was used to represent the responses in Table 5. Conditional formatting was
emphasized and visualized highlighting median position for each question.

Table 5: Labor related cost factors

Steel In-Situ

Very High

Very High
High Cost

High Cost
Very Low

Very Low
Moderate

Moderate
Consider:
Low Cost

Low Cost
No Cost Factors (CFs)
Cost

Cost

Cost

Cost

Cost

Cost
Not
Labour cost involve in the
1 2 2 3 5 9 6 1 2
substructure construction
Labor cost involve for the
2 3 4 3 4 6 6 2 2
frame construction
Labor cost involve of slab
3 2 5 1 4 12 3 2 1
construction process
Labour cost involve for the
4 1 4 6 9 6 4
service installation

It is seemed that all the labour related CFs are costly in in-situ concrete building construction compared to steel
building construction. The first factor, labour cost involvement in the substructure construction is costly for in-situ
building construction according to the median position in Table 5. The second CF is the labour cost involves for the
building frame construction which also have lower amount of high cost for in-situ building construction compared with
steel building construction. Labour cost for slab construction and service installation are again costly in in-situ concrete
building construction according to Table 5.

Median analysis for material and plant related cost factors

Material and plant incur high cost in building construction. Therefore the cost belongs to material and plants have been
denoted under four CFs (Table 6) which may significant cost differences in steel and in-situ building construction
process. Steel construction process is attentively distinguished and compared in terms of material and plant related cost
factors with in-situ concrete building construction in the Table 6.

Table 6: Material and plant related cost factors

Steel In-Situ
Very High

Very High
High Cost

High Cost
Consider:
Very Low

Very Low
Moderate

Moderate
Low Cost

Low Cost

No Cost Factors (CFs)


Cost

Cost

Cost

Cost

Cost

Cost
Not

Material cost of the


1 2 3 1 9 11 2 2
foundation construction
Material cost for frame
2 1 4 4 5 8 4 4
construction process
Material cost for slabs
3 1 4 4 4 3 10 2 1 1
construction process
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Proceedings of the Seventh FARU International Research Symposium – 2014

Operational cost for


4 equipments/ machineries in 2 6 6 1 7 4 1 2 1
the construction

Material cost of the foundation construction has two median positions shown as Table 6. However both median
indicates that in-situ building construction have very low to low amount of high cost for this CF compared to steel
building construction. The second (2nd) CF material cost for frame construction in the Table 6 steel side has high rate
of responding. Furthermore its median position located in the steel side. Therefore steel have very low amount of high
cost compared to in-situ building construction.

Material cost for slab construction again little bit more in in-situ building construction compared to steel building
construction. Final CF, operational cost for equipments and machineries of Table 6 is appeared multiple medians such
as “not considerable cost” and “very low cost”. However exact median should be located in between 15 th and 16th
position of data distribution therefore it should be costly even marginally for in-situ building construction compared to
steel building construction.

Median analysis for site utilities and overhead related cost factors

Incurred cost due to construction utilities and overhead have been considered for comparison between steel building
constructions with in-situ concrete building construction in the industry. Median values of each CF have been shown in
Table 7 below.
Table 7: Site utilities and overhead related cost factors

Steel In-Situ
Very High

Very High
High Cost

High Cost
Very Low

Very Low
Moderate

Moderate
Consider:
Low Cost

Low Cost
No Cost Factors (CFs)
Cost

Cost

Cost

Cost

Cost

Cost
Not

Cost of site utilities in the


1 6 3 3 6 7 4 1
construction period
Maintenance cost and rentals
2 of site offices and other 4 3 5 1 6 8 2 1
temporary buildings
Cost for consideration of
3 safety measures in the site 2 6 8 3 5 6
construction process
Cost for provision of
4 changes and variation in the 1 4 4 3 8 6 4
construction process
Cost for providing insurance
5 1 8 5 4 7 5
for the construction works
Cost allocation for price
6 1 5 2 6 9 3 2 2
escalation
Cost allocation for risk in the
7 1 1 4 7 5 2 6 4
construction

Site utilities, maintenance of temporary building, provision of changes and cost allocation for price escalation named
CFs (1st, 2nd, 4th, and 6th) have median at the side of in-situ as Table 7 therefore these CFs are costly for in-situ building
construction compared to steel building construction. Furthermore there is trend of responses towards right side
furthermore most respondents have been determined that this CFs are costly in in-situ concrete building construction
compared to steel building construction. However steel building constructions is costly for safety measures and
consideration of risk in the construction (3rd, and 7th CFs) with compared to in-situ building construction. Cost for
providing insurance for the construction works, neutral response is gained by the median analysis according to result
this CF will not affect the method of construction.

Median analysis for standards and technologies related cost factors

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Proceedings of the Seventh FARU International Research Symposium - 2014

Standards and technologies are essential for most of the areas of building construction. Table 8 represents the standards
and technologies related cost factors of building construction as well as the relevant responses of steel and in-situ
building construction process. The highlighted values are the median/medians of each CFs.

Table 8: Standards and technologies related cost factors

Steel In-Situ

Very High

Very High
High Cost

High Cost
Consider:
Very Low

Very Low
Moderate

Moderate
Low Cost

Low Cost
No Cost Factors (CFs)

Cost

Cost

Cost

Cost

Cost

Cost
Not
Cost for finding the industry
1 1 2 7 5 1 6 8
standard details in design
Cost for technological
2 aspects of its processes and 5 10 3 1 5 6
engineering modeling tools
Cost for expression
3 functionality and aesthetic of 2 6 3 2 12 4 1
design
Cost for find available
4 6 11 8 2 1 1 1
technologies in the regions

Cost for finding the industry standard and details in design have multiple median according to Table 8. In accordance
with, median should be in between “very low cost” or “not considerable cost”. However this particular position is side
of steel according to the median, therefore first CF is costly in steel building by a construction from least amount
compared to in-situ concrete building construction. The next CF which is cost for technological aspects of its process
and engineering modeling tools also has multiple medians in Table 8. However it is costly in steel building construction
compared to in-situ building construction. Cost for expression functionality and aesthetic is costly in in-situ building
construction compared to steel building construction. More responses of final CF in the Table 8 trend to side of steel
building construction likewise its median also side of steel. Then the CF can be considered as costly in steel building
construction compared to in-situ building construction.

Median analysis land related cost factors

Land related cost factors shall be listed out as following Table 9. Furthermore comparative responses can be seen in
steel and in-situ building construction techniques. Land cost for handling materials and heavy machineries shall be
costly in steel construction. Furthermore, most of professionals’ responses are side of steel. Then above CFs are costly
in steel building construction compared to in-situ building construction process.

Table 9: Land related cost factors

Steel In-Situ
Very High

Very High
High Cost

High Cost
Consider:
Very Low

Very Low
Moderate

Moderate
Low Cost

Low Cost

No Cost Factors (CFs)


Cost

Cost

Cost

Cost

Cost

Cost
Not

Land cost for access and


1 1 2 13 6 5 3
handling heavy machineries
Land cost for the material
2 storage and lay down in the 4 7 15 1 1 2
site lay out

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Proceedings of the Seventh FARU International Research Symposium – 2014

Median analysis of cost factors after construction

The most significant cost factors which may affect to the life cycle cost of construction have been analyzed in Table 10
below.
Table 10: Cost factors after construction

Steel In-Situ

Very High

Very High
High Cost

High Cost
Consider:
Very Low

Very Low
Moderate

Moderate
Low Cost

Low Cost
No Cost Factors (CFs)

Cost

Cost

Cost

Cost

Cost

Cost
Not
Cost of maintenance the
1 1 2 3 5 11 4 4
building
Cost of demolition and
2 1 4 4 8 6 5 2
removing debris

Building maintenance is essential for effectively functioning the building throughout its life time. Further it’s incurring
considerable cost where building owner constantly expected to minimize within the life time of the building. However
according to median steel is costly for maintenance of the building representing Table 10.

Demolition and removing debris are difficult and costly at the in-situ construction according to median analysis. More
over most responses are side of in-situ for demolition therefore the above statement is further substantiated.

4.6 Reducing Cost of Steel Building Construction

Accordingly above analysis, it has identified that there are factors which have comparatively high costs in steel
construction. In order to minimize such costs, following factors are introduced.

Table 11: Factors reduce cost of steel building construction

Importance
Very High
Very Low

Moderate

No Factors Count RII Ranking


High
Low

Avoid connections which require


1 extensive field welding when 0 0 11 13 6 30 1
possible 76.67
The use of repetitive members of
the same length and size will allow
2 0 2 11 13 4 30 2
for easier shop drawing
development 72.67
Close co-ordination by the erector,
3 fabricator, and contractor in project 0 3 12 11 4 30 3
planning for construction 70.67
Design-build project delivery
4 methods, provide early input into 2 10 11 5 2 30 4
the design 56.67
Simplification of member
5 connections and attached items such 3 9 10 6 2 30 5
as curtain walls can save costs 56.67
The quality of the contract
6 4 17 6 2 1 30 6
documents 46.00
The use of angles instead of bent
7 7 14 5 4 0 30 7
plates for the work 44.00
When steel is to be completely
8 enclosed, painting may not be 11 15 4 0 0 30 8
necessary 35.33
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Proceedings of the Seventh FARU International Research Symposium - 2014

According to the Table 11, there are five factors which are significant as per to RII analysis (>50%). Avoidance
extensive field welding is the highest important factor in order to reduce steel construction cost. Steel contractors can
concern on importance of above factors at pre-contract stage. Application of above factors may depend on client
requirements.

5.0 Conclusion and Recommendation

Construction industry is looking for better alternative solution for ever increasing building material prices which directly
effects on construction operational and maintenance costs. In-situ concrete has being prominent construction material
for building construction in the Sri Lankan context up to recent years. Researcher concerns on steel as an alternative
material for building construction. Therefore the researcher’s consideration was to determine the cost benefits of steel
building construction for Sri Lankan construction industry. However, there are less numbers of steel buildings
constructed in Sri Lankan construction industry while steel building constructions was well known worldwide due to its
mentioned benefits.

Cost of component of construction was recognized through four factors of production land, labour, material and
entrepreneurship. After that cost factors was identified under each factor of production of building construction.
Based on the survey results the identified cost beneficial factors from steel construction were identified as Cost of
demolition and removing debris, Labour cost involve in the substructure, frame, slab construction process, and service
installation, Material cost of the foundation and slabs construction process, Operational cost for equipments and
machineries in the construction, Cost of site utilities in the construction period, Maintenance cost and rentals of site
offices and other temporary buildings, Cost for provision of changes and variation in the construction process, Cost for
providing insurance for the construction works and Cost allocation for price escalation. However, Cost for find
available technologies in the regions, Cost of maintenance the building, Material cost for frame construction process,
Land cost for the material storage and lay down in the site lay out, Cost allocation for risk in the construction, Cost for
technological aspects of its processes and engineering modelling tools, Cost for consideration of safety measures in the
site construction process, Land cost for access and handling heavy machineries like Crane, Trucks in the construction
site, Cost for finding the industry standard details in design and Cost for expression functionality and aesthetic of
design were identified as less costly with in-situ construction.

In order to reduce such related high costs in steel construction the following steps are suggested by the survey; Avoid
connections which require extensive field welding when possible, The use of repetitive members of the same length and
size will allow for easier shop drawing development, Close co-ordination by the erector, fabricator, and contractor in
project planning for construction, Design-build project delivery methods, provide early input into the design,
Simplification of member connections and attached items such as curtain walls can save costs, The quality of the
contract documents, The use of angles instead of bent plates for the work and When steel is to be completely enclosed,
painting may not be necessary.

However these factors are more applicable within Colombo metropolitan area as the research was carried out base on
this area. Furthermore research was done for building construction projects. Besides, cost benefits factors of steel
building construction were identified comparing cost factors with in-situ concrete building. Here a hypothetical steel
building was considered and which was constructed from steel as the main construction material and some elements of
the building are constructed out of different material such as brick or block masonry for walls, precast concrete units or
steel deck for slabs and in-situ concrete for foundations.

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