Monday 9 May 2016

DONE - NO GARBAGE AT CONSTRUCTION SITES ASSURANCE BY BUILDERS


                                                       


In the wake of a call by Prime Minister Narendra Modi to launch ‘clean India’ campaigns, and in the context of a debate in the city on how and where to dispose of garbage, the Confederation of Real Estate Developers of India (CREDAI) Karnataka has taken the decision to ensure zero garbage at all of its construction sites.

A recent convention by the confederation members, “Clean India- Skilled India- Strong India”, which was held in Delhi, also called for adoption of zero- garbage policy by all builders coming under CREDAI. Bangalore too will have its construction sites clean by ensuring effective disposal.

CREDAI Bengaluru president C N Govindaraju said the government’s commitment to ensure a clean India was clearly visible from the interactions during the convention in New Delhi. What the government has decided, the conclave too decided to have the same and give a boost to the industry by taking a common stand on garbage.

CREDAI Karnataka president Nagaraj Reddy said: “We have requested all CREDAI-affiliated developers to implement the zero-garbage policy in all their projects. Without treatment, no garbage would now go out of the project site.”

CREDAI secretary Suresh Hari says most of the waste generated in the construction sites is debris and not garbage in the sense of what an individual home produces. 

“Construction waste will be broken bricks, tiles, mud, cement, broken glass, wood, etc, all of which can be recycled. A near 100 per cent of the waste generated from construction sites is recyclable. My estimate is that construction debris is less than 1 to 2 per cent of the total waste generated in the City or even lower than that. You can use material wasted to landscape or greenscape in apartment blocks and even individual homes.”

Hari says the people who collect the debris are in touch with people who run businesses using waste. They look for debris in particular because it is saleable at a lower rate in the second hand markets. 

There are people who wouldn’t be able to afford first hand wood, so they take the second hand wood, get it cleaned and worked on to make some use of it. This second hand market for debris is big and a good source of depositing the waste generated from construction. Basically, its a recyclable waste and the damage caused by it is also minimal.

There are also market yards in the City with space for debris-like material to handle the waste that comes from the construction industry. According to realtors, the proportion of waste coming out of individual homes has always been higher compared to waste generated by construction work.

“It is a misnomer. Because construction of apartments looks big, it is assumed that too much waste is being generated. In actuality, there will be an arrangement with truck owners to collect the waste and give it out to secondary industry. This reduces arbitrary disposal of waste, which is the case with individual homes. There has to be insistence on separation at source, which will solve all problems, because you know which waste has to go where. Awareness has to be increased,” says Hari.

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Saturday 7 May 2016

                            Significant Factors- Office Space

                                                    


Our Country’s commercial and social settling has been transformed by the presence of IT Sector in the Country.  It is looked upon as a most profitable centre for multinational Companies (MNCs) to operate resulting which the prominence of the Real Estate Sector has grown immensely through the years, particularly in the commercial sector. 

There has been a tremendous growth in commercial real estate and it has led to growth in a city or city location as retail, residential and hospitality projects and the same are designed around commercial areas across the country. Certain factors are of critical importance for the end user such as human resource availability, quality of the project, political stability, location, infrastructure of the city and operational costs.

It is not only difficult but complex for companies to select property as it depends on several things. Every Company keeps real estate as one of the key portfolio of its over all strategy as it belongs to the high cost category. Human resource planning, financial planning and operational factors are all interlinked with it.  The location and development that a Company propose as to have several plus points such as physical proximity to social infrastructure like housing, digital connectivity, energy factors and better design and services specifications.

The quality of the project decides the selection of the development. Quality consists of basic construction quality, design efficiencies, infrastructure like Power load and car parking, effective use of IT in running the project, savings in energy and the delivery of the project on schedule.  Redundancies in power and telecom are specially emphasized by these MNCs. 

The feasibility, suitability and acceptability of a Project are determined through exhaustive qualitative and quantitative analyses. A multitude of factors have to be objectively analyzed apart from only pricing. The soaring cost is one of the main hurdles faced by a developer who cannot handle sudden increases in cost and this leads to cost-cutting which affects the quality and delivery of the project.  The cost of construction ranges from between Rs.4,500 to Rs.5,000/- per Sq.ft., to Rs.6,000/- per Sq.ft. Timelines for completion vary according to the project. Availability of labour, plant and machinery besides various statutory approvals affect the project deliveries.

A Company which propose to expand or begin its operations will find that deciding upon the location itself is one of the key elements. As Central and suburban regions in Tier- 1 cities face lower supply, the marks in the peripheral regions have become more eminent. As the operational costs in Tier 2 and Tier – 3 cities is comparatively lower, they are also fast becoming alternate destinations for commercial activities.   

Regions in the periphery around 75 KMs from the centre of metros are more affordable in real estate options than the central or suburban ones. Testimonies to this shift can be seen in certain predominant areas in Bangalore, Hyderabad and in Chennai.  More than 75% of the total supply in Tier 1 and Tier 2 cities comes through the peripheral regions. The costs of land in these areas being much lower might be the obvious reason in comparison to sites closer to or in the heart/centrally located places in city. Expanding in the peripheral region has its own problems such as high costs of transportation, lack of suitable social infrastructure and unwillingness of employees.

MNCs usually prefer peripheral locations as they can bring together their facilities in the form of a campus and thereby make their own environment.  According to statistics peripheral areas have the most new developing projects such as residential townships, shopping malls and other kinds of social infrastructure.  One can witness in the coming years wherein multi-tenanted developments will take root in peripheral locations and if MNCs will be drawn to the infrastructure developments in these regions or whether the MNCs will itself turn to them for making their own excellent campuses.  Integrated townships that are scheduled to be set up in these locations, in Bangalore, Chennai, Gurgaon, Pune and Hyderabad are expected to influence the real estate market in marked manner in the near future. 
  

Cost benefit and availability of talent are some of the factors that are viewed when small cities are considered, as compared to peripheral locations.  Some of the cost benefits are lesser cost of real estate, lower cost of living, anchor tenant opportunities and hardly any transportation costs. Smaller cities have the advantage of possessing a fresh talent pool and this makes them good locations to expand and operate from. Government support is another important benefit.  Smaller cities are often given a fillip by concerned State Governments so hat pressure from metropolitan cities is eased where providing infrastructure is concerned, and they offer free land, fiscal rebates etc., as incentives to them.   Smaller cities also struggle with large scale issues in infrastructure like connectivity to main cities, entertainment areas, cultural problems, quality of transportation, roads and high quality infrastructure.

Corporate requirements have specifications that need more attention and the city selection is not the only part of the location selection. Sectors like marketing, banking etc., that are non-IT sectors usually give preference to city centers or suburbs from which to operate if permitted by the availability and costs. However, IT or IT related companies require a larger amount of space which limits them to peripheral or suburban locations.  A large part of Office development projects occupy space in IT parks. The relaxed floor space index and the speedy growth of the IT and IT related sectors serve to attract more number of real estate developers.

Because of the advantage of location possessed by IT parks in prime areas in a city they are still sought after as they save the cost of transporting employees and give a good working environment.  Small and medium sized companies usually prefer such places as they want to be located in a certain part of a city.  The flexible timelines to develop at the Company’s own pace are offered by campus developments.  As privately owned land has very high prices causing the need for a very large investment initially, setting up own campuses can be rather costly. MNCs usually opt for leasing space unless land is offered in Industrial parks promoted by the Government at subsidized rates.

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Wednesday 4 May 2016

Bangalore HC says no time restrictions; the Builders are relaxed

  BANGALORE HC SAYS NO TIME RESTRICTIONS:THE BUILDERS ARE RELAXED

                                                                       

Granting temporary relief to Builders, the High Court allowed the construction sector in the State to go ahead with its work between 6 am and 8 am and from 6 pm to 8 pm and from 6 pm to 10 pm, the period during which it was restricted from taking up work.

Hearing a Public Interest Litigation (PIL) petition by the JP Nagar 1st Phase Resident’s Welfare Association challenging the permission to a construction firm, the Division Bench comprising Chief Justice Vikramajit Sen and Justice M/s B V Nagarathna granted them temporary relief till March 31, 2013 to carry out works which are not in violation of the Noise Pollution (Regulation and Control) Rules, 2000.

Following an affidavit by the Confederation of Real Estate Developers Association of India (CREDAI), seeking relaxation of time to carry out some of the works which cause no noise pollution or disturbance to the Public, the Bench warned of action in case of violation of the order. The Court observed, “We are optimistic that the respondents adhere to the steps and measures to prevent noise pollution and prevent disturbance to the Civilians”. Stating that the arrangement shall continue till March 31 2012, the Bench said that the same will be reviewed later and if necessary, amendments will be made.

CREDAI had pointed out its affidavit that movement of heavy vehicles had been banned between 7.30 m to 11 am and 4.30 pm to 8.30 pm by the Bangalore City Traffic Police and with the construction activities too being prohibited from 6 am to 8 am and 6 pm to 10 pm, the members under it were facing the problems.

Seeking to imp lead itself in the petition, CREDAI had appealed to the Bench to allow them to carry out construction activities and had assured to keep the noise pollution under check in accordance with the noise pollution rules.

According to the CREDAI, works like tying steel, block works, plastering, painting, landscaping and transportation of materials and removal of debris could be taken up. Some of these works could be taken up without noise pollution, while noise pollution of some of the others could be minimized.

The counsel for the petitioners, in his objections to the affidavit, said CREDAI had failed to implement the code of conduct among its members and that the code of conduct was recommendatory in nature and could not be enforced.
Pointing out that CREDAI had no powers to punish; he said the application did not disclose what action had been taken against violators of its code of conduct.

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