THE property industry is becoming increasingly challenging. As the cost of construction continues to rise yearly, profit margin becomes slimmer and slimmer, affecting not only developers but consumers alike.
According to the Real Estate Housing Developer Association, construction material prices are estimated to increase in 2024 after a whopping increase by almost 10% in 2023.
On the other hand, construction margins have been shrinking to approx 6% pre tax leaving slim profit margins and little buffer for contractors.
Compounding this issue are inefficient building designs, since architects and engineers have little incentive to design buildings that are cost effective.
To solve the worrying problem of rising construction costs, Quantrix has been developed as the decisive solution.
The brainchild of Ravi Kumar and Mohammed M. M. Hamda, Quantrix combines industry experience, proprietary AI solution and the largest construction datasets in the country to identify cost saving opportunities. The process is holistic, from the pre-tender to tender stage.
For starters, Quantrix proprietary models instantly analyse the client’s Bill of Quantities to suggest alternative materials, more competitive pricing and cost saving methodologies while improving design for greater net saleable area.
Taking public-listed property developer and client, HCK Capital as a case study, Quantrix has successfully lowered the clients’ construction cost by 10%. Inversely, net saleable area has gone up by 10%, representing a significant improvement.
Note that Quantrix works on a percentage of cost savings or increase in project value model. A small mobilisation fee is charged to begin work, and clients are progressively billed as sections are built.
In a nut shell, the application of Quantrix will bring many benefits to developers, contractors and AEC consultants, and they can find out more about this cutting edge technology at https://www.quantrix.com.my/.– Aug 9, 2024
Main photo credit: insights.regencysupply.com
