2. Need for Speed in construction
Industry concerns
• Environmental benefits
• Safety & Health
• Improved working conditions
• Cost reduction/ Waste elimination
• Enhanced customer satisfaction
• Improved profitability
This calls for modernization of construction
2
3. Why need to Modernize construction
• Importance of the Industry in economy-
Construction is one of the pillars of domestic economy
• Low Profitability- Low and unreliable rate of
profitability. Low Margins.
• Lowest price vs. quality- clients are
undiscriminating and still equate price with cost,
and select designers and constructors almost
exclusively on the basis of lowest tendered price. The
needs is to educate and help clients to differentiate
between best value and lowest price.
• Under-achievement in terms of time and
budget - Projects are widely seen as unpredictable in
terms of on time delivery, within budget and to the
standards of quality expected
3
4. The drivers of Change
• Focus on the customer - Activities which do not add
value from the customer's viewpoint are classified as waste
and should be eliminated.
• Quality driven agenda - Quality means not only zero
defects but right first time, delivery on time and to budget,
innovating for the benefit of the client and stripping out
waste, whether it be in design, materials or construction on
site.
• Integrating the process and the team around the
product- the industry is typically dealing with the project
process as a series of sequential and largely separate
operations undertaken by individual designers, constructors
and suppliers who have no stake in the long term success of
the product and no commitment to it.
• Need for Speed- Long felt need to shift from above
scenario to solutions facilitating customer delight &
mutual benefits to both customers and constructors
4
5. EMERGING TRENDS IN CONSTRUCTION
PRACTICES IN INDIA
•Non-availability of cheap manual
labor employed at site for cutting,
bending, tying and Fixing of Re-
bars.
•Lack of Space at project sites.
•Increased awareness about speed,
quality & safety of Construction.
•Cost pressures on Construction
Co.’s : Find ways & means to reduce
pilferage and wastage at site
Ready to use
cut & bent
Rebars take
lead in shaping
the Indian
Construction
market
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6. Advantages of Processed Rebar solutions
Project design Materials
procurement
Construction Construction
Manager
Company's margins
Traditional
System
Minimize waste
Assess steel
consumption
(5 a 7%),
yields (40 a 60
hh/t).
Get Steel price
quotation.
Cut and Bend
Service
price quotation.
Purchase planning
at least
5 weeks ahead of
requirement.
Insure qualified
bar benders.
Plan adequate
equipment
plan space for
storage
and processing
(120 m2).
High level quality
control
is necessary.
Production
capacity is
limited by labor
and
equipment
availability.
Ensure yields and
waste within
budget.
Uncertain
consumption
and yields until
completion
of work.
Processed Rebar
solution
Bar forming
Shape making
Stirrup making
Prepare Cut and
Bend
Blueprints.
Price quotation of
steel
and service.
Program
deliveries
according to
concreting
program.
Possibility to
accelerate
or slow down the
pace of
construction by
simply
reprogramming
deliveries.
Knowledge of
processed
steel real cost
from the
very first day.
6
7. 7
This Solution will bring a cascading improvement in the way
project is executed
1. Reliability of Steel supplies
2. Improvement in Quality
3. Timeliness : Compressed
project schedules
4. Improvement in Quality of
construction
Customer
Customers to focus on their core job – CONSTRUCTION
10. Advantages of Processed Rebar solutions
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• Lower production costs: The Cut and Bend process,
traditionally performed at the construction site, requires
between 40 - 60 man hour/t. By using processed Rebars, the
cost of processing decreases drastically, depending on the
type of construction and diameters mix. Moreover, lower
indirect costs are obtained through shorter construction time.
• Zero waste: There is usually a certain amount of waste
generated, which varies around 5 to10 % (a mean value of 7%
can be estimated). With the processed Rebars, customer pays
for the theoretical blueprint weight only, and saves on
wastage, processing & freight.
11. Advantages of Processed Rebar solutions
11
• Lower financial cost: Normally the bars are kept in storage for
three weeks before using them. Add to this one week for
procurement and one additional week for processing at the
construction site, Total lead time is 5 weeks. On the other hand,
when buying processed Rebars, lead time is considerably shorter
as the time required for the delivery of material at construction
site is lesser, (5 weeks later than when buying the bars at the
plant and bending at construction site.)
• Elimination of storage: Material is ordered when needed and
partial deliveries are programmed according to the concreting
schedule. This results in lower financial cost, since the material
gets to construction site ready to be assembled. Lesser space is
also needed at the site, since no storage space is required for bars
(600 m2), nor for the cut and bend process (120m2).
12. Advantages of Processed Rebar solutions
12
• Simple, safe and operational: Whole cut and bend process is limited
to ordering the material according to blueprints, handling of 12 m
bars bundles is eliminated, site housekeeping is greatly improved,
thereby decreasing the risk of accidents as well as the eternal
problem of pilferages/ thefts.
• Greater response capacity and delivery flexibility:
The pace of construction can speeded-up to comply with certification
deadlines, or slow it down -e.g. in case of rain- simply by
programming delivery dates with Rebar processing plant.
13. Overall cost of Rebar
Head
Value
(Rs/ton)
Base price 47,200
Labor cost 2,921
Srcap 2,360
Scrap recovery (1,050)
Pilfrage 944
Inventory cost 944
Yard Exp 472
Total Additional
cost
6,591
Source: Survey conducted by Mackenzie in 2015
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14. Cost impact of C&B Rebar
Site Size: 30x50 site house construction cost (Ground + 1, 3 BHK) up to 2125 Sq. ft
built up area. With Concrete Blocks, construction at Bangaluru
Total cost of house ownership 7,437,500
Materials Required Quantity Unit
Premium
Brand (Rs.)
Matl.
Cost
share
Overall
Cost
share
TMT Steel 7.6 Tonnes 357,200 29% 5%
Cement 930 Bags 337,590 27% 5%
Plastering M Sand 147 Tonnes 205,800 17% 3%
Concrete M Sand 65 Tonnes 61,750 5% 1%
40mm Jelly 513 Cft 12,825 1% 0%
20mm Jelly 2996 Cft 74,900 6% 1%
6" Concrete Block 3120 Blocks 156,000 13% 2%
4" Concrete Block 1040 Blocks 37,440 3% 1%
Total material cost 1,243,505
Traditional bending
@ 6500/ton
7.98 Tonnes 51,870 0.5% 0.7%
C&B @ 2500/ton 7.6 Tonnes 19,000 0.2% 0.3%
Saving due to C&B Tonnes 32,870 2.6% 0.4%
Source: https://www.materialtree.com/30-50-house-construction-cost/
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