UDCPR 2020 Chapter 2 is all about Development Permission and Commencement Certificate as per mentioned in the UDCPR 

This is Applicable to all Planning Authorities and Regional Plan Areas except Municipal Corporation of Greater Mumbai, Other Planning Authorities/Special Planning Authorities/ Development Authorities within the limit of Municipal Corporation of Greater Mumbai, MIDC, NAINA, Jawaharlal Nehru Port Trust, Hill Station Municipal Councils, Eco-sensitive/Eco-fragile region notified by MoEF & CC and Lonavala Municipal Council, in Maharashtra.

Rule No. 2.4 Discretionary Powers - Relaxations In Specific Cases 

In specific cases where clearly demonstrable hardship is caused, the Authority may permit any of the dimensions/provisions prescribed by these regulations to be modified provided the relaxation sought does not violate the health safety, fire safety, structural safety, and public safety of the inhabitants of the buildings and the neighbourhood.

No relaxation in the setback required from the road boundary, FSI, or parking requirements shall be granted under any circumstances unless otherwise specified in these Regulations.

While granting permission under these regulations, conditions/restrictions/limitations may be imposed on the size, cost, or duration of the structure, the abrogation of the claim of compensation, payment of the deposit and its forfeiture for non-compliance, and payment of premium, as may be prescribed by the Authority, if required.

In Municipal Councils and Regional plans, such relaxation shall be granted in consultation with the Divisional Joint Director of Town Planning.

Notwithstanding anything contained in any Government Order, Government Resolution, Government Notification, etc. issued from time to time regarding powers of relaxation in Development Control and Promotional regulations, the above provision shall prevail.

Rule No. 2.5 Drafting Error

Drafting errors in the Development/Regional Plan, which are required to be corrected as per the actual situation on site or as per the city survey record or sanctioned layout etc. may be corrected by the Authority, after due verification, in case of Municipal Councils Regional Plan areas, this shall be done after consultation with the Divisional Joint Director of Town Planning.

Related Regulations to Rule No. 2- 

You can visit our other blog on Regulation 2 through the below-mentioned links:

Commencement of Work in UDCPR 2020

Various Regulations in Chapter 2 in UDCPR 2020

Procedure During Construction in UDCPR 2020

Grant or Refusal of Permission in UDCPR 2020

Discretionary Powers Interpretation in UDCPR 2020

Procedure for Obtaining Development Permission, Building Permission, Commencement Certificate in UDCPR 2020

Permission from the Planning Authority is Mandatory in UDCPR 2020

UDCPR 2020 Chapter 2 is all about Development Permission and Commencement Certificate as per mentioned in the UDCPR 

This is Applicable to all Planning Authorities and Regional Plan Areas except Municipal Corporation of Greater Mumbai, Other Planning Authorities/Special Planning Authorities/ Development Authorities within the limit of Municipal Corporation of Greater Mumbai, MIDC, NAINA, Jawaharlal Nehru Port Trust, Hill Station Municipal Councils, Eco-sensitive/Eco-fragile region notified by MoEF & CC and Lonavala Municipal Council, in Maharashtra.

Rule No. 2.2 Procedure for Obtaining Development Permission/Building Permission/Commencement Certificate

2.2.1 Notice/Application

Every person who intends to carry out development or redevelopment, erect or re-erect or make alterations in any place in a building or demolish any building, shall give notice/application in writing, through a registered Architect, Town Planner or Licensed Engineer/Supervisor, to the Authority of his said intention in the prescribed form (See Appendix AI or A2). It will be mandatory to submit complete information in the form accompanied with Appendix A-1 and A-2. Such notice shall be accompanied by the payment receipt of the required scrutiny fee and any other fee/charges prescribed by the Authority from time to time and the plans and statements in sufficient copies (See Regulation No.2.2.2), and as per the requirements under Regulation No. 2.2.2 to 2.2.1.9. One set of plans shall be retained in the office of the Authority for a record after the issue of permission or refusal. The plans may be submitted in electronic form as may be specified by the Authority from time to time. The Authority may set a date after which all submissions, approvals and communication in regard to development permission shall be online.

2.2.2 Information Accompanying Notice/Application

The Notice/Application shall be accompanied by the ownership title, key (location) plan, site plan, sub-division layout plan/ building plan, plans for services, specifications, and certificate of supervision, etc., as prescribed in these regulations. Ordinarily, four copies of plans and statements shall be made available along with the notice; however, the number of such copies required shall be as decided by the Authority.

2.2.3 Ownership title and area

Every application for development permission and commencement certificate shall be accompanied by the following documents for verifying the ownership and area, etc. of the land -

i) Latest 7/12 extracts or property register card of a date not earlier than six months before the date of submission of a development proposal, power of attorney, wherever applicable, or attested copy of lease deed of the concerned lessor authority, enabling ownership of the document. In the case of Ulhasnagar, a conveyance deed and/or sanad issued by the Revenue Authority may also be considered.

ii) Original measurement plan/city survey sheet of the land or lands under development proposal issued by the Land Record Department.

Provided that, where the City Survey of the whole Gaothan area is not done by the City Survey Department, in that case, the measurement plan authenticated by the Architect having signatures of adjacent plots/landholders may be acceptable.

iii) Statement of the area of the holding by triangulation method/CADD (Computer-Aided Design and Drafting Software) from the qualified licensed technical personnel or architect with an affidavit from the owner regarding the area in the form prescribed by the Authority.

iv) Any other document prescribed by the Authority.

v) In case of revised permission, wherever third party interest is created by way of registered agreement to sale or lease, etc. of the apartment, consent of such interested party/persons as specified under the RERA Act shall be submitted.

vi) A self-attested copy of sub-division/amalgamation/layout of land approved by the concerned authority, if any.

vii) In the case of land leased by the Government or Local Authorities, No Objection Certificate of Government or such Authorities shall be obtained if there is deviation from lease conditions and shall be attached to the application for development permission in respect of such land. Such No Objection Certificate shall also be necessary, where, the development proposal proposes to utilize FSI more than mentioned in the lease deed.

2.2.4 Key Plan or Location Plan

The key plan drawn to a scale of not less than 1:4000 shall be submitted along with the application for a Building Permit and Commencement Certificate showing the boundary locations of the site with respect to neighborhood landmarks or features within the radius of 200 m. from the site whichever is more.

2.2.5 

(a) Sub-division/Layout plan

In the case of the development of land, the notice shall be accompanied by the sub-division / layout plan which shall be drawn to a scale of not less than 1:500, however, for layout having areas 4.0 ha. and above, the plan shall be drawn at a scale of not less than 1:1000, containing the following :-

i) Scale including a graphical scale used and north point

ii) The location within the land of all proposed and existing roads with their existing/proposed widths and all the proposals of the Development Plan / Town Planning Scheme, if any

iii)  Dimension of plots

iv)  The location of drains, sewers, public facilities and services, electrical lines, Natural watercourses, water bodies and streams, etc.

v)  Table indicating size, area, and use of all plots in the sub-division/layout plan.

vi)  The statement indicating the total area of the site, area utilized under roads, recreational open spaces, playground, amenity space, and development plan reservation/roads, schools, shopping, and other public places along with their percentage with reference to the total area of the site proposed to be sub-divided/laid out.

vii)  In the case of plots that are sub-divided in built-up areas in addition to the above, the means of access to each sub-divided plot is from existing streets.

viii) Contour plan of the site, wherever necessary.

(b) Amalgamation Plan

Where two or more plots/holdings of the same or different owners are to be amalgamated, an amalgamation plan showing such amalgamation drawn to a scale of not less than 1:500 shall accompany the application. Instead of submitting a separate plan, such amalgamation may be allowed to be shown on the building/layout plan itself.

2.2.6  Site Plan

The site plan shall be submitted with an application for building permission drawn to a scale of 1:500 or more as may be decided by the Authority. This plan shall be based on the measurement plan duly authenticated by the appropriate officer of the Department of Land Records. This plan shall have the following details :-

i) Boundaries of the site and of any contiguous land belonging to the neighboring owners.

ii) Position of the site in relation to neighboring streets.

iii) Name of the street, if any, from which the building is proposed to derive access.

iv) All existing buildings contained in the site with their names (where the buildings are given names) and their property numbers.

v) Position of the building and of other buildings, if any, which the applicant intends to erect, upon his contiguous land referred to in (i) above.

vi) Boundaries of the site and, in a case where the site has been partitioned, boundaries of the portions owned by others.

vii) All adjacent streets, buildings (with a number of storey and heights), and premises within a distance of 12.0 m. of the work site and of the contiguous land (if any) referred to in (i). If there is no street within a distance of 12.0 m. of the site, the nearest existing street with its name.

viii) Means of access from the street to the building and to all other buildings (if any) which the applicant intends to erect upon.

ix) Space is to be left around the building to secure free circulation of air, admission of light, and access.

x) The width of the street (if any) in front and the street (if any) at the side or near of the building, including proposed roads.

xi) The direction of the north line relative to the plan of the building.

xii) Any existing physical features, such as wells, tanks, drains, pipelines, high tension lines, railway lines, trees, etc.

xiii) Overhead electric supply lines, if any, including space for electrical transformer/substation according to these Regulations or as per the requirements of the electric distribution company.

xiv) Any water course existing on-site or adjacent to the site.

xv)  Existing alignments of water supply and drainage lines.

xvi)  Such other particulars as may be prescribed by the Authority.

2.2.7  Building plan

The plans of the buildings and elevation and section to be sent with the application accompanying the notice shall be drawn to a scale of 1:100. The building plan shall :

i)  Include floor plans of all floors together with the built-up area clearly indicating the sizes of rooms and the position and width of the staircase, ramps and other exit ways, lift wells, lift machine room and lift pit details, meter room, and electric sub-station and also include a ground floor plan as well as basement plan and shall indicate the details of parking space and loading and unloading spaces provided around and within the building as also the access ways and the appurtenant open spaces with projections in dotted lines, distance from any building existing on the plot in figured dimensions along with the accessory building. These plans will also contain the details of FSI calculations.

ii) Show the statement of the carpet area of every apartment or any unit along with areas of balconies and double-height terraces, if any, attached to the said unit.

iii) Show the use or occupancy of all parts of the buildings.

iv) Show the exact location of essential services, such as water closet (W.C.), bath, sink and the like;

v) Include sectional drawings showing clearly the thickness of the basement wall, wall construction, size and spacing of framing members, floors, slabs, and roof slabs with the materials. The section shall indicate the height of the building, rooms and parapet, drainage, and slope of the roof. At least one section should be taken through the staircase.

vi) Show relative levels of street

vii) Give dimensions of the projected portion beyond the permissible building line.

viii) Include a terrace plan indicating the drainage and the slope of the roof.

ix) Give an indication of the north line relative to the plan

x) Details of parking spaces provided

xi) Give dimensions and details of doors, windows, and ventilators

xii) Give the area statement with a detailed calculation chart of each floor of the building or area as per the periphery line of construction (P-line) excluding ducts and voids.

xiii)  Show the pump rooms, rainwater harvesting system, and sewage treatment plant, if any.

xiv) Certificate of Structural Engineer about structural and earthquake safety in case of the building above G + 2 or stilt + 2 structure.

xv) Give such other particulars as may be required to explain the proposal clearly as prescribed by the Authority.

2.2.8 Building Plans for Special Buildings

The following additional information shall be furnished/indicated in the Building Plans in addition to the items (i) to (xv) of Regulation No.2.2.7;

a) Access to fire appliances/vehicles with details of vehicular turning circle and clear motorable access way around the building of a minimum of 6.0 m. width;

b) Size (width) of main and alternate staircases, wherever necessary, along with balcony approach, corridor, and ventilated lobby approach.

c) Location and details of lift enclosures.

d) Location and size of fire lift.

e) Smoke stop lobby/door, where provided.

f) Refuge chutes, refuse chamber, service duct, etc.

g) Vehicular parking spaces.

h) Refuge area, if any;

i) Details of Building Services :- Air-conditioning system with the position of fire dampers, mechanical ventilation system, electrical services, boilers, gas pipes, etc. 

j) Details of exits including the provision of ramps, etc. for hospitals and buildings requiring special fire protection measures.

k) Location of the generator, transformer, and switch gear room.

l) Smoke exhauster system, if any;

m) Details of the fire alarm system network

n) Location of centralized control, connecting all fire alarm systems, built-in fire protection arrangements and public address system, etc.

o) Location and dimensions of static water storage tank and pump room along with fire service inlets for mobile pump and water storage tank.

p) Location and details of fixed fire protection installations such as sprinklers, wet risers, hose reels, drenchers, C02 installation, etc.

q) Location and details of first aid, fire-fighting equipment/installations

r) Certificate of a structural engineer in structural and earthquake safety

s) Clearance certificate from the Chief Fire Officer of the Authority or Director of Fire services, as the case may be.

2.2.9 Service plan

Plans, elevations, and sections of water/grey-water supply, sewage disposal system, and details of building services, where required by the Authority, shall be made available on a scale not less than 1:100 and for layouts 1:1000.

2.2.10 Supervision

The notice shall be further accompanied by a certificate of supervision in the prescribed form as given in Appendix B, by the Architect/Licensed Engineer/Supervisor/Town Planner, as the case may be. In the event of the said licensed technical personnel ceasing to be employed for the development work, further development work shall stand suspended till a new licensed technical person is appointed.

2.2.11 Clearance from Other Departments

In case of development/construction of buildings requiring clearance from the Authorities of Civil Aviation Authority, Railways, Directorate of Industries, Maharashtra Pollution Control Board, District Magistrate, Inspectorate of Boilers and Smoke Nuisance, Defence Department, Maharashtra Coastal Zone Management Authority, Archaeological Department etc., the relevant No Objection Certificates from these Authorities, whichever applicable, shall also accompany the application, where such information is not received by the authority as mentioned in Regulation No.3.1.13.

In the case of the building identified in Regulation No.1.3(93)(xiv), the building scheme shall also be cleared by the Fire Officer of the Authority or in the absence of such Officer, by the Director of Maharashtra Fire Services or an Officer authorized by him.

2.2.12 Building/Layout Permission Scrutiny Fee
 

The notice shall be accompanied by a self-attested copy of the receipt of payment of the building/layout permission Scrutiny Fee. These fees shall be as mentioned below and shall be subject to Government orders, if any. Provided that such fees are not applicable to the development proposals implemented by Government /Government departments or public authorities of state or central government.

Note -

i)  No scrutiny fee shall be levied if the proposal is received after compliance of the objections raised by the authority.

ii) In case of revised permission, the scrutiny fee shall be applicable.

iii) In case of revised permission, where additional development work is proposed without

disturbing the already approved development work, then the scrutiny fee shall be levied for

additional development work.

iv) The charges mentioned above may be revised by the Authority with prior approval of the

Government.

v) The charges mentioned above shall also be subject to Government orders from time to

time.

2.2.13 Development Charges

Development charges as required under Section 124 A (1) to 124 L of the Maharashtra Regional and Town Planning Act, 1966 shall be deposited with the Authority before issue of development permission/commencement certificate. Such charges shall be calculated for the area of each land parcel included in the development permission, considering the rates in ASR and provisions mentioned in the said Act.

Provided that,

i) In case of revised permission, where no development is carried out in pursuance of the earlier permission and permission is lapsed, the amount of difference of development charges, if any, shall be levied and recovered.

ii) In case of revised permission, where development is commenced in pursuance of earlier permission, development charges shall be levied on the land and built-up area, over and above the area covered in the earlier permission.

iii) No such charges shall be levied for renewal of permission.

iv) In case where minor amendments to the plotted layout approved prior to 10/8/1992 are

proposed or where a development charge for land development has already been collected in the past, no development charge should be levied for such amendment of the plotted layout provided no construction was proposed in the said layout i.e. only the plotted layout was approved.

v) Construction of the compound wall is meant for the protection of property and as such no development charge shall be levied for the construction of a compound wall or for repairs of a compound wall.

vi) No development charge shall be recovered in respect of maintenance work, internal repairs of buildings, or for strengthening the existing building provided such works do not involve consumption of additional floor space.

vii) For any reconstruction work, a development charge shall be levied in full which involves the demolition of the existing building and reconstruction of the Non-Municipal,new building.

viii) In case a cooperative housing society is authorized by Maharashtra Housing and Area Development Authority or Bombay Housing and Area Development Board to undertake reconstruction of an old/dilapidated building (which work would otherwise, have been undertaken by MHADA), no development charge shall be recovered from that co-operative housing society, provided the FSI does not exceed the existing or permissible FSI whichever is lower. Provided further that, it accommodates existing tenants only. Further in reconstruction involving consumption of additional FSI and accommodation of additional members other than existing tenants, proportionate development charges shall be recovered.

ix) In case no development work is carried out in pursuance of permission and permission is lapsed or permission is canceled on the request of the owner, the development charges paid, shall be adjusted in permission that may be granted in the future.

x) Where development permission is granted and development charges are already collected by any Authority in their jurisdiction and thereafter such area is included in the jurisdiction of other Authority in such cases, the provisions mentioned in Sr.No.(i) to (ix) above shall be applicable mutatis and mutandis, as the case may be.

2.2.14 Premium Charges and Fire Infrastructure Charges

i) Premium Charges - Premium charges as may be required to be recovered under these regulations shall be paid to the Authority before the issue of development permission/commencement certificate. The 50% Premium share of the Government shall be deposited by the Authority in a specified head of account of the Government. The amount of premium collected by the Authority shall be kept in a separate account and it shall be utilized for the development of civic amenities and infrastructure.

In the case of a Regional Plan area, 100% premium charges shall be paid to the Government through the District offices of the Town Planning and Valuation Department.

The aforesaid premium charges except the premium leviable under Chapter 5 of these regulations shall be allowed to be paid in the instalments with interest @ 8.5% per annum in the following manner and subject to the following conditions.

A) Option- 1 

 a) Building below 70.0 m. height.

b) Building having a height of 70.0 m. and above.

B) Option - 2

The installment of 20% shall be paid at the time of granting development permission/commencement certificate and the remaining 80% amount at the time of occupation certificate. The remaining amount shall be liable for interest @ 8.5% per annum.

Notes :

i) The installment shall be granted with the interest at the rate of 8.5% p.a. on reducing the outstanding balance premium.

ii) The owner/developer shall deposit post-dated cheques for the installment amount with an interest due drawn on the scheduled bank, as per the scheduled date of payment.

iii) Occupation Certificates shall be granted in proportion to the payments made.

iv) The first instalment shall not be less than 50 lakhs in the case of A, B C, Class Municipal Corporations, and 25 lakhs in the case of other areas. In such case, the remaining amount shall be apportioned in the remaining installments.

v) The aforesaid option 1 & option 2 shall be applicable for the period of 2 years. (1) In addition to this, an extension of a further 2 years (i.e. up to 2.12.2024) shall be applicable, considering the lock-down measures and guidelines issued by the Government regarding the pandemic situation.

ii) Fire Infrastructure Charges - These charges shall be decided by the Government from time to time

2.2.15 Structural Stability Certificate

In the case of special buildings, the application shall be accompanied by a structural stability certificate signed by the licensed Structural Engineer to the effect that the building is safe against various loads, forces, and effects including due to natural disasters, such as, earthquakes, landslides, cyclones, floods, etc. as per Part 11 ‘Structural Design’ and other relevant Codes.

2.2.16 Signing the Plan

All the plans shall be duly signed by the owner, co-owner, if any, and the Architect or Town Planner or Licensed Engineer / Supervisor and shall indicate his name, address and Registration/license number (allotted by the Authority).

2.2.17 Size of Drawing sheets

The size of the drawing sheets shall be any of those specified in Table 2-A.

Note : If necessary, submission of plans on sheets bigger than A0 size is also permissible. All dimensions shall be indicated only in metric units.

2.2.18 Colouring Notations for Plans

The plan shall be colored as specified in Table No.2-B given below and prints of the plan shall be on one side of the paper only.

Note : For land development/Subdivision/layout/building plan, suitable coloring notations shall be used which shall be indexed.

2.2.19 Qualification and Competence of the Architect/Licensed Engineer/Structural Engineer/Town Planner/Supervisor

Architect/Engineer/Town Planner/Supervisor referred to in Regulation No.2.2.16 shall be registered/licensed by the Authority as competent to plan and carry out various works as given in Appendix “C”. The qualification and procedure for registration and licensing of the Engineer/Structural Engineer/Town Planner/Supervisor shall be as given in Appendix-“C”. An Architect registered with the Council of Architecture shall not be required to register with the Authority.

Related Regulations to Rule No. 2- 

You can visit our other blog on Regulation 2 through the below-mentioned links:

Commencement of Work in UDCPR 2020

Various Regulations in Chapter 2 in UDCPR 2020

Procedure During Construction in UDCPR 2020

Discretionary Powers and Relaxations In Specific Cases in UDCPR 2020

Discretionary Powers Interpretation in UDCPR 2020

Grant or Refusal of Permission in UDCPR 2020

Permission from the Planning Authority is Mandatory in UDCPR 2020

Making life simpler with technology and devices, humans will always search for something new to live it easier. Foot2Feet App is one such invention, made as a one-stop solution to help and solve all queries related to real estate.

Right from the very beginning to the end, this app helps you to take your business ahead in the right ways. You can manage everything as you will be appointed service professionals. 

One of the great features that this app presents the user is the ‘Calculators’. Every construction site needs various complex calculations related to land and building, which differs according to various factors such as location, area, zoning and much more. So we provide automatic calculators which include FSI Calculator, Side margin calculator, water tank capacity calculator, etc and various factors that are important to concentrate on while you are onto a project.

The foot2feet app has all the important real estate calculators that a real estate owner, builder, engineer, architect or any one in construction industry needs.

These construction calculators are :

1. FSI Calculator:

FSI Calculators for both Pune Corporation and PMRDA projects can help you calculate the Floor Space Index of your project.

It has simplified tabs rather than the traditional formula of FSI = Built-up Area/ Plot Area. The traditional formula can help you with rough figures of measurements while FSI calculator calculates as per the plot’s area, building type, area of DP road widening, area under non-DP roads, under DP reservations, open space around and the area they wish to leave open.

With instant results, get an instant idea about construction.

Pune FSI Calculator

2. Side Margin Calculator:

The Side Margin calculator for projects in Pune Corporation works according to DCPR 2017 and in PMRDA as per DCPR 2018. It has 6 question tabs that will help you note the side margin of your building. The tabs are ‘My Preferred Unit’, ‘Width of Access Road’, ‘Height of Building’, ‘Parking Floor Height’, ‘Building Type’, and ‘Metro Zone’

Side Margin Calculator

3. TDR Calculator:

The TDR calculator by F2F helps you to determine the TDR you need to buy in order to extend the area for your project. It has a number of important tabs like ‘required TDR’, ‘Utilization Plot Rate’, ‘Generation Plot Rate’, etc. that will quickly ensure the TDR rate and buying needs.

All Calculators

4. Water Tank Calculator:

Often residential projects face problems of water scarcity in their societies due to insufficient water storage tanks. These water tanks not only store the water that people can domesticatebut also a surplus amountof it for the Fire System.

To understand the water tank need an exact amount of water a building needs, you should try the F2F water tankcalculator. With this calculator, our app can provide an exact figure to help you understand the right water tank(s) needed for domestication, fire system storage and the total tank storage.

All Calculators

5. Parking Calculator:

Parking space is one of the biggest issues in cities where people can own more than one vehicle. You may not want to add up more to this restriction which is why it is wise to calculate and understand the parking area requirement.

Parking Calculator

6. Height Calculator:

The height calculator can help you calculate permissible height according to DCPR 2017 for projects under Pune Corporation. It has an input field and road width as the main tabs. One can easily calculate the total height upto which you can construct of a building.

F2F parking calculator can calculate parking requirement for residential building, commercial complexes, hospitals, industrial buildings, etc.

All Calculators

7. Development charges calculator:

This calculator calculates the tentative challan amount required to pay to PMC for any project to get sanctioned. Depending upon the plot area, FSI and ready reckoner rate this amount varies. You can find tentative amount by input of these fields. Also if you require exact challan amount more details is to be filled.

Development Charges Calculator

Conclusion

The F2F app for real estate businessmen has more than just calculators. To explore the calculators and know more about the application, you should download it, right away.

Here Are different reasons for which a building proposal can be rejected by Planning Authority

1. Proposed use of land like residential, shopping mall, office, hotel etc must be allowed in zone of that land.
2. If plans submitted are not as per building rules of that area.
3. Applicant do not submit all required documents in its prescribed format.
4. If the site is not capable of being well drained.  it means If the level of the site is less than prescribed datum level depending on topography and drainage aspects.
5. If it is within blue line or flood line of any water body like river, Nala, dam back water etc.
6. If the use of the site is for the purpose, which will be a source of annoyance to the health and comfort of the inhabitants of the neighborhood.
7. If land is under proposed road by any authority (National Highway, State highway, Major district road, Ordinary district road, Development plan road, DP Road, Village Road etc). For land partially affected by any road, owner of that property have to surrender road area to respective authority of that road. On remaining land he can construct after leaving front margin as per rules.
8. If land is within 30 m from metro line or railway line. In this case owner will get FSI of affected area, but he will have to leave desired distance between building and railway track.
9. If land is within 100 m airport boundary (after 100 m it is permissible as per permissible height from aviation department)
10. If it is within 30 m from hill top hill slope or BDP zone.
11. If balance portion of land after leaving all reservation on that land is non buildable then land cannot be developed
12. If the property do not have access from an authorized road / street.
13. If the land is within a prohibited distance of various red zones.
14. If it is hilly and having slope more than 1:5.

Any land in India can only be developed under permissible land use, defined by planning authority (government body) in that region.

Introduction

Construction in India involves a multitude of different factors. These factors involve the purchase of land, design procedures, permissions, construction, and post-construction operations and maintenance. For any construction project to be successful, the most important aspect is it’s finance. Project/ Construction budgeting is an essential element of a construction project and it’s management. 

What is the construction budget?

A construction budget is an estimate of overall costs incurred during the construction of a building. A construction budget involves every cost essential for the completion of a project. The construction budget is the allocation of resources majorly money with other resources such as Man, materials, machinery, and time required for the completion of a project in a specified time. 

Why is construction budgeting important?

A budget provides a glimpse of a project’s viability, sustenance and it’s success. Analyzing finances before the start of a project gives an upper hand in terms of overall financial planning, and decision-making regarding the quality and quantity of the project. Here are a few reasons why construction budgeting is important: 

• Financial budgeting: Budget creation allows an individual to plan expenses across the timeline of a project and allocate funds accordingly. It helps in setting realistic goals and keeping track of expenses. 
• Control over cost: As the budget is decided minutely, one can have control over expenses. One can prevent unnecessary expenses, make informed decisions, and hold onto cost-saving opportunities. 
• Prioritising needs and wants: Budgeting will help allocate funds according to priority to the most essential. It helps in understanding the need for certain expenses and getting rid of unnecessary wants according to the budget. 
• Avoiding pitfalls: A project spans for longer than a year and there can be certain surprises and expenditures during the construction. A well-planned budget helps to avoid such unexpected costs. It helps to plan the cost of contingencies that may arise during construction.

Steps to create a construction budget

• Project Research: The first step is to analyse the project goals and requirements. Evaluate the project feasibility by checking site conditions, zoning, permit requirements, location, and availability of construction materials. 

• Project Scope: Meet with engineers and architects to determine the scope and design options for the project. Create a detailed list of materials that will be needed. Reach out to contractors and suppliers to check with material costs and supply timeline. 

• Pre-construction and documentation: Before initiation of construction, 
• Meet all the stakeholders to discuss the project, material list, and cost overheads.
• Document these and create an intensive list of items, their costs, supply timelines construction timelines to avoid overruns, and reduce risks during construction. 
• Make use of technology by having templates made by project management professionals for the creation of a construction budget. 

• Construction and close-out: Keep track of the budget during the construction phase. Monitor actual costs against projected costs. Identify any issues and change any deviation according to budget or schedule. Keep track of deliverables from contractors and suppliers to make timely payments and have a closure to the project.

How to do construction budgeting?

There are different approaches to the process of budget making. 

• Bottom-up/ Unit cost estimation:  In this method of estimation, the work is divided into small work heads. A unit price is established for each piece. The unit price is then multiplied by the required quantity to find the cost of that head. This method provides the most accurate results of projected construction costs. 
  For example, the cost to build a brick wall can be accurately determined by finding the number of bricks required and estimating all costs related to delivering, storing, staging, cutting, installing, and cleaning the brick along with related units of accessories such as reinforcing ties, weep-holes, flashings. 

• Top-down/ Assembly estimation: In this method of estimation, the cost is calculated based on the previous project cost which is similar in nature of construction. 
  For example, if there is a residential project with piles footing to be done, the cost is estimated by referring to the construction cost of earlier completed similar projects for that head. Usually, this is not much reliable due to different factors like a timeline of both projects, fluctuating material costs, labour cost. 

• Parametric estimation: This method of estimation uses historical data to calculate the resources needed. This method uses more project data of similar building types to estimate the construction cost along with specifications of materials with their costs. This estimating method requires the assumption of an approximate gross area for the proposed work and a sufficient historical record of similar building types.

• Square foot estimation: In this method of estimation, the cost of the overall project is calculated based on the square feet area of the project built-up. The estimation requires data from previous similar construction types with proper and sufficient knowledge as well as experience of the construction field. 

Factors to consider for construction budgeting

• Property: One of the most important factors is the property. The rate of property varies based on it’s location, project scope, and vicinity. The land value is not just the value of property but also includes the cost of acquisition if there’s any. The property cost is a capital cost that is one-time investment. To calculate the overall budget of the project, the projection of this capital cost plays a very important role.

• Fees and services: A construction project requires a wide range of professional consultations and services. Depending on the scope, size, and requirement, one may be required to hire professionals including architects, engineer, landscape architect, Mechanical Electrical Plumbing consultant, surveyor, project manager, interior designer and many other consultants. Hiring professionals will incur service costs that are to be taken into account while working on the budget.
  With service costs, there are also fees that includes registration fees, building permission fees, occupancy certificate fees, No objection certificates, and other government service fees. 
  It is important to get highly detailed construction drawings for accurate estimation. Depending on the scale of project, the service fees to service provider may increase, and also other government costs may increase as well.

• Design: The cost of project depend on it’s design, soil conditions and use. Based on the design of project, the cost can vary. Like larger span between columns may give you bigger spaces but the steel design becomes heavy. So, finding balance between design and technicality is important. 
  For example, with extended cantilevers, the steel and concrete design will increase leading to increase in construction cost. 
  Also, based on soil conditions, type of foundation will be decided which will further affect the cost of construction. 

• Material: Material accounts for one of the most significant parts of the construction budget. The material required for the construction varies as per the stage of construction. The list of materials is extensive some heads common for most construction projects and with some heads that are project-specific based on design requirements. 
  The cost of a few materials is fixed while some materials have fluctuating costs based on market value, it is important to study the trends of that specific material and calculate the average cost for such materials. 
  Sourcing materials from reputable suppliers ensures quality construction and longevity of the project. Also, the procurement cost of materials depends on the accessibility of location. 
  Make a intensive list of all the materials from site preparation to beautification of the project including foundation, structural costs, interior finishes and fixtures, external works, and landscaping. 

• Labour: Any construction project to be completed, labour is a fundamental aspect. Hire contractors, sub-contractors, labour according to the requirement on site. One of the most challenging aspect of cost estimation is calculating construction labour costs. When calculating labour budget, keep in mind the true cost of human resources, including:
• Hourly wages both for employees and subcontractors
• Workers’ compensation costs and payroll expenses for employees
• Non-productive time and re-work, though these costs can also fall under a contingency budget

RCC contractors charge 10% of the project cost, electrical contractors charge based on square feet area of project, plumbing contractors charge based on number of toilets, Landscape contractors charge based on cost of plants/trees, structural consultant charge between INR 3 to INR 10 per square feet of slab area.

• Equipment and Tools: There are two ways this cost can be calculated. One if the contractor provides equipment and tools, the cost will be considered accordingly whereas if you plan to purchase equipment then the cost of equipment and tools have to be calculated separately. For large-scale projects, heavy equipment can be rented, and rental costs based on location and time should be calculated. 
  There could be operating costs, and fuel costs for certain equipment which should be taken into account. 

• Management & Technology: Construction projects require people who can manage the project technically. These members require their own equipment and supplies to perform their jobs. Salaries, office rent, and utilities have to be included in the construction budget. Security staff, safety supplies, and all other support roles and materials are also part of project management costs.
  There are new technologies for project management and construction. Many companies today use project management, accounting and scheduling software. These soft costs aren’t directly related to physical construction, but they are critical expenses you incur to get the job done.

• Utilities & Taxes: As per the scale of the project, utilities have been installed on the project site like water, electricity, sewage, and gas. These utilities have their permit and service fees that must be factored into the overall construction budget.
  The construction project will be subjected to local and state level taxes. Tax rates depend on the scope and type of construction, with larger construction investments subject to more tax. Be sure to work with a certified professional accountant who is experienced in construction finance to ensure you’re properly accounting for all taxes.

• Contingency: Even after accurate and technical planning of the budget, there will be surprises and unexpected scenarios during construction. It’s crucial to include a contingency budget in the overall construction budget. A contingency budget is funding set aside to pay for unexpected expenses that arise once the project gets started. A contingency fund isn’t allocated to any particular category of costs. 
  A contingency budget is usually between 5% and 10% of the project’s total budget.

• Insurance and bonds: Construction projects legally required to carry insurance. There might also be a deposit or bond required as a show of faith that your company is going to follow through and ensure all subcontractors, tradespeople, and suppliers are paid. This is especially true if working on a governmental project.

Things to avoid when planning the construction budget

• Inaccurate estimates: While planning the construction budget, estimates are to be planned according to current market prices. It is important to study the market cost and have accurate costings. 
• Poor quality: While estimating, usually one tends to look for the cheapest option.  But one needs to be careful of the quality of the material. 
• Miscommunication: During the process of making the budget and after, communication plays an important role. The contractors, labour, managers, and suppliers must be in the communication loop for the timely and successful completion of the project. 
• Delays: Even after making an accurate construction budget, the cost of a project can go haywire if there are project delays. Natural delays are beyond our control but one must avoid delays due to decision-making, procurement delays. 

The construction cost per square foot in India in 2024 is influenced by a multitude of expenses ranging from land acquisition and design fees to material costs, labor expenses, structural elements, interior finishes, and external works. It is important to understand the detailed list of expenses that are involved in construction. Careful planning, budgeting, and managing expenses can ensure the successful completion of their project with their decided budget constraints.

It’s not just about creating a budget; it’s about following it, reviewing it regularly, and amending it when necessary. After all, a comprehensive construction budget is dynamic and must serve as an active financial management tool throughout the span of your project!