EXCPR™: CONSTRUCTION OF PRIVATE RESIDENTIAL PROPERTY IN THE STATE OF KUWAIT

CONSTRUCTION OF PRIVATE RESIDENTIAL PROPERTY IN THE STATE OF KUWAIT

EXCPR CO. STUDY ON BUDGET AND DURATION

Private housing is one of the most important requirements of the human being, which achieves a decent life for him, and contributes to raising the level of security and family stability. People's access to the private housing project requires the lowest general awareness of some of the foundations and rules on the financial status of the project, as well as the timetable for the implementation of the work. EXCPR CO. Consulting and Business Management in Kuwait from its national and social role highlights in this article some of the general principles and foundations that the citizens who are involved in building the house of age, which in turn will contribute to reducing the amount of risks and administrative problems that the entrepreneur may face during implementation. In this regard, EXCPR CO. Consulting says that many of Kuwait’s housing projects face four major obstacles, namely, either they are related to the financial aspect and ensuring the flow of cash flows for the construction of the project, the administrative aspect, which depends on the structure and coordination between the construction and finishing work, the technical engineering aspect and know-how on the foundations of the construction of the project, in addition to the approvals of the official authorities of the State of Kuwait. The company adds that it will focus on the first and second aspects of this article, due to the specialization in this aspect, in addition to being directly accessible to individuals, and that it reduces the risk by more than 65%. The following is part of the study conducted on the construction contracting market in Kuwait in 2020:

BUDGET
Initially, the owners of the private houses should fortify themselves and support the project with the required capital for the continuous growth of the project, in case of any gaps or obstacles that may hinder the construction process. In general, the report of EXPER CO. Consulting indicates that the price of building and finishing per square meter in Kuwait has reached an average OF 162 KD - around 533 USD- according to the results and research for 2020. The basic building structure works item is one of the largest budget consumption items, which is estimated to be worth about one third - 29.4% - the total value of the project. In this respect, the owners of the building and the future should monitor the prices of some building materials in the market, specifically the price of iron and reinforced concrete, as they constitute about 38.1% and 35.3% of the total value of the works of basic structure materials , respectively. As an example, a reduction in the value of one ton of iron by 10 KD only - around 33 USD- enables the owner to save approximately 800 KD - 2632 USD - of the total budget. The selection of the best reinforced concrete companies deployed in Kuwait and a decrease of 2 KD - 6.6 USD- in prices can save approximately 900 KD - 2961 USD - through this process. Therefore, we would like to emphasize the importance of value engineering and the need to take advantage of the best opportunities to enter the construction process and get the best prices at the lowest cost and at the same quality. On a related point, the external paints and ceramic installation are among the largest hubs for the general budget of the private housing project, with a ratio of 9.9% and 9.5%, respectively. As an example, if the construction budget for a residential property is estimated at 120,000 KD - it is around 395,000 USD-, 23,000 KD - 76 USD- is the budget that will be used for external paints and ceramic works. Electricity and refrigeration works are other basic items, which consume about 6.8% and 6.2% of the project budget, respectively. The following table shows the construction of the housing project in Kuwait, which includes the percentage of budget to be monitored and booked, which also shows the importance of booking 7.3% of the project's capital in case of emergencies and other expenses.

As reflected in the previous schedule, the initial budget is the first step in tracking the work of the project, which should be careful not to be juxtaposed as it may affect other business items. Some of the above items differ in very special cases, in which the landlord is looking for special or additional specifications that may increase the financial cost of those items.

SCHEDULE
The timetable and the arrangement of the stages of construction and coordination between them is one of the most important axes of the success of the construction of the project, in addition to the previous item - management of the financial center. Construction of Kuwait’s housing project usually lasts from 16-18 months, and any further steps that are faster or slower may adversely affect the progress of the work. The following figure shows the time distribution of the most important works of the project, which is naturally linked to the presence of cash flows, obtaining official approvals from the state, as well as coordination between the works:

Although there are financial institutions that finance the construction of private housing in Kuwait, represented by the Credit Bank, the real problem is that the prices of residential land in Kuwait exceed 60% of the total value of the property, which is a real obstacle for citizens to obtain such housing. The access of citizens to housing in Kuwait is linked first to the ability of the executive branch represented by state institutions to distribute more residential land to citizens, which will contribute to the balance of the necessary financial flows. The supply and demand for building materials and the concept of scarcity in the economy constitute the value of real estate in Kuwait, meaning that changing the prices of iron in particular and reinforced concrete in the local market, can accelerate the pace of activity of this vital sector. On the other hand, the state institutions represented by the Municipality of Kuwait, the Ministry of Electricity and Water, the Ministry of Public Works, should make more efforts to provide the best services that citizens will look for in Kuwait.