What is it about?
Spreading costs over time reduces construction cost through multiple cost-saving channels opened up by time itself and factor intensity. The intensity of incremental housing construction favours increasing expenditure on labour than capital yielding a 5% reduction in annual cost but the greatest cost reduction benefit of up to 26% is realised through increasing expenditure on "capital" with fixed spending on materials during construction.
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Why is it important?
an incremental builder may save substantial amount of money if he is combining hired capital equipment to manufacture different materials for use in construction
Perspectives
An interesting experience meeting both well educated high income incremental builders as well as poor, self-employed builders within the same neighbourhood
Dr Samwel Sanga Alananga
Ardhi University
Read the Original
This page is a summary of: Cost Shares and Factor-Cost Ratios in Owner-Built Incremental Housing in Dar Es Salaam, Tanzania, Journal of Construction in Developing Countries, January 2016, Penerbit Universiti Sains Malaysia,
DOI: 10.21315/jcdc2016.21.1.6.
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