Today InvestMaN will discuss demolition of buildings prior to real estate development. Ground up property development, no matter if it is a small size like a single house to big projects like factories, hotels or high rise buildings, we will always take into account how each land has been utilized in the past. Nowadays, we have seen changes when it comes to how land has been used.
Before developers can begin pursuing their creativity, the old structure must be completely demolished to make way for new construction. Here is when demolition men come into the picture. Their job is simple, turning the piece of property into vacant piece of land it once was.
People often overlook this job, but in reality, building demolisher is highly important in the world of real estate. Just because their work does not involve any creation of something new does not mean they can be any less appreciated. This is because for any great property ever built, there is the work of demolisher behind the scene. They attend job description people do not tend to value. Knocking down unwanted structure for the sake of something new.
No matter what the general idea is towards the work of the demolishers, they themselves would not be bothered. This is because they see the value of their work. We have often seen flyers advertising the building demolition job free of charge. Ever wonder how that is possible? Sounds a little too good to be true isn't it? Remember, nothing is for free in this world!
Let's take a look at the concept and idea of building demolition
The demolition business is self-contained in the process of operation which is as follows
Buildings nowadays have structures consisting of iron, cement, and sometimes wood. These materials are available. Hence, once a building has been smashed or demolished, the debris that has been left as residue are gathered and resold by these demolition contractors. Steel and iron are the highest in value out of all types of materials. They can be remelted for reuse. Mortar and cement can be sold for road filling. Various wires can still be sold when stripping copper. Wood materials, if they remain in good condition, can still demand a hefty price, especially if they are old or rare wood. Because these scraps are still valuable after demolition of the building, demolition contractors evaluate the value of those materials, combined with the estimate the cost of building demolition, including labor cost and the desired profit. When evaluated, they will be subtracted. If the value of those materials exceeds the cost of building demolition, including labor, profit required, this would mean free demolition service for the building’s owner. However, in a case where the subject building is old and deteriorated, the materials may be badly damaged. Likewise, buildings with complex structures will require much more effort from the contractors, including undesirable hazardous working conditions and environment. As a result, the value of materials alone might not be enough when considering the hassle of building demolition. Therefore, the employer will have to put extra money on the table for contractors.
Information from interviews with several demolition professional contractors prove that most of them operate under similar concepts and work procedures, whereby, they accept the jobs free of charge if they are certain of making profit from the demolished materials. On the other hand, in the event that the cost of the demolition is higher than the estimated value of the demolished materials, extra wages must be offered by the employer as incentives.
The cost of building demolition work consists of labor cost, material cost, equipment and machinery used for building demolition such as hoists of various sizes for pulling up columns and beams. Moving down items from heights requires backhoe, excavator, cutting machines, concrete floor drilling machines. Other systematic safety protection tools and dust protection as well as demolition insurance costs are all necessary. Finally additional costs may be incurred from negotiation fees with residents or owners of nearby buildings and processing fees for various applications.
Building demolition work can be categorized into a demolition of small type buildings and large buildings. Buildings that are easy to demolish and command low demolition cost are buildings which are located in open spaces, small in size of up to eight floors, absence of any environmental factors which may hinder the demolishing operation which could cause complexity. Contractors are most likely to profit from demolition of the type of buildings with the above descriptions due to the low operation cost. Large or high rise buildings with special structures or special features will only make things harder for demolition than usual. Buildings located in tight space or in an environment that may hinder work or even risk being prosecuted will require much more service fee from employers.
From the information collected from interviews of real professionals, it is suggested that the demolition work of small buildings are considered to be the most common jobs without many difficulties and obstacles, hence, required no special expertise. This type of demolition job would usually charge service fee at approximately 650 baht per square meter (as of March 2021). The question of receiving service for free would depend mainly on the amount in which demolition contractors are looking to profit.
For large buildings, the demolition fees can be determined based on two factors. First, large and tall buildings or large buildings located in open space with no regard to any factor which may pose as obstacles would be considered as a normal level job. Contractors could ask for approximately 1,000 baht per square meter (as of March 2021). On the contrary, similar buildings with locations or environmental factors which prove to be difficult to carry out jobs could cost roughly 1.5 to 2 times more. In general, high rise or large size buildings required demolishing, usually located in urban areas; neighborhoods and communities areas, the type of environment which is often difficult to work under. The risk of being sued and prosecuted are higher, hence, these types of demolition jobs are never free.
Now that we understand how building demolition works, if you are facing the situation of having unwanted buildings on land and wish to remove them. We are here to assist you in appraising the demolition fee charged by the demolition contractor. This appraised value allows clients to consolidate the budgeting process of the project.
Interested in our service, contact Prospec Appraisal!
Estimate the Cost of the Building Demolition