How Turnkey Construction Costs Are Calculated

Everyone planning a house, villa or apartment block starts with the same question: “What will this cost?” The honest answer is that a single per-square-metre figure cannot answer it. The price of a turnkey project is shaped by ground conditions, the structural system, the material class, labour and the requirements imposed by current regulations. This guide explains what makes up the cost and how a realistic figure is produced.

Why we do not publish a per-m² price. Steel, cement, glass, copper and labour all move independently during the year. A figure published today becomes misleading a few months later, and that misleading number is what an investor builds a budget on. Instead we survey the site, take off quantities and price every item separately.

The Six Cost Drivers

1. Ground and foundations

Everything starts with the soil investigation. Firm ground may need only pad or raft foundations; soft, filled or high-water-table ground brings bored piles, jet grouting or ground improvement into play. This is the most volatile item in the shell budget, and no figure given before the survey is reliable.

2. Structural system

Choosing reinforced concrete, steel or a hybrid changes both cost and programme. Steel suits long spans and fast erection; multi-storey housing is usually more economical in reinforced concrete. The reinforcement and detailing required by the seismic code land in this item as well.

3. Material class

After the shell, the finishes drive the budget: façade system, joinery, thermal and waterproofing, tiling, kitchens and sanitary fittings. The gap between standard domestic products and high-end imported ones separates two budgets for the very same project. Cheap materials look like savings until maintenance, energy and replacement costs arrive.

4. Size and number of floors

Scale brings bulk-purchase advantages and lowers the share per square metre. Height, on the other hand, adds lifts, fire stairs, pressurisation, generators and common areas. A two-storey villa and a ten-storey block do not share a requirement list.

5. Labour and location

Labour is a decisive share of the budget and varies by region: cities push labour rates up, rural sites push logistics up. Site set-up, crane and plant hire and temporary utility connections are real costs that belong in the calculation.

6. Regulations and permits

The seismic code, energy performance certificate, fire regulations and zoning rules directly define reinforcement, insulation and installation requirements. These are not padding; they determine the life and safety of the building and show up again in insurance premiums and building inspection.

How the Cost Is Calculated

A professional estimate is built in three stages, with roughly these shares of the total:

• Structural shell (about 45–50%): foundations, columns and beams, slabs, roof. Steel and concrete volumes come from the quantity take-off.
• Finishes (about 40–45%): façade, joinery, insulation, mechanical and electrical installations, tiling, painting, kitchens and bathrooms.
• Additional works (about 5–10%): landscaping, parking, lifts, amenity areas, utility connections.

The split shifts with the building type — the shell weighs more in a factory, the finishes in luxury housing. Once quantities are taken off and priced at current rates, the result is far closer to reality than any published per-m² number.

Keeping the Budget Under Control

• Commission the soil investigation first; a foundation surprise is the most expensive one.
• Fix material choices during the permit stage — changes after production starts cost both time and money.
• Put the programme, payment schedule and change-order rules in the contract in plain language.
• Assess energy-efficient façade and insulation choices together with their operating-cost payback.
• Ask for separate prices for shell, finishes and additional works; single-line quotations cannot be compared.

Conclusion

Turnkey construction cost is not one number; it is the sum of decisions about ground, structure, materials, labour and compliance. To see your project’s real budget, ask for a quantity-based quotation: after a site survey we prepare a comparable file that shows every item separately. Start from the free quotation form, or if your building falls under urban renewal, use the state support calculator to see what the programme contributes.