The Basic Formula
The word “adjusted” matters. Outdoor, semi-outdoor and enclosed areas may not always be treated identically in feasibility calculations. The weighting method should therefore be stated clearly whenever two projects are compared. Genevera does not recommend comparing two cost-per-m² figures unless the underlying area and scope definitions are consistent.
Why Cost per m² Can Be Misleading
A headline rate can appear precise while hiding important scope differences. Items that are sometimes included in one benchmark and excluded from another include:
- Fixed furniture and built-in joinery
- Sanitary fixtures and accessories
- Floor skirting / plinth items
- Swimming pool and external works
- Different finishing specifications
This is one reason an owner should ask what the rate actually includes before using it to judge a contractor quotation.
Specification Can Change the RAB Materially
For villas of similar size, the specification of flooring, doors and windows, sanitary items and fixed furniture can materially alter the total RAB. The building area may be identical while the procurement and installation cost of those packages is very different.
When Cost per m² Is Most Useful
| Project Stage | Usefulness | Recommended Use |
|---|---|---|
| Feasibility | High | Establish an early overall budget and compare concepts. |
| Design | High | Cross-check whether design development remains broadly within target. |
| Tender | Limited | Use only as a high-level sense-check; rely on detailed BOQ/OE for award. |
| Construction | Limited | Monthly payment and cost control should use measured work, BOQ/RAB and approved variations. |
Example: A 200 m² Standard Villa
Using Genevera’s indicative Standard benchmark of IDR 6.5 million per m², a simple feasibility calculation for 200 m² gives an indicative construction budget of approximately IDR 1.30 billion, subject to the agreed area convention and included scope.
Genevera uses a material variance from the applicable benchmark as a prompt for further review. For example, a difference in the order of 15% can justify checking whether scope, quantities, specifications or pricing assumptions differ. It should not be treated as automatic proof of an error or markup.
Why Tender and Construction Need a Detailed BOQ/RAB
At tender stage, the owner needs to know what is actually being priced. A detailed BOQ or RAB makes it possible to compare the same work between bidders, identify missing items and understand which packages drive the total. During construction, the same cost structure also supports progress valuation and variation control.
Frequently Asked Questions
Is construction cost per m² a quotation?
No. It is an indicative benchmark. A contractor quotation should be based on the actual project drawings, specifications, quantities, scope and commercial terms.
Can two 200 m² villas have very different costs?
Yes. Specification, joinery, doors and windows, sanitary items, pool scope and other project details can create material differences even when floor area is similar.
What should I do if my quotation is far from the benchmark?
Review the underlying scope, area basis, quantities, specifications and unit rates before concluding that the quotation is too high or too low.
Important Note
This article is general construction cost guidance only. Actual pricing, contractual entitlement, valuation method, payment terms, guarantees, retention, variations and project controls depend on the specific project documents, scope, specifications and contract. Independent project-specific review is recommended before an owner makes a material commercial or payment decision.