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22 May 2025

Building Smarter, Not Costlier: How PEBs Are Redefining Construction Costs in India

Building Smarter, Not Costlier: How PEBs Are Redefining Construction Costs in India

In India, households, small business owners, and even industrial developers are extremely frugal and so meticulously account for every single rupee that goes into construction. Physical structures were the traditional option but now are far superior with Pre Engineered Buildings (PEBs) and even more so Pre-Engineered Steel Buildings. 

These structures are factory-fabricated, which makes them quicker to erect and far more economical than investing in traditional steel-framed buildings. 

Cost Efficiency that Everyone Can Appreciate 

Pre Engineered Buildings (PEBs) and more specifically Pre Engineered Steel Buildings offer a remarkable cost benefit when compared to persisting conventional construction techniques, as highlighted with an in-depth study conducted by Amity University and Delhi University researchers. The study reveals that PEBs can reduce total project costs by almost 30% while also improving project completion time and sustaining savings in the long term. This is achieved through a comparative study of the material, labour and finance costs. 

Look at these numbers from a comparison study on a 20m x 44m industrial building constructed with PEB (Pre-engineered buildings) vs traditional methods.   

 Prime Cost: 

  •  PEB: ₹19,09,229 

  •  Conventional: ₹23,24,560   

  • (PEB saves ₹4.15 lakh at this stage alone)   

 Works Cost (direct + indirect costs): 

  •  PEB: ₹22,58,209 

  •  Conventional: ₹25,09,360   

  • (Savings of approx. ₹2.5 lakh)   

 Cost of Sales (final project cost before profit): 

  •  PEB: ₹24,01,119 

  •  Conventional: ₹28,10,483   

  • (PEB is around 17% cheaper overall)   

These are far from minor efficiencies, they can provide a considerable offset in cost and financial burden when constructing industrial or agricultural infrastructure. 

Finance Cost Savings Due to Lower Construction Duration   

A traditional building takes roughly 1.5 years to complete, while a PEB structure can be done in just 2 months. This also demonstrates the sunk cost of interest, which is often ignored while funding a construction project with loans.   

Assuming a loan of Rs. 25,00,000 at an annual interest of 20%:   

  •  PEB Interest (2 months) = Rs. 83,333   

  •  Conventional Interest (18 Months) = Rs. 7,50,000   

  •  Difference = Rs. 6,66,667 (almost 800% more)   

Adding the finance costs, the total construction cost for PEB is ₹24.84 lakh while conventional methods bring the total to ₹35.60 lakh, resulting in a total difference of ₹10.76 lakh and over 30% in savings.   

Minimal Maintenance, Long-Term Savings   

These PEBs come maintenance-free and weather-resistant for up to 20 years. In contrast, brick or mortar buildings often require repainting, patching, or frequent waterproofing. These structures carry a warranty of 5-8 years, and afterwards, creaking and deterioration set in, requiring constant maintenance. 

Taking into consideration the depreciation benefits as well as the potential recyclability of the components to PEB steel, it is evident that cost efficiency extends beyond construction to include the entire lifecycle of a building. 

Standardisation = Predictability in Budgeting   

Cost Precedence is another often overlooked advantage. These PEB components are manufactured in controlled and enclosed factory spaces, which ensures precision engineering. This resolves a multitude of construction surprises that occur during the traditional methods, such as delays caused by labour, materials, or even weather conditions. 

Not to mention, with single-sourced suppliers handling PEB projects, there is no need to liaise between multiple contractors and vendors, which allows for the saving of time, admin expenses, and miscommunication.   

Kamdhenu PEB: Cost-Effective & Durable Pre-Engineered Buildings 

The company Kamdhenu PEB provides lightweight steel structures with high strength designed for industrial, commercial, and agricultural uses. The cost effectiveness stems from low-effort labor and materials due to their rapid manufacturing and installation. Kamdhenu’s offer far exceeds the competition when it comes to modern construction because of low long-term costs The structures provide high strength to weight ratio, ease of customization, low maintenance, and require far less upkeep compared to other more traditional options. 

Final Word   

Pre Engineered Buildings offer one of the most cost-efficient ways to build in India. This is especially true considering today’s economic climate, where smart spending matters as much as smart construction. Structured with solid engineering, they enable faster ROI through quicker completion and lower interest costs, and less maintenance over time Pre Engineered Buildings provide unrivalled financial value.   

The message is straightforward for those looking to plan warehouses, industrial units, communal halls, or even agricultural buildings: lower costs by building smarter. Use Pre Engineered Buildings. 

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