Cutting construction costs: The new frontier of innovation at Eco Concrete Ltd

Handling and transporting construction materials is one area that escalates construction costs leading contractors to place higher unit rates to cover uncertainties involved. It costs a property developer/contractor a minimum of UGX 400 to handle and transport a block unit (150x200x400mm) from any yard to a construction site in a 20km radius. An average construction project will take 20,000 blocks making it UGX 8 million (US$ 2,300) in transport costs alone. Now this is just one type of a material used in construction but a project involves many other construction elements. The cost of handling and transporting all construction materials on a project varies from a minimum of 15% to over 50% of the total construction budget on most projects in Uganda. The figure can go much higher if we also consider waste, theft and other expenses associated with the quality of materials used. Unfortunately, the clients and sometimes developers easily forget considering these costs that are hard to examine when work has been completed and the tracks left by the delivery trucks are long washed away by the seasonal rains.

Much has been debated about how the cost of housing and other infrastructure development in Africa is very high compared to other continents. The debates have focused much more on high costs of quality materials leading “innovators” to lower the frontier of quality. Unsustainable construction methods such as soil-stabilized blocks have gained massive support from governments only to lead to massive losses for those early adopters (I will soon publish why a soil stabilized block is unsustainable for tropical climates but the whole problem stems from its relationship between cement content and the minimum required clay content of 15% in a soil block). The suppliers of good quality materials haven’t helped either as premiums put on these materials leave the majority of developers in Uganda without a choice but to go for poor quality construction products. I want to argue that innovation doesn’t have to be about lowering quality. Innovation makes much more sense when it improves quality and lowers cost. At Eco Concrete Ltd, we chose to take a unique path. We chose to push quality higher and study the whole chain of production of construction materials in order to save money for our clients. We took time to build a knowledge base of the different materials and what makes them good quality. We monitored both quality assurance and quality control in relation to the environments these materials are produced and installed. We then looked at the value chain of the different construction materials. We found three key variables common in construction materials production processes;

1. Technical competences,
2. Technology in production, and
3. Handling after production.

Allow me to elaborate more about these key parameters;

1. The technical competences are necessary to understand that raw materials, process environment and project expectations will always vary in quality and adjustments in mix proportioning and other appropriate decisions have to be made in time not to compromise on the expected quality of the finished products. Where adequate technical knowledge lacks, the cost of production will be high.
2. Technology is mainly critical in processes that require energy input for a material to be produced. A good example is that of a block. The compactive force of a block making equipment is important and must be optimized and standardizes for maximum density, strength and uniformity of good concrete blocks. Automation of production is also an energy thing but having conveyor belts deliver raw materials may not save a poorly proportioned mix. Energy is important and must be focused on the critical stages of production if the cost of production is to be controlled. 
3. The handling after production will determine whether maturity of processes involved in production of materials is achieved. Proper handling also protects materials from getting damaged and downgrading their original quality.

We considered the above three factors as key to addressing the 15%-50% of the project cost that goes into handling and transporting. We chose to start with the most common elements of construction, the walling units and pavers. We trained our staff on quality assurance and quality control aspects of producing blocks and pavers in different environments. We then selected the right production technology that focuses on what is very important in the production process of blocks, the compactive force. The technology had to be mobile because we wanted to take production of the construction elements on site and save the contractors and developers that humongous cost of materials transportation and handling we discuss above. Our production process is open-source and we engage interested clients in the whole process so that they are sure of the quality they are getting. We decided to start with concrete blocks and pavers since these are the most common construction units. We started with one set of equipment in January 2016 and we have since expanded, increasing our installed capacity from one to seven machines in less than two years, all to meet the growing demands of our clients. We actually move to your site and make the whole process of delivering construction block units more cost-effective for you. We produce the best quality blocks and pavers at your site and at a price much lower than what you’ll pay at casting yards in town.

Let no one assume that we just compress a mixture of aggregates and cement. We package innovation, passion, experience and a deep understanding of engineering materials in every unit on our production line. With new knowledge and experiences, we learn everyday and we keep adapting until we reduce the cost of construction to what it is supposed to be. Now, dealing with the 15%-50% of the cost of construction that goes into handling and transport is not all. We know that the cost of construction is largely dependent on the social, political and economic state of a nation. Good legislation and competent institutions are key in bringing the cost of construction down. Know that you also have a role to play in bringing the cost of construction down in our country. A well managed government is the starting point.

Meet one of our beasts that has a capacity of 1,000 blocks a day. The beast wants to visit you