BAKU, Azerbaijan, May 17. There is a need to understand the issue of construction costs a bit more deeply, the CEO of Holcim Azerbaijan, Sergio Stoikov, said during his speech at Business Assembly session titled "Private Sector Leadership Across the Housing Value Chain: Delivering Results Against the Odds," held within the framework of WUF13 in Baku, Trendhttp://trend.az reports.
In our sector, we consider not only the initial investment but the total costs that will arise throughout the entire operational lifespan of the building.
According to him, carrying out cheap construction by investing less capital at the beginning does not mean that the building actually ends up costing less.
"We must also calculate maintenance costs, as well as the energy costs required for cooling or heating the house. If the total cost ends up being higher in the end, this can no longer be considered affordable housing," Stoikov said.
The CEO noted that his company does not look solely at the price of construction materials and services, but rather examines four key elements that affect the total cost of construction.
"The first issue is smarter design. The most sustainable cubic meter of concrete is the one that is not used at all. Traditional construction means large beams, massive columns, and the use of a lot of concrete, which is not always efficient. We must move away from a mass-construction approach to a design-based approach," he explained.
"The second direction is the availability of local, low-carbon materials. We believe that cement and concrete will retain their importance as they are sustainable, scalable, and locally available materials. The key question is how to make them low-carbon."
Sergio Stoikov emphasized that low-carbon emission cement products are already available in Azerbaijan, and these materials allow for a reduction of carbon emissions by up to 50% in road infrastructure construction.
"At the same time, we want to promote the wider use of construction and demolition waste as an alternative to natural raw materials. This is also economically important because it reduces logistics costs, the impacts of an unstable supply chain, and volatility in energy prices," the CEO noted.
"The third direction is industrialized productivity. Affordable housing requires speed, quality, and the smart management of resources. Traditional construction methods are typically slow, generate waste, and yield inconsistent results in terms of quality. The solution lies in the wider use of industrially produced dry mixes and ready-mix concrete. Furthermore, digitalization in construction is considered a new stage in terms of sustainability and affordability."
"For example, 3D printing technology is already being used in East Africa. With this technology, it is possible to build the walls of a standard two- or three-bedroom house in less than 24 hours. This significantly reduces both construction time and financial costs, ensuring that houses reach the market faster," he added.
"Lastly, we talk about the durability and life-cycle value of the building. The cheapest investment in the initial phase does not always mean affordable housing in the long term. In such situations, low-income families suffer the most," Stoikov concluded.
