Vascon Engineers - Striking The Right Mix Between Development And EPC

In the modern world, it appears that he who owns land is God. The question is how to derive maximum value from that land. In real estate business, it depends on two players—the owner and the constructor. Sometimes owner undertakes the construction, i.e. develops the real estate property. When the owner authorises another entity to handle the engineering, handle all related procurement and complete the construction, we have an EPC engineering, procurement and construction) contract in place. Of course, in reality, things may not be so simple.

Risk and profit

Two main factors separate the owner from the EPC contractor. The owner decides the shape of the project and hands over the design to the EPC contractor for execution. In many cases, a joint development agreement splits the risk and also the ensuing profit between the owner and the contractor. As with any business venture, profit  is subject to risk posed by several external variables not under anyone’s control. For example, a large housing project may have been the desperate need of a particular locality, but a share market crash may make people shy to buy the house they need.

Cost is more controllable. This is where the background of the contractor becomes important. Except in highprofile, costlier urban locations, 70-80 per cent of the project cost are construction cost. This is why savvy land owners and even developers with in-house construction capability prefer to hand over the EPC contract to an engineering team with a proven track record.

The Vascon Experience
For a quarter-century, Vascon has been handling both residential and commercial development projects and numerous EPC projects. Projects have been completed or are in progress at its homeland in Pune in the west, as well as in other parts of India. It seems Vascon has been successful at maintaining a healthy mix of development and EPC

projects, regardless of the mood of the economy. In fact, even during the recession, income from Vascon’s EPC projects recorded a healthy growth. With a strong team comprising 60 per cent engineers, Vascon has successfully developed work practices and a capability

to handle turnkey projects from land-sourcing to fit-outs.

Even in residential projects, customers are now willing to pay a premium for those projects where the ownership belongs to and construction is executed by the same company. They probably perceive greater involvement, accountability and, consequently, greater safety and profitability in such projects. Where customers once used to blindly go by brand value, the more discerning now prefer to verify the credentials of the engineers behind the projects before making a commitment. This is where Vascon has a dual advantage—reputation and expertise. A trusted name in EPC as well as real estate development, Vascon is now launching its most ambitious residential project,Windermere in its silver jubilee year.

Located in Pune’s most soughtafter locality, the North Main Road, Koregaon Park, Windermere is a 5-acre twin tower project that offers 3 / 4 BHK apartments and 5 BHK duplex homes. Windermere offers many novel features such as a private swimming pool in each apartment and a dedicated clubhouse per tower. Anticipating importance of privacy and security in such a housing project, Vascon has introduced high class access controlled elevators and swipe card keys facility for Windermere. Keeping up with rest of top-notch features, Windermere is designed for five-star rated eco housing and IGBC green homes.