Building costs can blow out

Thought i would start a thread on this

Currently building 3 villas in Willagee, 3x2, average size 160 sqm each

I am using a smaller builder who is not charging for any variations, the larger builders will tack on a margin for this.

Each villa has a front feature wall, as I am not using Builders range, it will now cost an additional $4,500 all up

I have also decided to go higher spec rather than builders range for my stone, an additional $1,500 all up

I have managed to make savings by sourcing my own supplier for window treatments of $2,500

I have sourced all my own hardware/plumbing ie baths, taps etc, this has saved me around $3,700

What I am finding is to keep costs down I need to do some leg work. However, the builder would need to be on board with this

I am now looking at sourcing my own

airconditioned/fully ducted
Landscaping
Site paving

Lets see if I can do better than my builder, come in under his allowance

 

Sounds great! What is your build cost per unit excluding what you haven't got prices for please?

 

About $1300 -1400, roughly
But should come down with my savings

I am kicking myself for not signing up earlier

Covid hit and I got spooked and put it all on hold. Then of course market started soaring and so did build costs, build costs went up at least 4-5% from signing on dotted line

Saving grace is $60,000 government grant, applied for this, will be helpful

My concern now is time frame for build, will this blow out?

Hard to get brickies atm. I think we got this sorted but will see

 

So what stage are you at now? Slabs down yet?

 

Almost all small builders have increased prices by 5%. You cant fault them for that. Established builders have increased more than that.

 

Yes
Its the market, bricklayers are charging close to double. It just gets passed on

 

demolished house
Earthworks/slab

its been a rather slow process

i was hoping 9-12 months build time. Smaller builders seem to be much better with timeframes. Larger builders take much longer

 

Earthworks came in at $3400, builder allowed $8500, so I get the difference back. Doubt big builders would refund difference

I guess advantage of using a smaller builder

 

I think with all these things you just need to assess whether the extra expenditure is worth the value increase and this is always hard to gauge. I'm assuming this is for a development you will then on-sell.

 

Perth is quite cheap still which is great - 1300 p/m2 is enviable

 

Well they need to supply the invoices....so unless they're planning to do a shady...they'd have to refund. Also depends on the terms of the contract I guess.


Looks like your on fire atm. Hope you get a great outcome .

 

Not with larger builders, its set contract price, they are not required to provide receipts

 

We are also spoilt for good choice quality builders, not the case in Melb. Also getting plans and permits very cheap in comparison.

 

Even for provisional sums? I've never built with large builders, only the smaller custom folks.

 

Yes, larger builders set price. If there is a variation in their favour then you wear it.

In saying this....I can almost guarantee Perth builders will be cheaper than most States in Oz

 

If it's a provisional sum in a fixed price contract you will get the credit back if it comes in less than the provisional sum - big or small builder. It's how the HIA (and MBA) contracts work.

 

My bad....
Makes sense, so dependent if provisional?

 

Well done

 

Yup all provisional sums need to be justified.

 

True in theory. In practice, its hard - almost impossible - to get actual subcontractor invoice from large builder. They will add their markup. Most of small builders, will pass on actual cost without any markup and mostly share invoice if asked and also will let you choose your subcontractor if its cheaper provided its not affecting their liability.

That does not mean that large builders are out to exploit customers for provisional sums. But as a client, you do siign on dotted line with them.