How to stay within budget on a custom build?

@Leo2413

I meet with an interior designer and work with them to get detailed specs documented in a report, then I give that report together with all other documents to the builders tendering and ask them to quote as closely as possible to the specs requested.
Thanks for this tip, I have been told to do the same, but to save money, do this work myself. I have been quoted by designers for an interior design schedule / specification schedule. My current designer is offering this for $3500, seems quite pricey but I'm sure its no small job either. This sounds like the same service you are suggesting you have an interior designer do, and going with a interior designer over a building designer for this sounds smart. How much do you pay for this service roughly?

After speaking with a few quantity surveyors today I understand for around $1000 you can get an elemental estimate as you go through design, and these costings can be verified by a QS who goes back and fourth between the builder and the designer / architect to insure your staying within budget. I'm guessing this service is used more for larger projects.

 

Also can you maybe reduce the internal living space and have more outdoor space which is cheaper, if your end stock allows for this?
I'm not sure how much smaller i can go, due to the requirement for an internal staircase and dual living zones (one main living one separate kids zone) designers have said 250 will be sufficient, I will have another look at floor plans and educate myself on what i think will be the smallest possible with out feeling cramped. I understand the smaller the better, for keeping costs down, so if i can get away with 220 internal i will.

What type of sq/m figure would you attach to external living?

 

@Turbo_C

This sounds like the same service you are suggesting you have an interior designer do, and going with a interior designer over a building designer for this sounds smart. How much do you pay for this service roughly?

In the past I have paid as little as $900 to $2000. If both your homes are going to be similar design and specs then you should be able to get some discount.


What type of sq/m figure would you attach to external living?

My suggestion to review the internal living space is only if your end product comparable stock allows for this. So if your comparable stock on the market is around 250sqm then you probably wouldnt want to go much smaller.

 

My suggestion to review the internal living space
@Leo2413 Yes thank you. I've done this now. My target market demands a 4bd 2bth 2car with dual living, after looking through double level floor plans (internal staircase required too) and speaking to designers I don't see how I can get away with less than 250sq/m total area. Target area does have some 3bd stock but I would be under capitilizing if I don't put in the fourth I think.

In other news I've finally decided to pull the trigger on this front lot build. After contingencies and worse case scenarios I'm still over 20% margin on my suburban ski hill block. So start your engine, buckle your seat belt and hang onto your hat.. We. Are. Go.

 

Great stuff! looking forward to following this. If your comfortable with it then maybe start a thread of the development in the development section.

 

Does any one here use any standard percentages when allocating budgets to rooms ? Like 5-7% of construction costs on Kitchen, etc ??

 

I'm assuming a condition in the construction contract that mandates the builder must show these bills will be required for this comparison to work. I understand some builders are hesitant to show these. Whereas others are very upfront about there costings and margins.

Do developers here make sure this condition is included or is this more the type of thing that you ask a prospective builder and if they can't answer with any degree of integrity or honesty you move onto another builder?

 

This is specifically with regards to the Provisional Sum Allowance. If they allocated 50k which you paid and in the end they only spent 35k then you are owed 15k. Its not a matter of wanting to know their margin, it's an allocated amount for works with unknown costings at the time which you are entitled to a refund if not all the PS allowance is actually used.

 

Whenever we provide a PS for anything on a job, we stipulate that when fixed we will provide the quote to the client and add a 20% builders margin.

So far it seems to be well received.

Honesty is the best policy in business.

 

"How to stay within budget on a custom build?"



Start with a big one?

Edit: just realised this was a resurrected thread..

 

Some builder also do architect design. Ask him design and build your house within your budget and save money. My previous builder is a designer builder but I cannnot recommend him to you. I had bad experience with him.

 

Hi Turbo_C
To give you a background, I design for a high end custom home builder in Adelaide. They build at least 5 homes a year on sites with a 1:3 slope.
You're correct that having an independent designer is great for tender as you own the plans. However it is very important this independent designer is in touch with current building costs and has a good relationship with a number of builders so they are aware of the builders common building practices. These builders need to have plenty of experience with sloped sites as well or you will pay a premium for their 'learning experience'.
As it is a custom build (meaning your house design has never been built before) no designer can predict the exact cost, but the more experience the designer has, the closer they can get it to your budget.
The designer also needs to understand your specification level as this can have a big impact on your final cost.
A good place to start is to have an open discussion with the independent designer regarding their experience, if they have followed their designs to completion, what builders they have relationships with (these builders need experience with sloped site), ask for testimonials etc

Hope this helps!

 

To follow on from your most recent comments, the builder I work closely with start at around $1750/sqm for two storey construction. For a sloped site it ends up being around $2,100/sqm by the time the earthworks and suspended slab or split slab is accounted for.
Keep in mind this is a high end build (a spec level that you wouldnt usually put in a house for investment purposes).
So it comes to around 15% to 20% extra but that is for this specific builder in Adelaide. Other builders may vary depending on construction technique and other structural implications.

 

Can you give me an idea of what specifications/inclusions you would be getting for that price?

Thanks

 

Hi Leo,
With this builder you would expect some main features such as:
-miele appliances
-floor to ceiling tiles in bathrooms
- semi frameless shower screens
- 600x600 rectified tiles
- stone bench tops
- glass splash backs
- 2.4m high semi commercial or commercial windows
- floor covering included (carpets to bedrooms, tiles or timber to main areas)
- daikin a/c
- 3m ceilings with some feature coffers to 3.3m
- mostly render to facade with some feature stone
- 60 to 80 down led downlights
- edge gutters
Etc

 

Thanks for clearing that up. Cheers

It's a great policy, one of the smaller builders I've shortlisted does this, he provides a quantity take off sheet and full pricing;
Insurance, Gas Fitter, Lights, Site Cut, Fill Removal, Wardrobes, Cranes, Stone, etc ect
The list goes on, he has shown me previous clients pricing & take offs to give me an idea of how much info he provides, he has also given his suppliers permission to discuss with me the trade discounts he is on. This was fairly surprising, I'm guessing this honestly policy is standard for some not so standard with others.

Mate! I've found if you don't get 3 quotes for everything... These sharks, swallow you whole

Thanks mate.

It does. Yes. This is the advice developers around here gave me when I set out, it's reassuring to hear it from the other side of the coin.

I have been through initial costing with one of my shortlisted builders. After looking at the build we got the price down to around $1500 sq/m including everything but the landscaping. I hope to bring that down to about $1450

 

I used to do framing for Gj Gardner about 5-6 years ago and a lot of there sites were steep or tight access. They probably are the specialists in those types of blocks.

 

Okay, just make sure the inclusions in the contract are very specific. It is often what is not in the contract that could cost you money later on.
The builder I draw for always gets soil reports, a footing plan layout etc so the cost is pretty firm prior to contract. Getting as much engineering prior to contract the better. The builder(s) can then use this info to price your home closer to final costs and gives them less opportunity to charge a variation.

 

Can anyone recommend an independent building inspector that will assist with contract advice for a Master Builders QLD, Residential level 2 contract?

I have found some solicitors that offer the service however they are quite expensive

 

Can anyone expand on the last point quoted, *use a quantity surveyor to assess/monitor claims/review variations/administer contract.

I understand I can get an independent building inspector to inspect on my behalf, however is the use of a QS standard in a new resi build?

Also the third point, *schedule of rates for excavation in rock/definition of rock. I have about 20k of extra earthworks on my site due to the slope, any experienced slope builder should be happy to provide this schedule of rates and should have some calcs in regards to cube meters needing to come out and haulage costs, is this right?