Problem:Building40-45sq two storey house through small builder using similar plan from big builders

Thinking to build a 40-45sq two storey house on 620sqm land through small (known and reliable) builder using similar plan from big builders like Metricon etc in Sydney. The total cost is obviously different and cheaper. Not exact same plan but with some changes. Is this kind of common practice or not?

Thing is, since this is our first home to rebuild we do not honestly know exactly what is ideally good eg which section of house should be where, any small small specifications etc. Of course the plan we are thinking is per our liking.
Keeping this is mind, we thinking to start visiting display homes for such builders and then note things which we like and want in our house to propose to our builder/architect.

Please share any tips to consider for this planning phase.

 

you need to be careful, you can't just take a floorplan and change a few things here and there and say "look at what i designed" there is copy-write issues that will come into play.

Your small-time builder can't sight any plans that you are thinking of using, they would have to have plausible deniability.

What is the issue with going through the big builders? Don't trust them?

 

Yep, copyright issues...
Why not a bespoke design based on your brief to a good architect with instructions regarding budget and to work with your selected builder....

 

My house was built by a small volume builder. They used a contract building designer.

The builder also gave me example floor plans for previous clients. Based on this I sketched a rough layout and wrote a specification with general requirements as well as specific requirements for individual rooms ( kitchen, bathroom, home theatre, etc ).

I also organised to see client homes under construction as part of due diligence.

Building designer then drew up a layout as basis for a quote from the builder. I also asked the builder to give me itemised costings for certain aspects of fitout ( downlights, blinds, floor coverings, landscaping, driveway, extra power points, network points, etc, etc).

I visited their tiling, carpet, kitchen and electrical subcontractors pre-contract to select fitout.

Then paid a small deposit to the builder and proceeded to final plans and a fixed price contract with my turnkey requirements included.

I negotiated for my own building inspector to access the site. I also negotiated access for a home theatre cabler to do pre-wiring.

My build cost worked out at about 15% less than a similarly specified house with Clarendon. This for a house about 10% bigger.

The house was completed in 6 months. Volume builders can take 9-12 months.

Moved in on time. Very happy with the build quality.

Worst part of the experience ...

1. They changed kitchen and electrical subcontractors after I signed the contract ( perhaps a pending warning of cashflow issues )
2. They were very demanding with stage payments. Pushing hard for me to authorise bank to make payments even though stages not complete and there was very little time for stage inspections.
3. Builder collapsed about 12-18 months after I moved in. Their cashflow issues caught up with them. They hit home warranty insurance limit and this slowed them down starting new builds to keep cashflow going.

I was lucky.

If you choose a small builder do very careful due diligence, although volume builders collapse too.

As an aside, the block I bought was a vacant block with DA plans from another small builder that collapsed after growing too quickly. I initially pursued getting my builder to quote on this build. Ironically they said no as their subies wouldn’t touch it because of the name of the builder on the plans.

 

Try to negotiate a fixed price in the contract. So have a good understanding of your fitout requirements and that you are happy with range builder offers ( or make agreed adjustments to spec of selections before you sign ).

Another reason I went for turnkey was it reduced my out of pocket expenses for floor coverings, driveway and so on. I was keen for all costs to be part of the financed amount.

 

Many smaller builders are part of larger building ‘groups’ with legal access to predesigned plans.

For example, a builder mate of mine in Melbourne is part of the Independent Builder’s Network (IBN).

He runs his own building company - but membership of the group gives him access to a range of plans and purchasing agreements with suppliers to keep costs down.

 

He gave us a ballpark figure of $780-800k for building 40-45 square flat roof modern design 5bedder house (including knockdown charges of appro 20k of current house). He said roughly he provides around 8% for kitchen expenses (whatever we can choose). In terms of cost planning or estimate calculation is this decent price?

What are things to note down from cost point of view in this early stage if planning? Please share your experiences or ideas.

 

Also, what are some good resources to look at to decide on the floor plane? We are currently doing general Google search and checking display homes at Homeworks Marsden park.

 

Just ask the builder to show you examples of floor plans they have built for other clients.

Plus combine with your own thoughts after visiting display homes.

Ultimately your builder will need to use a building designer for DA plans.