How Much Does It Cost To Build?

We navigate the process of obtaining an accurate estimate for our build and see how it fit within our budget

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Any project involves a balancing act of three key factors: Cost, Quality and Time. Given our project management experience, we were already appreciative of how important up-front planning would be to controlling these factors. Build times are consistent and well known for volume builders, so our key decision making hinged around cost and quality.

Before we even started our build process, we embarked on a planning mission resulting in:

  • A list containing each individual element of the house which could require input or decision. This list was broken down into rooms, but also included categories for other general design features, utilities, and outdoor spaces.
  • A collection of photos and notes denoting styling and features to be used
  • A cost estimate of the individual items

As a result, we were confident about many of the design changes we wanted to incorporate in the initial quote. We did this with the intent of avoiding any surprises in cost as we progressed through the build process.

Metricon gave us a handy “inclusions” document which detailed the specification of every item utilised throughout the build. In addition to this, they provided a brochure to help visualise some of the inclusions. We were provided with the “Freedom” specification which is effectively the “no frills” base specification.  Comparing the inclusions lists with our own helped us to identify any extras that we wanted to add to the quote.

Despite our organisation and up-front work, the quotation still exceeded our initial budget considerably. In retrospect, managing our costs with our quality expectations was one of the most challenging parts of this build. It is actually our main driver for us starting this blog on Casa Novo.  

In hindsight, the areas where we felt had the biggest unexpected impacts on our budget included:

  • Footing Costs – The engineering results impacted our footing costs
  • Layout and Structural Changes – We couldn’t get an accurate cost until we discussed it with the builder
  • Stair Cost – It was difficult to find costs for bespoke stairs
  • Tiling Costs – While not a huge cost, we only began to gauge this at the selections process
  • Cabinetry Cost – This was a considerable cost due to variance in layouts and finishes

We were lucky to have room to move in our budget, allowing us to continue on our build journey. For some, balancing one’s expectations with the reality of the budget may put the build journey on hold.

The quotation stage is a strange time in the build process. When we got the quote, we hadn’t committed any money to the builder. There is significant effort to prepare a detailed quotation, especially when estimating layout and structural changes. Additionally, we had a few iterations of both structural and styling options that we wanted to investigate. I can imagine that the builder could have concerns about investing time on ‘tyre kickers’ and not making a sale.

On the flip side, we were about to make the most expensive purchase of our lives and we wanted to know the exact price. We wanted all the information, selections and costs up front so that we could make informed decisions. We didn’t want to play sales games and we wanted to make rational decisions rather than emotional ones.

After two rounds of initial estimates, we signed a form to proceed with a home estimate. This appears to be Metricon’s first stage at weeding out tyre kickers. We paid a $2,000 deposit, which is refundable off the total build cost if you proceed with the build. This bought us a visit from a site surveyor, a soil test, engineering report, preliminary quotation and plans.

The engineering company sent out a surveyor and a soil tester on two separate occasions. It was interesting to watch the soil tester set up their tripod to collect soil samples in a bore hole. This involved knocking in a series of pipes to collect soil samples and laying the respective samples on a tray to illustrate the soil make-up at different depths.

The surveyor on the other hand made note of the land and existing building dimensions, as well as other significant features such as utilities and trees.

The completed engineering report came out several weeks later and included:

  • Site Investigation
  • Site Classification
  • Proposed Structure
  • Footing Recommendations
  • Additional Requirements
  • Design Wind Speed
  • Bushfire Assessment
  • Corrosion Assessment
  • Surface Soil Bore Log
  • Borehole Location
  • Preliminary Footing Plan
  • Preliminary Site-works Plan
  • Detention Tank Details
  • Storm-water Calculations
  • Preliminary Structural Plan

We were lucky with our soil type, as we were building in sandy soil which typically promotes good drainage. When soil samples were taken on our property, a considerable amount of building rubble was found in one location. As a result, the engineer wanted to increase the number of piers in the concrete footing. This conservative approach is understandable given that the slab is essentially warranted for life. However, it did add an un-budgeted amount to the build cost.

As our house was considered to be within the corrosion zone, additional costs were added to account for this.

Looking back, key steps to help control budget expectations include:

  • Obtain the base specifications
  • Decide on any extras you want to specifications
  • Obtain layout
  • Perform layout modifications
  • Structural modifications
  • Other modifications  
  • Landscaping and Outdoor Area scope

For your quotation, it is easier to price for items, even if you expect them to be out of reach. It is easy to remove items rather then go back and request more. Having them priced allows your to consider them if you change your mind later.

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