It is true that lots of new home builds, and especially home renovations, are never completed. Often it is simply because the build is going to cost more than expected – or unexpected costs arise during the project.
This means your dreams of a new space; a new lifestyle may never be realised – or you end up far more out of pocket than planned.
Here are 5 things you can do to ensure your building project stays within budget and gives you fantastic results.
1. Have realistic plans.
If you know your budget is about $500k, you probably shouldn’t plan a 400m-square home with raked ceilings and a pool out back. Being reasonable with yourself is a great place to start when planning a new home or renovation.
Realistic plans might involve:
- Speaking to a financial institution or broker early on so you know your budget – allows you to plan to your actual capabilities.
- Keeping in mind the size of your new space when planning – a larger floorplan is usually more expensive.
- Choosing a few luxurious features that are important rather than planning big on every aspect right at the start – you can always add things later. Alternatively, plan big but have an idea of which features are not as important.
- Considering the requirements of your lifestyle now, and in the future.
2. Choose your builder at the start of your concept planning.
Once you have a rough idea of the build you are considering – whether it is a new four-bedroom home or an extension to your current home – it is time to enlist the help of a builder.
Going straight to an architect or draftsman at this stage can result in a beautifully planned space – which ends up entirely out of budget and requires many adaptions to bring it back to budget – and is now no longer what you want.
A builder will know the price implications of certain design choices and can help refine which choices you maximise on to get the best result from your new space.
3. Keep an eye out for fixed pricing and a detailed contract.
A lot of builders are quick at providing a quote for your new home. Often, this is based this off a standard square metre rate, easily calculated from the size of the house plans and not considering any of the things that make your home specifically yours.
A thorough, accurate builders quote is usually longer than 20 pages and contains a detailed scope of works. This includes your custom choices and details specifics for each stage of your plans.
At the end of the ideal contract, a fixed price figure will be provided – one that can only be altered by a signed variation between both you and the builder. A detailed, fixed price contract can empower you to have confidence in your build, and that you’ve chosen a professional builder.
4. Fork out a small cost at the start to get proper preliminary tests done.
Ever heard that the earthworks for a home blow the budget before the real building even starts? This can be prevented.
A Preliminary Building Agreement is a contract between the client and builder that outlines preparatory work before construction begins. It typically includes site assessments, design concepts, cost estimations, feasibility studies, soil tests, engineering plans, and council approvals.
All the costs involved in a preliminary building agreement will be incurred within building process anyway. By completing these tests at the start of the build, before signing a contract for the whole project,
- It ensures the project is designed correctly and aligns with your needs. By gathering all necessary information for a fixed price contract, including proper scoping for renovations and extensions.
- It provides clarity on costs and specifications to avoid surprises during construction. There are no provisional sums or cost variations for unknown scopes of work.
- Reduces risks by addressing potential issues early.
- Builds trust between client and builder before construction starts.
5. Make your selections at the start, not during the project.
Selections for your build include all the many design choices, such as the materials every surface is made from, your appliances and bathroom accessories, kitchen and laundry specifics – anything that can range in price.
Although not necessary to complete at the start of a build, it does save money and time: you are aware of what each of these items cost and these can be included in the budget and; the items can be ordered/delivered in advance of needing them which means your build stays within the expected timeframe.
By keeping these 5 things in mind, your new home build or renovation will stay within budget and be thoroughly completed giving you confidence, peace of mind and outstanding results.