A price to build is more than just a Number!
Updated: Nov 14, 2019
What should I receive when receiving a price to build my project?
When renovating, extending or building a new home, a detailed price is basically the final step for planning for your project. Your builder will pull together the quantities and details for all materials, labour, subcontractors, hirage, rubbish removal, site security and other services needed to complete your build, then present it to you in a detailed form.
This process needs to be thorough and can take quite some time to collate due to the many aspects and other trades persons involved in building a house. Expect your builder to charge you for this service to cover their time and any costs involved including QS Services. Usually if you choose to proceed this fee will be waived.
A full Price should include:
Quantity and cost of Labour
A breakdown of how your builder has quoted the labour for each stage of your build, including any management fees. You will also be provided labour rates for any Variation work.
Itemised Breakdown of Materials
A detailed breakdown of the exact materials needed for your build, you can see very clearly exactly what you are paying for. This allows you to accurately compare the quality of materials between building quotes.
Itemised Breakdown of Sub-Contractors costs
A breakdown of the cost of each necessary subcontractor including plumbers, electricians, carpet layers, roofers etc.
Itemised Breakdown of P&G’s
A detailed breakdown of the cost of other items necessary for your build, including administration costs, health and safety, portaloo hire, how to secure your home and materials, carpet protection film, temp fencing, rubbish removal, temporary power and lighting, insurances, scaffolding, building wrap, etc. There are a lot more P&G items than you would expect, which can blow out the budget if not properly accounted for.
Timing, milestones and dates
A realistic account of the building timeline is a very useful tool to help you manage your living costs and other related expenses during the building process.
Progress payment schedule
You should receive an outline of the stages of building and the associated progress payments. This should always clearly written into the final contract.
This document provides you information on your builder including Legal name business, address, Qualifications, insurance information, any guarantees etc.
What you need to provide to your Builder
In order to provide you with a full and accurate price for your build, there are some key pieces of information and documents that you need to provide your builder:
Scope of works
This is a detailed outline of the work that you are completing, which is normally prepared by your building designer or architect.
House plans, diagrams and engineering documents
So that there is not any confusion, a final set of professionally completed house plans and supporting diagrams should be provided so that your builder has a very clear idea of exactly what’s involved. This includes engineering reports and any soil test results or other necessary reports.
Also supplied by your designer, a building schedule provides specific detail about the exact materials, fittings and fixtures to be used for every part of the house or renovation area. This will help your builder provide an accurate costing for the right materials. This list needs to be as thorough and detailed as possible to help prevent cost blowout. You can set an allocated budget for certain item that hasn’t been chosen yet.
Lines of Responsibility
The roles and responsibilities for your building work need to be ascertained at the start. Your builder needs to know the exact tasks they will be and won’t be expected to do eg, paint renovated area including/excluding the existing area. If you’re hoping to reduce costs by using a third party contractor (e.g. your brother the plumber) then this should be very clearly stated. Purchasing your own tap ware, door handles or other materials also needs to be clearly detailed. A precise scope of works and material schedule allows your builder to accurately quote for materials, labour and subcontracting costs. Check with your builder for their suppliers and trade accounts that may be able to save you money.
Your builder may need to be aware of your living and financial circumstances during the building process. Do you have restrictions in time in relation to accommodation or finance? Are you planning on staying in your home during the renovations? Do you have any pets that need to be thought about?
Do it right and Know your rights
Knowing your rights, the builders legal obligations and responsibilities, how to compare building quotes and how to select the right builder for you will help you ensure a perfect Base to build your house on.