Cost of Building
Building or Renovating your home is one of the biggest investments you will make, However, few who have built a home feel as if it was as hassle-free as they expected it to be. This makes building one of the most financially and legally risky processes you will engage in. Unfortunately, conflict often occurs during the building process as the homeowner and builder disagree over extra costs, payments, or delays in the construction process.
How can this be resolved?
The best time to do a Building Costs Analysis is when your architect has reached the design stage on your plans. It is important to understand whether you are on track financially and make any adjusted plans. After all a Building Costs Analysis is performed before arranging finance or making inquiries about prices.
After acquiring plans, most people find and obtain quotes from different Building Contractors. Typically, the quotes received are for Building Contractors whose prices are very different. Two problems now exist; to identify which quotes are fully inclusive, (how do you prevent the builder from requesting more money during the project), and to ensure that you do not overpay. In other words, which quote is both accurate and fair?
We all tend to accept the lower quote when we decide to build our own home. This leads to a builder requesting more cash, a break in our bond, an incomplete job, and a potential legal fight.
Our Building Costs Analysis helps you find the most accurate and fair price for your build, enabling you to select the Builder at the Right Contract Price by helping you compare quotes and make informed decisions.
The Building Costs Analysis is a critical element of protecting your financial interests no matter at what stage you complete the process.
We do more than that simply to make sure your building project goes smoothly and that you save money.
When comparing their quotations, you can compare “apples with apples” since they will resemble each other except for where their prices are reflected!
Materials are purchased by the client.
Even further cost reductions can be achieved by ordering and paying for all or some of the materials yourself. The ability to order the correct quantity and negotiate with suppliers so that prices and delivery dates are accurate is really handy. It’s not uncommon for materials to go “missing,” and knowing the correct quantities can help you determine if they’re missing.
Progress Payment Guide
Your builder has just finished the foundation of your new house and asks for a “draw” of the work related to this phase. He gives you an amount. Is this amount asked for correct? The Building Cost Analysis is presented in the same sequence as the different phases of construction, making it helpful for determining the progress payments.
Additionally, the m2 method does not take into account roof type, wall height, and wall color.
Always remember to never rely on square metre (m2) pricing as this causes distress and might lead to disaster.
What information we require.
When presenting an Approved/ Summary of your building plan, we then calculate in detail, all Materials, Quantities and their Costs, Labour Costs, Sub-Contractors and Prime Cost amounts, of which, will be summarised in the Buildings Cost Analysis Document.
This is a thorough document, starting with the common phases of development, from site establishments, excavation, foundations, building structure, materials, plumbing, electrical and so on. This cost allows you to evaluate the building project for affordability before wasting hours meeting Builders, Coordinating and collecting quotations. This “organizing” also assists you with remaining in charge of all parts of the building construction/ renovation project.
Material Quantities and Costs
- This incorporates the exact number of blocks/bricks, cement, Brickforce, paint, skirting, doors, windows and so forth.
Labour Costs
- For every aspect of building, the expense to lay blocks/bricks, plastering, roof erection, install doors and windows, paint interior and exterior walls, install tiles and so forth.
Sub-Contractor Types and Rates
- Electricians and Plumbers, Engineers and so forth.
Temporary Amounts and P.C. Things
- Takes into consideration reason made things or individual preferences
Possibilities of hidden cost
- Takes into consideration covered up costs for example terrible soil conditions or deferrals because of harsh climate
Material Costs, Labour rates can and do fluctuate, and differ from area to area.
Totally Different Cost, But Same Square Meters.
Apart from the length of the walls, there are several other factors that must be considered when estimating the cost of construction, such as the roof type, wall height, and the number of bathrooms. Taking the m2 approach to costing is therefore inaccurate at best, and going ahead with construction based on an estimate like this is an invitation to financial disaster.
This very issue has been covered in many articles, but none have provided solutions.
Obtaining a Cost Analysis / Estimate from an independent source is the best method for selecting a Building Contractor. By knowing exactly how much your project should cost you before starting it, you will reduce the risks.
Banking
Banks utilize the M2 method partly for evaluating building loan applications, even with their experiences. The shortfall unfortunately occurs too frequently in building loans, despite being less common.
Insurance
A home’s insurance value can be determined in part using the m2 method by insurance companies. Under the worst conditions, it is not uncommon for a homeowner to find that, despite having adequate insurance, they are actually underinsured.