While building a dream home is an exciting and rewarding process, preparing a realistic budget for a project is no simple task due to the inherent variability of design and construction. As a result, effective budgeting is often undervalued, much to the detriment of the final built outcome. In this post, we have outlined three primary expenses associated with procurement, as well as recommended measures to pre-empt and control budgeting. From our experience, these are invaluable steps that a client can employ to make the procurement process more enjoyable, affordable, and successful.
An effective early measure that can easily be employed by a client is using a square meter rate to estimate overall construction costs (i.e. labour and materials). We have found this can serve as an effective starting point for a client’s budget, prior to concept design. Preferably, this calculation should consider and separate any newly built area, existing house area, wet area (kitchen, bathrooms, and laundry) and dry area, as each rate differs. A few resources for generic construction rates include:
Your local library should have a reference copy of the Rawlinson Guide. Alternatively, you can use the Home Design Directory calculator to establish a rough idea of cost. These rates however are slightly lower than the actual construction rate in many architects’ opinion. Hence, we recommend allowing a 10-20% contingency additional to this calculation.
It is important to recognise that construction costs are inherently variable due to the influence of market forces, as well as the unique features of a project’s location, site and scope. Therefore, as a project progresses it is recommended that more refined estimations for construction costs are made, particularly by experienced specialized consultants.
The number of consultants a client may require depends on the type, size and complexity of their project. However, bespoke residential projects typically require the following consultants:
Receiving planning permits from council is often overlooked as a stage that can add significant costs to a project, due to the unpredictable nature of council requests for information. This process may require additional time and costs from consultants to respond to council requests.
The typical authority fees associated with residential projects in Australia are Planning Permit fees and Building Permit fees. Some other associated fees may include state government levies, demolition permits, hoarding permits, council asset protection, etc. Dependent on a design, some amendments or dispensation fees may apply. Planning permit fees can be advised by the Planning and Building department at local council. Additional authority and other permit fees associated with a project will require the advice of an architect and building surveyor.
While budgeting is a complex process, it is vital to the success of a project. Here, a little investment in planning, funds, and research can go a very long way.
