The actual cost of building a home can often end up looking very different to the figure you were initially quoted.
What’s responsible for these cost escalations?
Read on to learn more about the common hidden costs of building a home and find out how our house plans can help minimise budget surprises.
Top 5 hidden building costs
1. Geotechnical report
Before any builder will give you a quote, you’ll first need to get a geotechnical report. This report assesses the physical condition of the site, along with design and construction recommendations based on the findings of the report.
The cost of a geotechnical report varies depending on vendor, site sizes, tested land features and so on, but you would generally expect to pay $1,000 to $2,000 for a flat residential site. More comprehensive reports may cost upwards of $4,000.
2. Building delays
Delays during the building process are another common cause of cost escalation. Inclement weather, for example, can hinder site access and prevent tradespeople from completing their work – particularly if they’re working outdoors or at height.
Delays can also be human-caused. For example, an inexperienced project manager might not have contingencies in place for unexpected events, or an owner might initiate last-minute changes to the project – both of which can delay progress and drive up the overall cost of the build.
While it’s usually possible to make modifications to your plans after signing off on a building contract, you should be aware that doing so can escalate costs significantly. Modifications may require a variety of additional expenses, such as:
- Additional material costs
- Additional labour costs
- Engineering, working drawings and approval costs
- Legal costs to alter the contract
Depending on the building company you’re working with, your quote might only cover the dwelling itself, so it’s important to factor the driveway into the budget! Costs vary significantly depending on the size of your driveway and the type of material you wish to use. Gravel is usually the most cost-effective option, followed by asphalt, concrete and cobblestone.
5. Site costs
Perhaps the biggest hidden cost of building a home are site costs. Site costs are the costs associated with preparing your block of land for building, which may include:
- Grading the land
- Clearing away rocks and vegetation
- Connecting the site to the grid and other utilities
- Constructing an access road
Site costs can vary from low five-figures to six-figures and beyond, depending on the size, layout, location and condition of your land.
How we keep building costs down
At Ikon Homes, we recognise that purchasing a home is likely to be one of the largest financial investments you’ll ever make. That’s why we provide a range of house plans that offer the very best in terms of cost efficiency, product quality and top-notch workmanship.
Whether you choose to stick to one of our plans or use it as a foundation for designing a tailor-made dream home is up to you. But regardless of the route you can take, we provide transparent, up-front pricing options so you can make fully informed budgetary decisions every step of the way.
One of the ways we do this is by providing you with a quote early on in the design process. Most building companies require you to obtain expensive working drawings before they’ll give you a quote, which can leave you thousands of dollars out of pocket if the final quote doesn’t align with your budget. We do things differently by giving you a quote before you invest in any drafting and engineering work, reducing unnecessary costs and giving you more wiggle room in the budget.
We also price alternatives and changes as the process is worked through, and we clearly set out all inclusions so you can see exactly what you’re paying for and where your money is going.
Contact Ikon Homes
If you’re thinking about building a new home, we’d love to hear from you. Give us a call today on 0800 45 66 50 to find out how we can make your dream home a reality.