Controlling home building costs

By H&A Correspondent

Cost overruns are rife in any home building project, but with the right knowledge and planning, they can be kept within manageable levels.

Home building cost overruns can plague any home building or remodelling project, therefore, it is recommended you include a contingency fund in your budget.

This will be used for items that you will have no control over, such as problems found with the land once excavation has begun.

When planning your home building costs, it is important to talk to experts at Housing Finance who will take the time to help you plan on paper what you want your house to look like and to fit it within your budget.

When doing your budget, the experts will give you a good idea about the costs of appliances, fixtures, cabinets and flooring that go into the final figure.

In doing so, they give you a clearer idea of what you need and, more importantly, what it will cost. Then, build that amount into your budget so there are no surprises later.

When working with a contractor, he or she will guide you on specific materials you can expect to be used in the project. If in your plans you want ceramic floor tiles, then ensure you specify that in writing.

If you take the time to plan your home building project on paper before breaking ground, you can minimise the number of adjustments later on.

Adjusting your plan frequently tends to increase the cost of your project because they are not planned for in the original budgeting.

If you agree to modifications and there is an expense involved, you are responsible for those costs unless the contractor has agreed he will pay for the change.

Construction changes

Depending on the extent of the change, it can involve modifying the original plans and having the local building authority review the changes including the labour and materials.

Always keep an eye on any changes to the original plan and design and take the time to determine the financial impact of the change on your project.

Changes to construction projects represent the single most common reason a project goes over budget and completion is delayed. Take the time to plan before you build.

Modifying the plans to include more corners and angles will definitely increase the amount of labour and materials needed to build your dream home.

Shop around

When you are doing excavation and possibly putting in a well, you will not know what is under the ground until you begin to excavate.

If you are drilling for a well, you will have no control over how far down you will need to drill for water. This is where having a contingency fund is essential.

Another common time for a cost overrun is near the end of the project when you are selecting your finishes such as cabinets, counter-tops, lighting and plumbing fixtures, flooring and appliances among others.

If you take time to shop around before you do your budget, you can more easily stay within your budget when you do you finally put up your dream home.

The writer is a contractor affiliated to Housing Finance.