When quotes for building your new home all look completely different, how can you be sure you’re comparing apples with apples and that the contract price is what you will pay?
Unfortunately, by simply going straight to the bottom line and comparing the final amounts on the quotes, you aren’t getting the whole picture. This will likely lead to costly blowouts or variations.
With no two builders offering the same inclusions, the devil is in the detail and this is how you can get caught out. More often than not, this causes friction between you and your builder, as you become increasingly frustrated with hearing ‘’that’s not included in your contract’’.
Or, you discover your builder is using inferior products in your home, which will make it harder to enjoy once you move in. After all, as Benjamin Franklin said, “The bitterness of poor quality remains long after the sweetness of low price is forgotten”.
When you’re eager to begin building your new home and after you’ve gone through the design and approval process, your excitement can lead you to rush into a contract that isn’t what you expected it to be. However, it is possible to get started quickly and have a home that’s built to the high standard you demand, at the price you agreed to from the start.
Your goal of being a proud owner of a new home in Tasmania which you can enjoy and share with your friends and family, will be one step closer to becoming a reality.
Know What’s Included … And What’s Not.
So, how can you ensure that the contract price is the price you pay, without being exposed to costly blowouts or variations? With 50% of new homes going over budget, it’s important that you take the necessary steps to protect your investment and reduce the chances of disappointment.
Some builders will use prime cost items to go in artificially low to win the contract, knowing full well that you will need to vary the contract once you get started. No one is going to be able to cover the floor of their new home for $500 for example.
The items listed may be inferior, substandard options that you wouldn’t want in your dream home, so again this will force you to vary the contract. In addition, some quotes exclude the connection of services that you need to be able to live in your home. Are you sure connectivity to sewerage is included? You need to check.
Eliminate The Unknown…
If you want to be absolutely certain that the contract price is the final price, you need to work with a builder who eliminates prime cost items and provisional sums from the contract.
Their contracts may appear to be a little more pricey than the other builders, but when that contract is fully specified to your design, that’s when you can be certain that there will be no surprises. Contrary to popular belief, not all builders who quote a higher price are ripping you off.
In fact, it’s the builder who is offering a lower quality specification or worse, one who has made mistakes in quoting the building of your new home, that will be making requests for more money further into the build.
It’s an easy trap to fall into, particularly as everyone wants a bargain. And there’s always the ‘local expert’ in the pub who is adamant it doesn’t cost that much to build a home, yet has never built one themselves.
Get The Full Picture...
With all this conflicting information, how can you sort the wheat from the chaff?
The first thing to be aware of, is not to dismiss or shortlist quotes simply based on the so-called ‘total cost’. Remember, there are inclusions and exclusions which some builders will throw in/out to artificially lower the price of the quote to entice you to sign on the dotted line.
It may also be that the quotes are higher than you were led to believe when you were designing your new home. This is a regular issue when the design and build is done by two different parties as the architect doesn’t always estimate the labour or materials required, correctly.
Using a builder who can provide design services, is the best solution. But if you’ve already had your home designed and approved, keep in mind that the prices may be slightly different to the estimates provided.
It’s not just price that is your primary focus here, remember that you want to be proud and be able to enjoy your new home.
Make Decisions You’ll Be Happy With Long-Term...
Ensuring the quality of the finished product, is a key factor in making your house a home. This is why it is important to work with a builder who provides you with the ability to change the full specification of your home, right down to the taps in your kitchen sink.
You also want your new home to be completed quickly and be confident that your build won’t be subject to delays and false promises.
A builder who has fully specified your build and can provide you with a detailed schedule, shows that they understand your requirements but also, that they have planned the project thoroughly. By asking the builders to provide a schedule, you will soon be able to identify which builders are organised and which builders have no plan at all.
Through this process of elimination, you will be able to select a builder who can start quickly, build the home of your dreams, and who you can be confident has provided the contract price that you will pay.
Discover the secrets to building your perfect new home and avoid making costly mistakes.
