Importance of budget control during designs

  • Japan Homes on TradeMe
  • Japan Homes on Facebook
  • Japan Homes on LinkedIn

When you start a journey of building a new home, budgeting is the most important. However, as you progress the designs with an architect, enlarging floor areas and adding special features (that are expensive and require more maintenance) may often happen. When you finally obtain consents from the council after one and half year, you will ask some builders for quotes, and find actual costs and issues in the plans. Some architects focus on beautiful designs and maybe don’t think about details and total costs carefully, and your buffer for civil works may go over easily.

Japan Homes do design and build. We usually provide our clients preliminary estimations when we do concept designs, and when we complete structural designs. By our builder’s eyes and advice from subs / suppliers, our estimations are clear and realistic. Building a new home, there are many items to consider as costs. We believe it is no point to show our clients vague and cheap figure at early stage, because we don’t want them to suffer and be stressed out at later stage. To succeed the project together, it is important to face each other honestly and lead them with our professional advice thoroughly.

Let’s see an example that we have often had.

Client
Client
I have completed RC and BC. Can you please give me a construction quote?
Sure. Looking the plans, your proposed houses will be built on a steep site and have special features of cedar cladding. May I ask you total budget in your mind?
JPH
JPH
Client
Client
I don’t know, this is my first project. During the designs, no one really advised me about the costs. I just followed my architect’s design suggestions, and it took so long to get the consents, so I don’t want to make any changes.
Hmmm… Do you have bank’s pre-approval?
JPH
JPH
Client
Client
I have a rough advise only. But I’ve heard general construction costs are around $2000/m2 x total floor area. So in my case, I think $2000 x 200m2 x 2 houses = $800,000? 
In Auckland, construction sm rate range is around $1800 to $3500/m2, depending on specs and designs. For your case, you have special features, so it may go over $2000/m2.

Also, generally speaking, the rate calculation doesn’t include anything apart from the house.

JPH
JPH
Client
Client
Oh… What are the exclusions?
Common exclusion items are :

– Demolition (Asbestos removal)
– Earthworks (Excavation, Retaining Walls)
– Landscape (Deck, Fence, Gate, Topsoil, Paving, Garden)
– Driveway and Vehicle crossing
– Services (New power/water/gas/phone)
– Drainage
– Subdivision costs (Council, LINZ, Consultants, Solicitor)

– Air-conditioning, Fireplace, Central vacuum
– Furniture, Curtains

JPH
JPH
Client
Client
So, how much will I need at the end?
Japan Homes can provide you clear estimations with all the breakdown. If you need finance, we can assist you mortgage.
Please share us every data of approved RC / EPA / BC package.
JPH
JPH
Client
Client
My architect has all the reports, and the plans that I sent you are only things I receive…
Ok, we can contact him directly to share us the packages.
It’s necessary to check all the plans and decision letters to provide you estimated costs.
JPH
JPH
Client
Client
Thank you.

 

Thank you for reading!

If you are interested in Japan Homes, please contact us by:

Free Dial : 0800 00 5055

Email :  info@japanhomes.co.nz

Author

NacoManager
Japanese
In 2012 I moved to Auckland with my son.
After I graduated NZ Business school, I became a member of Japan Homes. I have enthusiasm about this work to deliver happiness to Auckland people.

Love: Thinking about home, beauty & fashion, reading manga & watching anime 🙂