How you can save time and money when building or renovating property
Imagine walking into your newly built or renovated home and finding it exactly as you had imagined it at the start of construction: the windows are all in the right places, the flooring is level and polished as agreed, and the kitchen cabinets are a perfect fit.
Now the reality is often different from this idyllic scenario. In reality, you might see missing trim around the bedroom doors or wonder why that small change in the kitchen cost so much.
Of course, there are things you just can’t plan for, but there’s plenty that you can. Costly changes and additional time-consuming work can be kept to a minimum if you fully understand what you are building before you start.
By understanding the construction process, being part of the team and keeping a firm grip on the budget, your construction project can result in the home of your dreams.
1. Engage professional designer
Unless you are using a major builder and one of their home designs, you will need a design professional to draw up plans for your new custom home.
In Australia, there are three professions offering home design services, architects, building designers and draftsperson. For a custom build, I suggest using an architect as they hold the highest accreditation and need to be board registered.
Architects are trained not just to make a project code compliant; they also work to the client’s needs. An experienced architect will also have a broad, up-to-date knowledge of design systems as well as of materials and processes for a wide variety of project types.
Now, I sympathize with the awful feelings associated with a project’s going over budget. I’ve been there; I’ve gotten that dreaded call from the builder that the structural and mechanical designs are in conflict or being updated about pre-existing conditions that the builder hadn’t anticipated.
A design professional can provide guidance on what team members will likely be required for the project. And not just for the big ones, like a new custom home construction. Smaller projects like structural additions and renovations also can benefit from professional expertise.
Architects can recommend other team members, such as engineers and builders too if required. Homeowners often underestimate the cost and complexity of a major renovation or new home.
Designing a good design professional can be expensive and you may seem like a strain on the build budget, but I’ve seen time and time again that trying to save money on design actually can cost homeowners far more in the end, in dollars and frustration.
The cost of the design work on a project is something that homeowners may consider skimping on to save money, but we find that the best way to avoid problems in construction is to invest time with your designer or architect up front to think about the construction process during design.
This takes far less time than fixing mistakes that happen when the walls are going up.
2. Be part of the build team
Most people spend more time dreaming their next holiday than they do planning their build project. Not that planning a house build or reno project has to be a full-time job.
An architect or a designer can help you understand your role in the project as well as the contributions of other team members. That means participating in the process from the start so that you stay fully up to speed with what is happening throughout the project.
Being part of the team also means becoming familiar with some of the ways your team members communicate. The vast majority of projects use two-dimensional drawings (as well as written specifications) to communicate a homeowner’s intent to the construction team.
This documentation is used to create three-dimensional structures. This sounds simple enough, but there are many chances for misunderstandings each time a team member reads the documentation.
You can ask your team to assist you so you understand what is being communicated at each stage of the project. The best opportunity for this is during your design meetings.
Remember, if you don’t understand something, ask. It’s better to get everyone on the same page early before a structure gets built that sticks out like a sore thumb.
You should also talk with the architect and/or builder before the project starts so you can make sure that everyone agrees on the approach to how the building will be put together.
There are evolving areas of construction, especially regarding the building envelope, that your builder and architect should resolve before the project commences.
3. Revisit your end goal frequently
Be ready to suggest ways to get what you want while avoiding potential problems down the road.
If you can create a list of priorities, then when you are faced with challenging decisions during construction, which is pretty much guaranteed, you and your team will be able to look back at your prioritized list to really focus on what will get you closer to your goal instead of what may be a costly distraction.
Things like prioritising morning light in the kitchen or consciously forgoing a walk-in closet for a larger main bedroom can save the time and cost of having to move walls and making other expensive changes in the middle of construction.
4. Add buffer to your budget
Be sure to set aside a construction contingency fund for critical items — and don’t be tempted to use it just to put in an upgraded cooktop! Due to the complexity of the construction process, unforeseen issues will come up.
Without a contingency fund, you might find yourself short of cash when you really need it.
5. Handover date can’t be guaranteed
Ideally, your builder will take the time to carefully plan and build your dream house most efficiently. Even if they are not putting in hours specifically on your project, the designer and others will likely be thinking about your project in the back of their mind.
It takes time to work out the details of a project, so if you need to get the project designed and built very quickly, there might be situations that won’t be fully resolved in the design phase.
There will always be elements that will need resolving onsite, but taking the time to do as much as possible on paper can reduce costs.
It’s also tempting to look at the best-case scenario for construction and think that it will then be the norm for your project. Just like with a cost contingency funds, you’d be well served to build in a time contingency as well.
As much as it might seem possible to get into the house on a certain date if all the stars align, realistically there is a chance that the project could go late for a whole variety of reasons.
Do yourself a favour: Have a backup plan in case you are unable to relocate into your new home on the indicated handover date.
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6. Consider on completion value
It’s important to understand what the construction implications will be to get the space you want. Before you spend, think, is that addition going to materialise into a value appreciation of your property.
7. Communicate frequently with your build team
A weekly or bi-weekly status report can help identify areas of concern. This should be done at the onset of the project and continue through construction. The construction phase is where there are likely to be changes due to site conditions, availability of products or other factors.
Be sure to get all changes documented in writing, along with the dollar amount promised; sign off on both the changes and the cost to stay in control and to ensure that all team members are up-to-date at every stage of the building process.
Sometimes the changes are called extras or variation cost, because they are additional to what was agreed on in the construction contract. Make sure that you agree to any variation cost stemming from changes in your requirements, before the work starts.
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This article via Houzz does not constitute advice; readers should seek independent and personalised counsel from a trusted adviser that specialises in property, a tax accountant and property design specialist.