Regardless of whether you're planning all the bells and whistles or starting out as a first-time builder, you will have a level of investment in mind. You should know what your home is going to cost to build prior to signing your residential building contract, therefore avoiding price hikes after the fact.
In the early stages, a good place to start is the builder's standard specification, which will give you an estimated price. The specification lists all of the standard inclusions, but it also details what is not included in the price. Common exclusions might be floor coverings, garage insulation, heating or the cost of the building consent. By understanding the builder's standard specification, you can determine what you might need to budget for at a later date.
Common terms used in building estimates and quotes are PC (prime cost) or PS (provisional sums).
- PC sums cover the supply cost of items that may not yet have been chosen. For example, the builder may allow for a standard kitchen design, but your vision may be something more substantial (and costly).
- A PS is an estimate for a particular area of work for which the extent is not yet known. Excavation works are a good example - the builder may not know how large an excavation is required until it has commenced. Accordingly, the amount of a PS can be outside of either party's control.
Arming yourself with a Homebuilder's Checklist from Jennian Homes will assist you in asking the right questions during the proposal stage, ensuring you'll get the home you wanted, built to your budget.
