Beckenham triplex

[stumpie]

Hi guys

its my first development project and would like to learn from you guys and get some advice so i don't make a big boo boo.

we've got a property in beckenham which we acquired 10 years ago, its suitable for a 3 unit development and the geotech report from structerre requires a build up of the pad to 1m due to the clay soil. the builder has done the costings and basically the price has increased by approx 90K for general works due to the geotech report. the major price increases are cut & fill 24k, engineers footing & slab 22k, precast retaining walls 10.5k, soak wells/sumps 30k.

wondering if any one could advise if the pricing sounds over the top?
the pad build up seems awfully high? any comments?
using precast panels vs limestone retaining walls? any advice?

any advice in addition to the above is much appreciated. its our first venture in development and i really don't want to make a big mistake.

TIA
Jerry

 

[D.T.]

Why not get another quote and compare?

 

[HD_ACE]

So almost 100k extra for site works?

What does that do to the margin/ profit now?

Cheers

 

[stumpie]

@HD ACE - for us its not really a case of developing to sell. we intend to hold and rent the units out when the development is completed. fortunately the property was purchased many years ago so the numbers are still in our favour. obviously if the site was purchased today, the project may not proceed forward.

@dtraeger - been trying to get through to inspired homes for a chat but i guess this time of year every one is taking a break.

i'm nervous as its our first time in development and any advice would be welcomed.

Jerry

 

[westminster]

Inspired will be back on the 6th.

Practically everyone is on hols at the moment.

Sorry I have no idea if the pricing is ok or not.

 

[chausta]

which builder is this through?

 

[stumpie]

@chausta - ventura

 

[CharlieT]

Jerry, without knowing the size of your build, it's roughly in line with the pricing we've received to build a 330sqm house. In fact your cut and fill sounds cheap. Our total site cost estimate is over 100k. We've priced through two project builder and got fairly similar numbers. Our site was classified as a c8.

For a 900mm cut, fill and sand pad the earthworks through the builder are 47k. We've had this price checked through a contact and the builders margin is around 15%. So going privately we might save 7k. Our engineers detail has been quoted at about 30k. The rest is drainage and normal site costs.....

 

[stumpie]

hi Charlie

are you developing in beckenham as well? and is your development > than a single dwelling?

 

[Chomp]

I would pay to get my own design / drawings and get at least three quotes preferably five, showing a breakdown of all trades.

 

[CharlieT]

Jerry, we're not in Beckenham. At the moment, we're building a house for us to live in on 1000 sqm whilst building in a way to allow for future subdivision. We are still thinking of developing instead. Spreading those site costs over two properties is a little more palatable.