Construction Costs and Stages

[Tano]

Does anyone have any information regarding the number of stages, the % cost of each stage and the duration of each stage during building a typical single storey 3x2 for a standard HIA contract in WA?

eg I assume there are about 5 stages, not sure about the % cost of each stage and when they are due.
Stage 1 : Slab Down: 20% total costs? Payable ~ 2 months after DA (due within 7 days of slab pour?)
Stage 2: Plate High : 40%?
Stage 3: ?
Stage 4: ?
Stage 5: Lockup : 10% costs? Payable 3 months after stage 4


Im trying to create a DCF analysis so see how much my holding costs will be during construction and how much money i will need each month.

Thanks!

 

[tobe]

Does anyone have any information regarding the number of stages, the % cost of each stage and the duration of each stage during building a typical single storey 3x2 for a standard HIA contract in WA?

eg I assume there are about 5 stages, not sure about the % cost of each stage and when they are due.
Stage 1 : Slab Down: 20% total costs? Payable ~ 2 months after DA (due within 7 days of slab pour?)
Stage 2: Plate High : 40%?
Stage 3: ?
Stage 4: ?
Stage 5: Lockup : 10% costs? Payable 3 months after stage 4


Im trying to create a DCF analysis so see how much my holding costs will be during construction and how much money i will need each month.

Thanks!

5% deposit
15% base
25% frame
25% lock up
20% fixing
10% completion


Unfortunately even when you have the percentages your equation wont work as you cant be sure how long each of the 5 stages takes. Usually the first 3 go up in a couple of months, the final two fixing and completion take a lot longer.

Id estiamte your holding costs based on the full amount of interest on the completed build for almost the entire length stipulated in the build contract (after which the builder pays penalties). It will usually be 6 or 9 months for a single storey, longer for double storey.

Itll give you a worst case scenario if not a realistic estimate of your holding costs.

 

[westminster]

I had 8 draw downs

PC1 - Deposit 7.5%
PC2 - Slabs 22.5%
PC3 - Walls to 1st Fl Slab 20%
PC4 ? Roof 20%
PC5 - Lock up 10%
PC6 - Kitchen & Tiles 10%
PC7 - Practical Completion 9%
PC8 - Landscaping 1%

Like Tobe said the first 3 went quick. I was at Lock up just before Christmas and the last 3 are taking forever

 

[Tano]

Thanks, i thought it would be something a bit more standard like a 5 stage drawdown for everyday:-(

 

[MTR]

Hi Tano

Not sure whether you are going commercial loan or resi. But found this different.

My loan is resi and I was shocked that the bank NAB has changed their policy recently, as far as the loan goes and building progress payments, I have to pay 20% upfront, so as builder invoices me, I chip in first

I recall when bank initially paid progress payments and then I finalised outstanding payment (20%) at completion of project.

MTR

 

[tobe]

Really? You had a lender put their money down first, and then you paid the remainder?

Id say there must be another explanation (perhaps you were lending against the equity already in the property rather than your deposit etc).

Banks always want the clients money first, in every circumstance.

 

[tobe]

I had 8 draw downs

PC1 - Deposit 7.5%
PC2 - Slabs 22.5%
PC3 - Walls to 1st Fl Slab 20%
PC4 ? Roof 20%
PC5 - Lock up 10%
PC6 - Kitchen & Tiles 10%
PC7 - Practical Completion 9%
PC8 - Landscaping 1%

Like Tobe said the first 3 went quick. I was at Lock up just before Christmas and the last 3 are taking forever

asking for more than 5% deposit is illegal in Victoria, and many lenders/valuers make builders change their schedule if it difers from the one set out in the HIA legislation. It doesnt stop the big builders having 'standard' contracts that are front loaded so they get most of their money in the first 3 stages.

 

[MTR]

Really? You had a lender put their money down first, and then you paid the remainder?

Id say there must be another explanation (perhaps you were lending against the equity already in the property rather than your deposit etc).

Banks always want the clients money first, in every circumstance.

My broker advised new policy.

With prior builds the bank did cough up first this was standard. I already had 20% of my funds on property/land.
My currently project - I have 20% on land, however the difference now is the bank insist on me paying additional upfront 20% of the building costs.

As mentioned this is new, whether it is different with other banks, don't know?? My broker was surprised as he has had other clients complain, especially if they have left it a little tight.

 

[HD_ACE]

Tano

Heres my progress payments for a 3x2

Deposit:2k ( but could be upto max 6.5% of contract price)

Slab down: 12.5%
Plate height: 28.5%
Roof cover: 20%
Lockup: 29%
Practicle completion: 10% less deposit

Within 10 days of builders notice of completion

Cheers

 

[Tano]

Thanks All, whats usually the time period between stages?

Deposit
---6 Months --
Slab down: 12.5%
-- 4 weeks--
Plate height: 28.5%
-- 2 weeks --
Roof cover: 20%
-- 6 weeks---
Lockup: 29%
-- 3 months --
Practicle completion: 10% less deposit

i.e Is it about 3 months from slab down to lockup then another 3 months from lockup to hand over?

 

[westminster]

more more more

Slab down then cure for 6 weeks then bricks

Remember also that you are doing 4 and there might only be 1 team of brickies - maybe 2.

I'd give it 9mths.

I think I've been building mine for ummm forever?

Edit: forever = 11mths and counting. My pads went down end of July '13

 

[Tano]

11mths, Why do long,?

 

[MTR]

For my current 3 villa project have been advised it will take 5 months from when the slab has been poured. Slab down in May 2014, here is hoping for completion Sept/Oct. I suppose we are also dependent on many factors weather etc. damn bloody brickies now.

WM
Wow, that's a long time between drinks.

 

[westminster]

11mths, Why do long,?

Sigh. Endless rain delays last winter as it was wet wet wet

Now its difficult to get trades to finish it off. But it's pretty much there.

6mths is ok for 1 but I don't think it's practical for 4.

 

[MTR]

WM
Better than fighting it with WA Planning commission.