Cost of 2 storey

Hi guys,

Back to ask another question ..hope you don't mind!

We are concluding negotiations with a project builder for a house that will be our home. Their price for a standard spec 2 storey is $1,200. However the price we have been quoted now is $1,485 per square metre or about $72,500. From that I could take away about $25,000 in provisional sums leaving $47,000. It's hard to see how this price change can be justified.

The house is about 250 square metres with a double garage. We have not had prestart so have made no changes to standard electrical spec or anything like that. The price does not include air con, any landscaping, floor coverings, internal wall paint etc - standard project builder exclusions.

The only things we have changed from basic builder spec is that we have a rear lot (the extra cost of which is in the provisional sums above), we increased the length of one kitchen bench by about 2 metres, put in overhead kitchen cabinets and a caeserstone benchtop. We inreased the downstairs ceiling height from 28 to 31 courses and made the sliding doors in the dining area taller to match.

I can't help but feel that maybe we are being ripped off as we are relatively recent immigrants and don't have a network here to gather information.

Are we paranoid?

Would love any input or comments. Thanks everyone for your time

Maggie
 
Hi MaggieMcT and welcome to the forum here and this country.

Congrats on your new build.

I have a lot of experience dealiing with project home builders in all states of Australia, as an IT consultant for 15+ years - so I know their processes intimately.

Essentially they are volume builders - and houses pop out like sausages on a production line. When you interrupt or interfere in the process by making ANY changes, then you throw a spanner in the works and it gets expensive to manage.

So, although the changes to you may seem simple, to a production process they cause massive disruption. Costs have been previously agreed with suppliers and subbies and this is also disrupted.

That's the reason........just sayin.......:)
 
Hi MaggieMcT and welcome to the forum here and this country.

Congrats on your new build.

I have a lot of experience dealiing with project home builders in all states of Australia, as an IT consultant for 15+ years - so I know their processes intimately.

Essentially they are volume builders - and houses pop out like sausages on a production line. When you interrupt or interfere in the process by making ANY changes, then you throw a spanner in the works and it gets expensive to manage.

So, although the changes to you may seem simple, to a production process they cause massive disruption. Costs have been previously agreed with suppliers and subbies and this is also disrupted.

That's the reason........just sayin.......:)

^^ what he said.
 
Something wrong with the maths here. 250sqm @$1500/sqm = $375k...

Is there a 3 missing in these numbers? Otherwise, I'm sure you don't live in Perth!
 
Hi guys,

Thanks very much for your responses. Appreciate you taking the time.

Ah $72,500 total ...wouldn't that be nice :) I just realised that I left out the "extra"!!

Total price at the moment is looking like about $375,000 excluding air con, floors, window coverings, landscaping, usual stuff!

I do feel a bit reassured that no-one has said that the price is outrageous! I hate to be paranoid but it does seem sometimes that they just add a bit on here and there without giving much or any explanation of what it is all for.

I'll keep you posted on how we go with the negotiations!

Thanks again,

Maggie.
 
not sure why you don't know where the money is? - they should give you the quote that says - 'house as standard' - $300k, plus variations: x, y, z = $375k.
 
Increasing the bottom floor from 28 courses to 31 is probably a major part of that increase. That is a lot more bricks, plaster etc.

They should be able to break it down for you though, ie extra height ceiling $20k, diff windows $5k, stone bench tops $5k and overhead cupboards $3k
 
Hi guys,

Thanks again for the replies.

Yes they have broken it down to a degree although some of the prices seem a bit random. To be honest I think maybe I have been a bit paranoid. If the overall price seems fairly average or a little higher than average I would be happy. I do think that they are a good builder and we're happy with the design etc. Frustrated with the crappy HIA contract (which I can't believe they routinely get away with !!) but I think we are going to be able to negotiate the worst of it out.

So thanks again for the feedback. Appreciate you taking the time :)

Maggie
 
Builder's name

Hi, MagieMCT, could you tell me the name of your project builder. Recently, I am planning to build a new house. Thanks a lot.
 
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