The hidden extras of building

I was sent this about the hidden costs of building, are there any others to be aware of?

The hidden extras of building

There are many advantages to building your own home but there can also be disadvantages and hidden costs that can blow your budget out of the water and leave you stretched and stressed. When building, people often get caught out by what is NOT in their contract. Most people think that grass, light fittings, even a dishwasher are standard inclusions when building a new home when in fact they are far from it, in most contracts.

Here are just a few “exclusions” that you will find you may have to pay extra for:

  • Light fittings & downlights – While some contracts provide for lighting it is usually basic – basic fittings and inadequate coverage. If you want to change the fitting or add more lights expect to pay for it.
  • Oven, stove, rangehood, and dishwasher– Yes it’s true sometimes a building contract will state kitchen but it does not include the appliances that go along with it and depending upon your taste these can cost thousands.
  • Clothesline – I made this mistake when we last built and when I moved in found that I did not have anywhere to hang my washing.
  • Garden shed and slab to put it on – This may not be essential for your lifestyle but it is something to be aware of.
  • Slab/pavers for outdoor entertaining area and awning.
  • Turf and landscaping.
  • Driveway – While you may have a garage in your home design the driveway often isn’t included.
  • Insulation for internal walls (if you want it) – If you are having ducted air conditioning put in, this is something to be aware of. Also, if you have rooms close together or are building on a block that is close to your neighbours.
  • TV & phone points – Again something that you may think comes standard in a home but it actually doesn’t, especially if you want more then one put in.
  • Outdoor power points & provision for power to a shed, pool pump or other outdoor fixture – These are something that are often forgotten and can be hard to install after the fact as you may need to dig up your yard or install new cabling.
  • Ducted air con (or at least put the ducts in and worry about the motor later) – If you have chosen to have ducted air conditioning then be careful that you are provided for adequate on and off switches and adequate coverage…. Basic usually means basic.
  • House alarm – If you are building a large home be aware that if you are trying to obtain insurance for over $1million you will often require back to base monitoring for fire and security. Wiring is hard to do after the house is finished.
  • Data cabling – If you are a bit of tech head and want your home wired then this must be done before your plastering goes up and can be a massive expense.
  • Digital antenna – Ensure that you are getting an antenna and one that is suitable for your area. A standard antenna will not be adequate if you are building in mountain ranges.
  • Letterbox – Again this is something that I got caught out with and on moving day got asked by my postman where my letterbox was. When I asked my builder he said “oh that’s up to you to get”.
  • Security/flyscreens on doors & windows.
  • Window coverings – Ever been driving through a new estate and seen house after house with sheets in their windows? That is because window coverings are expensive and NOT included in most standard building contracts.
  • Fences.
  • Floor coverings.
  • Most builders include paint, but they only do the ceiling white and then a single colour throughout (skirting boards, walls, window frames all one colour). They charge extra for multiple colours.
  • Power points – While these are usually included they are few and far between and can cost an arm and leg if you need to add more as you may have to break through a wall to install new cabling.
While some of the aforementioned items may be “included” they are basic and any changes you make to a project builders standard plans all incur a cost. Don’t be afraid to build your own home just ensure that you read your contract carefully and allow extra for “overs” and hidden fees and charges.
 
Well for a start the nice little plan you look at does not include a lot of extra's.
Sewer, water, gas, power, phone trench and connection.
Council fee's such as kerb deposit.
Some councils dictate a roof angle so extra charge if the plan roof angle is lower.
Earthworks by builder and after to landscape.
Footings for slab depending on ground classification might need upgraded.
Driveway might have an allowance of 6m, but make sure that reaches the road.

The path down the side of the house you want.
Gates PA or vehicle
Wall painting not included in a lot of cases
 
Adequate drainage. The "standard" is not good enough. Anything hidden underground may not be suitable for your site and you will only know that after the summer rains. Dont accept the builder telling you that his drains will be just fine, they wont be.

Do yourself a favour and buy established, preferably during the wet season.

(Note my very dry sense of humour this morning)
 
Oven, stove, rangehood, and dishwasher....

+ who would have thought it costs extra for a dishwasher or microwave provision. Charge more for a hole in the kitchen cabinets instead of a door cupboard. :confused:
 
Yes, there is always "hidden extras" in building. You can always guarantee you'll put an extra few grand on top of your original price!
 
Piering- most builders allocate an allowance (usually cubic mtrs of concrete) but you don't know if this covers the full cost until the day the piers are poured.
Basix - council decides if building plans sufficiently cover all requirements and may add more items eg different windows
Delays - the average project builder takes 5 months from putting down your deposit to submitting plans to council. So the loan repayments on the land during that time should be taken into account. Also factor in rain delays particularly if another year like the last occurs. Builders have the right to extend the build time for every rain day claimed. Unfortunately we can't ask the bank to place repayments on hold while the rain is falling.
Site clearing - if rubbish/dirt etc has been dumped on your site you will need to remove this at your own expense prior to your builder commencing.
 
Thanks all

I've heard the devil is in the detail and to ensure everything discussed is in the building contract, any tips there?
 
may i include soakwells and letterbox in the list.

in saying that, the project builders are getting quite generous with extras nowadays. plenty of inclusions in their standard specifictions.
 
may i include soakwells and letterbox in the list.

in saying that, the project builders are getting quite generous with extras nowadays. plenty of inclusions in their standard specifictions.

Yep, even the kids are aware of Dale Alcock and Scott Parks bonuses ;)
 
Thats a good list Redwing.

I'll also add Fill to that list. Whilst most can source fill for free from other sites trying to get rid of theirs, we've encountered some Builders who wanted to charge us for it :eek:
 
I was reminded of this at work yesterday when a Construction student asked us how much surveyors get paid. It reminded me that you pay for them to put the survey pegs in. Then the local lads pull them out and throw them away, for fun. Then you have to get the surveyors out again before the council will approve the building application. ad nauseum.
 
Thanks all

I've heard the devil is in the detail and to ensure everything discussed is in the building contract, any tips there?

OK, back when I was building each contract HIA or MBA had a clause giving a caveat of the property that if you didn't pay in full all costs and variations, you could not occupy and they can stop you.

Get it struck out as they can hold you to ransom.

Regards, Peter
 
Variation Nightmares

Confessions first: I work for a builder - Hotondo Homes Toowoomba.

Most of the "nightmares" I hear about are as much to do with the choice of builder than anything else. I have heard of people (with other builders!) taking out personal loans of 30K because they cannot finance any variations and had not been in any way prepared or advised that they woudl need to spend extra $ (earthworks in this case).

I would love very much to say approx 5 company names, but I should not --- Combined they build over 1,000 home each year in SEQ.

Think of it like choosing to buy a Mercedes for $50,000 or a Datsun for $2,000

Are Mercedes charging a premium for their product? Yes. Are they ensuring high quality & superior customer experience to generate future sales? Yes. Is the Datsun cheaper on day 1? Yes. Is the Datsun more likely to cost a lot more in the long run? Yes.

Surprisingly, I find that a majority of ppl building for the first time will build with the sales rep that says the lowest number on the first day of enquiry (when there is the least detail about the product available). They often end up nearly paying for the Mercedes anyway- but with cheaper sub-standard materials, brands, and workmanship. Most of these builders have the cheapest price on day one... and when you sign your contract they hand you a mobile phone number (site super) and say good luck. These builders are also well trained in finding anyone to blame but themselves for 'surprises' that they knew woudl be a factor all along.


Whether you use a cheapie, or a premium quality Builder, COMMUNICATION is key. If you are clear about what you want & work with your builder to prepare a detailed quote you will win out on both quality & price.

A good builder will provide honest & realistic costings, and will work with you to achieve the product, level of finish & budget of project you are looking to achieve.
 
I would have to say that building in WA with a project builder does include an awful lot of those hidden extras on that list and they are usually very clear about them in the specifications.

As all houses need to be 6 star energy efficient many of them have insulation, most councils require the builder to put in the soak wells, 6m of driveways included (but not crossover), 6m of run in for electricity, sewer, phone etc.

Things that you are likely to want to add are:

- letter box
- paving to alfresco (sometimes included sometimes not)
- upgrade the ceiling of the alfresco - some builders use the cheapest gyprock which has seams every metre - some use the nicer no seamed stuff - or you could go cedar etc
- outside lighting (often not included)
- extra power points to kitchen and living areas - make sure there is one in the hallways for the vacuum cleaner
- internal wall painting - or you might like painting
- more tiling in the bathrooms than the floor and one tile up
- check the hotwater system you might want to upgrade it
- lighting is very basic but to be honest you can mostly live with it and change the shades to oysters etc after rather than get the builder to do it.
- extra garden tap
-

Your builder can do EVERYTHING for you but if you want them to get you things like air con, clothes lines, letter boxes that they have to get an additional trade in they will charge a mark up which is usually around 30%. If you need these things included in your mortgage get a quote before from the supplier so that it can be included in the mortgage rather than the builder.

Things you may have no idea you NEED are:
- upgrade power provision. If you want a pool pump, air con and a workshop you'll need 3 phase power
- crossover - this is the bit from driveway to road. Generally you can get the person who does your driveway to do it for you directly.
- verge and/or footpath bond. Some councils charge a verge bond directly to owners to ensure that any damage to the verge or footpath will be fixed. Put a clause in your HIA contract that states that any damage done by the builder and subbies that the Council wants fixed is to be rectified by the builder. REMEMBER to apply for your bond back at the end :)

If you are looking at the bottom end of the market you will find that wardrobe doors and laundry doors are non existant. You will want those :) They also don't tend to include overhead cupboards in the kitchen.
 
The additional costs add up quickly and it doesn't take long to rack up 30K plus.

Some extras that I had to do to finish the house off are;

-Removal of sand & replace with topsoil for the lawn & garden bed areas
-Shrubs, trees etc
-Mulch
-Garden wall blocks, rear garden retaining wall
-Irrigation supplies
-Roll on turf
-Paving
-Garden shed and slab
-Clothesline
-Air conditioning
-Painting and wall prep work
-Cleaning of house
-Rubbish removal
-Light shades (suzy cubes)
-Kitchen pendants & garage pillar lights
-Dishwasher

I had the blinds, tiling, carpet, extra cupboards (kitchen & laundry), upgraded vanities, extra GPO's and lights installed by the builder.

Probably more that I've forgotten but that's 99% of it. Everything was carried out by myself except A/C and electrical work. I would hate to think what it would cost to pay for the labour component :/
 
Something to chew over.
I own a unit and was planning to buy a house next as I'm sick of strata problems (restrictions, fighting at AGMs).
I thought about building as I thought I might have less maintenance problems. Maintenance problems always cause me alot of heartache and stress as I'm not much of a DIY person (=sitting duck for dishonest tradies).
Building will not be easy either, from what I can see.
 
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