Before you price.
The earlier construction costs are considered, the more opportunity there is to keep the brief and budget aligned.
Waiting until detailed architectural and engineering drawings are complete can mean significant fees have already been spent before discovering the home is over budget.
Check the budget early
Understand your site
Two similar homes can have very different costs because of the site.
Some of the biggest project costs may never be visible once the home is finished.
Be careful with square metre rates
“What is your square metre rate?” is a common question, but it can be a poor way to estimate an individual architectural home.
Registered quantity surveyor Nick Clements of YourQS analysed 468 residential projects and found considerable variation in square metre rates, including between similarly sized homes.
He also notes that changing the shape and configuration of a home can create a 20 to 30% difference in the square metre rate, even when similar materials are used.
Research acknowledgement: Nick Clements, YourQS, What’s Your Square Metre Rate?
Allow for the full project cost
The builder’s proposal may not cover your entire project.
If it sits outside the builder’s proposal, it still needs to sit somewhere in your budget.
Bring construction knowledge in earlier
An alternative to waiting for completed plans is to involve your preferred builder during design. This allows the architect, engineer and builder to consider design, buildability and cost together.
A small change to a detail can sometimes reduce structure, materials or labour considerably.
Design, buildability and cost, considered together.
Our involvement can begin before you have an architect or once early concepts are underway. Pricing is reviewed as the plans develop so you can make informed decisions before reaching the point of no return.
Works alongside architects to review construction methods, materials and detailing before they are locked in.
More than two decades of land development and construction experience. Identifies site issues that may affect feasibility and cost.
Oversees the financial governance, reporting and cost-control systems behind the build.
Same plans. Different prices.
Two builders can price the same plans and return very different totals.
Before assuming the lower price represents better value, understand what sits behind each number.
Are they pricing the same information?
Even one later drawing revision can make two tenders difficult to compare.
What is included and excluded?
A short proposal may not tell you enough.
Compare the specification
The same heading does not necessarily mean the same product or quality.
If an item has not been selected, compare the allowance.
Check provisional sums and allowances
Low allowances can make an initial price look attractive, but the actual cost still needs to be paid later.
Look closely at site and structural costs
These can be some of the biggest differences between proposals.
A large cost does not necessarily add floor area, which is another reason square metre comparisons can be misleading.
Labour: what has actually been allowed?
Labour is a major part of an architectural build. The hourly rate matters, but the skill level and number of hours allowed matter just as much.
An experienced builder may have a higher hourly rate but can often work more efficiently, anticipate problems earlier and resolve difficult details more effectively.
At Thorne Group, our foremen bring at least 20 years’ building experience and lead small, consistent site teams supported by project managers who are qualified builders.
Understand variations
Changes happen. What matters is how they are priced and approved.
You should understand the cost of a decision before making it.
Consider an independent quantity surveyor
If you tender, an independent QS can help make the proposals easier to compare.
The goal is not simply to identify the lowest number. It is to understand why the numbers are different.
Compare the likely final cost
What do you get for $1 million?
It can be possible. But it depends heavily on the site, size, complexity, specification and how early costs are considered.
What can that budget achieve?
We have built hundreds of space-optimising homes under $1 million, many with feature ceilings, stone benchtops, built-in cabinetry and covered outdoor living. Today, the emphasis is on making every square metre work.
The aim is not to make the home feel compromised. It is to be deliberate about where the money goes.
Complexity can cost more than quality
A simpler form can free up budget without making the home feel basic. Reducing unnecessary corners, structural complexity or excessive material changes may allow more money to go into the things you experience every day.
Less money hidden in structure, more money spent where you actually see and use it.
Where costs can hide
Some of the largest costs may never appear in the finished photographs.
This is why early site and construction input matters. Aaron’s land development experience helps identify where a site may put pressure on the budget. Gavin and the construction team look at how to achieve the architectural intent with efficient structure, detailing and construction methods.
Built for under $1 million, with upgrades.
This home was completed for under $1 million and includes a number of upgraded features. Take some of these out and there is real scope to bring the cost down further.
The answer
An architecturally designed home around the $1 million mark can still be possible. But there is no universal square metre rate.
Most importantly, it depends on how early these things are considered together.
If you want to understand what your budget could realistically achieve, the best time to start that conversation is before the design is locked in.
Choosing the builder.
A building project can last many months, and your relationship with the builder often extends well beyond handover.
Price matters. So do the people, systems and business behind it.
Speak to previous and current clients
Ask for a number of clients, not one carefully selected reference. Ideally speak to people who have completed similar projects and homeowners currently building.
“Excluding upgrades or changes you specifically requested, how closely did your final build cost match the original estimate?”
“How is your latest projected build cost tracking against the original estimate?”
Why it matters. This gives you an indication of how accurately the builder prices, identifies risk and manages costs throughout construction.
Make sure you know whether the client is referring to an early concept estimate, a pre-contract estimate or the final contract price.
Know who will actually build your home
You are not simply choosing a company name.
You are choosing the people making hundreds of decisions about your home.
Ask to see the systems
Rather than simply asking whether communication and project management are good, ask to see how they work.
Understand the business behind the builder
For a major project, it is reasonable to understand who you are entrusting it to.
Awards can provide another point of reference, but client experience, completed work and the systems behind the business matter too.
The earlier we talk, the more useful we can be.
Talk to us early