-
32 Degrees Building Blog
How to compare building quotes
You’ve made a decision to invest in expanding your family home, but there are so many building companies out there, who do you contact and how do you select a builder and feel confident that you are making the right choice? What type of builder should you be looking for? And how can you avoid facing the common pitfalls and horror stories?
It can be a daunting process, and if you’re in the process of obtaining quotations for a potential second storey addition or ground floor extension on your home, you may be wondering why the quotes you do receive are coming back varying in price.
To help, we’ve compiled a list of items to consider when comparing the value of the quotations you are receiving.
What impacts a build cost? Put simply the following items below will all impact your quotation;
- Builders experience
- Building timeframes
- Allowances & inclusions
- Ambiguous quoting
- Items missed or not outlined clearly
- Service delivery and project management
So, how are all of the quotes so different in price?
It is quite normal to receive quotations and see a 5%-10% difference between them, any more than this would raise a red flag, and it is suggested that you approach your builder and ask the following questions to help determine where the cost differences may lie.
Is the quote apples for apples? Is it comparable?
It’s important to understand that allowance items and finishes are different between builders; for example, you may have an allowance for a $10K bathroom package vs a $3K bathroom package in your quotation. Immediately this will impact the build cost and also may be a deciding factor in the quality of the build you will receive.
How does the builder operate? Do they use employees or contractors?
If the builder is a smaller company, they may use contractors or have less employees, if this is the case, what are the timeframes for your build? The duration of the build may take longer, and you then have to weigh up the additional cost to you of a more prolonged disruption to your family and if you may incur potential additional rental or storage costs over this time. If they are a smaller builder, they may only complete 1-5 projects a year vs a medium-sized builder who completes 20-30.
This would then raise follow on questions of how long do they take to complete a build? How big is their team? And how will the project be managed? Will you be able to talk with the Project Manager during the build, will you have a site supervisor, how can you reach management if there is an issue, is there a support team in place to help guide you through the process?
If they use contractors or employees – how is the quality managed and how can they guarantee the timeframes?
By having employees, they are paid to turn up on time, every day as projected; this ensures no downtime and your project can run smoothly. Unfortunately, some contractors work to their own schedules which don’t always work in with the build and can result in delays. If they use contractors, can your builder guarantee the duration of your build and also the quality? What happens when something goes wrong with the quality, can they get the contractor back to resolve it or will there be project delays while they source someone else to resolve it? Where do you stand if there are delays in your build?
What type of contracts do you work with?
What type of contract used is important to understand very early on in the quoting process as this can have significant impacts to the cost of your build. We recommend only choosing a builder who is using fixed price building contracts such as the Housing Industry Association (HIA) and Master Builders Association (MBA) contracts.
These contracts have been made easy to understand and contain space for the parties to fill out information such as the price, contract completion date, any excluded work.
What is a Fixed-Price Contract?
Fixed-price contracts are contracts where the price agreed upon is a fixed lump sum. This is the most common type of contract used for residential building works.
There are several ways in which the contract price can be changed. This includes ‘variations’, i.e. changes or additions to the scope of works. It also includes provisional sum items (allowances) which may not have been decided at the time the contract is entered into, such as bathroom/kitchen allowances. If the amount allowed is more than the cost of the item, then the owner will receive a credit. If the amount allowed is less than the cost, then a variation will be created.
Cost Plus Contract
An alternative to the fixed-price contract is a ‘cost plus’ contract. These contracts have a capacity to become very expensive, and you should carefully consider these contracts before entering into them as there is no upper limit for the final price.
These contracts differ from the fixed-price contracts as, rather than agreeing to a fixed-price for the building works, the owner agrees to cover the builder’s costs plus an agreed margin for any overheads and profit encountered by the builder. In other words, the price is the actual cost of the works plus the builder’s margin.
How we can help you with your addition, extension or renovation
Your home is one of the most significant investment decisions you will make in your lifetime, and it is an emotional purchase and, as exciting as it can be, it can also be quite stressful at the same time. You need to be able to put trust into who you are engaging with to ensure a positive outcome and stressfree seamless process and this means that it is not always about taking the cheapest quote. You should feel comfortable with being able to approach your builder and talk over your quotation to understand what is included and how you will fit in and work together on your home.
At 32 Degrees Building, we have a team to guide you through the process to help you understand your quote, the process and work together with you on your build. This includes having your own access to your own project management team during your build for peace of mind and quick response.
If you would like to discuss your upcoming second storey addition or ground floor extension with our team and receive a detailed build cost estimate, please reach out to us.
Live the life of Luxury with a Resort Styled Retreat
The Perfect Parents or Teenagers Retreat
Looking for a dedicated area for you to escape the daily grind and kick back and relax? Our Resort Style Retreat Package is tailored to providing the extra space and lifestyle you are looking for.
Retreat Package
40m2 Second Storey Addition
1 open plan bedroom with integrated living area
1 large ensuite
This exclusive package is available for a limited time only. Take advantage of low-interest rates, increase the value of your home and get that extra room for your family.
Terms and Conditions:
Build cost only, based on a 40m2 addition. Plans and Council approval excluded – these are estimated at $15K.
A full quotation can be only be provided following an onsite consultation with the builder to undertake an assessment and determine suitability.
Family Value Package
Build a second storey addition today!
We have the perfect Family Value Package for you. Get the extra room and lifestyle you and your family have been looking for. This second storey addition package is packed with value and designer inclusions with plenty of additional room for you and your growing family.
| FAMILY VALUE PACKAGE | UPGRADE TO OUR Premium Family Value Package |
| 70m2 Second Storey Addition 3 bedrooms with BIR’s 1 bathroom 1 living area |
80m2 Second Storey Addition 1 master bedroom with ensuite & WIR 2 bedrooms with BIR’s 1 bathroom 1 living area |
This exclusive package is available for a limited time only.
Maximise the value of your home by investing in the extra room for your family today.
Terms and Conditions: Build cost only, based on a 70m2 or 80m2 addition. Plans and Council approval excluded – these are estimated at $15K.
A full quotation can be only be provided following an onsite consultation with the builder to undertake an assessment and determine suitability.
That’s a wrap for 2019
Our team has officially wrapped up things for 2019! Here is an overview of our year!
Our office is now closed until 14th January 2020.
We wish everyone a safe and Merry Christmas and a Happy New Year!
You can still contact us on our website during the break and we will be in touch when we return. For any enquiries please fill out the form below.
Nailstrip Cladding
Some of our team were over at Belimbla Park recently installing the nailstrip metal wall cladding on stage 1 of the parapet of the ground floor extension.
Here are several benefits of using this material for your wall cladding:
– It’s quick and simple to install, with no clips or special seam tools required
– It achieves an architectural facade with no visible fixings and has a modern clean style compared to traditional cladding
– You can get custom widths for your individual design style
AND our favourite;
– It requires minimal maintenance compared to other cladding materials, such as rendered brick and timber!
This look is definitely the new trend that we are seeing coming in across our builds, with our client in Rozelle also opting for this cladding! Want to know how to incorporate it into in your build either as a feature or across your home? – just ask us!
Connecting Families
Second storey additions, parents retreats, ground floor extensions, large scale renovations, granny flats, knockdown rebuilds – this is what we do and we LOVE it!
Did you know that a part of our job is also specialising in connecting families by creating additional, practical well thought out living spaces for families that are growing, those that are looking to move back in and those that require looking after.
Often we are contacted about creating more space for growing families, a great option to consider in this case is a parents retreat, teenagers retreat and retirees retreat through the addition of a second storey.
Parents Retreat: A parents retreat is the addition of a master bedroom, ensuite and walk-in wardrobe. The aim is to create a luxurious space where relaxation and privacy are the priority.
Teenagers Retreat: A teenagers retreat creates a space with additional bedrooms, a bathroom and living space creating a sanctuary away from the parents.
Retirees Retreat: A retirees retreat creates a space tailored to the more mature audience, they often include the addition of a bedroom, ensuite, wardrobe and a living area with a wet bar. They can be fitted out with features that can assist with ease of accessibility including wider entryways, stairlifts, a lift, even floors throughout and even a wet bar to maintain their independence.
If you are planning a build, talk to our team. We want to be a part of your building journey and make it a stressfree and enjoyable build, so much so that at the end of it, you will say to us that you would do it all again!
That’s Grate
When it comes to extending and renovating their home, many of our clients will have at least one additional bathroom added or updated as part of their project.
When you are planning on the type of fixtures and fittings that you would like to include in your bathroom, do you pause to give any thought to the drainage? Often we find that this can be overlooked, so we wanted to share with you Stormtech’s linear drainage system. They have a designer range and have recently added 3 new colours to the range so you can match them in with your bathroom style choices – there is now bronze, copper and brass alongside the traditional steel and black look available.
It’s a grate addition to their collection! – pun intended! ?
Interested in starting your build? Contact us to get the process started!
**SPOT THE BUS & WIN!**
Have you seen our advertisement on a bus near you lately??
Next time you do, take a photo and post it in the comments of our Facebook Post and tag our 32 Degrees Building Facebook Page with the street name or area you saw it in, and you will WIN 2 MOVIE TICKETS!
For every “SPOT THE BUS* tag we get Two Event Cinemas Movie Tickets will be sent!*
*T’s and C’s – Play fair! There are up to 10 movie vouchers up for grabs each month! A limit of 2 vouchers per person/per month applies. Digital cinema voucher will be emailed to you, so once complete, send us an email to info@32degreesbuilding.com.au
Save yourself over $100,000 by building an addition vs. buying a new property
Often a difficult choice for families looking to increase their living space is whether to purchase a new home or build an addition on their current home. The costs associated with both decisions can vary but there are many hidden and overlooked costs related to purchasing a home which are not applicable when building an addition. We have outlined costs below for you to keep in mind if this is a decision that you are currently looking to make;
Costs related to purchasing a home
Loan fees – This is the fee charged by a bank or other lending institution when you apply for or take out a loan. Approximate cost: $Nil – $800 There may be additional costs preparing and registering a mortgage.
Mortgage discharge fee – If you have a mortgage, you can expect to close your mortgage loan for approximately $1,000, but this cost can vary depending on your bank. This is essentially a fee for the paperwork involved. Approximate cost: $1,000-$2,500
Conveyancing fee – A conveyancer is required for the process of transferring the property from the seller to the buyer. Approximate cost: $700-$2,500
Disbursements – Your solicitor/conveyancer will charge for some of these expenses paid on your behalf during the conveyancing process. Approximate cost: $100-$350
Stamp duty – You must pay contract stamp duty on the purchase price of the property. Approximate cost based on a house valued at $1.1 million: $45,990
Inspection fees -Building Inspection – A building inspection checks structural soundness and lists any visible defects and necessary repairs. Approximate cost: $300-$700 & Pest Inspection – A pest inspection checks for any signs of past or present pest infestation. Approximate cost: $250 – $300
Real estate agent commission – The cost of selling will depend on the amount of commission charged by your real estate agent. The national average commission rate in Australia sits at around 2 per cent, but commission rates vary from agent to agent. Approximate cost based on a house valued at $1.1 million: $22,000
Auctioneer fees – If you’re holding an auction, you’ll often have to pay an auctioneer’s fee. Approximate cost: $6,000
Moving costs – The cost of moving generally depends on the distance you’re travelling, the amount of furniture you’re moving and whether you’ll hire a full-service removalist or pack the truck yourself. You’ll also need to purchase storage boxes if you haven’t got them already. Approximate cost: $400 – $3,000
Property repairs and renovations –When buying a new home spending money on repairs and renovations is very common. Common repairs include painting, flooring, lighting repairs, kitchen repairs and maintenance, bathroom repairs, electrical repairs as well as giving the exterior a touch up to give your new home that personal touch. Approximate cost: $1,500 – $20,000
| Costs associated with moving: | |
| Loan Fees | $Nil-$800 |
| Mortgage Discharge | $1,000-$2,500 |
| Stamp Duty Based on a home valued at $1.1 million | $45,990 |
| Inspection Fees | $300-$1,100 |
| Real Estate Commission Based on a home valued at $1.1 million at 2% Commission | $22,000 |
| Auctioner Fees | $6,000 |
| Moving Costs | $400 – $3,000 |
| Property Repairs and Renovations | $20,000 |
| Total Costs Estimate | $103,890 |
Additional inconveniences and disruptions related to purchasing a home:
- Relocation of services – When moving you will need to relocate your existing services to your new property. This can include transferring and updating your: Gas, Electricity, TV, Internet/Phone, Insurances, Licenses and addresses for your bills.
- Disruptions in relocating – When moving to a new home you face the uncertainty of not knowing who you are moving next to. You have to consider that your new neighbours may not be as accommodating as your previous neighbours which you have good relationships with.
- Other things to consider are the need to change – Schools, churches, social groups, gyms, childcare and the commute to your workplace.
Benefits of building an addition
One of the benefits of building an addition is that you can custom design your plans to tie in with your existing home and remove the need to move or purchase a new home. Building an addition is the perfect way to add significant value to your existing home whilst bypassing any of the issues related to moving.
We specialise in building second storey additions that seamlessly integrate with the existing structure of your home, giving you an aesthetically pleasing street frontage which will make you the envy of all of your neighbours.
Costs related to building an addition
Plans and drafting – $6,000
Council lodgement – $5,000
Council fees – $2,500-$15,000
The average cost of adding a 3 bedroom, 1 bathroom and 1 living room addition to a home starts from $200,000.
If you are looking for an affordable solution and you are happy with your existing location, have a great relationship with your neighbours and would like to avoid the stresses of moving, then an addition is the perfect option for you to consider.
Give our team a call or complete our Pre-Quote Enquiry Form if you would like to discuss a potential addition to your home. We can conduct a pre-site assessment prior to the builder coming out to meet with you to ensure that building an addition is a viable option on your property for you.
What to look for when choosing your builder
You’re in the market for a renovation or addition on your home, but where can you find a builder that is reliable, will minimise the disruption to your family and deliver maximum quality on your investment that will stand the test of time?
You may have been referred to builders by people you trust, however that doesn’t necessarily mean that the builder will be trustworthy. So who do you contact and what should you look out for when contemplating taking the first steps on your building journey? We’ve put together a list of things you should consider when making your decision to select a builder;
1. Do they specialise in your type of build?
You might assume this is obvious, however, it’s vital to ensure that the builder you choose is well-established and reputable. Search for a builder who has experience in the type and style of build you are looking for and see if they are able to provide references for a number of jobs they have completed.
Always do your research – look at their website, social media pages and online presence. Are their projects active and up to date? Can you see samples of their work? How long have they been operating for?
2. Do they belong to a builder’s association?
Builders that have a professional membership in the industry eg. Housing Industry Association (HIA) and Master Builders Association (MBA) participate in continuing education and stay up to date with best practices, new technology and innovations within the field. This ultimately means that these builders will use the newest and correct practices when constructing your home.
3. Are they licenced and insured?
A good indicator of a high-quality builder is one that’s fully licenced and
insured – and that they can provide you with those details upon request.
It’s vital for you and your builder to be protected and insured in the event
that something goes wrong.
Examples of insurance that may be required by the builder are;
- Public Liability Insurance
- Workers Compensation Insurance
- Contract of Works Insurance and;
- Home Warranty Insurance (for all builds over $20K)
You can do a licence check of your builder through the Fair-Trading website, however, we also recommend that you request a copy of their insurances before engaging with them to ensure your family and your investment are protected.
4. Are they able to provide client testimonials or reviews?
The sign of a reputable and successful builder is one that is able to provide
a list of client references from the past, most recent and from those currently going
through the building process with them. This is a good indication that they have been
delivering high-quality service to their clients consistently throughout their years in business.
5. Is there clear communication from the beginning?
Good builders are responsive right from the beginning of your interaction with them. This shows that they invest in their team to ensure that customers and their experience is at the forefront of their business. A builder and their team should be available to communicate with you throughout the project, even after practical completion.
6. The cheapest quote may not result in a quality build
Be wary of going with the cheapest estimate a builder may put in front of you. When searching for a builder ensure you are making as direct a comparison as possible. It is always important to compare apples for apples; a higher quoted price may result in less unforeseen costs and expenses. By choosing a significantly cheaper quote be aware that you can run the risk of finding out halfway through your build that you have been underquoted and the builder is unable to fulfil your project, leaving you stranded and stressed, putting a strain on the family and your investment.
7. Do they offer fixed priced contracts?
Beware of quotations and contracts with a long list of ‘estimates’ and ‘TBA’s’. To avoid a blow-out in costs which could end up exceeding your budget or not being to afford to complete your build, ask for a fixed price contract.
There will be items that a builder cannot foresee such as soil removal, asbestos removal and termite damage, however, the builder should be upfront and discuss these items with you during the planning process. This allows you to properly plan things and have a contingency plan in place.
8. How does the builder operate?
Does the builder utilise sub-contractors to complete your build or do they employ their own team? A benefit of choosing a builder that employs their own tradespeople to complete your build is that they invest in the proper training and management of their team. This also means that they have greater control of the quality and the speed of the build as they will be coordinating the trades across their builds. By limiting the number of sub-contractors being used, your builder can ensure that you know who is working at your home, giving you peace of mind that your family is safe and secure and that disruption is kept to a minimal.
At 32 Degrees Building, we specialise in additions, extensions and renovations. We believe in putting the clients first and have a support team there for you during your build to address any of your concerns throughout the process. We are licenced, fully insured and are more than happy to provide you with references from our clients, past, recent and in progress if you would like to discuss their building experience.
If you have any questions surrounding your future renovation or addition on your home, call the team. We are available to talk to you and run through all of the details with you.