What’s Included In A New Home… And What’s Excluded
A common challenge faced by anyone building a new home is trying to identify exactly what is and what is not included in the price.
It’s important to note that regardless as to what may or may not have been discussed in your conversations leading up to the contract signing, anything not specified on the plans or in the contract is not included and will incur an additional cost.
So, as a consumer looking to build a new home, what can you reasonably expect to be included in your building contract?
The answer to this question can vary depending on a number of factors, such as the location, builder, and type of home being built.
While you can reasonably expect site preparation, foundations, and flooring to be included in the price of construction, not all building companies operate at the same level of integrity.
This can result in disappointment and frustration for the client when they realise the reason why the price was so much lower than the other builders' quotes.
Other items to be aware of that may require additional budgeting for are driveways & paths, landscaping, fencing and appliances.
The cost of choosing the cheapest quote
So why don’t builders just include everything and quote one price to do the lot?
It’s because this is a very competitive industry where building companies operate on wafer thin margins.
What that means is that there is not much difference in the cost to build a home from one builder to another, so the only way one building company can appear to be ‘cheaper’ is by either lowering the quality of the inclusions, using cheaper tradesmen or removing items from the contract.
Due to the level of research now being performed by consumers on the internet, it’s become a lot harder for building companies to fill their contracts with low cost fittings that reduce the cost of a build.
Price reflects quality
In today's world, consumers demand a far higher level of finish than has been previously available over the years so if they see something they don't like in the specifications, they will request an upgrade.
Contracting cheaper labour does work for the volume builders where expectations are a lot lower from clients building their first or second home, however, it is an exercise that is counterproductive for custom home builders that build homes to a higher standard.
This leaves a lot of building companies with only one option in order to reduce the cost of a new build to meet a client's budget, and that is to remove anything they can to win a contract.
This can work well for some consumers who are fully aware of what they are getting, however, for anyone that is time-poor and is looking for a complete solution, the best option is to work with a builder that provides a full turnkey service.
The Benefits of a Full Turnkey Solution
A full turnkey solution is a fully completed defect-free home that is ready to move into and live in without having to manage a barrage of independent subcontractors over the next six months in order to install flooring, appliances, pathways and landscaping.
These are all activities that could have been performed concurrently during the initial build rather than effectively extending the construction schedule and leaving the homeowner to manage a construction site when all they really want to do is live in a clean, quiet new home!
Additionally, turnkey builders typically have established relationships with suppliers and contractors, allowing them to negotiate better prices and pass those savings on to their clients.
And because they are responsible for the entire project, you as the client have a single point of contact for any questions or concerns which leverages your time and makes the entire process less stressful.
Overall, working with a turnkey builder can provide a more seamless, efficient, and satisfying home building experience from design all the way to handover.
However, it's important to research and choose a reputable builder right from the outset which is why I’ve put together a quick guide for you to download.
It’s completely free, and it will help you to avoid any nasty surprises that can sneak up on you when building a custom home.