Construction costs vary hugely between different houses, neighbourhoods and cities. What influences these costs and how can you ensure that the construction costs you allow in your budget to build your new house, or renovate an existing home, are reasonable? Why will the cost of building a house in your neighbourhood be different to building elsewhere? Indeed, why can the cost of one house be different to the cost of a similar size house in the same area? Why does the price quoted by your builder increase as construction proceeds? How can you ensure that you stay within your budget? How can you reduce costs without ending up with a house of poor quality, or one that isn't functional, or that doesn't meet all your expectations?
What influences house building costs?
The major construction cost drivers include:
When selecting a property you should consider some of the above items. Some properties will be more expensive to build on that a similar sized property down the road. Even deciding on the position of the house on the property will influence construction costs.
In part 2 we will look at more items that could influence house construction costs.
Make sure that your budget is correct and that you can build the house you want.
This is an extract from: 'Build and Renovate Your Home With Your Eyes Wide Open' by Paul Netscher. Available in paper or eBook from Amazon.com, Amazon UK,Amazon CA, Amazon AU and all online bookstores. To read more
© 2018 This article is not to be reproduced for commercial purposes without written permission from the author.
I’m a construction professional, author of several successful construction management books, and a home owner. I’ve made mistakes in construction management, I’ve seen others make mistakes, but importantly I’ve had multiple successful construction projects and I’ve learned from the mistakes. I want to share these lessons and my knowledge with you.