Time is Money!

How Indecision can add to Building Costs

Time is Money!

Money Wasters!

You will be shocked at how much money is wasted by indecision from those who want to build AND from builders who take too long to not only start construction of your new home but also to completely finish it.

Common delay-related costs

The most common costs are as follows:

  • Tax and/or rates being paid on vacant land $? p/w
  • Mortgage repayments on loans for vacant land and during the build on top of the construction costs $400 p/w
  • Accomodation expenditures while your new home is being built $400 p/w
  • Increase in building costs $250 p/w
  • That is a total of approx. $1,100 p/w or $4,766.67 p/m!

Imagine this… you chose a builder based on a quote that was $4,000 dollars cheaper but they take two months longer to get you through the building process. They actually end up being the more EXPENSIVE builder by more than $5,000!

This is a lot of money, so ensure that you get managed and agreed time frames from your builder at the very start of the process.

How do you avoid these massive cost overruns from the start?

  1. Even before you get a quote, get it in writing from the builder that they will pay you daily delay damages for every day they run over your contract build time. $50 per day is the industry standard but you can negotiate higher if needed.
  2. Get the builder to put the guaranteed build time in the quote. The wording is very important and must be something like this: ‘guaranteed build time is from the first soil turned on the build site until the time the owners receive the keys’. (Remember every week is worth on average $1,100 dollars to you, so ensure you add the difference to the builders’ quote who is taking the longest).
  3. Get a guaranteed start time! Again add the difference to the builders’ quote who is going to start the latest.

In our experience, we are finding that most people are not completing these three steps and are losing on average, over four months on their build process, just under $20,000 of unnecessary costs to their build process. Remember this figure when comparing quotes and always follow the three steps above to avoid being a money waster.

Your Local Builders
Heath Nicholson
Heath Nicholson

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