If you have a detailed budget plan, it will help you to assess the financial feasibility of your project. Bankers often want to see this budget before they release your funds. Several factors determine the cost of building your home. There is cost of architect, project manager, construction materials, fixtures and fittings, etc. Even the neighborhood you live in affects the cost of building your home. Here are some of the factors that will affect your cost to build a new home.
Quality of the specification
Build quality can be of three levels: standard, good and excellent. Standard is the most common level of specification. Quality has effects on the cost of fittings and finishes.
Level of involvement
If you can do some of the works by yourself, then you can reduce average costs by 15%. About 50-60% of the total build cost is labor. So, doing some works by yourself can reduce costs significantly. Works like laying floors, fitting kitchens and bathrooms, landscaping, etc. you can do by yourself.
As the size of home grows, the fixed costs affect the budget less. As a rule of thumb, costs per square metre decrease as the size of the house increases. This is because the cost of building more volume does not proportionally increase the cost of materials and labor.
Building costs of a sloping site will be more as more work is involved in building house on a sloping site. As a general rule, each 50 of slop from ground will increase the build costs by £5,000.
Plan, shape and layout
The walls, doors, windows and wall finishes are affected by the area and shape of the building. For example, a square building is more economical than an oblong building.
Design and build
The external walls of your house represent 15% of the total construction cost. So, the type of maaterial you use for your external wall affects the cost of construction significantly.
The type of roof covering has huge impact on the construction costs. Tiles that are made of slate, clay or stone require more tiles per square metre and so are expensive.
When creating budget, you need to include the design fees, supervision fees, legal fees, stamp duty fees, etc. The actual cost of construction may vary from the estimated budget. But if you have a detailed budget in place, the variation won’t be much.