How do we cost your project?
Itâs exciting! Youâre going to have a new house built just for you! Youâve worked with the architect/designer and the plans are drawn. Weâve given you a price on how much it will cost to build. Have you ever wondered just how we come up with that price?
When we prepare our proposals we try to include everything youâll need. Our aim is that once the house is built you will have:
Everything the house needs
For the price that we worked out at the start
Weâre upfront about the true cost. And this is where we are different from many other builders, who often quote a cheaper price to get you to sign on the dotted line; knowing full well there will be many extras you will want - or need - to add on later that will put pressure on your budget.
So how do we work it out? This is the process we use for our costings at J & S Contracting: what we do and why we do it.
Step 1: Understand The Project
Firstly, we need to spend time carefully looking over the plans to see what is involved in the design. What materials have been used, the design approach thatâs been taken, any quirky features. We take the time to read the fine print; often it contains important information and skipping this will mean the end result might be wrong. Some plan sets can be up around 30 or more pages, so this step can take a while. If weâve been working with you on the project through the PAC process as the design was developed, weâll already be aware of most of the details. But if weâve just been brought your plans, then we need to make sure nothing is missed.
If information is missing, contradictory or wrong on the plans, then we need to go back to the designer, the client or the engineer to have this clarified.
Then, once we know WHAT is to be built, we plan HOW we would build it:
The order the work will need to be completed for that site and design
The comings and goings of the trades
Will scaffolding be needed? If so, when will it need to be erected, moved, and pulled down?
Making sure items are completed early that wonât be able to be reached later
Once we fully understand the project, then the costing begins!
Step 2: Preliminaries and Site Costs
Before any work can begin, a site needs to be set up ready to go. There are insurances for the project, suitable access to be established, site fencing, signage, and amenities for the tradesmen put in place, provision for rubbish removal, safety systems set up.
Why? Insurances protect your investment. Legally - and in fairness to our employees - all sites need to be safe and have facilities for the site workers to use. And maintaining a neat workplace is important to us; not only does it promote efficiency and safety but we respect your future home site.
Following the procedure we developed in Step 1, we calculate the materials weâll need as though weâre building the house from the ground up. Every piece of timber, steel, concrete, tile, nail, or fitting - large or small - that will be needed is considered.
As we do this, we follow the requirements of the plans and of the building code. For example, if a window needs to be double-glazed with a thermally broken frame to comply and give you the outcome you expect, that is the minimum of what we will include. Corners arenât cut.
Many details arenât listed on any plan, so weâll also use our own knowledge built up over decades in the industry of what works and what doesnât work. Sometimes that means including higher-quality materials than the bare minimum, so that youâll end up with a good result.
Specialist materials like frames, trusses and windows are tendered out to our suppliers for individual pricing; often after we have met with those suppliers to discuss your project in detail. This way those materials are customised exactly to your designâs requirements.
When it comes to your fittings and fixtures, if you have your selections listed weâll include these at cost. If not, weâll include an allowance that will let you later select decent quality items that fit in with the style and budget of your project. We let you choose your fittings from anything within our suppliersâ ranges and donât lock you into a choice between just a few items.
Over the years weâve built up a good understanding of how long it takes to complete the many different tasks needed to transform all the different materials into a fully complete house. Time costs money, so the more efficiently we design the workflow the better for you.
Balancing labour and material costs effectively requires experience. Sometimes itâs better to allow for extra materials so that the work can be done faster; saving you money overall. Site conditions also come into play: doing a task at ground level is much faster than doing a task where the tradies need to climb up and down scaffolding or ladders all day long. You need the work they do to be neat and correct, so itâs important we allow enough time for the tradies to do their work well. Imposing unrealistic timeframes on them can lead to corner-cutting and mistakes - the last thing you want for your hard-earned investment.
Step 5: Subcontractors tenders
Over the years weâve developed good working relationships with a range of trusted specialist subcontractors that we use to complete trades work on your house. Plumbers, electricians, painters, plasterers, bricklayers, concreters, tilers etc. We know these subbies will do the work to the standard you and we expect, and theyâll come back and fix any problems if they do occur. They work as a team with us and the other trades, and will keep their eye on your project too. If they notice anything amiss on site, they get in touch with us to discuss it - so it can be dealt with before it becomes a problem.
For your project, we work out what weâll need each of the subcontractors to do, and sometimes even meet up with them to discuss it in person; materials, workflow, strategies for the best outcome. The subcontractors then submit their tenders for how much that work will cost.
Only skilled tradesmen whom we know can deliver a good outcome for you are invited to take part
Everyone understands what their job is, and allows for it to be done fully
Because each project is assessed individually, the subbies arenât pressured by cut-throat set rates that donât allow them enough time to do the work properly or cause them to not care about your project. Theyâll give a fair rate based on the actual work needed. Our subcontractors are quite proud of the work they do!
This is VITAL for a successful outcome, and to get the end result you expect time must be allowed for adequate supervision!
This is the big picture position that brings it all together:
Co-ordinating the different trades, materials, orders and deliveries
Answering questions and making decisions to keep the project moving
Making sure tasks donât get missed
Ensuring work is up to standard
Filling in the gaps and finishing the small details
Without someone overseeing your project as a whole, tasks can get missed, problems become âsomeone elseâsâ, and you risk having a project ending up as one of the horror stories seen on âA Current Affairâ.
What they are:
As well as the direct costs on site for your project like nails, timber, tradesmens labour etc, there are the smaller costs it takes for a builder simply to be able to show up to work each day in the first place. Things like general insurances, office and phone costs, vehicles and fuel to get to site, maintaining the many thousands of dollars of equipment we need to actually do the work. A share of these needs to be covered by each project.
Why they're important:
This is a step many builders miss, which you might think is a good thing - less cost for you! But itâs missed because they havenât learned what it takes to run their businesses sustainably. A large chunk of the work to get your house built is behind-the-scenes organising, ordering and co-ordinating. Thinking logically, every time a work vehicle is fuelled up to get to site, every time a phone bill or admin person is paid: that too is a cost of running the business that is working for you. And it has to be covered; otherwise the business will be losing money with every bill. The business you are relying on to deliver your dream home will either become very unstable or eventually go broke; potentially taking your project with it.
Why?
You actually do need your building company to be a stable, profitable business. The alternative is what is constantly being reported in the media lately: builders going bust; who look to short-cut everything just to stay afloat, who arenât able to finish your house leaving it half done (but taking your money), who arenât there to offer any warranty once the house is complete. Over 2200 construction industry businesses have entered administration in the past year taking with them the hopes and dreams of many more homeowners, subbies and suppliers; because they werenât profitable.
So finally at the end of the costing process, we add on a fair margin for all the the work we will do to create your new home. For the time and effort put into every build. For the significant level of risk we take on with every project, should something go wrong along the way or after it is built. For investing in new equipment to help with construction. To run a stable and sustainable business.
You might be surprised to learn that margins within the building industry are actually very slim; the government generally makes more money out of a home with the GST it charges than does the builder. But every successful business needs to make some profit - and itâs in your best interest too.
All of these parts make up the total cost of any building project.
A house is usually your largest investment so you will expect it to be built well; be solid, straight, function as it should, be efficient to run, and not need much maintenance. We want this same outcome. Neither of us wants to be dealing with ongoing problems! So we use good materials, the subcontractors we can trust, and take the time needed to achieve this aim.
With a J & S Contracting proposal you get an honest and experienced assessment of items up to - or beyond - the standard required by the plans, BASIX and National Construction Code, and with fair allowances for any items not yet chosen.
From the beginning we are trying to include what you will need so that you end up with the result you want with no more to pay.