The Easiest Way to Save Costs on Your Renovation or Build Journey

Planning to knock down and rebuild or renovate your home? Here’s what you need to weigh up when it comes to budget.

We are lucky enough to get to do this everyday, so let us share some tips to help remove some of the financial and logistical overwhelm.

For the most beneficial outcome it’s important to consider in the big picture. There are a lot of decisions to be made in the process of designing and building your dream home, one of the biggest mistakes we see people make when embarking on their build journey is looking for cost savings in the planning stage.  

Nobody (well no one that we’ve come across so far) has an endless budget and so understandably it’s appealing to want to save every penny that you can. The challenge is that small savings in the beginning are likely to turn into big spendings in the end.

Here are some top tips for planning your rebuild or renovation project.

The Essential Check List:

• Without proper planning, renovation budgets can quickly spiral out of control. Plan your project thoroughly with a team of trusted experts.

• Saving on the spot is great, but a good renovation keeps in mind how much you save in the long-run, too – is it a good investment?

• Preliminary cost estimates rarely come down, but they often rise. Always set some budget aside for opportunities or contingencies. It can be useful to nominate lump sums for specific areas of work, contingency allowances based on detailed materials invoices, and agreed hourly rates for unquantifiable work. Simpler projects with a trusted builder are often better managed on a cost-plus basis, with detailed weekly or fortnightly invoices.

• Whichever option you choose, make sure you agree on a budget cap for each stage of the project, to be fully invoiced at each stage to avoid a massive bill at the end. Negotiate any variations or overruns as you go – do not defer them.

It’s not the case that the most expensive quote is always the best, nor that the cheapest is the worst but getting it right in the beginning is where you can make huge savings in the long run - short term pain, for long term gain.

Let us give you an example.  

You’ve had your plans drawn up and have been told that you need to engage a structural engineer.  You might seek out a couple of engineers and obtain two quotes.

Quote 1: $2000
Quote 2: $4000

After further research of both companies, you could feel confident that you’re comparing apples with apples.  Both quotes allow for the full set of structural plans, both being delivered within 3 weeks.  It’s a no brainer in your mind. You proceed with the cheaper of the two quotes and give yourself a pat on the back having saved yourself $2k.

The problem with this scenario is that the project engineer has the ability to dictate how a huge portion of your build budget is spent.  Your foundations and framework make up approximately 20% of your build budget.  On a $1.5 million project that’s $300k.  

Now let’s think about our two engineers again.  What if the cheaper engineer wasn’t the most suited to your project?

What if the way he designed your structure meant that the structural component of your build totalled $320k.  What if the engineer that got away would have done things differently and worked with your builder to come up with the most cost effective design? What if this approach meant your structural component totalled $280k?

Aside from a potential grunt or whinge from your builder who mumbles at some point that he really doesn’t like the engineering plans you remain blissfully unaware that there was a potential $40k saving on the table that slipped away. 

Because that’s the thing with building, you don’t know what you don’t know.  

While we’ve given an example of the engineer this scenario can be applied to the building designer or draftsperson, the interior designer, the builder, the list goes on.  

To clarify, it’s not a case that you should always avoid the cheapest quote, and go with the most expensive. But if there’s one thing to take away it is that it’s not the bottom line that should dictate your decision making when it comes to selecting your project team.

Ensure that you have a team of trusted experts, with the right knowledge and industry expertise for your project. This will help you to avoid costly mistakes throughout your project, and help you feel supported in the process.

In the meantime, if you’re looking for some friendly advice from our team, we offer a complimentary consultation.