Developing a property can be a challenging job. Many problems can suddenly come in the way of the project and extend home building costs. It is the job of the project manager to ensure minimum hiccups along the way. I think, sometimes, we do not budget enough for building works. It is all good to make a cost estimate and run feasibilities but it is unwise not to budget for contingencies. If experience teaches us anything, it is that very few projects go as planned and even the slightest unforeseen circumstances can raise your budget a few notches.
Development project keeps evolving continuously
Another thing I have learned is that development and designing keeps evolving as you keep soaking in more details. The plans are lined out in three steps, with each succeeding step more elaborate than the one before it. These are Concept Plan, Development Application (DA) Plan and Construction Certificate (CC) Plan.
The three steps: Concept Plan, DA Plan and the CC Plan
The concept plan just outlines the number of villas intended for development and their sizes. The DA holds substantial information and usually the council is content to receive it. The CC plan is even more detailed and includes technicalities like engineer drainage. The certificate also attests that the work you are planning on is approved by the Building Code of Australia (BCA) and permits building work to start on the project.
Concept plan
Any build estimate is conceived by comparing it to similar projects done in the past. There still needs to be an allowance for the current site because each site poses one unique challenge or another. The build estimate derived during the concept plan tells whether things are running within budget. If there is a clear case of overcapitalising, certain changes–like decreasing the villa size–are made. Herein, the vote of the builder and the designer/architect is sought. Their togetherness is the hallmark of a successful development project.
Development Application Plan
Next, the builder prepares a cost estimate for the DA. Even this is not the final building estimate, but it is definitely the road ahead. The DA is prepared after the client’s approval and marks the phase of transition towards the final CC plan. Engineers are asked to do the needful, and they are provided with a brief regarding the project. It is here that levels are finalised and schedules are cross-checked.
Construction Certificate Plan
A private certifier stamps the CC plan but not before a third cost estimate is offered by the builder. Unless there are further revisions, this cost estimate is nearly the final estimate. At this stage, the builder issues a building contract, a fixed price one. There are certain provisional expenses talked about but the eventual amount billed to the client is approximately the same as offered in the fixed contract.
Provisional costs
To come back to the provisional costs, no one can be too sure what these may amount to. Take for example, the cost of retaining walls and removing fills. Even if there is a slight variation from the proposed plan in the site cut, the height of the retaining wall may end up being different. So you can see why the budget may just skyrocket.
Client’s builder or mine, I am good with both
It is then easy to figure out that the build estimate is a continuously evolving creature and till the process of development finishes, there is no saying where the final cost can lead us. As a designer, I take this part of the job pretty seriously. In all the years I have worked, I have come to attach myself with a few reputed builders and I do recommend them for the job. This said, I am equally happy to work with a builder my clients like to engage. In many instances in the past, I have been able to prefigure the project budget pretty accurately. If nothing, it gives a lot of peace of mind to my clients.