Sunday 13 April 2014

Maybe we just cannot ever afford this....

The final piece needed to green-light our project has come in - the builder's quote.
Except that it's over our budget.
About $250,000 over budget, to be precise.
We've come to the point where this is no longer upsetting... it's just pissing us off.
Sure, you hear that the building industry is replete with people who want to rip folk off by hyper-inflating prices. We entered into this with our eyes open, and expected there to be a slightly higher cost as we are building in Tasmania, and not on mainland Australia.
But this is just insulting.
In this Internet age, it's fairly easy to locate companies that will supply & install in the most remote of locations. So in the intervening time between receiving this and the previous quote, we've been making a few phone calls. This exercise was also partly a sanity check - we had begun to think that we must have such unrealistic expectations that it had completely clouded our perception of what the build would cost.
So, let's look at a couple of examples...
  1. We've had a couple of quotes for a custom-made glasshouse manufactured to our specifications, and shipped to Tasmania. Approximate cost from our research was $12,000. Cost on quotation $26,934.51. That's about $14,000 difference.
  2. We've had three quotes to supply and install (on the actual site address) a 7.5kW stand alone solar power system, with AGM batteries, a German inverter and back up generator. The average quote we received was approximately $34,000. Cost on quotation $66,340. That's a whopping $32,000 difference!
On those two items alone, the difference is about $50,000. And we don't have any trade discount or connections.
This makes us wonder, do the builders:
a) think we are really, really wealthy?
b) think we are really, really stupid?
c) not actually want to build the house after all? or
d) all of the above?
We really wanted to use them, because we admired the quality of the work that they had done on other builds. But we are very much feeling like we are being taken for a ride.
As the quote only came in on Friday afternoon, we are yet to discuss the detail with the architects. However, from our calculations, even if we replace all the subcontracted items with suppliers we source ourselves, there isn't going to be anything like $250,000 worth of savings.
And for what is a very small house (one bedroom, one bathroom, combined kitchen-diner) only a madman would consider the amount quoted is reasonable or viable.
We progressed with the build because the initial estimate we received (on this very design) last July was in the vicinity of $480,000. Which sits happily within our budget.
We are completely unable to fathom how it can now be priced at around $700,000 + fixtures / fittings + driveway for the same building. Either the builder's estimating tool is so erroneous as to be useless, or something else is going on.
Maybe, we just have to give the dream away.
V&A

6 comments:

  1. Hi, I do follow your posts about your house for some time and I’m really shocked to see how much it costs to build a house in Tasmania. I think the quotes are total rip-off.

    We also plan to build in Tasmania, but my plan is to be an owner builder and use third party only were required. Our plan is to have simple passive house that is easy to build and maintain. We have looked to build house from shipping containers or Quonset house from “SteelMasterUsa” which we really like.

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    1. Thanks Fero... unfortunately, our owner-builder skills aren't up to speed, or we would be doing the same thing. We love shipping container houses too, so I hope you send us some progress photos. Thanks for your support

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  2. Hi we have just started on our find a builder journey , we are from Qld and can't get over the cost compared to Qld. But hope to find one that will work with our small budget. Got some land at Cradoc,right on the Huon river, amazing views!
    Cheers Lorri

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    1. Hi Lorri - we found that the biggest 'killer' was from the subcontractors. If required to travel anything over about 10 mins from their base, it's considered 'remote' and their costs were reflected accordingly (something which was really hard to grapple with when a return journey in the same day to the Gold Coast from Brisbane is a common occurrence with us!). I think also if we were more 'normal' (dare we say?) and were after a more 'normal' house (rather than trying to accommodate 2 fit-for-purpose studios) then it would also have been more affordable. We love to see some pictures of your land - please keep in touch and let us know how you get on.

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  3. Hi I am going to get a house from Wilson builders, pay $161,000 a 15 square house and add septic system, tank water, double glazing, extra insulation, stacker doors etc , by going with qa project home builder I pay a smaller price so can afford to add all the extra things i want for a good price, please have a look at them because you are getting ripped off by your builder., I have lots of builders say they can build a house form $1400 a square.

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  4. That's a fantastic price! We did look into project homes. The problem we encountered was that because we are a non-standard family (!!!) and once they changed the build quality to meet the block's BAL requirements, we were looking at over $300k ... and that would be for a 'lightweight' building. Never fear - undaunted we have found a mad place which seemed to be built with us in mind ;-)

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