Tony Liu
- Apr 20, 2020
- 2 min read

Importance of budget control during designs

When you start a journey of building a new home, budgeting is the most important. However, as you progress the designs with an architect, enlarging floor areas and adding special features (that are expensive and require more maintenance) may often happen. When you finally obtain consents from the council after one and half year, you will ask some builders for quotes, and find actual costs and issues in the plans. Some architects focus on beautiful designs and maybe don’t think about details and total costs carefully, and your buffer for civil works may go over easily.

Japan Homes do design and build. We usually provide our clients preliminary estimations when we do concept designs, and when we complete structural designs. By our builder’s eyes and advice from subs / suppliers, our estimations are clear and realistic. Building a new home, there are many items to consider as costs. We believe it is no point to show our clients vague and cheap figure at early stage, because we don’t want them to suffer and be stressed out at later stage. To succeed the project together, it is important to face each other honestly and lead them with our professional advice thoroughly.

Let’s see an example that we have often had.

Client

I have completed RC and BC. Can you please give me a construction quote?

Sure. Looking the plans, your proposed houses will be built on a steep site and have special features of cedar cladding. May I ask you total budget in your mind?

JPH

Client

I don’t know, this is my first project. During the designs, no one really advised me about the costs. I just followed my architect’s design suggestions, and it took so long to get the consents, so I don’t want to make any changes.

Hmmm… Do you have bank’s pre-approval?

JPH

Client

I have a rough advise only. But I’ve heard general construction costs are around $2000/m2 x total floor area. So in my case, I think $2000 x 200m2 x 2 houses = $800,000?

In Auckland, construction sm rate range is around $1800 to $3500/m2, depending on specs and designs. For your case, you have special features, so it may go over $2000/m2.

Also, generally speaking, the rate calculation doesn’t include anything apart from the house.

JPH

Client

Oh… What are the exclusions?

Common exclusion items are :

– Demolition (Asbestos removal) – Earthworks (Excavation, Retaining Walls) – Landscape (Deck, Fence, Gate, Topsoil, Paving, Garden) – Driveway and Vehicle crossing – Services (New power/water/gas/phone) – Drainage – Subdivision costs (Council, LINZ, Consultants, Solicitor)

– Air-conditioning, Fireplace, Central vacuum – Furniture, Curtains

JPH

Client

So, how much will I need at the end?

Japan Homes can provide you clear estimations with all the breakdown. If you need finance, we can assist you mortgage. Please share us every data of approved RC / EPA / BC package.