Skip to main content

Article On Estimating Project Cost By Adam


Article on Estimating project cost by adam

Adam Weaver adam@allrisk.com.au
11-05-2018

How much will the build cost?

... would have to be the number one question facing any owner builder. 
From our perspective, it's a vital question, too, as that sets the maximum amount of money an insurer can reimburse you the following damage.

Build cost

For a starting point, talk to your council or to your private certifier. Chances are they've seen all of this before, and might have some tips for you as to a "standard" sort of per-metre figure to use. But that figure is just a starting point, costs can increase from there.

Timeline

Hopefully, you've worked out a project timeline (whether in a Gantt chart or just with pencil and paper) so you have a rough idea of what needs to happen when. Now factor in some slippage - what happens (for example) if the brick delivery is delayed? Or the concreter falls ill (or busy on another job). What will a two-week delay cost?
Sadly, delays cost more than just time. Hired in plant, equipment and temporary buildings need to be extended at additional cost, and the "competitively priced" tradesman may not be available for that new window of time.
Again, talk to your certifier or your builder to find out what a reasonable "slippage" percentage would be.

Materials shortages

Sometimes, some of the more exotic building materials have an unusual supply chain. The fancy wall materials coming from Eastern Europe (this is a real incident) could be delayed massively by shipping, or even a disaster like a fire at the originating factory. Those panels tick all the boxes, but if you can only have one supplier, there's additional time & money risk to account for as well.

Mistakes and accidents

Lastly, any damage on the project will cause delay while your tradesmen have to clear away the old damage and start again. Hopefully, you're insured so the extra materials & labour cost will be indemnified ... but the time delay can't be insured.
We've seen disasters happen at the 11th hour, sending the owner-builder almost back to the start line to rebuild. The costs were fully insured, but the aggravation and heartbreak aren't.

Simple advice

One simple thing is to find out what a professional builder would charge to do the work. It will probably be a lot more than your own projections, but part of that extra cost will be the builder factoring in slippage, supply chain disasters, and a general "cost overrun" allowance as well. On top of that Allrisk owner builders receive a 15% allowance for "escalation" to cover off some increased costs (typically following regional catastrophes) so you have a bit of additional leeway.
Why not get a range of quotes from us today? Our quote process is very simple to complete - 90 seconds on our online form and you'll have a quote document in your e-mail setting out a range of options to consider.
Table of Contents Main Site
Social Platforms
Insights
Table of Contents


Comments

Post a Comment

Popular posts from this blog

Best Owner Builder Insurance Australia

All around Australia, many people use owner builder loans to acquire a house for their family. This is one of the popular options for Aussies especially those who are trying to save money. However, others choose this because they have enough time to do a construction project while others just do this because they have the skill for building and this is also what they do for a living. Whatever their reasons are, they all need insurance for this undertaking. Regardless of who will be doing the actual works, applicants must produce insurance first for the building along with other required documents for the local city council’s approval.     Some tips for a secure deal and quality service             Check for the best mortgage companies to work with Do a research about the different insurance companies in Australia Learn extensively about their products and terms. Ask them important questions. Select your company of choice, know ...
Post a Comment
Read more

Insuring Owner Builders

Adam Weaver  adam@allrisk.com.au 21-01-2018 What is owner builder insurance? Owner builder insurance is  construction insurance  - covering a non-professional-builder working on his/her own residential building job against damage during the build, and for public liability. Construction insurance refers to protecting the  works  (the "contract works") against damage - e.g. fire , storm, earthquake, vandalism, theft of building materials, and other perils. Public liability insurance refers to protecting the  builder  (the "owner builder") against claims of personal injury or property damage - e.g. a visitor on site being injured, or the neighbouring property being accidentally damaged by the build. Other types of owner builder insurance Include  existing structures , your own  tools ,  volunteers'  loss of income following injury on site, and  workers compensation . These are all optional, and you s...
Post a Comment
Read more

What Does Insurable Interest Mean?

Adam Weaver  adam@allrisk.com.au What is an insurable interest? A key term in insurance is "insurable interest" - it's a key requirement for you to be able to insure something.Yet this is one of the most misunderstood concepts, so let's look at what it means. Interest "Interest" means an asset or responsibility belonging to you (the policyholder). Something that affects you personally, and for which you're responsible. So your car, for example, or your home under construction. Or the building materials you've purchased and sitting on site . Think of these financially - if they were damaged, lost, or stolen, you would suffer a financial loss. You would have to pay to repair or replace the items. Intangibles can be interests too Another type of "interest" is more intangible - like legal liabilities or responsibilities. Like being sued for personal injury to a person or a worker in your care, or someone's...
Post a Comment
Read more