The hidden costs of building kitset homes

by Jeremy Richards

hidden cost of kitset homes
Not only is it becoming more expensive to build your own home in New Zealand but building on a budget can be a massive challenge just through standard challenges that most builds face.

Statistics from QVcostbuilder show that building costs have risen substantially in the past year. The data shows that the average cost of building a new home in New Zealand's major cities has increased by 3.5% on average. Compared to ten years ago the cost of building a new home in New Zealand is up by 25.5%.

But what about the standard additional costs, those typical pitfalls that almost every building project suffers from?

The weather plays a massive part in dictating the cost overruns of a standard home building project. Cold weather can result in concrete not setting, wet weather can delay access to site and stop tradesmen or builders from completing their tasks, high wind can put a further stopper on progress.

Project management can be its own worst nightmare as well. Done well, and by a professional, and your site will have contingencies in place for most eventualities. However if not done properly, and with a single piece of the puzzle out of whack and the whole procession can come to a grinding halt.

"But wait!" I hear you cry, "isn't my builder the project manager?". In some cases, yes, in others, probably not. Project management is like an HR manager, someone in marketing or operations might be able to do a little HR 101 thanks to a module at University but doing it well, and getting the best outcome for you, is best coming from a specialist.

You can look for project managers and builder on sites like Builders Crack, it's always good to do background checks on anyone before you hire them either way.

How much will these building delays cost?

hidden costs of a kitset home

That's very much in the old 'how long is a piece of string' category of questions. some building contracts will have clauses that outline what an 'excused delay' quantifies as. These are usually events that cannot be foreseen or predicted (otherwise know as force majeure). Sometimes these forces will have a stipulated cost impact, after all a builder that can't work on your site due to weather or their materials not arriving on time could have worked on another site that day so you're causing them to lose income. How much that cost will likely be stipulated in the contract.

Some contracts go into even more detail with 'Owner Caused' delays. These are realised when the owner changes the project or plan and that has an impact on the project causing delays.

So even though it's relatively easy to find a standard costing model for determining how much it will cost to build your new home the realities of cost are likely to be much different. Also, don't forget to add consents and inspection costs into the mix.

Of course you could avoid these headaches very easily and still benefit from the joys of moving into a brand new home of your own.

Prefabricated homes are built in a factory, so weather delays are very difficult to come by! A prefab home is then delivered to your site meaning that there are fewer on site disruptions, and impact on roads/driveways, than kitset homes.

Genius Homes also includes consents and inspections in the price of the home meaning that a quote from Genius Homes is much closer to a set price than many other building projects.

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