Frequently Asked Questions

Why do Rosella Homes Avoid Providing a Square Meterage Rate?

 

At Rosella Homes, we get asked that a lot! 

“How much does it cost to build my house?” / “How much do you charge per square meter?” 

 

The reality is, NO builder in Melbourne can give you an accurate figure for a custom-built project, as there is no set rate! That’s because no two projects are ever the same, no site conditions are the same, and no clients are the same. There are so many factors that determine the cost of a build, so when a builder gives you a rate or a figure for your project based on a square meter rate, just be aware – it is just a guess. Some items that may affect the cost of your build include: 

 

• Sloping block

• Soil conditions

• Building materials (structural steel & timber, cladding, etc.) 

• Size of the Dwelling/s

• Finishes & Building Design

• Energy Efficiency

• Construction Methodology

• Access to & Around the Site

• Client Expectations (different for everyone!)

• Authority Fees

  • Electrical Pit

  • Water, gas & electrical meter costs

  • Property Identification Code (PIC) Application (Application to connect to sewer & water)

  • NBN Connections

  • Telstra

  • Foxtel

• For unit developments, you’ll have Subdivision Costs & Open Space Levies

• Consultant Costs

  • Building Surveyor

  • Engineers

  • Soil Report

  • Energy Rating

  • Landscape Plan

  • Other Services Consultants (electrical, plumbing, air conditioning, etc.)

• The list goes on!

 

A square meterage rate can be useful at the outset when formulating a starting budget. If the client has a budget of “X” amount, then the size of the building is approximately that, divided by the rate. This rate needs to be verified by the builder by producing an appropriate quote. More often than not, the rate applied at the beginning of the design process is different to the ultimate cost.

 

An appropriate quote requires the builder to fully understand the plan, the scope of work, the site condition and time constraints. When providing an accurate tender for your project, each component is priced accordingly before being assembled to produce the final figure. This is inclusive of obtaining prices from trades, suppliers, as well as completing specific “take-offs” for various elements of the build, such as materials and labour.

 

Other Builders Provide a Free Quote. Why Does Rosella Homes Charge a Fee?

 

In order for a quote to be accurate, it needs to contain clear and detailed information for both parties. An accurate quote takes a significant amount of time and money to prepare, as each project is

different in its scope as well as the site conditions.

 

It is easy to get a “free” quote, but some builders will not want to spend the time or effort. They can apply a square meterage rate, or provide a low-ball quote, and make up their margins by lowering standards or adding extras during the build. Too often, the owner engages the lowest-cost builder because it is hard to understand the quote. What sounds like a good deal in the beginning can end up more costly, or the project just fails to achieve the desired outcome.

 

We’ve come across this firsthand, where a client went with the cheapest builder. Not only did their project end up costing more than our original (and accurate) tender, but the project also took an additional eight months to complete! Now imagine yourself being in that same situation, the stress, the financial burden, the unknown quantity of time/quality/cost… the confrontation! You’re about to spend a significant amount of money to build, so why would you risk getting an inaccurate quote?

 

A paid service allows us to spend more time investigating deeper. In particular for renovation work, multiple site visits and confirmation may be required. If we are willing to enter into an agreement with you, we are committed to producing a quality quote with all of the scope assessed, as well as unforeseeable items allowed for. 

We also acknowledge that if we do not win the job, our expenses will NOT be recouped from the fee we charge. During our initial consultation, we will estimate if the owner’s budget is workable. If we believe there is a mismatch, we will not offer this service.

 

If Rosella Homes is awarded the project, the fee charged to produce our tender will be taken off the contract price. That’s a cheap insurance policy to ensure the success of your project!

 

What Documents do Rosella Homes Require for a Quote?

 

If we are provided with accurate and detailed documentation, the quote produced will be precise. For a typical project, a three-to-four week turnaround can be expected (depending on the size and detail of the project). On the other hand, if the document is lacking, the quoting process may take a little longer so that relevant information can be obtained. 

 

Ideally, we would require an electronic copy (PDFs) of the following documentation:

 

• Architectural Working Drawings

• Specifications

• Finishes Schedules

• Structural Working Drawings

• Civil/Drainage Drawings

• Geotechnical Report 

• Landscape Plan

• Energy Rating 

• Joinery Plans 

• Other Services Drawings. 

 

Not everything above is mandatory; however, the more information you provide us with, the more accurate your tender will be. If you are missing any of the above documentation we can assist you with obtaining these from consultants we have strong working relationships with. Alternatively, we can provide you with Provisional & Prime Cost Sums for elements not detailed. 

 

How Much Do You Charge For a Quote?

The fee we charge you will be dependent on the estimated length and complexity of the job. For example, a small renovation project could cost around $750. An architecturally designed home with plans already supplied by the client would generally cost around $1500. Townhouse projects can cost approximately $400 - $700 per unit. 

 

What is the Difference Between a Bill of Quantities (BoQ) Provided by a Quantity Surveyor (QS) and a Builder’s Quote?

 

For a custom build project over $800,000, it is normal practice to engage the service of a Quantity Surveyor (QS) and to produce a Bill of Quantities (BoQ) early in the design process. The main purpose of a BoQ is to itemise and define a project so that all tenderers are preparing their price and submission based on the same information. It is not uncommon to find that the quotes from builders differ to the BoQ report, this can be due to:

 

• Tendering builder’s capacity and workload in their pipeline

• Quality of the trades that the builder employs

• General market conditions at the time of tender

• Builder’s different assessment of the project risk

 

Each builder has a different assessment of the project risk and applies a different methodology to run the project. Rosella Homes ensures all projects we deliver are tested through our rigorous quality assurance program before they are handed over. We have developed systems and procedures to allow a consistent level of quality.

 

What are Prime Costs (PC) and Provisional Sums (PS)?

 

To make the quote/contract as accurate as possible, you need to define what exactly is going to be included, down to details such as what light bulbs you are going to use. Sometimes, that is not possible at the time of quoting or contracting. There are two common terms used to allow for such variables.

 

Prime Costs Items (PC):

PC is an allowance made in a tender or contract for the supply and delivery only of an item or items of material (e.g. taps, baths, light fittings, etc.) that have not been selected at the time of tender or before the contract is signed, or for which the Contractor was not able to provide a fixed price on entering the contract. The Proprietor/Owner would normally make the final selection of the item, which is subject to a PC allowance.

 

Provisional Sums (PS):

PS is an allowance made in a tender or contract for particular work which could not be finalised before tendering or signing a contract, and which includes the total cost of the supply and installation (e.g. joinery, landscaping, air conditioning, rock removal, etc.).

 

Where PCs and PS allowances have to be shown in a tender or contract document, the amount shown should be inclusive of GST.