General Information
Building Costs
Every self build project is as unique
as the self builder and this makes it impossible to give reliable,
generalised figures on how much a project will cost. When calculating
your budget, you will need to consider the following points:-
1) Purchase price of land.
Buying a plot will be your first major expense. Local estate
agents and land-finding specialists, like Plotsearch, can give you
an idea of plot prices. Budget to spend around one-third of your
money on the land and two-thirds on the build itself.
2) Professional service fees.
A solicitor will be required to handle the purchase and carry out
searches and stamp duty is also payable on the purchase price of
the land. You'll need a soil survey and, if your site is sloping
and drainage could be a problem, then a land survey is also necessary.
If you are converting an existing property, a structural survey
is an absolute must.
3) Planning Permission.
Before building you will need detailed planning permission and building
regulations approval and this will require a detailed set of house
plans. Many selfbuilders choose to have these drawn up by an architect,
architectural technician or building surveyor.
When submitting your planning application you will have to pay a
statuary fee to the council, along with a separate fee for making
a building regulations application. If obtaining detailed planning
permission is a problem, then enlisting the help of a planning consultant
is certainly worthwhile.
4) Re-housing costs.
These days, there is no need to sell your home to fund your project,
but if you choose to you will need to consider the cost of renting
a property or hiring a mobile home. Furniture storage costs also
need to be considered.
5) Insurance costs.
You will need site insurance once you have purchased your land and
a structural warranty to protect your pockets against unforeseen
problems both during the build and after its completion.
6) Build costs.
Building and labour costs will depend on the size of house, choice
of materials and whether you use an architect to oversee the build
or manage it yourself. An architect, building surveyor, quantity
surveyor or main contractor will be able to calculate a budget based
on a price per square foot. If you are building in timber frame,
then your supplier will usually offer this service.
Construction costs also include connection to services - electricity,
gas, water, drainage, telephone and highways. You should contact
each utility supplier for quotes in advance of buying your plot.
7) Contingency allowance.
No matter how meticulously you plan, there are always unexpected
costs. You should set aside at least ten per cent of your budget
to allow for the unexpected.
VAT and the Self Builder
VAT is added on to the cost of building materials and labour
but can be reclaimed providing your house is intended for your own
occupation. You will not be able to reclaim VAT on any professional
services, such as those provided by architects or solicitors. For
a full list of claimable items contact your local Custom and Excise
office.
With conversion projects, you will only be able to claim VAT if
the previous use of the building was non-residential, such as a
barn. Renovation projects are not zero rated, so you won't be able
to reclaim VAT.
VAT must be reclaimed no later than three months after you have
received a completion certificate from the Building Control Officer.
Make sure you claim includes everything, you will not get a chance
to reclaim anything further. If you want to include decoration costs,
buy your materials as soon as possible and then claim to stay within
the three month deadline.
Site Insurance
Site insurance is made up of three elements:
- Public Liability,
- Employers Liability,
- Contractors All Risk.
Public Liability covers you for people visiting your site, lawfully or not, or anyone outside your site such as a neighbour, who suffers
loss or injury.
Employers Liability covers you for any claim made against you by
someone working on site.
Contractors All Risk covers you for problems associated with theft, vandalism and storm, flood and fire damage.
If you plan to either manage subcontracters or carry out some of
the work yourself, a site insurance policy is absolutely essential.
You are responsible for the heath and safety of others, and it is
essential that Health and Safety legislation is followed to avoid
the risk of invalidating your site insurance policy. Many site insurance
policies exclude cover for your own injury, however, Project Builder
does include a Personal Accident section of cover as standard.
Structural Warranties
Structural warranties cover you against defects in the structure
of a newly built or converted house. The National House Building
Council (NHBC) has a Buildmark warranty scheme that gives a 10 year
structural warranty to those who use a NHBC registered builder.
If you plan to either manage subcontracters or carry out some of
the work yourself, you'll need a structural warranty. Your bank
or building society will ask to see evidence of an approved structural
warranty scheme in force on any home that is under 10 years old.
Even if you do not need a mortgage, it is as well to ensure you
are protected by a structural warranty. Project Builder uses the
"Premier Guarantee" which is listed in the Council of Mortgage Lenders
handbook and is accepted by all Building Societies.
And finally...........money saving tips
- Stay in your own house during the build to save on alternative
accommodation.
- Save 15% on building materials by buying them yourself. Subcontractors
will mark up the cost of any materiels they supply.
- Negotiate fixed price contracts. Foundations in particular are
hard to budget for.
- Drawing up an detailed budget and stick to it.
- Buy all materials on which VAT can be reclaimed before the three
month deadline for reclaimimg VAT. Think about decorating costs
and landscaping, even if you don't plan to do these straight away.
- Buying equipment rather than hiring. You can sell it once you
have finished with it - sometimes for the same price as you bought
it for.
- Open an account with several builders merchants to ensure you
get the best deals. On-line suppliers are very competitive and you
can easily compare their prices.
For more information or a beginners guide to doing a self build, you
can purchase some very good magaizines including: BuildIt, Home
Building and Renovating or Self Build and Design. Alternatively,
do this on line from our links page.
Good luck with your project.
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