Browse Forums Building A New House 1 Nov 02, 2008 4:37 pm I was given a full brick quote. The brick veneer price was $112,000 less.
I was told by a kit home at homeworld that the standard full brick cost was from $80,000 to $100,000 more on top of the brick veneer price. Their new full brick quotes for their existing designs were correct as to what they said. So, when I worked out my custom quote, why do I end up with $56,000 more for the full brick version? Now it's probably more because I got the quote in February 2008. My home design is the same or smaller in metres sq from their existing designs. It is rather a plain design, looks like a square with windows on it. The rooms are basic square looking, one after the other. Straight stairs. Not complicated design at all. Standard inclusions, nothing expensive or fancy. When I asked them why my design was more, they couldn't give me an answer that actually made sense. They said it was because my design was complicated (not true). Does anyone know the real reason? Also, 2 x 2500L water tanks were quoted $20,000. If you purchase them yourself they're about $1500 each because that size is not that big. Also another project construction company gave me their full brick quote and it was $200,000 more that the full brick quote the other company gave me. Question Summary: 1. Why is there such a large difference between quotes from different companies for exactly the same thing? 2. Why would they charge $20,000 for 2 small rainwater tanks? 3. Why does custom built designs cost more? Re: Why is a custom design quoted much more? 2Nov 03, 2008 5:37 pm orange Question Summary: 1. Why is there such a large difference between quotes from different companies for exactly the same thing? 2. Why would they charge $20,000 for 2 small rainwater tanks? 3. Why does custom built designs cost more? My two cents worth; Answer 1 - because different builders have different markup prices to cover their costs, Yes the item may be a fixed price, but builder 'A' will add 10% for his pocket, and maybe builder 'B' will add 20% for his pocket. Answer 2- Because 9 out of ten people will actually pay it, Your one of the one in ten people who query it. Answer 3 - Custom built design cost more because there is a fear of the unknown. Volume builders have a tried and trusted house type system that is fully costed down to every nut and bolt, there is no unknown factor (except of course site works-which differ every time). A custom build has many unknowns, many little snags which the builder wont forsee, as a result of this fear, he marks up the price to protect himself. Hope this helps a bit, Pat. Re: Why is a custom design quoted much more? 4Nov 05, 2008 6:53 am There is also that volume builders they get a discount on materials simply because of the amount they buy.
You will also tend to see better quality materials being used in custom houses. Custom builders are usually more open to change (in fittings, materials, design etc.) and are more flexible, adding a greater level of risk, which raises prices. After 2 false starts, a year living overseas, two more world trips and 3 years of uncertainty we are now starting the build process again - hopefully for real this time! Re: Why is a custom design quoted much more? 6Nov 05, 2008 6:47 pm muzzman There is also that volume builders they get a discount on materials simply because of the amount they buy. Yes and that difference is quite large. muzzman You will also tend to see better quality materials being used in custom houses. Don't think that is a general rule - some volume builders are quality focused, some custom builders are less so. muzzman Custom builders are usually more open to change (in fittings, materials, design etc.) and are more flexible, adding a greater level of risk, which raises prices. They have to offer customisation to compete with the volume builder. Risk is a very real factor. Minx Also might u add custom builders pay the subbies what they charge. Volume builders pay their subbies almost half as much. This is not the case - subbies would not work for half pay... unless they had half a brain "ECOECO" At 'EcoEco', we design windows, we design the best windows, we do it for you, so that when you’re happy we are happy. Tel. 1800 326 326 Re: Why is a custom design quoted much more? 7Nov 06, 2008 8:09 am EcoClassic muzzman There is also that volume builders they get a discount on materials simply because of the amount they buy. Yes and that difference is quite large. muzzman You will also tend to see better quality materials being used in custom houses. Don't think that is a general rule - some volume builders are quality focused, some custom builders are less so. muzzman Custom builders are usually more open to change (in fittings, materials, design etc.) and are more flexible, adding a greater level of risk, which raises prices. They have to offer customisation to compete with the volume builder. Risk is a very real factor. Minx Also might u add custom builders pay the subbies what they charge. Volume builders pay their subbies almost half as much. This is not the case - subbies would not work for half pay... unless they had half a brain I'm going to disagree as my partner has worked for a large project builder before. They tell you what they pay you for a job, not the other way around. and yes it is much, much less than what the custom builders are paying him. With volume builders the subbies don't quote the job like they do for custom, the volume company say this is what we pay you for you to erect this frame. This is what we pay you for the fix on this type of home etc. Needless to say when working as a chippy, my partner only does work for custom builders. He has helped out a mate for a couple of days here and there on the Kew Cottages re-development though so he still has minimal contact with the "volume companies". Re: Why is a custom design quoted much more? 8Nov 06, 2008 9:31 am Minx I'm going to disagree as my partner has worked for a large project builder before. They tell you what they pay you for a job, not the other way around. and yes it is much, much less than what the custom builders are paying him. With volume builders the subbies don't quote the job like they do for custom, the volume company say this is what we pay you for you to erect this frame. This is what we pay you for the fix on this type of home etc. Needless to say when working as a chippy, my partner only does work for custom builders. He has helped out a mate for a couple of days here and there on the Kew Cottages re-development though so he still has minimal contact with the "volume companies". Two questions come to find after reading that... 1) Does that mean the volume builders only get the desperate/inexperienced/bad subbies then? 2) Are there any volume builder that don't do this? After 2 false starts, a year living overseas, two more world trips and 3 years of uncertainty we are now starting the build process again - hopefully for real this time! Re: Why is a custom design quoted much more? 9Nov 06, 2008 10:07 am muzzman Minx I'm going to disagree as my partner has worked for a large project builder before. They tell you what they pay you for a job, not the other way around. and yes it is much, much less than what the custom builders are paying him. With volume builders the subbies don't quote the job like they do for custom, the volume company say this is what we pay you for you to erect this frame. This is what we pay you for the fix on this type of home etc. Needless to say when working as a chippy, my partner only does work for custom builders. He has helped out a mate for a couple of days here and there on the Kew Cottages re-development though so he still has minimal contact with the "volume companies". Two questions come to find after reading that... 1) Does that mean the volume builders only get the desperate/inexperienced/bad subbies then? 2) Are there any volume builder that don't do this? 1. Usually Yes. Only person we know that is good and works for walker corporation (the same guy who is is working on the kew cottages re-development). Those places are architecturally designed and cost a bomb (a mill and upwards) http://www.kewinfo.com.au/architecture.asp 2. No. All the big residential volume builders do that. At the end of the day, if you are good you don't need the guarantee, word of mouth and reputation will get you plenty of work. Re: Why is a custom design quoted much more? 10Nov 06, 2008 12:53 pm I know and supply many volume builders, my best friend is one. I also know and supply many custom builders. It is impossible to get any quality sub-contractor at half pay. Sincerely, why would a volume builder use poor quality labour if it is going to set them up to fail. They have so much to lose. Their name makes them what they are. You read here so many bad stories, there are many more good stories. The worst story I know is a local custom builder commissioned to build a new home for a friend and her disabled partner. 2 1/2 years later, still not at lock up - the partner passed away. "ECOECO" At 'EcoEco', we design windows, we design the best windows, we do it for you, so that when you’re happy we are happy. Tel. 1800 326 326 Re: Why is a custom design quoted much more? 11Nov 07, 2008 8:29 am EcoClassic I know and supply many volume builders, my best friend is one. I also know and supply many custom builders. It is impossible to get any quality sub-contractor at half pay. Sincerely, why would a volume builder use poor quality labour if it is going to set them up to fail. They have so much to lose. Their name makes them what they are. You read here so many bad stories, there are many more good stories. The worst story I know is a local custom builder commissioned to build a new home for a friend and her disabled partner. 2 1/2 years later, still not at lock up - the partner passed away. I said almost. An example. A large project builder gives the chippy $1400 for a fix for their largest house which should take a week. My partner for a custom builder to do a fix which should also take a week pays anywhere between $2600-3k. My partner has direct experience in both, and those are the figures he quoted me. Secondly, in South Morang we went to check out randomly someones house that was getting built by one of the majors who a lot of the board members here use. My partner laughed at the frame and pointed out to me something that he as a chippy or builder would NOT accept from the carpenter. The metal brace on this project home that was on the end of the upper story floor joist was just put on. My partner was mortified. He checks in that brace into the timber and joist so when the plaster goes on its not humpty dumpty which in the light after screwing in the plaster on a metal brace that is not flush with the floor joists looks worse. That is one example that could go on. You think that the majors have a good name?? LOL. To anyone in the building industry...LOL. 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