Custom design, tender to small builders

Hi guys, recently asked few questions here and all got good advice. Thank you.

Can anyone share some experience with tender and build with small builders.

I would like to get a building designer (award winning) to custom design for me, submit DA, and then complete the engineering drawing and he will write a specification (20-30 pages). Then he will assist to choose few builders he often work with and tender out the job. Compare the price and finally choose one builder.

Few questions:
1. Due to the specification all specified, usually bigger builder won't take the job. Or, they can quote but will not follow the specification instead they use their own specification. So, the job finally will go to small builders.

Has anyone done similar? And how is the final result. Save cost? Or expensive? Will you do it again? If do it again, will you design and build with bigger builder or still tender and use small builders?

Not saying small builders no good, but see some of them disappear few years time due to various reasons. How about warranty? Some more, bigger builders got more buying power.

If I go this route, the cost for building designer will be 10k, plus additional payment to structure engineer and other consultants. All inclusive will be 15k. The designer told me I can actually save money through the tender process and compare price.

The payment will be few stages. 1000 deposit upfront, Concept and floor plan 10%,
Drawing with most detail （can use for rough costing) 35%, engineering drawing+specification+ tender out - pay all the rest. Basically the cost will be about 35 dollars per square metre.

Can you share your experience?

Also, is good to take full service? Or partial service? E.g up to drawing with most detail (can use for rough costing). Or better to work with big builder with good reputation.

Thanks in advance.

Take a full AEC design service include Quantities, Data and proofs, Costs and Simulations, 3-5% contract value is a fair price.
Otherwise on a difficult build you might be in for surprise$, worse still have a nightmare, defective build,etc
Forewarned is forearmed

Thanks for reply. Regarding on difficulty, my build is single storey and I just want above to average specification and finishing. As my budget is not that high, so I think this will be not a difficult build. Single storey, about 365 square metre, build budget 400k, all inclusive ( landscaping, painting, flooring,etc) no more than 500k.

500k /365m2 = $1369. Including landscaping that’s going to limit who you will be building with I’d think. Most the builders in my area are $1500-$1600 and that’s the volume builders. Custom builders are closer to $2000

500k /365m2 = $1369. Including landscaping that’s going to limit who you will be building


I build single storey only. Usually single storey will be cheaper than double. Same size, 100k difference.
I got nature garden which I want to keep. So no need to spend too much on landscaping

Mines single story also. Still talking that $1500 range here for the finished product. As I said. Other areas and builders are different but every quote I received was between 1480-1600 and that’s finished with flooring lighting painting driveway etc.

Maybe a good plan before spending $15000 on getting someone to draw up plans would be to go to a builder. Use one of their plans with every add on you want in the quote and see what $sqm it comes out at. That way you know where your budget will be.

Make sure they include flooring driveway lightning painting and possibly landscape and fencing in that quote.

Thanks for sharing. I can add up some budget when I need to

Thanks for sharing. I will let them include all but with break down cost. But usually, I heard will be cheaper when you got contractor to do driving way as builder always mark up

Hi, which city are you at? I'm currently building a be-spoken home in Sydney. My plans were completed by an architect (concept design and DA) and building designer (construction documentation). When I tendered the project, the minimum cost /sqm is $2,500 for custom homes on single storey on average fittings. Most charges $3,000+/sqm. I quoted 6 builders, some were recommended by my building designer. All 6 builders are small builders and had good recent projects and mostly happy customers to provide references. One thing that I recommend is to engage a quantitative surveyor to review the cost breakdowns and get to very granular level before you sign your contract with your preferred builder. It's inevitable to have variations and additional costs during the building process even if your contract price is fixed and this will save you ten of thousands and unnecessary disputes with your builder. The cost is $5-$6K. Some banks cover this cost if you take out construction loans over certain amount. E.g. If you would like to reduce scope to save costs during the building, it's an easy discussion with the builder to deduct the costs from the contract price when the itemised prices are very detailed. If you would like your builder to do additional work it's also easier to work out the additional costs if similar work is already included in the contract. E.g. supply and install one additional power point.

I don't think your 500k budget is too far off.

My current custom builder is running at around $1600 per m2, and two other custom builders I approached gave me a similar quote. And that's for a double storey house. Singles storeys can be around 10 - 15% cheaper than double storey builds. So I'd estimate your build cost to come in at the high 400's

And unless you're planning to have a display garden worthy of the International Flower and Garden Show, landscaping, fencing, driveway isn't going to cost you 100k. Depending on the size, basic driveway, fencing and landscaping should come in well under 20k.

I am in Perth. Looks like the custom home in Sydney is very expensive

500k all inclusive is achievable but cannot do a lot of upgrades

Best luck to you on finding a good custom builder and hope your building process goes smoothly. After reading some topics on this forum I realised how expensive Sydney is. Sigh!!!

Cheers. Sydney is very expensive.

The Perth Building market is in recession...it's a great time to build
Bricklayers/builders are charging $1.10/brick in Perth compared to $2.00/ brick in Sydney. (there is the price difference)
Get your own design/engineering data, costs,etc , put it out to 3 builders to tender, and then select your preferred builder to re-tender.
BTW, $15K for Design and engineering in perth?
I suggest your designer is overcharging and is probably getting a kickback (commission) from the Builder, which if not disclosed is illegal in Perth. Also check all the Building Compliance forms, certificates carefully
Cheers
Chris

The designer want to charge 25-30 per square metre. But this doesn't not include structure engineer fee and other consultant Fee and council fee.

The current rate is $7-$10m2 you can get less on airtasker but you won't know what you're getting and chances are they won't be certifiable and enforceable during the build.
here are the quick Calcs
At 365m2 x $30/m2 = $10950 Design Fee?
365m2 x $1000/m2 (Build cost) = $365000 x3 /100 (3%) = $10950 3% Sales Commission?
Which is it, design fee or sales commission both are the same amount
hth
Chris

30 dollars/ square covers design, DA, working drawings, specification and tender out, choose one builder. Usually the designer will recommend maybe 2,3 builders (you can also recommend another 2 maybe; usually the designer don't recommend go over 4). The designer will provide recommendations to choose an builder. I think there is some sort of commission between designer and builder, but not sure ( anyone know this? ).
You saying 7-10 dollars/square metre. Much cheaper than 30 dollars!

I suggest you also look into what happens if the builder doesn't build your house according to the original design and certified engineering
(Check all the BA Forms ... lol the ones you'll never get to see at DA)
HIA build Contract without updated plans
Check airtasker New House designs are $2-$3K ~ 7m2 x House Area
hth