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Site Cost

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I am planing to build with PD. I was quoted $26K for fixed site cost.
Not sure how this figure was derived.
Sales person, said thats the price based on location and sruvey drawing.
How can I know if this reasonable or too high ?

my block is flat and no slope as I survey and took photos of it
Just felt I needed more evidence to justify.

What should I do
Their fixed cost allows for anything that may turn up unexpectedly.

If they hit rock, its their bad luck.

I would assume its also based on a soil report and if not that site it would be based on multiple surrounding it.

You could always ask if there is an option to go for cost+ their regular margin, but you may end up paying more if they hit something unexpected.

Ultimately $26k isn't all that much, but its relevant to where you're living.

If you have the opportunity, try to speak to neighbors about what their site costs were and if anyone had to pay extra for unknown conditions.
Thanks mate.

My suburb is Rockbank, Vic.
I am sure some early phases have build.
I will ask them.
Thank you for your information.
Highly appreciated


CF Design
Their fixed cost allows for anything that may turn up unexpectedly.

If they hit rock, its their bad luck.

I would assume its also based on a soil report and if not that site it would be based on multiple surrounding it.

You could always ask if there is an option to go for cost+ their regular margin, but you may end up paying more if they hit something unexpected.

Ultimately $26k isn't all that much, but its relevant to where you're living.

If you have the opportunity, try to speak to neighbors about what their site costs were and if anyone had to pay extra for unknown conditions.
Half the time only 10k or so is fixed and the remainder is provisional. My site costs were about 25-26k and I got back over 10k because there were no issues onsite.
Hi Rhetti.
Does that mean even they fixed it at $26k, if the actual falls below that, they will not charge me at $26k?
Ie refund?
Thanks
It'll depend how its written in the contract, if its flexible on cost it will be in the provisional sums.
I'd want to be clear on what that $26k involves. You get alot of site work for that amount of money.
limumeng
Hi Rhetti.
Does that mean even they fixed it at $26k, if the actual falls below that, they will not charge me at $26k?
Ie refund?
Thanks

No refunds..That's the price
and as mentioned the price is loaded as to why?
Read the 1000's of issues people post here on homeone
Builders don't take risk, it's passed onto the clients
if anyone thinks they can do better AEC and price wise? ... I would sure love to hear about it
LOL, Instead I read the same ol propaganda /marketing from salesman..my2c
OT, Now's a great time to build , rates are low ie, Bank and build, most of the fly bye useless trades have left the industry and the good trades tough it out, Builders are keen to have your Business.
You having all the data and information is the key to reducing your risk, defects, cost, etc,etc,etc
If it's fixed, it's fixed.

You pay that amount, no more, no less

It's it's split, they'll have a min charge + a variable.

Contract will include both amounts, but costs could go up(this allows you to get financing for the whole allowance in the contract, but not for anything over that amount).

If it's purely provisional/prime cost then the cost could go up depending on what is found and the only amount you have finance for is the allowed amount. Again, if it goes over, you would need to find extra funds and it may not be fast depending on lender choice, also you may not be able to borrow more depending on your situation and the lender.
Variations to fixed prices in residential construction site costs are not immediately obvious but they are there if the builder/developer needs them.
limumeng
Hi Rhetti.
Does that mean even they fixed it at $26k, if the actual falls below that, they will not charge me at $26k?
Ie refund?
Thanks


Just check if it's a provisional sum. At 25k it'll likely be a worst case scenario if it's provisional.

If it's fixed, its a different story
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