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RIBA Chartered
Practice
Budget Calculation
Budget Planner - Typical Expenses for a Self Build Project
Item
Your
Estimate
Site Stage
Site Investigations, e.g. ground conditions
Land Cost
Solicitor's Fees
Stamp Duty
Comments
Detailed Design
Building Regulations Drawings Package
Building Regulations Local Authority Fee
Metric - Build Cost per Square Meter - multiplied by typical floor area
Floor
Area
70
85
115
140
160
180
200
Budget
1,100
77,000
93,500
126,500
154,000
176,000
198,000
220,000
Average
1,300
91,000
110,500
149,500
182,000
208,000
234,000
260,000
Good
1,500
105,000
127,500
172,500
210,000
240,000
270,000
300,000
High
Quality
1,700
119,000
144,500
195,500
238,000
272,000
306,000
340,000
Very High
Quality
2,000
140,000
170,000
230,000
280,000
320,000
360,000
400,000
Imperial - Build Cost per Square Foot - multiplied by typical floor area
Sqftequivalentofsqm.Figuresareslightlydifferentbecausetheyhavebeenroundedupforsimplicity
Floor
Area
753
915
1237
1506
1722
1937
2152
Budget
102
77,000
93,500
126,500
154,000
176 000
176,000
198,000
220,000
Average
121
91,000
110,500
149,500
182,000
208 000
208,000
234,000
260,000
Good
139
105,000
127,500
172,500
210,000
240 000
240,000
270,000
300,000
High
Quality
158
119,000
144,500
195,500
238,000
272 000
272,000
306,000
340,000
Very High
Quality
186
140,000
170,000
230,000
280,000
320 000
320,000
360,000
400,000
For a given standard of construction, the bigger the house, the more it will cost.
For a given size of house, the better the quality of construction, the more it is likely to cost.
800
700
600
500
400
300
200
100
0
/sqm
You may decide to upgrade the quality as the project progresses, pushing you over budget.
Picking a realistic cost per square metre at the start of the project, before anything has been
designed is an art, not a science. The only way to get a reliable cost is to have detailed drawings
and specifications prepared, and then get fixed price tenders from builders. Apart from size and
quality the following factors can affect cost:
Where You Build: The difference between expensive and
cheaper areas of the UK is 10-15% or more.
Your Input: Doing some of the work yourself can save
money, but if you are self-employed or lose the chance to
earn overtime you should take account of lost earnings.
Site Constraints: You must find out as much about
the site as possible and check the likely effect on your
budget, before you are committed to buy.
Finance Costs: How effectively you arrange your finance, how good a deal you get, how well
you plan cashflow and changes in interest rates will all affect your budget.
Management: Good project management and programming will be crucial to keeping on budget.
Design Skills: A good architect does more than create an
attractive building. A successful design is also practical
and makes the best possible use of your money.
Quotations from Builders: If the tender process is expertly
managed, it will save you tens of thousands of pounds. It is
not unusual for there to be 30,000 difference between the
highest and lowest tenders for a typical self build.
Site Management: If a project is managed by an architect,
it will reduce the temptation for the builder to claim
unnecessary extras. Projects lacking professional oversight
often suffer from excessive extra charges by the builder.
Finally...
When you have found a site
that you like, it is crucial to
check it out thoroughly before
agreeing to buy - factors such
as ground conditions, planning
restrictions and legal restrictions.
Site Analysis 1
Once you have found a plot of land which seems right for
you, a site analysis should then be carried out. Concealed
problems could result in a perfect looking plot being useless
to you, others in the reduction of its value. Although you
can carry some of the assessment out yourself, expert help
is essential in most cases. The list of items which need to
be checked is extensive, and is not fully covered here.
Ground conditions
The condition of the ground affects its ability to support
foundations; unsuitable soil types, water levels or
contamination can cause foundations to sink or crack. The
Building Control department at your District Council can
usually indicate likely ground conditions in an area, but
ideally a hole should be dug and the ground assessed by an
engineer. Sometimes samples will need to be sent to a soil
analyst in a laboratory. If the ground is found to be poor,
in most cases the site can still be used, by building deeper
foundations. However, this will affect both the budget and
possibly the position of the house.
Water
Waterlogging is usually caused by a high water table or
the presence of a spring. It is not always obvious but some indications are willows, patches of
unusually green grass, nearby wells and road names like Watery Lane.
With most soils waterlogging does not cause an expensive problem but sometimes special
foundations are needed, costing several thousands of pounds.
Clay
Clay swells in the winter when it gets wet and shrinks in the summer
when it dries out. If a house is built on a clay site these changes in size
can cause movement resulting in cracks appearing across the building.
A site assessment will highlight the presence of clay and allow deeper
foundations to be dug to negate its effects, Once the presence of clay
is apparent the extra cost to lay the foundations the necessary 30-40cm
deeper will be hundreds pounds for an average house.
Clay and Trees
The combination of clay and trees is potentially more
costly than the presence of clay alone. Tree roots absorb
water at different rates throughout the year and therefore
they can compound the damage caused by the swelling and
1M depth
shrinking of clay. These problems still occur even if you
of clay
swells and
decide to take down the tree, due to the clay around the
shrinks
in normal
roots swelling for many years afterwards.
conditions
The zone of influence of trees extends deep into the soil.
Site Analysis 2
Y
road
pavement
X
garden
If the area A is on
theneighbours land
theirco-operation
would be needed to
ensure visibility can
be achieved
boundary
boundary
Distances X and Y
are stipulated by the
highway authority
and depend on the
road speed.
Building line
along front of
houses
space needed
to turn
house
road
garden
No building
line as front
of houses
do not line up
house
If the fronts of a row of houses are in line, the planners may impose a
building line.
Planning Restrictions
It is essential to check if there are any planning restrictions on the site prior to purchase since
they could limit the type of house you can build. First consult the Local Plan, a document
which all local authorities provide, describing general planning policies in an area. Next talk
to the planning officer for the area. You can also take the opportunity to examine any planning
permission notice for the site. Finally check on recently constructed houses in the area to see if
any restriction in their design has occurred. Highway restrictions are usually registered when
outline planning permission is granted to a plot. It is also advisable to check for any future
development in the area, which could turn a dream plot on the edge of a village into a nightmare
on the edge of a council estate.
Mining Subsidence
Mining subsidence can cause cracks which make houses hard to sell
and therefore plots above active mining should be carefully considered
before purchasing. It may be necessary to have bores taken to check for
unrecorded bell pits and other workings. For special cases foundations
can be built to overcome the effects.
Demolished Buildings
Land previously occupied by other buildings can have several
different problems. The land can be contaminated if the building
was used for industrial purposes, filled if the site has been made up
of spoil and rubble, or have concealed basements. Some sites make
ideal building plots, even if they are covered in debris. As long as
the foundations can be dug to the depth of the original building and
the debris is not directly in the way of where you want to build,
such sites need not add greatly to your budget.
Contaminated Land
Contamination usually occurs when a site has been used for
industrial purposes and there is a residue of contaminants such
as sulphate bearing chemicals which attack concrete. Buildings
constructed on contaminated land are very difficult to sell and
should be avoided.
Site Analysis 3
Filled Ground
Ground which has been made up
with spoil or rubble is not compact
enough to support ordinary foundations
therefore deeper foundations have to
be built below the level of the fill. If
the fill is shallow, the extra cost to
build the foundations may be little, if
the fill is deep it can be expensive to
accommodate.
Availability of Services
The availability of services is crucial to the development of a plot. If you see a plot advertised
as serviced, this can mean that the main drains and water etc. are on site ready to be connected
into. Services to check include:
Gas main: This is desirable, but not essential since both oil tanks and gas storage cylinders are
available as alternative options.
Electricity, telephone and water mains: All are essential. If these services are not available,
connection charges can be thousands of pounds and can render a site too expensive to build on.
Rainwater main drainage: Not essential if the ground can absorb the water in pits dug to collect
it, called soakaways, sited at least 5m from the house. If the ground cannot absorb the water in
this way, then the plot should be rejected.
Foul water main drainage: Again, not essential, although desirable, since septic tanks can be used
to treat sewage and leach harmless liquid into the ground. These tanks will add about 750 to
your budget. Septic tanks should be situated at least 11m from the house, so make sure your site
is big enough.
Legal Restrictions
Covenants and easements need to be checked by
your solicitor. A covenant is a restriction placed on a
site, for instance preventing building above a certain
height. An easement is a right held by the owner
of one piece of land over another piece of land,
typically the right of access to drains.
Site Features
The physical features of the site may present
challenges and opportunities for the design of your
This sunfinding compass is used by photographers to
home. The simplest are the direction of the sun and
predict which direction the sun will come from at
the prevailing wind, both of which may affect your
different times of the year. You can use it on site, or
with an orientated site plan, to work out how much
plan and the final arrangement of the house on the
sun you will get.
site. Other features, such as sloping ground, nearby
trees, the relationship with neighbouring buildings
and their uses should all be taken into account.
Site History
A fair bit of information can be gathered about a site by talking to neighbours, checking with
local builders, building control officers and the local library, where there may be maps from the
ordnance survey and others, going back at least to the 19th century.
Local Authorities 1
Planning Permission
Once you have found a potential site for your new house it is necessary
to investigate whether the site has planning permission for residential
use or whether it is in an area where such permission is likely to be
forthcoming. The local planning authority will be able to provide you
with this information. You are likely to encounter several different
situations; sites with outline or detailed planning permission for a
dwelling; sites with no planning consents, where the Local Authority
Development Plan deters development; or sites which have no
planning permissions but are in a built up area allocated to housing
as defined in the Local Authority Development Plan.
Outline Permission on the Site
If the proposed plot has outline consent then you will have to submit a reserved matters
application covering matters not included in the outline application such as building position,
size, height, appearance, and materials. Quite often, in Conservation Areas, they will refuse to
grant outline permission at all, and insist on a detailed application.
Full Permission on the Site
If the site has full permission for a house, it is unlikely to be exactly what you
want. Before purchasing, you should try to establish that any variation from the
approved plans will be acceptable to the Local Authority. If the design appears to
make limited use of the site (eg a bungalow instead of a house), ask the vendors
and planners why. It may be because of planning restrictions. Usually the vendor
will try to get permission for the maximum size of property possible, and for the
maximum number of houses possible.
No Permission on the Site Local Authority Opposition
If the proposed plot has no planning permissions
at all and the Local Authority Development Plan
has policies which specifically prohibit or deter
development, this plot could be unsuitable for you
to build a house on. It is advisable to discuss your
proposal with a planning officer or consultant and to
refrain from purchasing the land until consents have
been granted.
No Permission on the Site Local Authority
Support
If the proposed plot has no planning permissions
at all but the Local Authority Development Plan
supports the use of the land as suitable for housing
then you will probably submit a detailed planning
application straight away, for your chosen design.
This not only confirms the principle of building a
house but will also approve aspects such as building
position, size, height, appearance, and materials.
Local Authorities 2
Application
Before you make a planning application it is advisable to make contact with the Planning Officer
for the area. By talking about your proposals at an early stage you can modify any aspects of
your design, layout, orientation, landscaping, or access that might cause difficulties and help
avoid an application being rejected. Your application will include comprehensive plans and
elevations of your house and will have to be well presented since it will be shown to councillors
and neighbours who enquire about your application. Your application will also include a copy of
an Ordnance Survey site location plan, a site layout plan and a brief description of the external
materials of the building. The fee payable to the local authority to submit the application is
around 335.
Assessment
The case officer will assess your application against advice given by other departments of the
council and consultation with local amenity societies and neighbours. The case officer will then
make a recommendation to the Planning Committee which is made up of local councillors. It is
this body that is responsible for approving or rejecting your application.
Appeal
If your application is refused you can appeal to the Secretary of State. You can never say never
and there is always a possibility that you may win. An appeal is worth pursuing if you or your
architect feels your proposal to be acceptable in the light of the Local Authority Development
Plan and the councils own published detailed planning guidance. You may get into a position
where you have no alternative but to appeal, eg. if you have already purchased the site.
Otherwise, it is better either to redesign the scheme or to look for a more suitable site.
Re-submissions
Ideally, the planner should give you adequate warning if an application is about to be rejected,
and give you the opportunity to amend the plans before the decision is made.
If planning permission is refused, you can change your
scheme and submit it back to the planning committee
for no extra charge within twelve months of the first
refusal.
Saving Money
Saving money, or obtaining good value for money, is one of the reasons why many people choose
to build their own house. Having the right approach to a self build project, and understanding
the difference between cheap and cost effective, is crucial to achieving this objective.
Brick and Block or Timber Frame?
It is difficult to find convincing evidence that either timber frame or brick and block construction
is cheaper in itself. The construction method should be chosen to suit each individual case.
Getting the Best value for Your Money
No design or construction method is necessarily inherently cheaper than any other. It all depends
on what best suits your project. However, how you procure the design and construction can have
a big effect on the budget, and who controls it. Individually designed houses are usually more
cost effective than those bought from kit manufacturers. Firstly, the kit manufacturers have to
generate a profit large enough to cover its companys high overheads; and secondly, individually
designed houses are not tied to a single supplier of building materials and can get competitive
quotes from suppliers during the tender process.
Contracts
When a contractor is appointed, a contract must be signed in order for you to control the
construction costs and quality. Standard contracts are available, which cover the usual problems
that may arise in the course of building work. If the work over runs, is below standard, or is
not in accordance with the drawings, the contract should give you the authority to compel the
contractor to either put things right, or pay compensation.
Physically Building Your Own House
Considerable savings can be made by physically building parts of the new house yourself, since
you are not paying for the overheads of a contractor. However, specialist knowledge and skills
are required, along with a huge time commitment. It is not recommended unless you have had
previous experience in this or a similar field.
Tender Process
Savings can be made by getting the process of preparing and creating the tender package in the
right way. This means ensuring when inviting prices from contractors, that there is a high level of
competition. To make a true comparison, prices should be invited from contractors who have an
equal standard of workmanship and reputation. In order to do this you have to have knowledge
of the contractors in your area and you must describe the construction and quality of your house
in sufficient detail for an accurate price to be calculated.
Quality Control On Site
Self-builders, who have not got a complete specification, will encounter difficulties on site, when
actually building their house. Due to the lack of detailed specification, they may find that their
builder has ordered cheaper products than they require. They then have to make a hard decision;
either accept the cheaper products; or pay a premium to change to the ones they really want.
Since these premiums are not included in the quotation provided by the contractor, they can
cause financial difficulties. Such incomplete specifications often arise when planning or building
regulation drawings are used to obtain prices from contractors. These drawings do not contain
enough information for an accurate quotation.
Most of the above problems can be avoided by the professional preparation of a thorough
specification, and accurate large scale drawings of important details, such as electrical layouts,
door types, and staircases.
Saving Money
Where to Save Money
Decorations and Finishes.
Reduce the number of different colours.
Take out any special finishes, stick to plain white where you can stand it.
Do the internal decoration yourself.
Take out laminate floors and quarry tiles, and use basic vinyl and carpet until you can
afford to upgrade.
Internal Doors and Ironmongery
Cheap internal doors can be replaced very easily in the future, one at a time as you can afford it if
necessary. Keep the better-standard doors for where they are most on show, e.g. those that are off
the hallway, and use cheap flush doors elsewhere.
Kitchens
Large sums can be saved by fitting a cheaper kitchen, which can be replaced later. If you were
planning to use a specialist contractor, get the main contractor to suggest an alternative
specification. There are huge discounts available to many contractors on standard ranges of fittings.
Joinery, Skirtings and Trims
If there is any fancy joinery, simplify it.
Replace hardwood with softwood.
Built-in cupboards and wardrobes can be taken out of the contract and replaced with freestanding furniture.
Electrical Installations
The difference between a desirable electrical layout and a serviceable one is often significant.
Reduce the number of sockets.
Use cheaper light fittings, which can be easily replaced as long as the concealed wiring is in the
right position.
Sanitaryware
This is often an item where fantasy can overtake rational thought, and the reduction of the
specification to cheaper models is relatively easy to achieve.
Special Features
If you selected underfloor heating, central vacuum cleaning, solar panels, or expensive fire
surrounds, this is the point at which to reassess how badly you want them.
Garage and Conservatory
If parts of the building can easily be removed without distorting or spoiling the plan, savings can
be made. Provided you have made a substantial start on a building with full permission, you will
have planning approval to build them any time you choose in the future.
External Works
Replacing the concrete-block paving in the drive with gravel can save thousands of pounds.
Omitting the pond, or delaying planting out until the following year will also contribute a big saving.