Tips for owner builder

6 years ago

Hi I’m considering owner building. I know it’s a big job, but I will have some support along the way.

Friends and relatives have successfully owner built and happy to provide assistance, and lists of their contractors. My father is retired and happy to help manage.

I know lots of people in the trade, and have family in the building industry.

I’ve never owner built, but have project management skills.

I will be getting a professional estimate conducted to cost out the project, which also lists a full list of bill of materials, plus a complete schedule of works (listing all the services needed, when to call them etc.)

So, I’m pretty confident to take on the job. Just wondering if anyone has any tips for me.

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Comments (4)

oklouise
6 years ago
last modified: 6 years ago
your question has opened the flood gates!! so, not in any special order, first check with local council to clarify legal responsibilities as owner builder, i did a training course, organised special building insurance, had all the power tools and extension cords certified to be safe to use on site, set up safety barriers, did most of our demolition, hired machinery and scaffolding, rubbish removal (about 45x20kms trips to the local tip, recycling (required by BASIX) loaded, unloaded moved and rearranged millions of bricks, pavers and other supplies and equipment...Make sure you understand your plans and have thoroughly researched every aspect of the build down to placement of power points and outside taps and brand, texture, size and preferred colour of every surface (eg which gutter do you need?) and have that info in writing on paper with pictures and measurements immediately available in a BIG FOLDER and with extra copies of brochures and installation instructions (eg for taps, toilets, light fittings, sizes of window and floor covering and keep contact names and phone numbers and accounts with all the local suppliers, use email for negotiating quotes and confirm every agreement in writing ...address all suppliers by name and appreciate any special service, keep a diary of what's happening when, where and by whom, confirm delivery dates and manpower in advance, organise supplies on site well in advance (and keep a map of what is stored and where its stored and label the boxes to identify which item goes where) you don't want to be paying for trades to stand around while you try and find a forgotten tap...Manage the correct timeline for each stage and allow for contingencies.... i think the hardest part is having all the suppliers and trades take you seriously and treat your job with the importance that you think it deserves...try and think of every possible contingency and then expect the weather will ruin the timetable or the waterproofer has a family emergency and the plumber and tiler and cabinetmaker and electrician can't work on the bathroom for weeks (so have a list of alternate trades and optional wet weather projects that might be able to be done out of sequence )..we always think we'll save money by dealing directly to cut out the "finder fee" charged by the professional builder but, although we've had very successful outcomes for several owner built projects we eventually discovered that a good builder is worth his fee and eg ours was able to save about $8000 (30%) off the cost of windows for our latest project because his ongoing relationship with the supplier has earned him fabulous discounts and also his reputation meant deliveries were always on time and the quality of work is excellent because suppliers and trades want his repeat business and, although my tradies have always been very happy with my home made hot food and very impressed with not having to do the daily clean up, most owner builders usually have real jobs, homes and families to take care of so it's exhausting just thinking about it all!!
PRO
MB Design & Drafting
6 years ago
Depends on what you're wanting to achieve by going owner builder.

If its money then the savings are limited. Probably even cost the same if not more. Trades give better prices to builder because they are used all the time.

Even knowing trades will still cost you. They have overheads and materials as well as insurance costs, covering them and you.

If I was to build again, I'd use a builder and work with them as a purchaser chasing up windows and doors, flooring, tiles, etc that I want to use not what the builder regularly uses. I'd probably also work with kitchen supplier sorting kitchen and laundry fit out, etc. as I would with tiler. Builders don't allow much time for going through various tile layouts, electrical layout, etc. The builder would tell me what I need to organise for his schedule and I'd discuss the finer details with the trade or supplier before coming on site. The completed house would still be same cost but hopefully better detailed.
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My husband and I are nearly at the end of a major owner build - before this the biggest thing we had built was a farm shed... Based on BMT's current building cost calculator we will have saved over 50% of the replacement cost of our home by owner building - it has been a hard slog but worth it in the end. Our valuer has indicated that at completion our mortgage will be around 30% of our properties value, which means we will have built in a LOT of equity. It's not for everyone but if you can - I say go for it! My lessons learnt so far: Go the extra mile in ensuring your plans are detailed/you have incorporated EVERYTHING you want in your new house before starting - major budget blowouts are inevitable if you keep changing things mid-stride! Have a plan and a budget and work to it:) Have a bill of materials and specifications that includes everything - even down to the brands, there is a major cost difference in a garden variety Bunning's vanity vs. a bespoke custom floating one - and unless you specify exactly what you require you will not get what you want and your budget will never be accurate (and your cost overruns will be scary!). Decide what level you want to be involved at: do you have plans to be hands on - building everything you can, learning all the trades like framing/plastering/tiling etc. or are you envisioning a owner-managing role where you are engaging trades to complete the work for you; this will dramatically alter the cost and the time the project will take. Will you be able to be present on site when trades are there to manage them? One of the major things a builder does is crisis control and problem solving!! Bespoke architect or kit or somewhere in between?? Another thing that will bear greatly on cost and project staging. For first time owner builders I would recommend a kit home - most of the inclusions are standard, you can modify many of the designs and the deliveries are staged so you don't have an influx of materials all at once. Most of the kit home providers are great with their after sales support and advice when you need it - they wan't to see you succeed as their business relies on successful customers! Ensure your finance is concrete and you are able to draw down funds as you need them - this is a major stumbling block when it comes to owner building as most financial institutions will not loan to owner builders. There is nothing more frustrating than getting halfway through a build only to find out that due to prevailing economic conditions your current lending provider will not loan you any more money and you have actually devalued your property by partially erecting a home (oh, yes sadly- I'm speaking from experience...). Build in contingency funds to any estimate of costs - you will sleep better at night. Be aware that even if you do obtain construction finance that most banks will pay these retrospectively - you have to spend the money before they will draw it down off your loan - that means having enough money to fund a stage in full ( i.e. brickwork, plumbing, electrical) before drawing down loan funds - and you can be guaranteed they will want to send round the valuer to ensure that the work has been carried out! Have written quotations and lists of inclusions/bill of materials when negotiating with tradesman and contractors - many are happy to work with you but a lot will take advantage of your naivety... Don't be left out on a limb after getting to the end of the job only to have your contractor demand large blowout payments - this is readily avoided by having everything in writing and will ensure your contractor keeps you informed of any expected costs overruns. Do not underestimate the impact an owner build will have on your life... You will be eating, living, breathing and dreaming it for as long as it takes (and yes there will be nightmares!). Be honest with yourself about how much time and commitment you are willing to sacrifice to make the cost savings worthwhile - if you are the kind of person who begrudges any intrusion into your personal time, can't go a week without a social occasion and can't handle working long hours and getting your hands dirty...maybe owner building isn't for you... Enjoy the journey! My husband and I have tackled every job we have been capable of - we have put up the framing, put on the roof, done the guttering, installed the insulation and windows and we are plastering the inside and painting as I speak. It has been good to learn new skills and exceptionally rewarding to see it all come together - sure if I had my time over again I would have done a few things differently but we don't regret the decision to take charge of our future and build our own home just the way we want it. Anything is possible if you give it a try!!
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Just saw this. Best way is to PC everything which may go over so all builders have the same specification. Stipulate the following in monetary terns kitchen/laundry allow e.g $30,000 Tiles allow $30m2 Stipulate tile height in room. Carpet allow $ square or broadloom metre Stipulate height of ceiling 2400 or better still 2700 Choose style of architrave Choose cornice or stipulate square set Determine length and width of driveway and any paths. Stipulate number of power points and lights in each room Stipulate width of eaves Think where it can blow out and stipulate finish or price allowance. Then you will really be able compare prices.
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siriuskey
6 years ago
Totally agree MB, when we did smaller Reno's the man of the house did the heavy lifting while had to chase materials etc saves a lot of time.

I would definately employ a builder for a fixed price contract having everything in writing and copies for both of you, watch and learn from this experience so that you can take on any future projects good luck
Anna Shaw
6 years ago
We have owner built our house and have saved over $150,000 on what we were quoted by a builder, but...

We have done the majority of the work ourselves. Other than electricians and plumbers my husband and I have completed all the work. It was and is a lot of work. From sorting all supplies and making sure they arrive when we need them to actually putting up frames and installing windows, each day is a new challenge. I am a stay at home mum and work on the house whilst my kids are at school and kinder and my husband is a civil engineer and works on the house on the weekends.

We built the part of the house we live in, and it took us every day of two years and we have been working on the next part (kitchen/dinning/lounge, study main bedroom and ensuite) for a little over a year - we hope to finish by Christmas.

You can save money by owner building, but do not estimate the amount of work involved!

Tips for owner builder

Comments (4)

oklouise

MB Design & Drafting

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siriuskey

Anna Shaw

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