There’s a lot to navigate when you’re building a new home. On top of that, the industry has seen an increase in construction cost and timeline blowouts over the last few years. At Sundancer, we remove these hidden costs from the start by including everything in our fixed price quotation. We’ve been through the process many times, so we know how to factor in everything to remove any unwelcome surprises. So what are these unwelcome surprises that other builders might not take into account until later? Learn about the hidden costs of building a house below.

1. Site costs

Site costs add up. This may include clearing land and levelling, excavation, building retaining walls, clearing trees, and soil testing. If you haven’t properly factored in all the site costs that go into a build, it might come as a big surprise. It can result in thousands, or tens of thousands, of dollars in budget blowout if there are unforeseen site conditions.

Unless you’ve been part of a lot of home builds, it’s hard to predict what your site costs will be. That’s why it’s important to choose a builder that understands the finer details and is transparent about site costs from day one.

2. Provisional sums

A provisional sum (PS) is an allowance for an item of work that a contractor can’t price in a fixed price contract. These can cause unexpected surprises if you’re not careful because the cost of these items is adjusted once they’re known. This can often happen when parts of the design aren’t finalised before the project commences. One of the major advantages of working with an experienced home designer with a wide range of floorplans is that you can avoid provisional sums. Instead, you know exactly what you’re paying for and what you are getting.

3. Energy efficiency compliance

To improve the energy efficiency standards of new homes, changes were made to the National Construction Code (NCC) 2022 on 1 May 2024. To comply with these standards, building designers and architects can use a range of styles and energy efficient features. These considerations should be made early in the design stage to make sure this is included in the costs.

4. Overlooking quote inclusions

When you are evaluating builder quotes, make sure that you know exactly what is and isn’t included. It’s important not to make assumptions as there may be certain inclusions that many builders leave out. It’s important to know what you’re paying for, and that means understanding the details and fine print.

5. Subcontractor miscommunication

There are a lot of people involved in a home build. That means there can be miscommunications between the main contractor and subcontractors. When this happens it’s not only frustrating for you; it can cause delays and lead to unnecessary costs.

To avoid miscommunications, choose a transparent builder that you can trust. It can also go a long way to ask how unexpected costs will be managed and what the process is for scope changes if there are details you decide to update during the process.

6. Hardware and fixtures

This might seem like a small one but trust us when we say that hardware and fixtures can be a big factor when considering the hidden costs of building a house. It helps to choose a build and designer that guides you through the selections and helps you make an informed decision for your budget and style. The sweet spot is when you can get hardware and fixtures that are high quality and match your style without blowing the budget.

7. Council requirements

Building approvals and council requirements will vary from state to state in Australia. The builder you choose should consider all local council requirements to avoid any issues during the process. For your reference, below are some helpful resources about building approvals for each state.

• Queensland
• New South Wales
• Victoria
• South Australia
• Tasmania
• Western Australia
• Northern Territory
• Australian Capital Territory

8. Unexpected delays

Unexpected timeline delays have a big knock-on effect when it comes to building expenses. You may have to pay for alternative living arrangements for longer, factor in subcontractor schedule changes, and deal with longer loan interest.

Building a house is complicated with many factors to consider. The Productivity Commission outlines some of the main issues that have contributed to falling productivity in housing construction. These include slow approvals, lack of innovation, lack of scale, and workforce issues. Add to that delays from poor builder planning or miscommunications and you have a lot to navigate when you’re trying to keep your timelines on track.

So, how do we keep our builds consistently on time when there are so many factors at play in the industry? We have developed efficient construction methods over many years and avoid unnecessary floor plan changes. We understand where timeline blowouts usually happen, and we plan for these from the start.

9. Modifications

Any modifications to your initial building plan will affect your budget and timeline, however some builders will be able to minimise this better than others. Even if you’re not considering making modifications, as we mentioned earlier, it’s worth asking how your builder will approach any scope changes.

10. Upgrades

Another hidden cost of building a house that you might not predict is upgrades. It’s easy to say that you don’t need certain inclusions when you’re thinking about building. However, when it comes down to the reality of it you may decide you don’t want to compromise on certain things and decide to upgrade certain inclusions.

We don’t like seeing people compromise on what they want, so we’ve done a lot of groundwork to offer the best inclusions within a defined budget. It helps when you have a clear picture of what you can achieve with your budget from the start. That way you can make an informed decision and make the appropriate financial plans.

If you’re thinking about building a new home, we always recommend paying close attention to the details when you’re comparing builder quotes. If you have questions about any of our home builds or house and land packages, get in touch with our team of experts!