fbpx
  • Home
  • /
  • Blog
  • /
  • Avoid Expensive Site Costs When Building a New House

Avoid Expensive Site Costs When Building a New House

Avoiding hidden, expensive site costs when building a new house can be one of your main challenges.

But what are building site costs?

Building site costs are the expenses associated with getting your block of land ready for construction, and they are one of the largest ‘hidden’ fees when it comes to building a house.

Basically, site costs cover things like site preparation, earthworks, and, most importantly, the engineering requirements for the foundation of the home.

So how can you make sure that site costs won’t blow your budget? Undoubtedly, gaining an understanding of site costs and how they’re determined is a good place to start. Here are some of the main site costs:

1. Soil Type

At first, soil type might not seem like the most obvious consideration when building a house. However, it is crucial, and it impacts the foundation’s cost significantly.

Structural engineers need to know the type of site soil so they can design the foundations correctly.

As a matter of fact, soil that is loose and reactive (swells and contracts as moisture levels vary) may affect how the foundation supports your home and transfers these forces.

Soil type can significantly impact building site costs.

According to Australian Soil Classification, there are six types of soil based on reactivity:

Class A – Acceptable: These soils are composed mostly of sand and rock, and changes in the water content of the soil produce little to no movement.

Class S – Satisfactory: Mildly reactive with only slight ground movement as the amount of moisture changes.

Class M – Moderate: These sites may experience a moderate level of ground movement.

Class H – Highly Reactive: Highly reactive and may undergo a high level of ground movement.

Class E – Extremely Reactive: These types go beyond a merely high level of reactivity to become extremely susceptible to ground movement.

Class P – Problem: The load-bearing capacity of this soil is severely poor.

As a result, the higher the reactivity and movement in the soil, the more slab and pier engineering is required. Hence, building on Class S soil is much cheaper than on Class E soil.

Therefore, if you are trying to stick to a budget, it is best to find out the soil type before finalising the contract for the block.

2. Site Topography

Sloping block will add tens of thousands of dollars to your building site costs when building a new house
Source: Realestate.com.au

There’s no way to get around the fact that building on a sloping block costs more than building on a flat block of land. Generally speaking, the steeper the slope of your land, the greater the cost. And the main reasons for the additional costs on sloping land are:

Excavation works: Extra excavation is required on sloping blocks compared to a flat block.

Foundation works: Sloping blocks require additional foundation works to create a level surface for building.

Retaining Walls: One or more retaining walls may be needed to create soil stability around the block.

Landscaping: Sloped site landscaping can pose quite a challenge as it requires addressing irrigation, erosion, slope stability, maintenance, and accessibility.

Access: Material handling and storage are much harder on sloping blocks and require additional safety measures.

Stormwater Management: More drainage is required to prevent water from getting under or into the house.

3. Rock Excavation/Soft Spots

Once builders commence on-site, they may encounter unexpected conditions such as excessive rock or issues with the soil, such as soft spots, that add significant costs. In most cases, builders will pass these costs on to customers.

Builders charge you for rock excavation in building site cost when you are building a new house.

4. Tree & Vegetation Removal

If trees need to be removed, licensed tree fellers may be needed. And it goes without saying that a clean block will cost you less to develop than one overrun by trees and ground vegetation.

5. Location & Ease of Access to site

Generally, homes built in more rural parts of the country incur higher site costs. This is typically due to the inconvenience of transporting materials and the extra effort often required to connect amenities.

Moreover, any additional on-site management or supervision due to tight access, limited storage space, and excessive rise/fall over the site increases your site costs.

How To Minimise Construction Site Costs?!

Remember, no two blocks are the same, so site costs vary for every build. It’s critical to understand site costs so that you can make an informed decision in choosing the right block for your house and minimising your expenses.

Additionally, if you’re comparing site costs between builders, make sure you understand precisely what you’re being charged for. You don’t want to be enticed by a lower initial price only to be hit with unexpected costs later.

In summary, comprehend your costs and take control of your budget and your future.

Have you encountered any hidden building costs when constructing a house yourself? Have you seen a friend or family member affected by these building expenses? Share your experiences or stories with others in the comments below; it could be helpful to someone 🙂

Good Luck.

Amir Sehat

About the author

Amir Sehat is the chief property adviser and buyer advocate at Property Demand, known for his data-driven approach to researching 15,000 suburbs across Australia to identify booming suburbs as investment destinations.

A fun fact about him is that his deep knowledge and enthusiasm have earned him the nickname 'Property Nerd'.

He provides expert advisory and advocacy services to a wide array of clients, including:

- Property investors seeking to purchase high-growth and high-cashflow properties.
- Home buyers looking to avoid costly mistakes and save time
- Property sellers aiming to achieve the highest selling price


{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}
>