Hi Everyone,
I am thinking to build my home in QLD say North lakes Brisbane.
Does anyone have any idea that if I do it by owner builder VS contracting with Project homes say Dixon homes cost-wise?
The big project homes have purchasing power due to their scale, but definithly they would add their margin into the contract.
So would I save money if I do the same standard fihish house by owner builder?
Cheers
Irrespective of whether you save money or not and in my opinion that is debatable one consideration is how you would finance the deal.
Lenders these days are over enamoured with Owner Builders so you would need to ensure you have a decent deposit or plenty of equity.
Richard Taylor | Australia's leading private lender
The project builders would have it finished quicker. They help you with council and speed the red tape along. It will save you lots in rent and you should get a good finished product. If you have time on your side and are happy to take 2-3 times as long to build the house then you could save yourself $20-$30K
Owner building, unless you have the time & skills to put into the project, is a hap-hazard & high-risk process fraught with danger. (I don't say that lightly). As I have asked many clients in the past "how do you make money?" & they reply with whatever their line of business is ie their expertise. Why undertake something you have little or no expertise in, whilst taking away your capacity to earn your maximum income at work (other than for pleasure)?
As Chis points out – there is a massive input of time (or cost if you have to rent & pay interest on your development/house) this adds dramatically to your financial pressures.
Building professionals must comply with OH&S requirements and are ultimately responsible for ensuring that a site is safe for both workers, subcontractors and visitors (inspectors, people quoting, neighbourhood vandals etc) – as an owner builder you take on this risk (and it cannot be assigned under contract).
Richard alludes to the difficulty in accessing finance for OB, well worth taking note.
With regard to the quality of finish, it comes down to the design, specification, knowledge and supervision – consider engaging a licensed project manager or clerk of works (they will get paid a fee to supervise) however you will need to direct them as to what their scope will be: ie site supervision, site co-ordination, calling & recommending quotes, approving payment, meetings with designers, inspections by council etc. Possibly a cheaper option than having a builder on board but getting the knowledge & skills needed to get the project to run in an efficient manner.
Yes as stated if you do not have real skills in the industry I would not bother with Owner Builder.
I can tell you if I'm called up by an owner builder to fix some thing ,I either tell them I'm to busy or the quoted price scares them away. Repairing or completing a project started wrong in the first place can be major blow out when quoting and I usually stir clear of Owner Builders.lol, not sure if anyone has actually answered the question. like twas, i’m also exploring between both but looking at the response, i doubt if i would get an answer here.
After re-reading the question , yes it is possible to save some dollars via Owner Builder.
It is possible to save but you need to consider what your time is worth in seeking materials and sifting through endless quotes and quality of workmanship.
Sure you might find a cheaper tradie but will the tradesman work be up to your standards.
Once again you will need to have experience in the industry as often you are only getting what you pay for.
Project home groups have their own trade people , who they know will do the job correctly and to the standard they require.
The other problem you will face is trying to get all trades to work in together and not create extra work for one another that will only cost you extra in the end.If you have limited experience in this area I suggest go with a project group or find a good builder who is willing to work with you.
Picture this potential owner Builders. You have an agreement with your carpenter to start on Tuesday the wall fraim and trusts arrive Monday great so far, however, you get a call from Joe the builder "sorry I can come till friday" now what.
You then find on Friday that half the roof trusts have been stollen. Dont think it does not happen mate Ive seen an old guy about 65 sleeping in his car on site every night to stop things getting stolen. Public liability, the guy who stole you roof trust comes back to get the copper pipe,or some kids playing on your site, but trips getting over the fence. He then goes to a solicior guess what my friend " see you in the court".
Have you ever tried to tell a tradsperson how to do their job. ?!?!?* You will soon find out that you are not in control of the 200,000 you just invested in your dream home. Tradies will "walk off" and of course they want to be paid and as an owner builder you may have to show them the money first. Have you considered the logistics of this project. To coordinate the arrival of matterials with trades people is a skill so is neg. the price. We take alot of things in the "Builder margin" for granted. Sure try to save a few bucks but dont have a mental break down doing it. If it is so easy to OB why is there so many Volume builders? A question to you, what if you get 3/4 of the way through the build and then find out , apart from driving you insain, it is going to cost more than the Volume builder or the same price. Alot of the time it will cost you more if not in money in time, stress and quality.You have to know your trades people well as once they have finished and been paid (cash) and you have a problem 3 month down the track when the roof guy tells you the fraim is not correct are they going to come back to "help you out". After all you are the project manager/ expert/ superviser and of course the owner Builder. Being an OB is all about being able to deal with people and that is never easy.
Sorry for the long post but I would not like to see anyone getting ripped off or going into this with out knowing some of the pit falls. Hope it of some help.I wish you all the best if you decide to OB.
Regards
T……………..Thanks guys.
Coz I am planning to be a builder for my career and currently study certIV for building, Only thing I am short is experience.
So it might be wise to get some mentor from local builder first~~
So the question comes to that if I can do cost plus contract with a small builder, would I save the builder's margin over their purchasing power.Cheers
Tony hit the nail on the head , I was going about it the polite way ..lol
You can save but the stress will often out way the saving as an OB.
Material going missing is major problem , followed by materials being damaged from weather.
Imagine the truss hold downs being stolen as well as a mass of battens delaying the roof framing.
Followed by the trusses warping in the sun because the block work or frame was not completed on time, followed by the roof guys not being able to show up due to delays. Followed by the gyprock /plaster 3/4 hung while the rain pours in over your gyprock.
Now , the chippies are going to want to be paid extra for the extra time needed to erect twisted frames.
The roof guys are not going to care because you have delayed them and they will seal off when they find the time because you are a OB , and they know they will never work for you again.
The plasters are going to want to be paid if they have not already been paid in advanced, and will want more to repair water damaged sheets.
These are problems that happen every day.My last house I had to render the wall 3 times because of heavy rain washing it off the wall.
The render had to be applied as I had the plasters fixing and the last thing I wanted was moisture problems.twas, every builder is different and usually you are only getting wait you pay for.
i could slap you up some thing that was equal to some of the big groups , but I like to take that little extra , use material of better quality and put that extra nail or screw in that might be needed. Use that extra sized electrical wire to take future added loads if needed.
I think you will find most of the large builders are providing the maxed out requirements such as spans and timber sizes ,providing only what is needed and no more.twas
Great to hear you are doing the Cert4 you can indeed make a good living in this trade and I see alot of young guys doing very well. I think it would be a good idea to get the on the job expiriance first. If you would like to be a part of the build yourself and have a few good mates why not build to lock up. Leave the hard stuff & the stress to the guys who have the know how. Mate you will always find ways to save money once the place is finished. You still have to do the decking, pegola, shed, drive way & landscaping and fencing. Why not have a go at these by yourself you will save a few grand.Builderbob has correctly expanded on the reality of such a task I have not met an owner builder that have not had difficulty.
Its a faulce economy to owner build IMO. I also think that paying the extra is worth it; If the build goes beond the final date you get paid X amount per week. If its not done right you tell the company to tell the builder to fix it, simple. The company has a reputation to uphold. Once you have paid Joe and he has left the site he may not want to know about your problems as they are now your problem not his. The process is made easy you use the volume builders existing conections with suplyers. They have color centre etc. to help you choose the right things to make it look right.
Why not use your current skills to be your own inspector at each stage go over the place.I would have no problem going with a volume builder of a good reputation and paying 10 20 30 K more just for the piece of mind. Its also a big investment so you dont want to blow your money 10 years down the track to save 10k now.
All the best with the Cert 4.
Cheers
T…………………Thanks Bob,Tony.
By the way how small builder can compete with volume builder like Dixon for the same standard house?
But I reckon small builder can survive by reno or architectual house.
What are you guys thinking?
Cheers
Geez, we were owner builders and thank goodness we didn't have any of the problems mentioned above. Mind you we did live in a rural area where very little ever goes missing but if it was in town it would have been a totally different story. It was a big job and we build a great place that was done better than many builders might have done. However, we wouldn't do it again because working and owner building is very wearing. Owner building did give us a much greater respect of the work builders do.
I owner built a home years ago – NEVER AGAIN. Too many issues trying to control tradies being on time, budget etc, lenders reluctant to release funds until they had thorough inspections done on each phase -time consuming.
Ran over time and over budget, even though I did save some money.
Was the stress, angst and anguish worth it – NO.
Have since had all my homes built by registered builder – much happier.
I make money doing what I do best and I leave the building up to the experts.
You then find on Friday that half the roof trusts have been stollen. Dont think it does not happen mate Ive seen an old guy about 65 sleeping in his car on site every night to stop things getting stolen. Public liability, the guy who stole you roof trust comes back to get the copper pipe,or some kids playing on your site, but trips getting over the fence. He then goes to a solicior guess what my friend " see you in the court". 
You will soon find out that you are not in control of the 200,000 you just invested in your dream home. Tradies will "walk off" and of course they want to be paid and as an owner builder you may have to show them the money first. Have you considered the logistics of this project. To coordinate the arrival of matterials with trades people is a skill so is neg. the price. We take alot of things in the "Builder margin" for granted. Sure try to save a few bucks but dont have a mental break down doing it. If it is so easy to OB why is there so many Volume builders? A question to you, what if you get 3/4 of the way through the build and then find out , apart from driving you insain, it is going to cost more than the Volume builder or the same price. Alot of the time it will cost you more if not in money in time, stress and quality.
Sorry for the long post but I would not like to see anyone getting ripped off or going into this with out knowing some of the pit falls. Hope it of some help.
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