Budgeting Tips For Self Builders.

Self build budget costs in any self-build project can spiral for many reasons and in some cases no matter how well you plan, this can’t be avoided. However, there are some steps you can take to minimise over-spending – and don’t forget to include at least 10% contingency in your budget. Below we explain how to get the most out of your self-build budget.

1. Buy the right kind of plot

A cheap plot will be cheap for a reason with low prices often affiliated to land without planning permission to build. By all means, it might be a risk worth taking – but you could end up paying for a site you can’t do anything with. Other issues to look out for are plots with no obvious access, possible contamination, poor planning history, trees with preservation orders, protected wildlife, extreme gradients, no service connections. These problems aren’t insurmountable – and indeed you’ll be lucky to find one without any issues – but do your homework so costs to put things right don’t come as a surprise. If necessary, a quantity survey can carry out a feasibility study to give you a clearer overview of the hidden costs.

2. Liaise with the landowner

If any of the above problems come to light, this could be a good reason to barter down the land price. Or if you’re keen to pursue a plot without planning, and there isn’t a lot of interest, the landowner may be willing to enter a deal where you’re only obliged to continue with the purchase if you manage to get planning approval. Just make sure you have a legally-binding contract in place first.

3. Don’t overcomplicate the design

At a basic level, a rectangular or square house with a gable roof (sloping on two sides) is straightforward to build and therefore one of the cheapest approaches. Prices start to creep when the roof becomes more complex, you dig down, add large amounts of glazing, doors, balconies, high-spec materials etc.

4. Don’t commit to a design too soon

You can’t know the exact costs early in the design process, but your architect can give you an idea of cost per square metre for the initial design idea(s) proposed. There’s no point in paying them to continue on with a more detailed design for a project you can’t afford to build.

5. A detailed design provides more cost certainty

Once you’ve finalised the design with your architect and received planning permission, they will prepare drawings for building regulations. This provides a greater level of detail and will help with your cost planning – you might be surprised how the cost of cheap switches and sockets can add up when they’re needed throughout a whole house.

6. Hire a quantity surveyor (QS)

A QS can analyse these drawings and itemise all the materials and labour for each stage of the project. If the total is too high, they can help you ‘value engineer’ the numbers by suggesting alternatives to tighten up costs and save money. Obviously there’s a cost for doing this (around £1500) but you can ask builders to price against this ‘bill of quantities’ so you receive accurate and comparable quotes.

7. Find a building contractor you trust

Begin with recommendations – from friends and family, your architect, owners of local projects you like the look of. Check out the builder’s work, ask the owners lots of questions, particularly how their builder handled and resolved problems. It’s important you feel confident your builder will stick to your design and budget.

8. Get involved

Not many self-builders have the time nor skills to physically build their own home, but project managing goes a long way to reducing costs. Be aware this is still a big commitment as you’ll be responsible for ordering materials, booking and co-ordinating deliveries and trades, among other things. If this seems too much, then a hands-on DIY approach can be a huge help to your budget, too. General labouring alongside trades, keeping the site clean and tidy, laying underfloor heating, floors, tiling, decorating, landscaping are just some of the jobs that can be done by a competent DIYer and save you thousands.

9. Order materials yourself

Paying for materials directly means you can shop around, get the best deals and also negotiate prices if you’re buying in bulk. Steer clear of DIY shops and set-up a trade account with a local builder’s merchant. Shopping local can often mean free delivery and less hassle if there’s a problem, often they’ll price match with the same products online.

10. Maintain a spreadsheet of costs

Start out with a detailed cost breakdown and put quotes against items as they come in. Once you’ve bought the item, record the actual cost. This might turn out higher than you expected, or lower, meaning you can make necessary adjustments to other items as you go to keep the overall budget on track.

11. Build to the design

Changing your mind about the design part-way through nearly always has a negative impact on cost whether it means undoing work already done, upgrading materials/products, or adding more time to the schedule (which can also mean losing your slot with the follow-on trade). Even something simple like putting in one extra door means knocking through a wall and making good, buying the door as well as all the joinery for the frame, the doorset, lock, hinges and handles. You may also need to budget for paint or varnish.

12. Be ready to claim back the VAT

Claim your 20% VAT refund (for new build homes), which takes at least six weeks to begin processing, once completed. Some self-builders allocate this money for landscaping. To move quickly, make sure you store receipts and invoices at the start of the project and set-up a spreadsheet to record each one. You’ll also need to fill in the appropriate form, supply the completion certificate, building plans and planning permission documents.

Read more on self build budgets and advice.