Cost Per Square Meter
When clients come to us to design a custom built house, many already have calculated figures in their head of the cost per square meter. In part our industry is to blame. Architects, designers and custom home builders may refer to square meter rates. These are some common formulas we see being used:
I have X amount for my budget, I want a house Y big, therefore can you design it to Z $m2?
If the current $m2 rate is X, and my budget is Y, then the house will be around Z big. Can you fit everything in?
I have heard that the current $m2 rate is X, and I want a house Y big, so it should cost Z to build… right?
It’s understandable to want to get a hold of the cost of a house based on your budget. However, whilst designing a custom built house, making assumptions or references to sq/m rates is a flawed method of assuming overall project cost.
A custom built house is designed specifically to the particular needs and wishes of clients and tailored to suit the opportunities and constraints of the building site. Every custom built home has its own influences and considerations.
How big is the household? How old are the kids? Do your interstate parents come over often? What kind of kitchen do you want, and how luxurious do you want your bathroom? What kind of sustainable measures should be implemented in the house, and what kind of sustainable measures does the climate you build in require? What kind of finishes do you want?
Unless you are building on a consistent square parcel of land, each site also has its own set of associated costs. Is the land sloping or flat? Are retaining walls required? Is stormwater management required? Are bushfire tanks required? What is the method for dealing with waste water and what are the costs for connection to this? Are driveways and paths required? What about landscaping, will this be included in the overall cost? What and where do the adjacent buildings, habitable windows and outdoor areas permit a building without causing overshadowing or overlooking issues?
If you are renovating, it’s more difficult to know what is happening behind the finished walls, floors and ceilings. The condition of the existing house only comes fully to light whilst constructing. Therefore, there is far more variability to the construction requirements and therefore cost, which has very little to do with floor area.
There are so many variables associated with the cost of any one project, thus it’s important to understand the nuances of every design, detail and specification decision that influences the final contract prices. Your design team can guide you along the journey to ensure that what is proposed will meet the budget. We work with a builder early on in the design process to have a clear understanding of the total cost. Your builder, if experienced in your area will have a good understanding of elements that will influence the cost.
If you are in discussion with a professional, please do not refer to m2 rates. Insist on understanding the influencing factors for your particular brief and site that will influence the overall cost of your home. Instead of creating a house up to a certain size, you need to be empowered to make decisions based on these factors throughout the design and construction process. This will ensure a greater likelihood that you meet your budget.
You can read about the 8 factors that influence construction cost HERE.
“Design is so simple, that's why it's so complicated” Paul Rand