Understanding Site Costs When Building a New Custom Home

Understanding Site Costs When Building a New Custom Home

When building a new custom home, one of the most critical aspects to understand is site costs. These are expenses that cover the preparation and essential groundwork before construction can even begin.

Unfortunately, some builders may intentionally underquote site costs to appear more affordable, only to surprise clients with additional expenses later on. This practice can quickly lead to frustration and erode trust in the builder, even in the initial stages of the construction process.

So, what do site costs include?

Let’s break down what site costs typically include and why they are crucial in building your dream home.

Key Components of Site Costs

  1. Cut and Fill

Preparing the land is often one of the first steps. “Cut and fill” refers to levelling the ground by cutting away high areas and using the removed dirt to fill lower areas. The filled areas are methodically compacted to ensure the foundation can be built on stable, even ground. The complexity of this process depends on your block of land’s slope and contour.

  1. Dirt Removal

After excavation and levelling, excess dirt and debris must be cleared from the site. The amount of dirt can vary greatly depending on the block, and if not properly accounted for upfront, removal can become a costly and time-consuming task.

While some builders may include a minimal allowance for dirt removal in their tender, it often proves insufficient, leading to unexpected additional charges if the true quantities aren’t accurately estimated.

  1. Piering

Architect or engineer team discussing a project design using blueprints and a laptop computer at the office before visiting work site.Concrete piering, also known as “piers” or “pier footings,” is a crucial foundation support method used in home construction. It involves drilling deep holes into the ground and filling them with concrete to create stable support columns for the foundation. These piers help distribute the weight of the home evenly across the ground and provide added stability, especially on uneven or unstable soil.

Some builders may intentionally underquote piering costs, leading to unexpected charges during construction. Piers, which are measured in lineal metres, can easily add up to hundreds of metres.

Dishonest builders often include piering in their quote but fail to specify the correct quantities, leaving clients under the impression they’re fully covered. When construction begins, clients may discover that the builder has significantly underestimated the piering required.

At Highwater Homes, we fix our piering costs upfront, ensuring transparency and eliminating any unwelcome surprises for our clients.

Screw piles is an alternative option that is becoming increasingly popular for homes built on areas of deep fill. They provide greater certainty around the depth, bearing capacity and cost when confronted with these unique site challenges.

  1. Site Fencing, sediment control fencing and Toilet

Temporary site fencing and sediment control fencing are necessary to secure the construction area and ensure safety. Additionally, site toilets are mandatory for any construction project. These small but essential facilities are part of the initial groundwork and are included in your site costs

  1. Class of Slab

Distribution of casting concreteThe type of slab used for the foundation of your home is determined by the soil’s classification.

Different soil types have varying levels of movement, and this affects the slab’s complexity and cost. Highwater Homes conducts thorough soil tests during the Preliminary Building Agreement (PBA) stage, so we can provide a true fixed price for your foundation and slab, reducing unexpected cost increases down the road.

  1. Stormwater, Sewer, and Water Connections

Proper connection to stormwater, sewage, and water supply is essential for any home, but the complexity and cost can vary depending on your land’s location and conditions. A professional builder will conduct thorough site assessments to accurately calculate these costs, ensuring all necessary services are included in the site costs. However, some builders may only account for connections up to a certain distance, leaving the remaining length as an additional expense that is later billed as a variation during construction.

  1. Gas and Electrical Connections

Gas and electrical connections are often underestimated. However, ensuring your home has proper access to utilities is a critical part of the construction process. This is why we include these connection costs within your fixed site cost price, ensuring a smooth transition during the build.

Did you know that if you’re building near overhead power lines, safety regulations require the use of tiger tails? These bright, protective coverings make low-hanging power lines more visible, ensuring a safer worksite. However, they come at a significant cost, often running into several thousand dollars. If your builder has not allowed for these or included them in your specifications, you could be hit up

Why Highwater Homes Delivers True Fixed Price Peace of Mind

At Highwater Homes, we take a different approach to most builders. We conduct thorough site investigations during the Preliminary Building Agreement stage to understand every aspect of your project before construction begins. This allows us to accurately estimate all site costs and confidently offer a fixed price to all of our clients.

By addressing potential issues early—through detailed site reports, soil tests, engineering plans, and piering assessments—we eliminate the uncertainties that often lead to additional costs. Our commitment to research and accuracy means you won’t face hidden expenses during the build, ensuring your project stays on budget.

At Highwater Homes, transparency and preparation are key. You’ll have the peace of mind knowing exactly what to expect, with no unpleasant surprises, and a true fixed price tender that offers certainty from start to finish.

What are the benefits of inclusive site costs when building your new home?

Opting for inclusive site costs provides more than just financial benefits. It ensures a smooth, stress-free building experience.

Understanding Site Costs When Building a New Custom HomePeace of Mind: With Highwater Homes, you can be confident that your site costs are fully accounted for. No hidden surprises, just transparent pricing from start to finish.

More Budget Flexibility: Our comprehensive inclusions mean you won’t need to worry about unexpected costs. This gives you more freedom to allocate your budget toward the design features that matter most to you.

Greater Transparency: We believe in empowering our clients with all the information they need to make confident decisions. Our fixed site costs reflect our commitment to honesty and transparency in every stage of the process.

The Importance of Knowing Your Site Costs Upfront

Understanding your site costs upfront is crucial for a successful home build. With Highwater Homes, you’re not just investing in a quality build but also in peace of mind and financial security. Our thorough research ensures that you won’t encounter surprise costs, and our fixed price tender means that the price we offer is the price you pay.

 

Learn more about Toby and Elizabeths Story. Highwater Homes are proud APB and HIA members.

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Elizabeth Searle

Elizabeth Searle

Elizabeth is the business manager and is involved in a wide variety of roles within the office. Elizabeth will often be the first point of call between you the client and Highwater Homes.

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