It's an exciting time. Your rough numbers stacked up in your feasibility and you've bought the property. Which means it's time to start talking to builders about your project.
Sounds simple, right? Yes and no. Because while you're thinking that asking for builder quotes is easy, you might have overlooked one tiny little issue - a house isn't always a house.
I know you're scratching your head in confusion right now, but stick with me, because understanding that you can't compare apples with oranges is crucial when it comes to managing your project.
Now, in the building universe there are probably an almost infinite number of ways to structure a building contract, in terms of the end result. And that's really what I'm talking about here - when you ask a builder to build you a house, what exactly does that mean?
In reality, building scope usually falls into one of three categories. So let's start by taking a look at those.
Turnkey Build
A turnkey contract is an agreement where the contractor is responsible for the entire project, from design and construction to final completion. Put simply, "turnkey" typically refers to a complete or fully finished house.
It typically covers all aspects of the project, including design, procurement, construction, and handover.
The contractor is responsible for all aspects of the project, and the client often has minimal involvement in decision-making. It also provides a single point of responsibility and is often used for projects where the client wants minimal involvement in the construction process.
Essentially, the client only needs to "turn the key" to occupy the finished building, because it's ready for immediate use or occupancy. It's fully equipped and furnished, and the client can move in straight away.
Aside from the house, though, it also includes all the exterior "stuff" like landscaping, driveways and more, right down to the letterbox.
House and land packages often fit into this category. As the buyer, you may get some say in terms of colour schemes, but otherwise the builder essentially does everything else and you just move in when they're done.
Shell Build
A shell build is at the other end of the spectrum from a turnkey build. "Shell" refers to the basic structure of a building, often in its raw and unfinished state. A building shell includes the foundation, exterior walls, roof, and structural elements. It may also include basic services like electrical and plumbing systems, but these are typically rough-ins and not fully finished.
Given the interior of a shell building is unfinished, it lacks the aesthetic and functional elements like flooring, interior walls, fixtures, and finishes. This gives property owners the chance to design and finish the interior to suit their specific needs and preferences.
When it comes to designing the house, that's up to the owner. They can get their own design done and take it to a builder, or use a design supplied by a builder. Either way, it will be minimalistic given the owner will take back the house at the end of the build in order to finish off all the interiors.
Fixtures & Finishes Build
This falls somewhere in between the two earlier options. The builder builds the shell, puts in all the finishes and fixtures, but a lot of the other things that complete a turnkey build, such as a driveway, are left for the owner to complete.
Just so you're clear on the difference between fixtures and finishes...
Building finishes refer to the final elements or materials used to complete the interior and exterior surfaces of a building. These are the aesthetic and functional elements that make the building habitable and visually appealing.
This includes items such as paint, flooring, ceiling finishes, wall coverings, baseboards, trims, and any decorative elements like tiles, wallpapers, and mouldings.
Fixtures are permanent, attached items within a building that serve a specific function. Fixtures can include items like sinks, toilets, light fixtures, built-in cabinets, and built-in appliances (for example built-in ovens or stoves).
Fixtures are generally considered part of the building because they're attached, and are included in the sale or lease of the property.
And just to complete the trio of "F" words - Fittings. These are basically fixtures that aren't permanently attached. Think of a washing machine. Just wanted to make sure you knew what fittings were! And occasionally bigger items like laundry appliances do turn up in a turnkey build, just to confuse things.
By now, hopefully you're beginning to understand what I meant when I said it's important to compare apples with apples. If one builder gives you a quote based on a turnkey finish, it's obviously going to be much higher than a quote for a shell.
It can also happen that certain builders work certain ways, and if that's not the outcome you want to achieve (for example if you're a concreter and want to do all the driveways etc yourself), then it's important to make that clear right from the start. Otherwise you may find the builder has included elements in the build that you don't want or need - and will charge you for them even if you do it yourself.
Even without the different levels outlined above, there are other costs you need to be aware of. Some builders, particularly turnkey ones, will incorporate a lot of preparation costs in their quote as well. This might cover obtaining a build permit, site works, connection of services and more. Others will expect you to either complete or pay for those separately to the main build contract.
Now, like most things in life, all of these items are up for negotiation when you're sourcing quotes from builders. And the best place to start is with a comprehensive scope of works. If every builder has the same outline to quote from, then the chances are they'll at least provide you with quotes that all come from the apple family.
You might still need to choose between a Golden Delicious or a Granny Smith apple when you get into the nitty gritty detail, but that's still better than comparing an apple with an orange.
Sounds simple, right? Yes and no. Because while you're thinking that asking for builder quotes is easy, you might have overlooked one tiny little issue - a house isn't always a house.
I know you're scratching your head in confusion right now, but stick with me, because understanding that you can't compare apples with oranges is crucial when it comes to managing your project.
Now, in the building universe there are probably an almost infinite number of ways to structure a building contract, in terms of the end result. And that's really what I'm talking about here - when you ask a builder to build you a house, what exactly does that mean?
In reality, building scope usually falls into one of three categories. So let's start by taking a look at those.
Turnkey Build
A turnkey contract is an agreement where the contractor is responsible for the entire project, from design and construction to final completion. Put simply, "turnkey" typically refers to a complete or fully finished house.
It typically covers all aspects of the project, including design, procurement, construction, and handover.
The contractor is responsible for all aspects of the project, and the client often has minimal involvement in decision-making. It also provides a single point of responsibility and is often used for projects where the client wants minimal involvement in the construction process.
Essentially, the client only needs to "turn the key" to occupy the finished building, because it's ready for immediate use or occupancy. It's fully equipped and furnished, and the client can move in straight away.
Aside from the house, though, it also includes all the exterior "stuff" like landscaping, driveways and more, right down to the letterbox.
House and land packages often fit into this category. As the buyer, you may get some say in terms of colour schemes, but otherwise the builder essentially does everything else and you just move in when they're done.
Shell Build
A shell build is at the other end of the spectrum from a turnkey build. "Shell" refers to the basic structure of a building, often in its raw and unfinished state. A building shell includes the foundation, exterior walls, roof, and structural elements. It may also include basic services like electrical and plumbing systems, but these are typically rough-ins and not fully finished.
Given the interior of a shell building is unfinished, it lacks the aesthetic and functional elements like flooring, interior walls, fixtures, and finishes. This gives property owners the chance to design and finish the interior to suit their specific needs and preferences.
When it comes to designing the house, that's up to the owner. They can get their own design done and take it to a builder, or use a design supplied by a builder. Either way, it will be minimalistic given the owner will take back the house at the end of the build in order to finish off all the interiors.
Fixtures & Finishes Build
This falls somewhere in between the two earlier options. The builder builds the shell, puts in all the finishes and fixtures, but a lot of the other things that complete a turnkey build, such as a driveway, are left for the owner to complete.
Just so you're clear on the difference between fixtures and finishes...
Building finishes refer to the final elements or materials used to complete the interior and exterior surfaces of a building. These are the aesthetic and functional elements that make the building habitable and visually appealing.
This includes items such as paint, flooring, ceiling finishes, wall coverings, baseboards, trims, and any decorative elements like tiles, wallpapers, and mouldings.
Fixtures are permanent, attached items within a building that serve a specific function. Fixtures can include items like sinks, toilets, light fixtures, built-in cabinets, and built-in appliances (for example built-in ovens or stoves).
Fixtures are generally considered part of the building because they're attached, and are included in the sale or lease of the property.
And just to complete the trio of "F" words - Fittings. These are basically fixtures that aren't permanently attached. Think of a washing machine. Just wanted to make sure you knew what fittings were! And occasionally bigger items like laundry appliances do turn up in a turnkey build, just to confuse things.
By now, hopefully you're beginning to understand what I meant when I said it's important to compare apples with apples. If one builder gives you a quote based on a turnkey finish, it's obviously going to be much higher than a quote for a shell.
It can also happen that certain builders work certain ways, and if that's not the outcome you want to achieve (for example if you're a concreter and want to do all the driveways etc yourself), then it's important to make that clear right from the start. Otherwise you may find the builder has included elements in the build that you don't want or need - and will charge you for them even if you do it yourself.
Even without the different levels outlined above, there are other costs you need to be aware of. Some builders, particularly turnkey ones, will incorporate a lot of preparation costs in their quote as well. This might cover obtaining a build permit, site works, connection of services and more. Others will expect you to either complete or pay for those separately to the main build contract.
Now, like most things in life, all of these items are up for negotiation when you're sourcing quotes from builders. And the best place to start is with a comprehensive scope of works. If every builder has the same outline to quote from, then the chances are they'll at least provide you with quotes that all come from the apple family.
You might still need to choose between a Golden Delicious or a Granny Smith apple when you get into the nitty gritty detail, but that's still better than comparing an apple with an orange.
