Accuracy in pricing works or guesswork?

I have just finished costing up some work for an architect who will pass the cost on to the client. The purpose was to ascertain what the likely costs of the design would be and whether they would fit within the overall budget. This feasibility study is ongoing and is of real benefit to any client. Once again, I am reminded that this was a commercial venture and that this is situation normal in the commercial field.

Domestic self-build clients however seem to think this a waste of money and would rather put their faith in their local builder who would never try to lead them astray…they would never hide the true cost of the works in order to get it going – and they would never leave a job unfinished even if it meant they would not get paid….

Get real people…! This happens all the time and myself and other independent project managers get hammered with the task of trying to put it all straight. Usually by this time the ‘honest builder’ would have taken all the money and the hapless self-build client would have borrowed more money to get the job completed, or worse they will be in a position of no money and no chance of completion and will then have to sell their dream home to escape a life of penury.

It costs very little to get a feasibility study carried out normally about £1 for every £1000 of build cost. That’s about £150 – £200 to find out if you can actually afford the design you want, or to identify what you can change in order to afford the work…now that seems to me to be a bargain and good sense. Follow that up with a full budget formulation and a quantified schedule of work and you then have the basic tools with which to go ahead with your self-build project.

Steve

 

Project Management

What is this and why should we use it for our building project?
Read more

Feasibility

What should we look for?
Can we afford to do this?
Read more

Budgeting

Finding out what it should all cost.
Keeping those costs under control.
Read more

Programming

How it can really help a project.
How to do it properly.
Read more

Tender Process

Making sure the build team is properly chosen and prepared.
Read more

Procurement

Finding the best value materials.
Making sure they stay that way.
Read more

Site Management

Working with the whole team,
helping everyone to get it right.
Read more

CDM 2015 Regulations

Carrying out the Principle Contractor Role For CDM 2015 Regulations
Read more