What Are My Building Costs Per Square Metre?

"What are the building costs per square metre?" is one of the most common questions asked by people seeking to build their new home.

It is a fair enough question, and although the complexity of cost estimation defies a correct and simple answer, it is deserving of one. Since one of the things houses are usually referred to is by their size, it goes without saying they would want to find out the building costs per square metre to compare their options.

Even though most building consultants and specialists prefer not to use the cost per square metre equation as a yardstick, the reality is it is very common. The popularity of the Square Metre Cost Formula means that new home designers work themselves into a frazzle trying to come up with new home designs which present the best possible value "per square metre."

The result can be a horrible commoditisation of our most intimate living spaces, the flip side it that it has introduced competitive tensions that has transformed the way builders have interacted with the market place. A lot of this competition means cheaper home prices, but also can lead to lower quality buildings and inclusions.

Building Costs per Square Metre, per Kilogram, or per Design feature?

Talking to a qualified and experienced consultant will make sure all the ramifications of just going for the cheaper price per metre are clear to the new home buyer.

It may be a cheap price per square metre reflects the fact that some of the basic inclusions have been left out; and a more expensive price per square metre might include all whitegoods for example. Much of it depends on the outcome you are attempting to achieve.

What ARE the Building Costs Per Square Metre?

This question is best treated as a serious intention to find out accurate as possible pricing information with regard to how much a given house will cost.

This way a new home buyer receives first hand a genuine understanding of what goes together to make their new home, rather than rattling off a few glib numbers.

This is more honest in the long run that using an all-up price strategy, as if they were buying meat or gravel. Building costs consist of cost of materials, plus cost of construction, plus management costs, plus permits, plus the builder's profit.

Sometimes margins are a percentage of the costs, sometimes they are a lump sum; but the idea behind operating a building business is to make money managing the building process.

So why Building Costs per Square Metre?

Even though it is well known within the building industry that costing per square metre is the fastest way to go broke, sales people do it, and builders follow to get the job.

Having said that, if the square metre price is derived from sensible calculations, and then used as a ball park figure for the purpose of comparison between different designs for example, then there's no harm done. Many successful building companies use square metre pricing in this way.

If you have any doubts how much a about building costs per square metre you owe it to yourself and your family to contact someone like Joh Domingo at Building Buddy. He'll save you a lot of heartache by showing you how to make clear decisions about building your new home.