How much can you save being an owner builder

The question every budding owner builder wants to know the answer to is whether you can save being an owner builder. The question remains, will the costs saved be worth the time spent?

The potential savings involved does require some extensive research during the early stages of the planning process. Gathering quotes from  local builders will set a max build price cost for your project. This will be our starting point. 

Before approaching any builder for a quote you must have all the information ready so they can prepare an accurate quote. A full set of architecturally drawn plans and specifications is the minimum you will need to have. A BASIX report will also help for accuracy.

To compare the cost of using a builder or owner building you will need to chase quotes from trades who can complete the works. Contact the various trades that will be involved in the build and request quotes from them to complete each of the staged works. They will also need plans and will probably have a few questions in regards to finishes etc.

Check out our owner builder cost estimates template to help you organise your quotes and costing estimates.

How much can you save being an owner builder?

The first major savings you will realise is not having to pay the builders margin. This can be a saving of anywhere between 20-25% of the actual construction cost.

Use your quote you received from the builder to compare the cost to the cost you have calculated in our cost estimates template. Remember though, you might be saving money owner building, however more time will be spent organising the project. Without a builder you will need to manage the entire project. Managing the project includes:

• budgeting
• Scheduling tasks and deliveries
• Hiring trades
• Ensuring safe work practices
• Quality control

How can i further save money by being an owner builder?

There will be a variety of ways to save money during the stages of the project. For example shopping around for cheaper building supplies and negotiating deals with suppliers, just to name a few. In addition, the next biggest major savings you can unlock is by completing a certain amount of work yourself. In other words, this is commonly referred to as ‘sweat equity’. If you are confident and skilled enough to take on tasks yourself, you might be able to save even more money.

Owner builder advocates claim that a total saving of 40% of the total cost could be saved by building your own home.

If you are to take on tasks yourself, we cannot stress enough that all works completed by you must follow and adhere to the building codes of Australia. Failure to do so can result in large costs to rectify any issues that do not comply. 

Building your own home can be demanding. It requires a lot of time, patience and skill. But on a successful completion the rewards will be well worth it.