All Topics / Value Adding / Are project home builders cheaper than smaller builders?

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  • Profile photo of alfrescodiningalfrescodining
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    @alfrescodining
    Join Date: 2012
    Post Count: 160

    In general, are project home builders (Masterton, Clarendon, AVJennings, etc.) cheaper than a regular smaller builder?

    I'm talking for a single dwelling, dual occupancy, etc.

    Profile photo of Stacey SurveyingStacey Surveying
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    @stacey-surveying
    Join Date: 2011
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    In many cases, yes. Although if you’ve seen the huge number of threads on this and other property forums about the troubles with those large builders I’d be steering well clear of them. Best be asking around for recommendations for a well priced and reliable small builder.

    Profile photo of fredo_4305fredo_4305
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    @fredo_4305
    Join Date: 2009
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    Where you may save yourself 20K – 25K by using a larger builder you may find that the overall finish, quality is not there. They are also not as flexible when it comes to alterations etc.

    That 20-25K may even balance out due to the finish.

    Profile photo of alfrescodiningalfrescodining
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    @alfrescodining
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    Wow thankyou guys, didn't realise that.

    What kind of troubles are you aware of with larger builders Ashley?

    And does anyone know of any good builders who build in Western Sydney or Southwest Sydney?

    Cheers

    Profile photo of fredo_4305fredo_4305
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    @fredo_4305
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    I rencently used a small builder for a complete reno of a flooded property, I couldn’t fault his flexibility. You won’t get this with a big builder and if you do get the flexibility you will prob find the price goes up.

    I also got a quote off big builder last year for a lowset brick home, all they were interested in was in getting me to contract, very very pushy.

    Profile photo of Stacey SurveyingStacey Surveying
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    @stacey-surveying
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    alfrescodining wrote:
    Wow thankyou guys, didn't realise that.

    What kind of troubles are you aware of with larger builders Ashley?

    And does anyone know of any good builders who build in Western Sydney or Southwest Sydney?

    Cheers

    Hi,

    Not sure of any builders in Sydney sorry! I agree with the lack of personal touch from the post above.

    Yes the big builders are cheap, but this does significantly affect the quality of the work. I’ve done some surveying work in the past for Metricon, and they would always try to get me to rock bottom price. Almost to the point where the work isn’t worth doing.

    One of my close friends who’s a sparkie had the same experience with the large builders. They’ll get the tradies down to their lowest price, so it’s at the point where the work needs to be rushed, otherwise they’ll be at a loss.

    Last thing you want is to have a home rushed and not built as well as it should be. I’d pay the extra money and wait a bit longer for my house than just a cheapo kit-home deal.

    There’s a thread on here I read recently where the couple were being stuffed around big time by a large builder, and when they wanted out they were met with all sorts of problems. I’ll try to find the link to post back here. Many large developers I work for like using the local tradies for quality work.

    Cheers,

    Profile photo of alfrescodiningalfrescodining
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    @alfrescodining
    Join Date: 2012
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    Thanks guys

    Point taken.

    Profile photo of christianbchristianb
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    @christianb
    Join Date: 2009
    Post Count: 386

    Project home builders are cheaper than small builders. That's not so much an opinion as an understanding.

    The reasons are manifold and have little to do with quality of finishes.
    In my opinion, these are the two main reasons:

    1. There is less risk, and therefore less margin when building the same thing many times. Think of it this way; there is no doubt that the second time you built from the same set of plans you would do it quicker, cheaper and better than the first time. Imagine then how efficient you would be the twentieth time.
    2. The materials and labour charges are quantified through repetition. That is to say, the suppliers and tradesmen know what they have to do or supply and compete on efficiency and cost.

    I am currently doing some work on developing a "project home" type of offering for dual occupancy or duplex development, but it's not that easy. There are issues with the levels of sophistication required for something that needs to meet town planning standards that otherwise does not come into play for single dwellings.

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