Part 2 is here, some more of our tips on how to cut the cost of your house extensions:
6. D.I.Y.
7. Project management
8. VAT
9. Materials.
10. Time and Planning.
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6. D.I.Y.
It makes sense that if you have some good DIY skills to do some of the work yourself as the cost of labour can be more than half of the building cost. The difficult parts of the project are the structure, i.e. the foundations, walls and roof and you really need to have good experience & expertise of these if you are going to do these elements yourself. A lot of people choose to do the simpler tasks such as decorating (tiling, painting etc), which is by far the easiest way to save money. You may also have the skills to fit kitchen units, bathroom fittings, hot and cold water pipework etc.
If you do take on work yourself ensure that you are confident that you can provide a good finish as bad workmanship will be obvious and can be false economy.
7. Project management
Most builders do not carry out all of the work on a project themselves and will usually employ sub-contractors to do some of the work for them. They are effectively project managing the project and this can add approximately 20% to the cost for their management and time. This may be the only option for people who are too busy to do it themselves.
Although project managing your project can be time-consuming it can provide significant savings but may take longer as you will need to co-ordinate the various contractors required and in the correct order. You will therefore require good management skills as well as a sound knowledge of construction. This can save a lot by sourcing your own contractors, rather than employing one contractor organising the whole contract.
8. VAT
You may be able to reclaim some VAT back if you are doing work to a listed building or extending a building that has been empty for two years.
Zero rate VAT applies to:
- Building a new house or flat; this can include self-contained units that have no connecting doors to other houses, i.e. they can be used independently from any other property (including businesses) and can be sold as its own. Note: Granny flats or annexes built as an addition to an existing house cannot be sold or used separately to the main house, so VAT is applicable at 20%.
- Work for disabled people in their home.
Reduced VAT of 5% applies to the following:
- Certain work for people over 60.
- Energy-saving products installation.
- Improvements to a domestic property in the Isle of Man.
Please refer to the Gov.UK website for up to date information;
https://www.gov.uk/vat-builders
9. Materials.
The easiest way to save money on your project is to source some of the materials yourself from reclamation yards or the internet. Open an account with Jewsons or a local building merchants and you will often get an automatic discount. You can also negotiate further reductions, particularly if you are going to spend large amounts with the merchants. This can save a considerable amount as materials can be marked up considerably by a builder.
Second-hand materials can be bought a lot cheaper than buying them new, and will also be free of VAT. Also look out for end of line sales where you can save money on fittings, such as carpets, kitchens and bathrooms. Find out where your trade shop is located and see if you can purchase materials. You could try and negotiate for a trade discount or even buy in bulk and then sell back or sell on what you do not need.
10. Time and Planning.
In any project the key factor for a cost effective solution is to plan in advance. It takes time to organise alterations to your home from organising the best finance deal, hiring an architect, a builder etc. When hiring people it pays to obtain quotations from at least 3 parties, but remember that the cheapest is not always the most effective, look at their experience, as this can help you save money in your project.
You will also need to know what the interior will look like, for instance the fixtures and fittings, knowing this in advance will allow you to source the materials you need and will save you money. At the start you must ensure you have a schedule of all the costs of your extension as this will allow you to save money on your extension as you will be able to assess the materials and labor costs. This applies to all cases of building your extensions, i.e. if you are to do some tasks yourself or if one contractor is managing the whole project.
Leaving any of the above items until the last minute will mean that you will not always get the best deal and you could end up paying over the odds because you did not spend the time and plan your project in advance. If you are to take the role or Project Manager in your build and/or to purchase the materials yourself, the timing of which can be everything! Delivery times can be critical, as you will need materials to be onsite and ready to use for the day they are scheduled to be used! If not you will waste money on on-site labour as you will be paying for a site with no one working on it.
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