HOW TO CUT THE COST OF YOUR EXTENSION - PART 2

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

Most building contractors are VAT registered and this will add 20% to the labour and materials costs. The trick here is to use tradesmen that have turnovers less than the threshold for VAT registration. This works very well if you are project managing the project, if not, then you could employ a building contractor to build the structural elements of the extension and then employ self-employed tradesmen to carry out the electrics, plastering and decoration. 

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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While every effort has been made to check the accuracy of this article, readers should always make their own checks.  

The Author does not accept any responsibility for misstatements made or any misunderstandings arising from it.

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HOW TO CUT THE COST OF YOUR EXTENSION - PART 1

See how to cut the cost of your extensions in 10 easy steps....

1. Establish a brief and budget.
2. Employ an Architect.
3. Know your neighbours.
4. Statutory requirements.
5. Simple Design, 

and coming soon, Part 2. . . . . . . . . . . . 
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1. Establish a brief and budget

It is important from the beginning of your project to establish a brief and budget and adhere to it. A clear brief will help your architect provide an accurate design to meet your requirements and budget. Planning your build in advance will allow you to develop an idea of exactly what your project is to provide, how you are going to use the space and what it will look like. A great way to communicate your ideas is to collect images from building magazines and websites.
The budget should always include a contingency sum to allow for any unknowns, i.e. items that can cause delay or further costs that cannot be determined until work has begun, 10% of your budget is usually sufficient. Also, be clear about the types of materials, fixtures and fittings you would like so that every detail can be budgeted from the outset and therefore limiting any additional costs in the construction phase. This is also where an Architect can assist you in defining and helping you to ensure a cost effective budget.  It may also be worth you sourcing and purchasing units and fittings yourself, i.e particularly for kitchens and bathroom fixtures and fittings, as you could make significant savings, particularly if you source products in sale periods or end of supply periods.


2. Employ an Architect

Although this may seem like an unnecessary expense, an Architect can save you time and money and add value to your project. Architects are trained problem solvers and they can show you how to enlarge your home so you won’t have to move. The architect will provide a design that will give you the most efficient use of space that will also be cost effective not just in the build cost but also in the building’s life-cycle cost. They will guide you through the whole process and help you find the right builder. 
Fees are usually charged as a percentage of the total construction cost, which is usually between 10-15% of the construction cost, the actual % charged will depend on the level of architect’s service you require.


3. Know your neighbours

If you are building on or near the boundary or will be excavating near a neighbouring building then you will need to comply with the Party Wall etc. Act 1996. Under the Party Wall Act, you must notify your neighbour about your extension at least 2 months before you start building. If you can get them to consent in writing to the works you will avoid using a party wall surveyor and therefore, save on fees. If a party wall settlement is required, i.e. your neighbour disagrees with your proposal then surveyors will need to be appointed.  
The average cost of a Party Wall Surveyor is approximately; £900 - £2,700.  The homeowner leading the project is usually responsible for the Party Wall Surveyor’s fees.
Refer to https://www.gov.uk/party-walls-building-works for full details of the Party Wall Act.
Keeping your neighbours informed of your proposals at the earliest opportunity may help you avoid any problems with your project and avoid any unnecessary delays and costs due to disagreements.


4. Statutory requirements

It is a legal requirement for you to comply with Planning legislation, Building Regulations and the Health and Safety Act. Your architect will be able to guide you through the processes effectively and efficiently. 
You should choose an architect with a track record of designing similar projects and to keep a track of costs agree a fixed price for planning and building regulation applications.
Keeping your design simple and in keeping with your property, i.e. if you select materials that match your existing property then your project may be built within permitted development rights and therefore save you the planning fee and the time it takes for planning permission to be approved. (This usually takes 8 weeks). 

Coming soon…........Our article on Permitted Development. to see what you can do to improve or extend your home without the need for planning permission.


5. Simple Design

Keeping the design simple will provide a cost effective solution to your project.
A rectangular extension with a simple pitched or flat roof will be the most cost-effective and  if you can avoid any unnecessary curves and angles that are not 90 degrees. 

A simple design does not mean it will be boring! Choosing the right materials and utilising large window openings can provide an attractive contemporary design.  

Speak to your Architect to show your home can be made exciting and interesting without unnecessary expenditure.

. . . . . . . .and coming soon, Part 2. . . . . . . . . . . . 

6. D.I.Y.
7. Project management
8. VAT
9. Materials.
10. Time and Planning.

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While every effort has been made to check the accuracy of this article, readers should always make their own checks.  

The Author does not accept any responsibility for misstatements made or any misunderstandings arising from it.

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PROJECT MANAGEMENT - ARCHITECT'S ARE THE TRUE PROJECT MANAGERS!

Architect's are the original and true Project Managers.

We explain why you should use your Architect as the Lead Project Manager on a project as they will be the most valuable asset to a client;

The management of information throughout a project is absolutely critical for a successful outcome to be achieved.  Construction projects, even simple house extensions can be a complicated process, especially with the amount of protocols that need to be followed, i.e. Planning, Building Regulations, Health and Safety etc.  A project managed correctly can make life a lot easier for the client and all parties involved.  Effective project management will save the client time, money and stress, especially when budgets are constrained in a recession!

The Project Management role is typically the Architect’s role but since the mid-1990’s other building professionals have begun to take on the role. Most Project Managers that are not Architects do not have a solid understanding of design and the construction process.  When they manage a building project they always have to refer to the other consultants (i.e. Architect, Structural Engineer etc.) for advice and therefore the process can take longer and may cost more money. 

By using an Architect to carry out the role of not only designer but also the Project manager you are effectively removing the ‘middle-man’ that will not only save time but will save money. 

As Architects we have the same skills as our construction counterparts with the added advantage of an education in design, space planning, technical detailing, contract administration and project management. It is this combination of skills that ensure that Architects are experts in delivering projects through their knowledge of the building process from inception to completion.

Using an Architect to act as the lead consultant, gives the client a single point of contact and communication to co-ordinate the design team, other consultants and the building contractor(s).

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While every effort has been made to check the accuracy of this article, readers should always make their own checks.  

The Author does not accept any responsibility for misstatements made or any misunderstandings arising from it.

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WHY USE AN ARCHITECT?

Whether you are planning to build a new house, to alter of extend your existing home or to employ a builder, there are many advantages to using an architect for your project.

Architects are trained problem solvers and know the construction industry inside out. They have undertaken seven years of architectural training; no other building professional is trained in design and construction to such a high level of expertise. The term ‘Architect’ is a protected title and UK law requires those that use it to be registered with the Architects Registration Board (ARB). 

A registered Architect is also required by law to carry Professional Indemnity Insurance cover appropriate to the scale and type of work that they undertake. 

You should always check to see if your ‘Architect’ is registered as there are many people in the construction industry that claim to do the work of an Architect but are not qualified. Please refer to the ARB website to check for registration of any ‘Architect’ before you hire them. (www.arb.org.uk)

An Architect’s experience and insight can help stretch what can be achieved within your budget and add value to your project. Whether you are looking for tradition or innovation an architect will understand your hopes and anxieties. They will find the extra light and space you didn’t know had and and help translate your vision into reality bringing value for money, peace of mind and keep the project on time and budget.

When designing a project, an Architect uses their skills and expertise to think about the most efficient way to build your project, maximising the energy efficiency to reduce the overall running costs, the structural implications, the effects of the Planning laws and the Building Regulations. 
If these items are not fully considered from the beginning they can seriously affect the costs of a project, as the later any problems are discovered throughout the build process the more they will cost to rectify and can seriously delay the completion date. 

An Architect provides much more than a set of drawings; they have the expertise to see your project through from inception to completion. They can oversee the design process, assist with Planning Permissions and Building Regulations approvals, help select the right builder and manage the project with a building contract and monitor works on-site and keep track of the budget. 

Consulting an Architect from the beginning will allow them to establish a clear brief and a realistic budget and ensure that a project can be delivered on time and on budget whilst identifying and reducing or omitting any potential problems from as early as possible.
Before you start a project you need to consider the following factors when selecting your Architect:

• What do you want to achieve from the project?

• What is your budget?

• What specific experience does your Architect need to have?

• Is there a type of design you are looking for? (e.g. traditional, contemporary, green etc.)

It is important that there is good collaboration and dialogue from the outset. You need to have a clearly defined idea of your brief and budget. An Architect is not there to impose their own tastes and ideas on your project but to follow your brief and help realise your aspirations through their expertise. It is their job to analyse the brief and provide solutions that will enhance your ideas, provide value for money and deliver a project to your requirements.

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While every effort has been made to check the accuracy of this article, readers should always make their own checks.  

The Author does not accept any responsibility for misstatements made or any misunderstandings arising from it.

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AN ARCHITECT'S BRAIN

This what an Architects brain is. 

Imagine what this brain can do to transform your home or workplace!

HOME OWNER CONTRACTS FOR BUILDING WORK

Following on from your post about building contracts:

Many building contractors try to do business with a handshake, but this leaves the homeowner highly exposed.

A written contract (not an email!) will set out and detail the expectations of both sides and avoid unexpected changes and ensure that the works is completed to a set price and schedule.

JCT's Home Owner Contracts are custom made for home owners looking for the benefits and protection of a contract when appointing consultants or contractors to carry out building work to their home.  SEE LINK:  https://www.jctltd.co.uk/category/home-owner-contracts

Contracts are available for: 

1. A home owner/occupier who has not appointed a consultant to oversee the works (home owner deals directly with the contractor) 

2. Building Contract and consultancy agreement for a home owner/ occupier who has appointed a consultant to oversee the work.

Contract Features:

• The roles and responsibilities are clearly set out and defined for contractors, architects, surveyors, etc.

• The Contract is simple and clear – easy to complete.

• Project Management – you can easily manage your building work by recording costs and scheduling all in one document

• Legal certainty – the contract gives all parties certainty should any difficulties arise.

• The work to be done is clearly defined; planning permission, building regulations and party walls, using facilities on the premises, price, payment, the working period, product guarantees, Insurance, working hours, occupation and security of the premises, and disputes.

• The contractor’s responsibilities, customer’s responsibilities, health and safety, changing the work details, extending the working period, payment, contractor’s continuing responsibility, bringing the contract to an end, right to cancel, insolvency, other rights and remedies, and law of the contract. 

• Contracts are suitable for small domestic building work; such as extensions and alterations.

NOTE 1: 
This is a consumer contract for a residential occupier; therefore it is excluded from the provisions of the Construction Act.  However the contract does provide for adjudication in the event of a dispute between the home owner and the contractor.

NOTE 2: 
The Construction (Design and Management) Regulations 2015 (CDM 2015) apply to both domestic and commercial clients. Domestic clients should refer to guidance produced by the HSE, Want construction work done safely? (INDG411(rev1)), which can be downloaded for free from www.hse.gov.uk/pubns/indg411.pdf.

NOTE 3: 
For Scotland, refer to: www.sbcconline.com and Northen Ireland contact The Royal Society of Ulster Architects at www.rsua.org.uk.

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While every effort has been made to check the accuracy of this article, readers should always make their own checks.  

The Author does not accept any responsibility for misstatements made or any misunderstandings arising from it.

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THE BUILDING CONSTRUCTION CONTRACT - WHY USE ONE?

If you are considering construction work to a property the building contract between you and your contractor is the one of the most important aspects of a project.  

A signed contract ensures that both parties agree in writing the details of the works to be undertaken, a programme of the works (start and finish date) the cost and how stage payments should be made.  

It will also help to prevent or remedy any problems that may occur during the construction period.

There are many contracts available to download on the internet but we would advise that a contract is selected from The Joint Contracts Tribunal (JCT) see; www.jctltd.co.uk 

(The JCT is an independent body established by the construction industry whose role is to set the standards for construction contracts).  

Unless you are familiar with a building contract or the work is of a very simple nature then it is advisable to have a consultant appointed, i.e. an Architect who is an expert in contract administration.  An Architect will advise you on the appropriate form of contract and can manage the contract on your behalf ensuring that the project runs as smoothly as possible.

The contract should cover the following items:

• The scope of work - this should describe the project in detail and refer to the contract documents which are usually a set of detailed drawings and a detailed construction specification.

• Legislative Consents - Planning permission, Building Regulations and Party Walls-has the required permissions been obtained, if not, who is responsible to obtain the approvals required?

• Access and facilities of the premises – this should state the times and scope of access to the site, permitted working hours, facilities (water and electricity supply, toilets and refreshments) and security of the site.

• Payment - details how and when the contractor will be paid.  This is usually in stages, such as completion of the foundations up to dpc, up to first floor level etc.

• The working period – the start and finish dates of the construction period and how delays are to be handled? i.e. are liquidated damages required for late completion? What is the liability period for making good defects post-completion.

• Standards – the standards of workmanship expected should be defined and how any defective work is to be remedied.  The contractor should also give you any guarantees by the manufacturers of products installed in the work.

• Variations and amendments – how are any changes to the original agreed works to be handled.

• Insurances - this should detail who is responsible for the insurance of the works.  This will depend on whether the project is a new build or a refurbishment.

• Dispute resolution – procedures for resolving disputes should be clearly defined.

Do not forget that a contract is a binding agreement for both parties.

You must ensure that you know your responsibilities and follow the specified terms to ensure that you have a good relationship with your contractor and hopefully achieve a smooth and stress-free outcome of your project.

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While every effort has been made to check the accuracy of this article, readers should always make their own checks.  

The Author does not accept any responsibility for misstatements made or any misunderstandings arising from it.

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