How to Control Your Cost for House Building
"Budget overrun" during house construction is the most serious problem because not only does it cost you more than the amount budgeted, it may also leave the house unfinished due to the untimely spent up budget. So, take these following tips to avoid the problem.
1. Set the amount of space and plan of the house clearly: these should be set before the construction begins, and all plans should be followed without any changes. Any change during the construction can waste time and money, and effect the house structure.
2. Choose proper materials: there are many types of materials which also range in price. The owner should think of the usage and reasonable price first. If it's over the budget, materials with cheaper price should be selected as a substitute for the more expensive one. You can use wood substitute (fibrecement) instead of actual wood, or ceramic tiles instead of granite wall.
Normal tiles with cheaper price can also beautify a house.
SHERA Color Through floor plank is as beautiful as the actual wood but cheaper and resists termites.
3. Decide who will buy the materials: You can have the contractor buy the materials and pay them all at once with the wage, or you can buy the materials yourself and give them to the contractor.
- If the contractor is the buyer, you can control the budget for the materials better as the contractor normally manages the materials under the budget specified in the contract. If there is some damage or lack of materials during the construction, the contractor will be responsible for it without any additional charge. But the materials bought through the contractor can be a little more expensive than those in the market as they may require some additional process costs.
- If you buy the materials yourself, you may be able to buy them with lower prices, but you also take all the risk in case the materials are damaged or you've bought an insufficient supply. You would have to pay more and go buy the additional materials again. Plus, if the contractor is not honest, they may use the materials carelessly, or steal some of them and resell them later. This way suits those who have enough time to supervise the construction process or have someone reliable to do it for them.
4. Control the construction process: the longer your construction takes, the more money you waste, especially if you hire a minor contractor who receives wages daily and is not depending on the quality of the work done each time they receive compensation. The owner of the house should often check the construction and make sure it will be done on schedule as much as possible. Also, be cooperative without changing any plans which may cause delay.
5. Decorate the house with limits: after the construction, many may spend a lot more money on decorating. Some may even enjoy doing it and forget they have spent too much. Be cautious when buying furnishings for the house. Plus, you should not buy furniture you like without thinking carefully because it can be a waste of money if it doesn't fit the house.
With the 5 tips mentioned above, you can avoid any cost overrun for sure. But you should also prepare some reserve money in case any problem occurs for the construction to be finished smoothly.