What is the difference between a building price and a development budget?
The building price covers the work described in the proposal or contract. The development budget also follows the owner’s path through land, consultants, approvals, services, finance, holding and the chosen exit. Put these in separate sections, then check for overlap. A useful scope review identifies who supplies and pays for each item, so a lower building headline is not mistaken for a lower completed-project cost.
Link to this answer · 01What area should I use when comparing a price per square metre?
Use an area schedule that states exactly what is counted. Internal floor area, external wall measurements, a carport, verandah and covered outdoor space can produce different totals. Ask each proposal to identify the same components and drawing revision before comparing unit rates. Then compare the resulting scope and total price, because a square-metre rate alone does not explain foundations, services, finishes or site conditions.
Link to this answer · 02Which site works are easy to miss from an early backyard-building budget?
Check demolition and clearing, excavation, retaining work, drainage, temporary access, service routes, driveway, fencing and making good the retained property. Their need and extent come from the actual site and approved design. Do not add a generic allowance and assume every interface is covered. Record the investigation or drawing needed for each uncertain item, then ask for a defined inclusion, exclusion or priced allowance.
Link to this answer · 03Does a paperwork or permit allowance cover the whole subdivision process?
Only if its written scope says so. Ask for separate responsibilities for surveying, design, engineering, planning, building approval, subdivision conditions, service-authority work and title-related tasks. An allowance for preparing an application does not explain every later revision or external fee. The delivery team needs a list of deliverables and handovers, while the owner needs a list of costs that remain outside the proposal.
Link to this answer · 04What should a services connection allowance explain?
It should identify the services, connection points, proposed routes and the party responsible for design and approval. Ask whether the scope covers trenching, meters, upgrades, authority charges, reinstatement and any work affecting the front dwelling. A combined services figure is difficult to check without that breakdown. Resolve unknown capacity or connection conditions before treating the allowance as a complete cost for making the new dwelling usable.
Link to this answer · 05How should front-house renovation be separated from the new rear dwelling?
Give the retained home its own condition review and scope, then identify the connections between the two jobs. Parking changes, removed sheds, fencing, service diversions and reinstatement may arise because of the rear project rather than the renovation itself. Allocate each item once and assign responsibility for protecting the existing building. This helps prevent a tidy new-build quote from leaving the front-property works undefined.
Link to this answer · 06What do prime cost items and provisional sums mean for the budget?
For applicable domestic building contracts, these identify allowances rather than fully settled prices: selections may remain undecided, or a work item cannot yet be priced precisely. Read the item description, quantity, allowance and adjustment basis. Choose fixtures and investigate the site early where practical. Keep an allowance register so later selections or measured work can be compared with the amount already included, rather than added in full again.
Link to this answer · 07How can I compare two building proposals fairly?
Send both teams the same current drawings, specification and site information, then compare a shared list of deliverables. Mark differences in foundations, finishes, services, external works, consultants, exclusions and allowances before looking at the total. Ask for unresolved differences to be confirmed in writing. A comparison is useful when it shows what each price buys and what the owner must still arrange outside that scope.
Link to this answer · 08Can a contingency allowance replace missing scope?
No. First list known work and unresolved conditions; then hold a reserve for defined risks rather than using one buffer to conceal missing items. A service upgrade already identified as necessary belongs in the budget even while its price is being confirmed. Keep optional upgrades separate from risk allowances. As investigations and selections are completed, update both the expected cost and the remaining uncertainty instead of quietly consuming the reserve.
Link to this answer · 09How should GST be shown when checking a construction proposal?
Show the quoted amount, whether GST is included, and the cash payable under the agreement. Keep any owner tax-credit assumption separate and obtain the accountant’s confirmation for the intended use and transaction. A proposal marked ex GST does not mean that amount is all the cash required. Use consistent totals when comparing suppliers and keep invoices traceable to the relevant dwelling or shared project work.
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