Unfortunately, if one is not familiar with building the building process, there can be some unexpected costs. We do our best to ensure that hidden costs are considered at the front-end to avoid nasty surprises during the build. Some of these costs include,
1. Long Service Levy - the NSW Government requires land owners to pay a 0.35% levy on the total cost of the build inclusive of GST for any projects costing over $25,000.
2. Council fees – Depending on the local government area, development application (DA) fees, and potentially also a bond, will apply for projects being completed under DA. It's always advisable to call and request info from your local council.
3. Private / Government Certifying costs – For quality assurance the government requires a building inspector to check design documents and works to ensure they are up to scratch. Costs can range from $2,000-$4,000, depending on the complexity of the build.
4. Engineering can cost anywhere from $4000 - $15,000 per project.
5. The consumer guide suggests a 12% contingency on all projects, meaning to allow for the project to run over estimate/quote by 12% of total price.
In NSW, all building works are covered under a 12 month dilapidation period where the builder must rectify any defective work within this 12 month period. Post the 12 month period, the building is then covered under home warranty insurances which last for 7 years.