Now that you have decided to build a home, the next stage is to plan for construction. The aims of cost planning are to:
- Ensure that you are provided with value for money.
- Make you, as the home-builder, and designers aware of the cost consequences of their proposals.
- Provide advice to designers that enables them to arrive at practical and balanced designs within budget.
- Integrate costs with time and quality.
- To keep expenditure minimal
LOCATION, LOCATION, LOCATION….
In real estate as in business, the choice of location has a tremendous impact on cost and opportunities. It is therefore important to select a location which will favor you as home builder.
For example the cost per meter squared of building a home in Nairobi can be Kshs. 43,000 but constructing a similar unit in Nakuru can be KShs. 40,000. That Kshs. 3000 difference counts for a significant relief on your wallets.
Generally, building costs tend can to vary between locations due to one or more of the following factors:
- materials/products available or commonly used;
- ground conditions normally encountered;
- material/product prices due to distance from place of manufacture or distribution;
- distance from labor source;
- local regulations;
- labor productivity (e.g. due to adverse climatic conditions);
- builder’s risk and market conditions;
- labor rates – In Kenya,the rates for labor especially for individual home builders, is determined by personal negotiations with the the key contractor.
Another factor closely related to location is the characteristics of the land/plot
These are the geographical influences on land, including topography, climate, soil conditions, area, availability, cost and liability to earthquakes and flooding. In the past.
- Soil or geological conditions
These may have a bearing on the pattern of land use, the density and costs of development. Foundation type and complexity for any particular building are determined by the subsoil conditions. Unstable soil conditions can and the climatic conditions can also play their part in influencing development.
This can also influence building costs. Whilst elevation and views (particularly as development moves up a hill) are generally considered desirable, it comes at a premium. Generally, the cost of building on steep slopes is greater than that of building on level sites.
As home builder, it is important that you choose a suitable location before commencing planning any further.
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