Townhouse construction costs per square metre, can be more expensive than a traditional single fronted house.   This is due to the fact the industry considers them a non-standard build and require more specialised building work.  With that in mind, any savings in your townhouse construction costs with significantly improve your bottom line.

Set yourself up for townhouse success

Enter into townhouse development with your eyes wide open, talk to all experts in the field and other property developers, do your own research and most importantly, apply common sense.  Planning is key before breaking ground and will set you up for success.

Be savvy with your townhouse construction costs – spend when it will maximise your return, save when it won’t.

We show you how to save money on townhouse construction costs with our top 5 tips.  These top tips can have a significant impact on your profit.

Let’s see how we can help you save money –

1. Intelligent design

Design can have a huge impact on the style and look of your townhouses as well as the return on your investment!  But there is also intelligent design.  This is where you use design to keep construction costs down at the same time as maximise your returns.

Intelligent design can ensure your townhouses work and flow brilliantly, but also offer adaptable layouts for modern living.

Clever design should include –

– Utilise state development codes and regulations.

Firstly, ensure your townhouse design utilises the limits of your state development codes or planning regulations.  If not, this is leaving money on the table.  An architect and builder experienced in local planning and build codes with be able to ensure this.

– Keep the perimeter and roof of the townhouses as regular as possible.

Any direction changes and indents add length to the perimeter and can increase build costs significantly.  Keep an eye on this but not at the expense of good design.  For example, hip and valley roof construction costs more than a simple roofline.

– Use standard sizes for all windows and doors.

This makes building easier and supplies are always generally available to prevent delivery delays.  There is a huge range of standard sizes available so mixing and matching between these sizes can add some interest to the design.  Small rooms can benefit from larger windows, and different size windows in larger rooms, can utilise the space and become its own feature.

– Install inbuilt storage for wardrobes and cabinets.

During the design stage, use inbuilt wardrobes and cabinetry as they can help to maximise the space within each room.  As well as, add value to the townhouses.

 

Tip – Have a look at your block and use its natural features, shape and contours in the design of your townhouses.  By using it natural contours, you will save in excavation costs, retaining walls and foundation work.  Also, if there are existing mature plants or trees on the block, check if the design can utilise them to reduce your landscaping costs.

 

2. Involve your builder early in the design stage.

Traditionally, the builder quotes once the plans and designs have been finalised.  However, by involving your builder during the concept and design stages, they can advise on the cost of the design; and whether they are economical or not.

Architect’s love designing but their plans don’t necessarily show HOW it will be constructed.  This is where the builders experience comes in.  We call this the buildability of the design.

By getting the builders advice on the ideas and plans on how the design will be built is invaluable.  They can give estimates in cost, and provide a better, or more efficient way to construct and achieve the architects’ design.

Either way, you will gain knowledge as to the cost to build your townhouses as well as the ability to seek less expensive options to the design if they are not within budget.

3. Embrace prefabricated and material alternatives/substitutes–

New techniques and technology have created a huge range of new building materials to keep building costs in check.  Check out prefabricated building materials and man-made materials.  See how they can look as good and in most circumstances function better than their natural counterparts.

These options allow the savvy property developer to build impressive townhouses at a fraction of the cost.

Some examples include –

Precast and prefabricated panels

These building supplies save time and money in construction and can also provide thermal and environmental benefits as well.  Available in a wide range such as concrete, brick and wood materials, the savings will surprise you and how fast construction is when supplies are made offsite.

Have a look at these precast concrete panels.

Hardwood floorboards

Love the look of hardwood floorboards, but not the cost?  Laminate or bamboo may be the choice for you.

Laminate flooring is three layers – the backing, the core, veneer of a thin strip of wood or look alike wood and a transparent coating to protect the flooring from wear and tear.    Laminate floorboards come in a range of widths to achieve different styles and are less expensive, easier to install as they are precisely cut to fit together.

Alternatively, bamboo floorboards are a natural, eco-friendly material compared to traditional hardwood.  Bamboo grows quickly so it is more sustainable, feels natural underfoot and is easy to care for.

Natural look stone tiles

The natural stone look is reproduced on porcelain tiles using ink-jet printing technology.  This technology allows for intricate detail across a wider range, just like nature.  They are available in a variety of finishes and their neutral tones will fit any style.

In addition, porcelain tiles are easier for the tiler to lay as they are lighter and easy to cut (less wastage).  They do not need to be sealed like natural stone.   Their durability and low maintenance, as well as stain and water resistant make them an affordable and wise choice.

Search the internet before heading out to suppliers to look at different building materials and options.  This will save time and effort to narrow down the types of materials you would like to use.

We also recommend you ask your builder and look at reviews of the materials to see how they function and their durability over time.

4. Hire a dedicated construction project manager

Any delays or problems during the construction stage all add to increasing your townhouse construction costs.  Hiring a construction project manager can be a valuable professional hire to eliminate these.

What does a project manager do?

Construction Project Managers manage the key activities involved in the construction project from start to finish.  Their expertise is to put together the construction plan from your designs and plans – often how something is drawn in the plans does not reflect how it will be constructed.

Once finalised, they book and schedule the professionals and technical personnel, hire equipment, order materials when needed.  They ensure the construction stays on track against the architectural designs and plans.  Additionally, they manage the operational plans, trades against the budget, all stakeholder relationships, distribution of resources and ensure all benchmarks are met.

In summary, the construction project manager is responsible for time, cost and risk management – everything that could be detrimental to the cost and success of your townhouse construction.

A project manager is a senior specialised role and is money worth spending, to ensure communication between all stakeholders and the management of your townhouse development stays on schedule, and on budget.  Not all builders will provide a project manager, so check before signing any contracts.  Some builders will assign a project manager or builder to your townhouse development but they are not dedicated to your construction.  Running between a number of construction sites is not an efficient way to build.  Other builders will provide a project manager to manage the whole townhouse construction between the different disciplines as part of their in-house services – this is to your advantage.

Hiring a project manager will also relieve any stress on your behalf, as their role is to take care of all the details of the build.  This leaves you with more time to spend on other elements of your townhouse development such as financing, cash flow, permits, marketing and sales.

5. Eliminate change orders

Change orders are last minute fixes or changes once construction has begun.  Whether this is material or design changes, they can be costly and throw your budget out.

We recommend you put the time and effort during the design and pre-construction stages to choose all your fixtures and fittings right down to the final details.   This may be tedious and time consuming.  A good builder will guide you through this stage as it supports them to be efficient and stay on schedule.  They can order all the supplies in a timely manner and not be slowed down by miscommunication, supply problems and indecision.

Some change orders cannot be avoided.  Unexpected issues can arise during construction such as emergencies or unforeseen problems and these must be attended to.  Reserve a contingency in your budget for these.

It is always advisable to begin your property development with the end in mind.  With the end in sight, you can construct your townhouses to plan and save big on construction costs at the same time.

A townhouse builder like SBR Group, understands property development and know that every construction cost saving means money in the bank for you.  Talk to us on 1300 676 166 or contact us here, our experience in development and building can help you achieve your investment goals.