Dr Eneche Precious
New member
7 HIDDEN COSTS THAT CAN DESTROY YOUR BUILDING BUDGET
Three years ago, a man came to our office with what he believed was his BOQ
(BOQ is a document that reveals the entire cost of a building project).
He wasn't our client.
He had already engaged another engineer to handle his project, but halfway through the construction, he became suspicious.
He had spent far more than the amount he originally budgeted, yet the building was nowhere near completion.
So he came to us for one reason:
“I want to know if I'm being cheated.”
He brought out the document his first engineer had given him.
After looking through it, we discovered something very important.
What he thought was a complete Bill of Quantities was actually a Labour and Material Schedule.
That was a major problem.
A Labour and Material Schedule can show you the quantities and costs of certain materials and labour, but it doesn't necessarily give you the complete financial picture of taking a project from bare land to completion.
And this is where many homeowners get into trouble.
Some contractors also remove certain costs from their schedules deliberately, or leave them as exclusions, because they want their quotation to appear cheaper than the competition.
For example:
Contractor A says the project will cost 50 million.
Contractor B says 58 million.
You naturally think Contractor A is giving you the better deal.
But later, you start hearing:
“Site preparation is not included.”
“Soil testing wasn't included.”
“Water supply is separate.”
“External works are not included.”
“Approvals are not included.”
“That's a variation.”
Suddenly, that ₦50 million quotation doesn't look so cheap anymore.
Here are 7 costs you need to consider before you conclude that you know the true cost of your building:
1. SITE PREPARATION
Clearing, excavation, leveling, filling low areas and preparing the site can cost significant money before foundation work even begins.
2. SOIL INVESTIGATION
The soil condition can influence the type of foundation your building needs.
Skipping proper soil investigation may save you money initially, but it can expose you to unexpected foundation costs later.
3. WATER SUPPLY
Construction requires water.
If there is no reliable source on your site, you may need a borehole, water storage or continuous water supply arrangements.
4. TEMPORARY POWER SUPPLY
Construction equipment needs power.
If electricity isn't reliable, you may have to provide generators, fuel or another temporary power solution.
5. FENCING AND SITE SECURITY
Materials left on an unsecured site can be vulnerable to theft and damage.
Depending on the location and project, fencing and security may become significant expenses.
6. ACCESS TO THE SITE
Can trucks carrying sand, granite, blocks and other materials easily reach your property?
If the access road is poor, additional money may be required to make material delivery possible.
7. APPROVALS, CHANGES AND VARIATIONS
Design changes, statutory approvals and unforeseen project requirements can introduce additional costs.
This is why you shouldn't only ask:
“How much will you charge me to build this house?”
Ask:
“Exactly what is included in this price, and what is excluded?”
And before you conclude that a contractor is cheap or expensive, have the quotation properly reviewed.
My visitor thought he was simply being overcharged.
But what he discovered was more important:
He had been comparing his actual construction expenses with an incomplete budget document.
Don't make the same mistake.
A cheap quotation is not necessarily a cheap project. Sometimes, it simply contains fewer things.
Before you start building, make sure you understand the complete cost of the journey from bare land to a finished building.
Share this post. Someone planning to build needs to see it.
#ConstructionTips
#BuildingTips
#RealEstateNigeria
#VanguardStructures
Three years ago, a man came to our office with what he believed was his BOQ
(BOQ is a document that reveals the entire cost of a building project).
He wasn't our client.
He had already engaged another engineer to handle his project, but halfway through the construction, he became suspicious.
He had spent far more than the amount he originally budgeted, yet the building was nowhere near completion.
So he came to us for one reason:
“I want to know if I'm being cheated.”
He brought out the document his first engineer had given him.
After looking through it, we discovered something very important.
What he thought was a complete Bill of Quantities was actually a Labour and Material Schedule.
That was a major problem.
A Labour and Material Schedule can show you the quantities and costs of certain materials and labour, but it doesn't necessarily give you the complete financial picture of taking a project from bare land to completion.
And this is where many homeowners get into trouble.
Some contractors also remove certain costs from their schedules deliberately, or leave them as exclusions, because they want their quotation to appear cheaper than the competition.
For example:
Contractor A says the project will cost 50 million.
Contractor B says 58 million.
You naturally think Contractor A is giving you the better deal.
But later, you start hearing:
“Site preparation is not included.”
“Soil testing wasn't included.”
“Water supply is separate.”
“External works are not included.”
“Approvals are not included.”
“That's a variation.”
Suddenly, that ₦50 million quotation doesn't look so cheap anymore.
Here are 7 costs you need to consider before you conclude that you know the true cost of your building:
1. SITE PREPARATION
Clearing, excavation, leveling, filling low areas and preparing the site can cost significant money before foundation work even begins.
2. SOIL INVESTIGATION
The soil condition can influence the type of foundation your building needs.
Skipping proper soil investigation may save you money initially, but it can expose you to unexpected foundation costs later.
3. WATER SUPPLY
Construction requires water.
If there is no reliable source on your site, you may need a borehole, water storage or continuous water supply arrangements.
4. TEMPORARY POWER SUPPLY
Construction equipment needs power.
If electricity isn't reliable, you may have to provide generators, fuel or another temporary power solution.
5. FENCING AND SITE SECURITY
Materials left on an unsecured site can be vulnerable to theft and damage.
Depending on the location and project, fencing and security may become significant expenses.
6. ACCESS TO THE SITE
Can trucks carrying sand, granite, blocks and other materials easily reach your property?
If the access road is poor, additional money may be required to make material delivery possible.
7. APPROVALS, CHANGES AND VARIATIONS
Design changes, statutory approvals and unforeseen project requirements can introduce additional costs.
This is why you shouldn't only ask:
“How much will you charge me to build this house?”
Ask:
“Exactly what is included in this price, and what is excluded?”
And before you conclude that a contractor is cheap or expensive, have the quotation properly reviewed.
My visitor thought he was simply being overcharged.
But what he discovered was more important:
He had been comparing his actual construction expenses with an incomplete budget document.
Don't make the same mistake.
A cheap quotation is not necessarily a cheap project. Sometimes, it simply contains fewer things.
Before you start building, make sure you understand the complete cost of the journey from bare land to a finished building.
Share this post. Someone planning to build needs to see it.
#ConstructionTips
#BuildingTips
#RealEstateNigeria
#VanguardStructures