This is a question we get a lot from our clients on a daily basis. In 2018 it seems that prices for basic commodities are through the roof and sadly it’s the same in the construction sector. We don’t want to make our readers despondent, we just want to equip you with the actual cost associated with building your home. We hope this article can give an insight and better prepare you for the realities of building your home.
So, we have outlined all potential cost associated with building your home. To make it easier our case study describes building a three bedroom single story home (1400 sq. ft.) on one lot of land (5000 sq. ft.). See here for an example of some of our model homes.
The first step is acquiring your plot of land which usually is 5000 sq. ft. In recent times, according to the location and topography the cost can range between $75- $120 per square foot. To translate that into figures it will be:
5000 sq. ft. x $75 = $ 375,000.00
5000 sq. ft. x $120= $ 600,000.00
In addition to the principle cost of the land, you must also take into consideration all purchase related cost, such as Real Estate Broker fees, Legal fees, Valuation reports, Insurances and Handling fees. You should cater 15%-20% of the purchase price for these overhead costs.
$375,000 x 20% = $75,000.00
$375,000 + $75,000 = $ 450,000.00
2. ARCHITECTURAL DRAWINGS
As mentioned in our blog post, 5 Steps to Home Ownership, architectural drawings is one of the most important aspects of building your home. These drawings are the manual for your contractor to follow to ensure you get the home you actually desire.
According to Trinidad and Tobago Institute of Architects (TTIA), “Architects’ fees can be based on a percentage of the total construction cost or time expended, or can be a lump sum.” Architects’ usual fees are normally 6%- 8% of your construction cost.
As architectural designers in KK Construction and Designs Ltd. we calculate our cost per square footage of your home with prices ranging from $7.00 - $ 9.00 for residential designs and from $ 10.00 - $16.00 for commercial designs.
Using our case study:
1400 sq. ft. x $9.00 = $12,600.00
This fee covers all drawings necessary for construction, such as,
The contractor you choose to execute construction as well as the finishes you select would determine that final cost of construction. However there is a range that you can work with according to the size of your home.
Please note that the cost of construction varies drastically between Trinidad and Tobago. For Trinidad the costs range from $500 - $600 per sq. ft. Alternatively, for Tobago the costs range from $700-$800 per sq. ft.
Using our case study:
For Trinidad: 1400 sq. ft. x $500 = $700,000.00
For Tobago: 1400 sq. ft. x $700 = $ 980,000.00
This cost should include all materials, labour and management costs associated with the construction of your home. Please note however that these are estimated cost and it solely depends on the clients’ tastes and final selections. You can check out our construction calculator to compare other construction methods.
Now it’s time for the grand total:
As a standard rule of thumb always dedicate 10% -15% as contingency cost. The reality of the construction process is that there are always unforeseen items or surprises that arise during the process. Our advice is to keep a cool head and be prepared as much as possible financially to accommodate the unpredictable.
We certainly hope that this article was helpful if you plan to build your home soon. As we always stress preparation is key!
Leave any questions in the comment box below. We surely look forward to hearing from you!
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