How to Calculate Building Costs: A Step-by-Step Guide

How to Calculate Building Costs: A Step-by-Step Guide Estimating building costs is a crucial step in any construction project. Whether you're planning a renovation, a flood damage repair, or a new build, having a clear understanding of the expenses involved is vital. In this blog post, Curabuild will provide you with a step-by-step guide on how to calculate building costs, helping you make informed decisions and stay within your budget. Step 1: Define the Scope of the Project The first step in calculating building costs is to clearly define the scope of your project. Determine the size, complexity, and specific requirements of the construction work you are undertaking. There are simple overview calculations you can use, eg: a $/m2 rate, that can give you a ballpark idea of the costs however there are other factors at play! Site access, the topography (slope of the block & established trees) & geology (clay, sand or rock foundations) all affect your pricing for new builds & extensions. Step 2: Research Material Costs Next, Curabuild recommends to research the costs of the materials required for your project. We suggest to get a local supplier as they will already have established delivery channels & importing goods as many hidden costs, we are not ruling this out but you really want to know what you are doing when ordering goods that are difficult or impossible to return. Check online resources to compare & negotiate pricing, and consult with professionals to get accurate pricing information, as there are sometimes extra components to complete a job eg: accessories for a cladding board. After you have made a list of all the materials mentioned and their respective costs. Step 3: Fluctuating Labour Costs Labour costs can vary depending on the complexity of the project and the availability within your area (If a tradie has to travel this usually incurs an accommodation allowance). Research the average labour rates in your area and ask your labourer for an estimate of the number of hours needed for each task. Alternatively you can get several quotes for each aspect of your job & you can ask the tradesmen to supply materials in his quote. Step 4: Consider Permits and Fees Don't forget to factor in the costs of permits and fees. Depending on the nature of your project, you may need to obtain permits from local authorities for parking. Research the application fees and any other associated costs to include them in your budget. Step 5: Account for Additional Costs In addition to materials, labor, and permits, there are often additional costs that need to be considered. These may include equipment rentals, scaffold, waste disposal fees, insurance fees, and contingency funds for wet weather or shortage of materials & labour. Make sure to account for these costs to avoid any surprises later on. Step 6: Use a Building Cost Calculator To simplify the process, consider using our 'Building Cost Calculator'. Curabuild offers a table on our google drive form that helps you approximately estimate the total cost of your project! Simply assess the quality of build you are seeking, and the calculator will provide you with an accurate estimate based on the m2 of each floor. Please click this link to review -

https://docs.google.com/spreadsheets/d/1fLBc7_Yf0jY8sRHsyKPCBAyuYlaYoa9uVBSJ3AC_vXU/edit?usp=sharing Step 7: Review and Adjust Once you have calculated the building costs, take the time to review and adjust your budget if necessary. Look for areas where you can potentially save money without compromising the quality of the project. Consider alternative materials or construction methods that may be more cost-effective. By following this step-by-step guide, you will gain a better understanding of how to calculate building costs for your construction project. Remember to be thorough in your research, consider all the factors involved, and use resources like our building cost calculator to ensure accuracy. With relevant planning and budgeting, you will have a clearer understanding of the costs of your project.