Why you shouldn’t trust a m2 rate

Beach Breeze Building Tips: Why should you never budget building costs using a metre squared rate?

This is when cost is divided by the total area or vice versa. For example, if it costs $100 for 10m2 of tiles the cost is $10 per m2.
When we use this method in the scenario of building a new home, the total floor area is multiplied by the m2 rate. For example, a 200m2 home multiplied by a builders $3,000.00 per m2 rate, the build cost totals $600,000.00.
We field endless enquires where people ask how much we charge per m2 to build a home. But it’s impossible to provide an answer to this question without all the details. Many people base the cost of building their home using a square metre rate, and you should never trust this calculation. You need to consider all the variables that can affect the build cost such as design, materials and inclusions, otherwise you’re bound to blow your budget!
Car manufactures all make similar sized vehicles, although there’s a huge difference in cost between the lower and higher end of the market. This is because of the differences in the quality, performance, and inclusions of each vehicle. The same can be said for a new home, there’s all sorts of factors that contribute to cost other than the floor area and size of a build.
Unfortunately, many people don’t consider these factors and it can lead to heartache. Often this realisation comes after the design is complete or they’ve signed with a builder who isn’t including what they expected.

Have you invested into having a design completed only to realise it’s way over budget?

This is far more common than you would think however, you can avoid it all by involving a professional builder from the start to be a part of design process. Many builders have their own designers and can work together with you on both the design and budget so they’re in line with each other. This way will also allow estimate costs to be updated if any changes are made during the design phase.

What rooms and spaces are included in the floor plan and how do they contribute to the total floor area?

The function of the rooms that make up the floor plan has a large impact on the cost too. Completing a Kitchen or Bathroom for instance, would cost far more than that of a Garage or Bedroom. Two homes with matching overall floor areas of 200m2 may include completely different make ups. For instance, one may consist of 1 bathroom, 2 ensuites, a powder room and 3 bedrooms. While the alternative has 1 bathroom, 4 bedrooms and larger living spaces. You need to consider what is laid out on the floor plan during the design process or when comparing building proposals not the m2 rate provided.

Make sure you dig into the details to see exactly what you’re getting. For instance, one builder’s overall cost might equate to $2,500m2 while another’s $3,500m2. Is this because the second builder is ripping you off? More than likely the answer is no, you’re just not comparing apple with apples.

For instance, the first builder may be including high end appliances, tapware, and floor tiles to the living areas, where the second is offering budget options and carpet as flooring covering to the living area.

You need to ensure that you review proposals in detail and if there’s anything you’re unclear about, don’t be afraid to ask the building company for more detail!

Five different houses may contain the same number of square metres of floor area, but the amount and type of building materials, labour and equipment required to complete construction may differ.
Some examples;

• A 2 storey home will require scaffolding to facilitate works and often a crane to lift materials into position while a single storey home may not.
• A home with large open spaces or door openings may have increased structural costs for steel and framing.
• A square shaped home would be more budget friendly than a home with curves or odd shapes.
  The bottom-line is, don’t use metre square rates to compare house prices. There are simply too many variables, and you might end up with a banana when you really wanted an apple.
  There is a very clear-cut process to designing your home without going over budget and avoiding all the traps. This involves having a builder and designer working together with you from the start to ensure expectations on design and budget are in line with each other.

Beach Breeze Building is a proud member HIA GreenSmart. HIA GreenSmart is a program offering up-to-date information on practical, affordable and durable environmental solutions for residential design and construction. As one of Australia’s first professional green building initiatives, the program offers a HIA accredited training course for builders and designers wanting to develop new skills and acquire green credentials.

The Benefits of a GreenSmart Home

A GreenSmart house is a sustainable home created using environmentally responsible housing design ideas, building techniques and products. The focus is on building and designing structures that have lower environmental impacts.



The key principles of building a home with environmental features include correct site orientation to maximise solar design principles, natural ventilation, insulation, thermal mass and flooring.