What does site cost mean?

One of the most important initial steps in home construction is getting your block ready for building. What preparations are needed, and how much will it cost? In today’s blog, We will answer these essential questions as we take a closer look at site costs.

What are site costs and why do they vary?

Before construction begins on your block, several key factors must be carefully assessed by industry experts. One of the first and most crucial steps is soil testing. The results of this test influence multiple aspects of the building process. Engineering decisions—such as slab thickness or the need for bored piers and retaining walls—are based on the soil report, which is a component of site costs. Additional considerations include land slope, rock removal, tree preservation, utility connections, sewerage, and stormwater infrastructure from the boundary to your home.

For instance, the AS2870 Residential Slabs and Footings Code outlines specific guidelines when trees are within the zone of influence for a proposed dwelling. This code mandates that trees be assessed at their mature height rather than their height at the time of land purchase or construction. For example, a Spotted Gum tree can reach a mature height of 15–30 meters. Based on this analysis, your home may require deeper footings to counteract potential effects from tree root zones, adding to the preparation needed. This is just one of many factors that must be considered before building begins.

How is the site cost calculated?

With many builders, you won’t receive a fixed site cost estimate at the time of paying your deposit. In some cases, your quote may only cover a portion of the anticipated site costs, with the remaining amount determined later in the process. While you may assume your site costs are fully accounted for, the fine print often reveals that only part of the total cost is included. Unfortunately, it’s not until you receive your tender that you’ll have a clear picture of the final site costs.

For properties in areas with unstable soil conditions, these unexpected costs can escalate significantly, sometimes exceeding $40,000. This can be a major financial surprise for homebuyers who were not prepared for additional expenses beyond their initial estimate.

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