ᐅ Cost Estimate Architect Single-Family Home. Your Assessment?

Created on: 3 Apr 2015 12:35
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Tommes78
Hello everyone,

I have a question for you. We bought a plot of land (NRW) with a slight slope and recently visited an architect to have a single-family house designed with great enthusiasm.
During our first meeting, we mentioned a budget of around €260,000 for the house, including everything. He said that we could get something nice for that budget.
At the second appointment, he really presented a nice design. He responded to the sloped plot and planned a kind of split-level house with two building volumes and two shed roofs.

The planned house has an area of 146 m² (1570 ft²) of living space on the ground and upper floors, plus 24 m² (260 ft²) of utility space, totaling 170 m² (1830 ft²) of total area.

Now, the architect made a cost estimate, and he said he calculated with a medium standard. The cost framework according to BKI for 260 to 410 m³ (9200 to 14,500 ft³) of enclosed volume was estimated at 350 m³ (12,400 ft³).

The cost estimate states 763.53 m³ (26,950 ft³) × €350 per m³ (27 per ft³) = €267,236 + carport 72 m³ (2540 ft³) × €100 per m³ (7.44 per ft³) = €7,218 = a total construction cost of €274,455 excluding incidental building costs.

Or broken down differently:

Site preparation and connection: €4,600
Cost group 300 – Building structure: €222,280
Cost group 400 – Technical equipment: €45,180 (oil heating, ventilation system)
Outdoor facilities + carport: €10,000 (which I find a bit low)
Incidental building costs: €41,188

This brings us to a total of €323,000 including VAT.

We were a bit shocked, since our initial budget was €260,000, and going over by around €60,000 seems quite a lot. €280,000 is our absolute limit.
Of course, we still want to contribute some usual DIY work in the end (tiling, flooring, painting, landscaping, interior finishing), but that would probably save at most €15,000 to €20,000.

What do you think? Are those really the amounts you have to pay today, or has the architect perhaps estimated too generously or conservatively? Or is the planned house simply too upscale?

For comparison, we received a fixed-price offer from a general contractor that was quite high-end. There, a house with a gable roof and 160 m² (1720 ft²) (without attic space) was offered for €250,000, excluding basement, ventilation system, and outdoor facilities. But in that case, the plot would have had to be leveled.

Looking forward to your feedback.

Best regards,
Thomas
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Tichu78
3 Apr 2015 18:36
Interesting topic... may I ask what you paid for the design?

Unfortunately, I can’t tell you exactly how the cost calculation works, but maybe my “current” thoughts will help you.

My feeling is that it’s a kind of sales tactic from the architect. Assuming you made it very clear that the total cost of the house including all additional costs (ancillary construction costs, landscaping, carport/garage, kitchen, etc.) should not exceed 260,000 EUR, it is not okay to present a house that costs significantly (> 5-10%) more as appealing. You have to be extremely careful when telling an architect the maximum budget for the house! Architects usually quote costs without VAT and include landscaping, carport/garage, kitchen, and similar items in the ancillary costs, which do not initially affect the base construction sum used to calculate their fees. I base my approach on the DIN 276 cost groups 300 + 400 (I’m not entirely sure about 100 + 200... maybe those should be included as well?). I’ve also had an architect who didn’t include their fees in the “construction sum,” and suddenly there were 30,000 EUR more costs recorded.

Therefore, I advise you to deal intensively with the ancillary costs as much as possible... fees, site development, earthworks, your special requests (they will come!), landscaping, carport/garage, etc. These can quickly add up to 50,000 EUR. The more thoroughly you examine the details before signing the contract, the more you will realize which costs could potentially arise. How much exactly no one can really guarantee. So it was already a good move to set 260,000 EUR as the limit instead of the maximum 280,000 EUR. Stick to that! Such a buffer can be quickly used up... poor soil conditions, contamination, rising contractor costs, and especially the owners’ additional wishes.

If the money isn’t enough, the house will have to be smaller or without unnecessary climate protection features. It’s tough at first if the dream house costs more than planned, but over time it’s more reassuring to have a prospect without financial worries.

For this reason, it probably doesn’t make much sense to ask here in the forum whether the architect’s invoice is correct, realistic, or whatever, because if you want to build with this architect (for whatever reason), it will cost what they say. Why should they estimate higher or lower? The client always controls costs as long as they stay involved and don’t lose oversight, meaning keep an eye on your architect and ask questions. Architects have experience, and this is reflected in the offer. We’re currently budgeting with 400€/m³ (cubic meters), because if during construction it turns out to be cheaper, there will be enough items to spend that “saved” money on, for example energy-efficient measures that are much more expensive to add later. This is a definite advantage of working with an architect compared to a fixed-price contract. So, why take a risk by estimating too low? It costs what it costs!

Get more offers and if something is significantly different, ask right away why. Building involves financial risks and, in my opinion, also means learning a lot to reduce construction defects/planning errors/etc… avoiding them entirely is hardly possible. That’s why you should inform yourself BEFOREHAND! This forum is definitely a good start!

We set a limit of 300,000 EUR. That should also include EVERYTHING... but how should the architect know what you imagine? And there are many things you don’t even think of at this stage. Our “ancillary costs list” keeps growing... the house volume has shrunk from 670m³ (24,000 ft³) to 590m³ (20,820 ft³), which allows me to allocate a solid 30,000 EUR for other costs. We are still satisfied with the size. This again shows how people tend to want to build bigger, taller, better at first. Some costs, like finishing the attic, garden, carport/garage, and a few other things that aren’t immediately needed when moving in, were initially excluded. We calculated that we can save about 10,000 EUR per year... which will either be used as early repayment on the mortgage or invested back into the house.
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Tommes78
3 Apr 2015 18:55
Thank you for the detailed response on this topic. I also find it quite disheartening that we are ending up with such an amount, instead of what was originally agreed upon.
However, I don’t quite understand what you mean by “going to someone else.” Do you mean another architect? It probably wouldn’t be cheaper there, so how should I interpret that? As long as I stick to the same floor area, the costs should remain the same if they were calculated correctly, right?
I have also been wondering what happens later when the tenders are running and the companies suddenly offer lower prices than planned. Will we see that then? And how is the architect paid—based on the planned amount or the amount that actually ends up being used?
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Tichu78
3 Apr 2015 20:24
Tommes78 schrieb:
What do you think about this? Are these really the amounts one has to pay today, or did the architect just do very precise calculations or set the estimates too high? Or is the planned house just too exclusive?

Maybe I don’t fully understand you... you want to find out whether the architect’s price is reasonable or set too high, right?
Getting a second opinion from another local architect can’t hurt. There are architects who prefer to design a premium model like a Mercedes S-Class, while others might be more willing to build something like a VW Golf. With your budget, it should be clear... you have the money for a VW Golf but are getting a Mercedes C-Class.
If the next architect delivers the same quality level, it certainly won’t be cheaper. I think it can definitely be done more economically and simply — less is more, as they say. That’s why I recommend getting a second opinion.
We had to search quite a bit until we found an architect who was really motivated to do very thorough planning to stay within our budget. That takes quite an effort on the architect’s part, although they don’t really get paid more for it.
Have you spoken with others? What do you already know about the site development and foundation of the property? For us, costs rose from the initially planned 10,000 € (about 11,000 USD) to now 25,000 € (about 27,500 USD). An outsider could never assess that because they don’t know our land, the conditions of the land-use plan, or the municipality’s regulations, for example.
How expensive your dream home will be depends on many factors, such as the plot, your personal wishes, and of course the architect’s ideas.
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Wanderdüne
4 Apr 2015 10:50
Tommes78 schrieb:
I have been wondering what happens later when the tenders come in and suddenly the companies offer lower prices than planned. Will we see that? And how is the architect paid — based on the planned budget or the actual final amount?

You will probably receive a price comparison for the individual trades included in the tender. Then you can decide which company to hire for each trade and at what price. However, the final cost can still be higher (rarely lower), especially if there are errors in the tender documents.

The architect’s fee is, among other factors, based on the cost estimate in design phase 3 and the related eligible costs.

You should discuss these points openly with your architect.
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bortel
4 Apr 2015 12:14
Could you please share your floor plans sometime soon? I would like to take a look.
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ypg
4 Apr 2015 12:16
Please provide all designs, including the elevations. You have piqued our curiosity.