Any building work is expensive by nature, and is probably one of the largest expenses in life after the purchase of your property in the first place.
Building work is also notorious for spiralling, ‘unforeseen’ costs that can push the budgets of most people to the limit and sometimes force the curtialment of a project, and not forgetting we live in times of endless inflation and price increases every time the wind changes direction.
However, the good news is that with a bit of awareness and forward planning, there are a number of ways to save cash on your project.
1. Reviewing the Design (without compromising your dream!)
Once your Architect has produced the design of your dreams and an idea of what it might cost, you need to be realistic as to whether it’s really affordable. Table-top generated costs can be way lower than real life final costs. So look at aspects of your design to see if you are prepared to save £££’s by using less costly alternatives, such as –
> could expensive parts of the design be simplified to cut the cost of specialist labour, expensive bespoke steelwork, glass or carpentry?
> could the £4.5k hand-made staircase be replaced with an off-the-shelf one for £450?
> could marble work-tops be substituted for less expensive alternative ‘faux-marble’?
> do you really need a fully-automated smart home, when wiring for manual switches could be used which will be cheaper, and far less likely to fail in the future?
The list is probably endless, but you get the idea here! But look at the designs and ask your Architect these sorts of questions.
2. Materials
> Avoid paying DOUBLE VAT – when your builder buys materials, he will be charged VAT at the point of purchase. Then, when you pay him, he will have to charge you VAT, yes that’s another 20% on top of the 20% he already paid.
So, one solution is to ask your builder whether it’s OK to pay for the building materials directly to the supplier.
Another benefit is that the builder won’t be ‘marking-up’ materials if you pay the supplier directly. If delivery becomes an issue for your builder, most suppliers offer FREE delivery on goods over a certain value.
And don’t forget the costs of skips – again, ask your builder if it’s worth paying directly
And ensure that any and all direct payments for materials are deducted from your quote!
> Supplier Costs – Some builders buy from their prefered ‘professional/commercial’ suppliers who tend to be more expensive than the more well known ‘trade’ suppliers such as Selco, Wickes and others.
Materials sourced from such suppliers could SAVE you a lot of money over the duration of the project.
> Offsetting Costs Against Tax
If you are self-employed, and/or have your own limited company, and your office is based at your home address, you can;
a. Claim the cost of materials, fixtures and fittings (for the room/s of your home which are used solely for business) as a business expense reducing your tax liability.
b. if your business is VAT registered, you can offset the VAT element of the same items
Check out this GOV.UK link on saving VAT »
> Recycle and reuse
A lot of the waste materials that comes out of an old property ends up in the skip then ultimately landfill – and you’re paying for that disposal. But money can be saved if you can re-purpose some of those materials. For example:
> if your suspended floor is being removed to infill with under-floor-heating, those joists (if not rotten or woodworm infested) could be reused to build stud partition walls.
> bricks or blocks from walls being demolished could be reused to build other walls (especially if the new walls are to be plastered or dot ‘n dabbed over)
> Consider buying someone else’s surplus stock from their project
> Conversely, good quality surplus materials that can’t be directly used on your project could be needed by someone else – so sell them online or via social media groups.
3. Fixtures and Fittings
Whatever your taste, style and budget, its always worth looking for bargains such as sales events, special discount promo codes, ex-stock discounts and such like.
If you’re into high-end/ bespoke/ quirky fittings and fixtures it may be worth hunting around for specialist retailers who may be able to offer special prices, attend specialist events, antiques markets (by example Kempton Park Antiques Market » – a great morning’s browsing!), Ebay and other online platforms that specialise in the things you are looking for.
4. Labour
> Non-VAT Registered Trades – If you employ individual trades people (working alongside your builder), they may ask or insist on payment by cash. Assuming they are not VAT registered, then you SAVE 20% on labour costs.
> If you’re a ‘handy’ homeowner, you (and/ or skilled friends or family) might consider doing the painting and decorating, even the bathroom or kitchen tiling. Any of these ‘tail-end’ jobs you can do yourself could save £££’s on labour costs.
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