Which one is right for me: a project build or a custom build?
Clearing up the confusion: custom vs project builders
There is a lot of mis-information on the interwebs about the difference between a project builder and a custom builder and the one that always makes me cringe is when I hear people advising others that they’re ‘custom building with a project builder’. It’s honestly the equivalent of comparing a tub of yoghurt bought from the supermarket to a bowl of Yo-Chi. Yes, at the supermarket you get to pick between different flavours, the look of the container and whether or not the yoghurt has protein added, but let’s be real - you did not get to choose the combination and quantities from the ground up to create a unique one-of-a-kind sensory experience!
So today, I want to set the record straight, because if you’re about to embark on this wildly overwhelming journey that is building a new home, it’s an important distinction to have covered early.
What exactly is a project builder?
When I’m referring to a project builder, I’m referring to high volume builders who produce hundreds (even into the thousands) of homes per year across Australia. They almost always have display homes where you can walk through the different designs they currently offer. They generally advertise ‘starting from’ prices for their builds, and you will be required to sign a watertight contract with them fairly early on in the process.
You will then be required to make ‘selections’ for things like brick and roof colour, paint colours (inside and out), joinery colours, and level of finish (stone versus laminate etc). The selections you make, right down to appliances, will be from a very set list of options. The reason for this is to ensure that the project builder can control costs. They can buy the materials in bulk (in fact they will often have their own supply chains for things like timber and concrete), the process is streamlined, meaning less administration and construction can be faster when a repeatable process is in place.
The true meaning of a custom builder
Custom builders, on the other hand, only take on a much smaller number of homes per year. Every home they build is unique to the client, where quality - not price - is the most important factor. A building designer or architect will also be involved, and will consider everything important to the client: budget, location, aesthetics, function etc. Every element is customised, with the client involved in every selection. While custom builders often have preferred suppliers, you will have endless options available to you - from toilets to taps to tiles to floor coverings.
This is true customisation and is what defines custom home building. It’s far beyond simply having the option to choose benchtop colours or moving a wall 200mm.
Why ‘customising’ with project builders often goes wrong
Some people make the mistake of trying to ‘custom build’ with a project builder - which is where you make a lot of modifications to one of their pre-set plans. But more often than not, the project builder loses interest and becomes harder to deal with or the costs blow out enormously. And I have to say this is understandable. The fundamental reason why project builders can keep their costs so low, is because of the amount of control they have over the process. As soon as you look to start deviating from this - it increases their administration and build times, both of which will contribute to additional costs and time delays.
Are custom builders really more expensive?
This perception is both true and also not true, so let’s unpack it.
If we looked at a straight comparison between the average square metre rate of a project build and a custom build, the project build would be significantly lower every day of the week. But it’s important to understand why.
The final product is vastly different, so we’re not comparing apples with apples.
With a project build, the following is usually true:
Ceiling heights are lower
Smaller, single glazed windows
Reduced insulation and energy efficiency
Quality of materials is lower
Quality of workmanship is much lower
Fewer inclusions (things like AC, rainwater tanks, stormwater connections, and sometimes even floor coverings and overhead kitchen cupboards, are not included in this base ‘square metre rate’)
Inflated prices for upgraded finishes
High rates and fees for variations
Additional unexpected costs (foundations, earthworks)
And sadly, you’re often left with ongoing issues requiring further work at your expense
So the ‘true’ cost of the project build will only be evident at the end, and even then, the final product will never be to the same standard as a custom build.
Why custom homes often go over budget
Another factor that contributes to the average cost of a custom build is the human element. And that human element involves both emotion (and sometimes ego! 😉).
With a custom build - there are no parameters in place except for the ones you set yourself. The house can be as big as you like, as complicated as you like and can include as many premium finishes as you like. And needless to say, when we’re presented with so many beautiful things and incredible opportunities it can be REALLY hard to hold back. So you end up designing a bigger home, a more complicated home and ultimately a more expensive home than what was perhaps required.
So, which option is right for you?
While everyone’s situation is uniquely different, and full disclaimer - I run a custom design and build company with my husband (which you can check out here) - my best advice is to really think this one through before making a decision either way.
Building a new home is not something that should ever be rushed into. And it’s important to consider what you’re looking for long term and what kind of environmental impact you want to have (but that’s a discussion for another day).
If you can take the time to get really clear on what it is that you’re hoping to achieve before starting out on the journey, and you know that you can stick to these self imposed boundaries, then there’s no reason why you can’t custom build. You just need to pull in a design-build dream team around you (and we give you tips on the best way to go about this here).
Finally, if budget is still a concerning aspect of this process for you, or the dream team is difficult to pull together in your location - then maybe one of our builder-ready House Plan Toolkits will be the right way to tackle this journey. You can check them out here.
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Thanks for stopping by!
Until next time,
Susie x