2019-07-01 Homebuilding & Renovating

homebuilding.co.uk 153

thancasharemuchmorelikelytoavoid

financialstressasa result.

Specialistmortgagebrokersare

particularlyusefulin helpingtosortout

yourfinancialcircumstancesandsecuring

thefundingneeded.Youcan,ofcourse,

arrangethefinancewithoutthembutthe

truthis,it willtakeyoulongerandyou’ll

probablysecurelessfundsasa resultof

naivelyputtingforwarda flawedapplication.

lPutcostcontrolsinplace

Onceyou’resatisfiedtheprojectis

financiallysoundandarrangedforthe

funding,beforestartingtobuildandspend

money,putin placefinancialcontrolsto

ensuremoneyis managedthroughoutthe

build.Thekeytoolstodothisare:

• Budgettrackers: Thisinvolvesnomore
  thansimplycomparingactualcostsagainst
  theforecastbudgetasordersareplaced
  andbillsarepaid.Thebenefitoftracking
  expenditureis thata runningtotalofthe
  ‘true’figurescanbegatheredandtherefore
  theimpactofcostcanbeunderstoodas
  workprogresses.Havingthisvisibility
  providesopportunityto ‘cutyourcloth’if
  thebudgetrunsover.
  
  
  • Risk and opportunity registers (see
    example above): This isn’t a tool usually
    associated with self-build but it’s one
    self-builders should certainly use. In the
    interests of making money, commercial
    builders always have a really close eye on
    where money can be made and where
    it’s lost. Having this financial focus helps
    them identify issues early, so they can be
    addressed to minimise losses and maximise
    their profit.
    Self-builders should do the same and
    by identifying areas of concern, they can
    be sorted before they become a painful
    financial reality. Having this commercial
    discipline is a great way of maintaining
    your sanity when unexpected bills land.
    The financial health of any self-build
    project relies on two things: having a plan
    that’s sensible and being well-organised in
    order to control the money as you spend
    it. This should start at the very beginning
    of a self-build project by scrutinising the
    numbers and developing the tools to keep
    youincontrol.
  
  
  
  

NexTmoNTh:LegaLmaTTeRs

aNdsITeINvesTIgaTIoNs

theBuild Before you start on site...

Havingthis

visibility

provides

opportunity

to‘cutyour

cloth’if the

budgetruns

over

riskandoPPortunityregister*

risk

Foundation

requirementsmay

changedueto

unforeseenground

conditions

Thestartdatemeans

thebuildwillbe

completedinthewinter

period.Delaysexpected

duetoweather

conditions

Additionalfeesfrom

architect,asBuilding

Regsnotincludedin

service

Gasservicenot

available

TotalRisk TotalOpportunity

£5,000

£10,000

£4,000

£7,000

£26,000 £42,500

Sept 2018

Oct 2018

Aug 2018

Nov 2018

£10,000

£3,000

£4,500

£25,000

Sept 2018

Oct 2018

Nov 2018

June 2018

Carryouta site

investigationand

arrangeforan

engineertodesignthe

foundationsneeded

Optfora timber

buildingsystemwhich

isn’taffectedbywet

conditionsandenables

thehousetobemade

watertightquickly

Obtainfixedprice

fromarchitectand

comparetoalternative

designoptions

suchaspackage

companies

Investigateheating

alternatives(i.e.air

sourceorground

sourceheatpumps).

Costscanrange

greatly

Off-sitedrainage

connectionproving

expensive

Changethe

specification/

manufacturerof

rooftilestocheaper

alternative

Reducerental

costsfortemporary

accommodationwhile

thenewhomeis built

Increaseequity(profit)

bymaximisingend

valueofthehome

Negotiatewith

neighbour to agree

if a drain connection

can be made into their

manhole

Obtain samples and

consent from planning

authority to change

Reduce build period

by using an off-site

system. Agree

a reduced build

programme with

builder

Discuss features that

should be included

that future buyers

would value. Maximise

floor area by using a

slim wall system

imPaCt (£) aCtion WHen oPPortunity imPaCt (£) aCtion WHen

• provided for illustrative purposes only.