What are site costs?
Site costs are the fees associated with getting a block of land ready to build on. These costs can include the following:
- Cutting and levelling the site
- Soil tests
- Rock removal
- Setbacks
- Slab type
- Drainage and retaining walls
- Foundation works
- Temporary fencing and pathways
- Gas, water, electricity, fibre and telco connections
- Property service information report
- Overlay and covenant assessment
- Tree peering to protect the slab
What are fixed site costs?
Site costs generate a lot of conversation with new home buyers because given that each block of land is so different, they can be as variable as they are unpredictable.
This is why some home builders offer fixed site costs and why we value transparency at Henley – to make sure there are no surprises. Make sure your home builder offers to cap their site costs. This is sometimes referred to as “fixed price site costs”, or “guaranteed site costs”. Ensuring this, you could save $20,000, $50,000 or even $100,000 in unanticipated expenses.
What items are included in site costs?
Assessing a block of land
If the builder you choose doesn’t offer fixed price site costs, make sure you look carefully at the land and the plan of subdivision (and also the engineering report, if you’re purchasing land in a new estate). If it looks sloped, steep, sandy, clay or rocky, this could lead to unexpected site costs. There’s also a difference between laying foundations in clay soil, for example, and in sand soil, which just means that not every block of land will cost the same to prepare.
Soil classifications and seasonal impacts
Before they start building your new home, your builder will need to do a soil test to find out what type of soil they’re building on. Soil types are classed differently according to their ‘reactivity’, from slightly reactive to highly. The type of soil will determine what kind of foundation and slab work is required on your site – and how much it will cost.
Your soil will be classified by one of six letters: A, S, M, H, E or P. Most A to S classes will only require a basic slab such as a waffle pod supported on the ground with footings. Soils with high reactivity, H through to P, require further evaluation by an engineer to ensure the stability and integrity of the slab and footings.
The Residential Slab and Footing Code (AS 2870) outlines the following soil classifications:
Class | Stands for | Foundation | Surface movement |
A | Acceptable | Little-to-no ground movement from moisture changes (not reactive); most sand and rock sites. | 0mm |
S | Satisfactory | Slightly reactive with only slight ground movement from moisture changes; clay sites. | 0-20mm |
M | Moderately Reactive | Moderately reactive with moderate ground movement from moisture changes; clay or silt sites. | 20-40mm |
H | Highly Reactive | Highly reactive with high ground movement from moisture changes; clay sites. | 40-60mm |
E | Extremely Reactive | Extremely reactive with extreme ground movement from moisture changes; clay sites. | 60-75mm |
P | Problem | Includes soft soils, such as soft clay or silt or loose sands; landslip; mine subsidence; collapsing soils; soils subject to erosion; reactive sites subject to abnormal moisture conditions or sites which cannot be classified otherwise. | N/A |
Site cost considerations also take into account how the soil behaves in different weather. The land will need appropriate drainage to stop water pooling, or else concrete paths to keep the soil moist which helps to stabilise the foundations of the house. Ask your engineer to inform you of any of the site’s seasonal qualities that might affect your house.
Retaining walls
Retaining walls are a permanent structure that split and support uneven land, often between neighbouring properties, so that each block can be levelled if they were originally on a slope. Retaining walls usually don’t sit on top of the ground like a fence. Instead, they require deep underground footings to minimise any movement above the ground. Their deep structure enables them to stabilise the ground around them for the long term. If your site needs a retaining wall, this will impact the overall site costs.
Foundation works
Your new home builder will connect water and electricity to the site to get started on construction. This process will fall under the site cost category. Foundation works can also include upgrades to the slab, which will depend on the soil classification you received when the soil was tested for your new home.
Fencing and crossovers
Some temporary items included in the site cost are things like fencing and footpath crossovers. Appropriate fencing will keep your site and the construction materials secure and crossovers will keep the community pathways safe for other residents.
Site connections
Gas and fibre optic connections are other components of site costs. They are part of the earthworks that need to happen before your house can be constructed. If you plan to install a pool, the pre-construction phase is also a great time to discuss the plumbing and underground cable requirements for it.
Pool planning
Designing and installing a pool is site specific, so while your builder can design the sites and footings based on the information you provide, as the owner you will be responsible for all pool related works including ensuring locations and levels are correct. Since the design and construction of your pool need to be in line with national building standards, we will work closely with you on this process.