What Are Site Costs When Building a Home?
Site costs relate to preparing your particular block for the home you've chosen.
Site costs are one of the most commonly misunderstood parts of a new-home budget, mostly because they can't be finalised until the specific block and the specific home are both known.
They cover the work required to make your block ready for the house you've selected. Because every block is different, early figures are usually shown as an allowance and confirmed later once the relevant reports are in.
What site costs typically cover
- Soil testing and the engineering response to the soil classification
- Cut and fill to create a level building platform
- Retaining walls or batters where levels change
- Drainage and stormwater requirements
- Service connections — water, sewer, power, communications
- Temporary fencing, site access and waste management during the build
- Any specific requirements attached to that lot or estate
Why they vary so much block to block
Two neighbouring blocks can produce quite different site costs. A slight fall across the land, a different soil classification, an easement in an awkward position or a longer service run all change the scope of work.
That's why it isn't something to estimate from someone else's build. The only figure that means anything is the one prepared for your block and your chosen design.
How the numbers usually firm up
Early on, a builder will typically include an allowance based on general assumptions about the estate. Once a soil test and contour survey have been completed for your lot, that allowance is replaced by costs specific to your site.
This is a normal sequence rather than a warning sign. What matters is knowing where you are in it — whether the number in front of you is an allowance or a confirmed figure.
Questions worth asking
- Is this figure an allowance or a confirmed site cost?
- What has been assumed about slope and soil?
- Has a soil test and contour survey been completed for this lot?
- What would typically change the figure once they are?
- Are retaining and drainage included, or priced separately?
Things worth watching
- Comparing one builder's allowance against another's confirmed figure
- Assuming a flat-looking block means minimal site work
- Not leaving any room in the budget for the allowance to move
- Signing without understanding which items remain to be confirmed
General information only. Costs, requirements and availability need to be confirmed for your situation with the relevant builder, developer and other parties.