What are the cost items for a builder in a wholesale house and land build?
In a wholesale house and land build, especially for a fixed-price full turnkey package, the builder must carefully account for all costs to protect margins—since prices are locked in, but build may not commence for months (especially when land is unregistered). Here's a breakdown of typical cost items involved from a builder’s perspective:
Builder Cost Items in Wholesale House & Land Packages
1. Hard Construction Costs
These are the direct costs of physically building the home.
| Item | Notes |
|---|---|
| Site preparation | Clearing, cut/fill, compaction |
| Slab and footings | Varies by soil classification (M, H1, etc.) |
| Frame and trusses | Timber or steel |
| Roofing | Tiles or Colorbond |
| Brickwork/render/external cladding | Labour and materials |
| Windows and doors | Including flyscreens and locks |
| Plumbing & drainage | Rough-in and fit-off |
| Electrical | Including switchboard, lights, GPOs |
| Plastering, painting, tiling | Internal fitout and finishes |
| Cabinetry and benchtops | Kitchen, vanities, laundry |
| Appliances | Oven, cooktop, rangehood (and dishwasher, if turnkey) |
| Fixtures and fittings | Taps, shower heads, mirrors |
| Air conditioning | Often split system (or ducted if specified) |
2. Turnkey Inclusions
Necessary for a rent-ready product.
| Item | Notes |
|---|---|
| Landscaping | Turf, garden bed, mulch |
| Fencing and gates | Side and rear |
| Driveway and crossover | Concrete or exposed aggregate |
| Letterbox and clothesline | Often fixed inclusions |
| Blinds and window coverings | Roller or vertical |
| NBN connection & data points | Varies by area |
| TV antenna | Must be installed for turnkey |
3. Soft Costs / Overheads
Operational and regulatory costs.
| Item | Notes |
|---|---|
| Engineering and drafting | Structural, civil, slab, energy rating |
| Council approvals and fees | DA/CDC, building permits, long service levy |
| Insurance | Construction insurance, public liability |
| Site supervisor and admin wages | Project management cost |
| Travel and fuel | For regional or outer metro builds |
| Quality assurance | Inspections, defect checks |
4. External/Subcontractor Costs
Most trade work is subcontracted and must be budgeted carefully.
| Trade | Notes |
|---|---|
| Concreters, Bricklayers, Roofers | Highly variable labour availability and rates |
| Electricians, Plumbers, Tilers | Trade shortages may drive costs up |
| Painters, Carpenters, Installers | Turnkey packages require more finish detail |
5. Sales and Compliance Costs
Although lower in wholesale than in retail, these still apply.
| Item | Notes |
|---|---|
| Channel Partner commissions | Often built into the build price |
| Legal fees | Contract preparation, conveyancing support |
| Marketing collateral | Display suite, brochures, renders (if applicable) |
6. Contingency / Risk Buffer
Smart builders add 3–5% buffer to allow for:
- Unexpected soil/remediation
- Build material inflation
- Weather delays or liquidated damages
In Summary – Key Cost Areas
| Category | Typical % of Build Cost |
|---|---|
| 🧱 Hard Construction | ~55–65% |
| 🏡 Turnkey Inclusions | ~8–12% |
| 📄 Soft Costs & Admin | ~8–10% |
| 👷 Trades & Labour | Included across others |
| 📦 Contingency & Margin | ~5–20% |