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# What are the cost items for a builder in a wholesale house and land build?

In wholesale house and land construction, particularly for fixed-price turnkey packages, builders must account for all expenses since prices are locked in while construction may be delayed months.

## Key Cost Categories

**Hard Construction Costs** comprise the largest expense (55-65% of build cost), including site preparation, structural elements, roofing, cladding, plumbing, electrical work, interior finishes, cabinetry, appliances, fixtures, and air conditioning systems.

**Turnkey Inclusions** (8-12% of costs) make homes rent-ready, encompassing landscaping, fencing, driveways, NBN connections, TV antennas, and window coverings.

**Soft Costs and Overheads** (8-10% of expenses) cover engineering, council approvals, construction insurance, site supervision, travel, and quality assurance activities.

**External Subcontractor Costs** require careful budgeting across concrete work, brickwork, roofing, electrical, plumbing, tiling, painting, and carpentry trades.

**Sales and Compliance Costs** include channel partner commissions, legal fees, and marketing materials.

**Contingency buffers** of 3-5% protect against soil issues, material inflation, weather delays, and unforeseen circumstances.

Builders must strategically account for all these elements to maintain margins when prices remain fixed throughout extended pre-construction periods.


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