What to Consider Before and During the Construction of Your Home
What to Consider Before and During the Construction of Your Home
Building a house is a significant investment that combines technical, financial, and legal considerations. Many of the issues that may arise during a construction project could have been avoided through proper planning before construction begins.
Below are some key points that every homeowner should be aware of.
Proper project budgeting
Proper budgeting is the most important step before construction begins. The budget should be prepared before applying for loan pre-approval, if a loan is required, so that the owner knows the exact amount of financing needed.
A common mistake is that many people calculate only the cost of building the house, while in practice there are several additional expenses that must be taken into account.
The total budget should include, among others:
- landscaping and outdoor area configuration
- construction insurance contributions
- construction waste recycling costs
- debris removal containers
- scaffolding
- site cleaning
- material transportation
- minor construction-site expenses
It is also advisable to include a percentage for unforeseen expenses, as well as a possible price adjustment due to increases in material or labour costs.
Another common mistake is preparing a budget without final house plans and plot layout plans. Without finalised drawings, a reliable budget cannot be prepared.
If the budget is prepared by an engineer or contractor, do not settle for a general cost estimate. Ask for a detailed budget that includes all works and additional expenses.
Home construction loan
If the construction is to be financed with a home loan, the first step is to have a proper project budget in place.
In most cases, banks require the owner to contribute a percentage of their own funds, usually around 30–40% of the total cost.
Before choosing a loan, it is important to examine:
- the interest rate
- the repayment period
- the disbursement terms
Particularly noteworthy are so-called green home loans, which often offer lower interest rates for homes with high energy efficiency.
If there is no close cooperation with a specific bank branch, it is often useful to seek assistance from mortgage brokerage companies. These companies are more familiar with the procedures and can help avoid delays or issues that may arise when bank employees are not familiar with specific types of construction, such as prefabricated homes.
Construction waste recycling obligation
According to legislation, excavation, construction, and demolition waste must be managed through certified recycling systems.
Cooperation with an accredited recycling partner is essential, because when closing the building permit, the quantity of waste managed by the project must be declared.
In many cases, owners or contractors do not work with a certified body from the beginning. When the time comes to complete the permit process, they look for recycling companies afterwards in order to declare quantities of waste that have not actually been received. Apart from being an environmentally incorrect practice, this often ends up costing more.
In addition, the unit price in the contract with the recycling company must be checked carefully. For example, if other materials, such as old furniture or household items, are mixed in with the construction debris, the company may charge the entire load at a different and higher unit price.
IKA contributions and obligations
In every construction project, the owner is responsible for paying the insurance contributions corresponding to the workers involved.
It is very important to have a clear written agreement with each subcontractor regarding the number of insurance stamps corresponding to their work, as well as confirmation that they accept the stamp rates applicable during that specific period.
There have been many cases where workers who actually worked only a few days on a project claimed a much higher number of insurance stamps. In such cases, when the matter reaches IKA, the worker’s claim is usually accepted, and the owner is required to pay additional contributions and fines.
For this reason, it is essential to have written agreements with the crews and to properly follow all insurance procedures.
Construction according to the study
Construction must strictly follow the approved drawings of the building permit.
This applies not only to the building itself, but also to the surrounding area. For example, elements such as:
- the position of the entrance
- the access road within the plot
- the parking space
- the verandas
- the height of the fencing
must be included in the approved drawings.
Any construction that is not provided for in the permit must be legally incorporated through an update or revision of the permit. Constructions carried out without being included in the drawings may be classified as unauthorised and may lead to fines or even an obligation to demolish them.
What is permitted before the issuance of a building permit
Before a building permit is issued, only limited works are allowed, such as plot cleaning or simple temporary arrangements.
Works such as the following are not permitted:
- excavations
- construction of a wall or fence
- construction of storage rooms
- construction of wells or boreholes
- any permanent construction
Many owners believe that fencing does not require a permit. In reality, in most cases, either a building permit or a small-scale works permit is required.
Ground-floor or two-storey house
The choice between a ground-floor and a two-storey house significantly affects both the cost and the functionality of the home.
A ground-floor house is usually more comfortable to use, as it has no stairs and offers direct connection with the surrounding outdoor area. However, it requires a larger plot surface and often a larger foundation and roof, which may increase the cost.
On the other hand, a two-storey house makes better use of smaller plots and can offer better views or a clearer separation of spaces. Nevertheless, it requires an internal staircase and a different organisation of the interior layout.
The final choice depends on the size of the plot, the needs of the family, and the building regulations of the area.
Plot slope
The morphology of the plot significantly affects the final cost of building a house.
Many buyers choose plots with a steep slope because they have a lower purchase price or offer a better view. However, in such cases, the following may be required:
rock excavation
large-scale earthworks
retaining walls
special foundations
In some cases, the additional cost of these works may exceed the price difference saved when purchasing the plot.
For this reason, it is important to carefully assess the morphology of the plot before purchasing it or designing the house.