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  • HPH208 : Bringing down the cost of my self build – with Ben Adam-Smith

    HPH208 : Bringing down the cost of my self build – with Ben Adam-Smith

    Ben Adam-Smith looks at some of the reasons why his tender returns might have been so high. He then sits down with his wife Kay to consider possible savings.

     

    Why were our tender returns over budget?

    In episode 207 Kay and I received our tender returns and we got a shock. We had budgeted £400,000 for our house build but our returns were a lot higher!

    Before we consider how we might get back on track, I’m going to ponder reasons.

     

    The market is changing

    Over time prices will naturally go up. The market is never static. However, could there be a bigger change going on at the moment?

    The obvious culprit would be Brexit (although it’s almost impossible to verify).

    Dan Higginbotham from Parsons + Whittley specified our project, but he also specifies a number of projects that pass through their offices and he can spot trends. Dan told me: “We have seen a 12-20% increase on certain masonry projects over the last year.” He’s noticed the cost of labour has risen on their projects too (between 3-5%).

    As the design process takes a number of months, by the time the tender returns are opened the cost of the project can have risen significantly. Before we opened our returns Chris Parsons had warned us that several recent returns had come in much higher than anticipated.

     

    Costs can vary between regions

    Anyone who has tried to buy a property in London will know that it is expensive!

    If living in London is expensive, does it follow that everything else is expensive too (building contracts included)?

    Although we’re not building in London, we’re probably in the next most expensive place: the home counties. Our architecture firm, Parsons + Whittley, is based in Swaffham, Norfolk, and I believe there are differences between the regions.

     

    ‘Handmade’ or ‘bespoke’ items don’t come cheap

    On a self build you personally get to choose the quality. From the outset we budgeted £2000 per square metre, which I always think of as high end. However, it doesn’t mean you can just have anything you want (particularly when you’re designing a Passivhaus)!

    Perhaps Kay and I were guilty of getting carried away. We have specified handmade bricks for the plinth, handmade tiles for the roof and the walls are thick lime render (which requires a specialist skill).

    The interior also has recycled timber flooring, four bathrooms to kit out, and a couple of bespoke designed units.

    Knowing how much money can be sunk into kitchens, we’ve gone with fairly standard units . . . but our interior designer has helped us accessorise to make it seem more luxurious. Some of these extra fancy bits are expensive.

    Dan Higginbotham from Parsons + Whittley told me: “Normally when we’re tiling in the kitchen we might allow £25 per square metre, but the tiles you are using are £185 per square metre.”

     

    Our house got bigger during the design process

    First I must point out that this headline is slightly misleading. When we bought the plot of land, the extant consent was for a house of over twice the size of what we plan to build.

    However, when I did my initial sums with the land equation (land cost + build cost + 20-30% profit < value of the finished house) I based it on a house of 200 square metres and a specification of £2000 per square metres.

    These rough calculations were not stress tested at all. I didn’t envisage building a house of 226 square metres.

    And, I’m somewhat embarrassed that I made no allowance whatsoever for the garage (28 square metres). Although it will cost less to build than the house, we are probably still talking £1700 per square metre.

     

    We were forced to dig down to gain planning consent

    Due to the proximity of our house to the neighbours, we had to sink our home down by 0.5m in order to gain planning consent.

    This had knock-on effects. Initially we had imagined spreading the spoil across the half acre site, but the soil was poor quality and had to be taken away costing £9000.

     

    The word ‘Passivhaus’ can add expense

    If contractors haven’t tackled a Passivhaus before there is a risk factor, so perhaps they add on a little extra to take that into account.

     

    The value engineering

    Having received the cost breakdown from the contractor who put in the lowest bid (£612,234), the next part of the process was to look at every possible change to bring the cost down.

    Dan Higginbotham from Parsons + Whittley put together a spreadsheet of some ways we could to reduce cost.

    It started with the big ticket items, such as removing the garage or balcony, and came right down to much smaller items (like changing the doorbell!)

    Here’s an example.

     

    Scale down your plans to get back on track

    When severely over budget, like us, the most sensible thing would have been to reduce the floor area of the house.

    Reducing the building by 1 metre could save us £25,000!

    However, we’re not that sensible.

     

    Some savings are easy to make . . .

    Going through this list of potential savings is a peculiar exercise.

    For example, we had originally specified a resin driveway. We weren’t convinced about this at the time we made the decision, so changing it to gravel not only saved us £20,000 but probably was more in keeping with what we want.

     

    Some savings are not so easy to make . . .

    Nobody likes to go through their beautifully designed house and take out all the bits that they liked.

    A good example here might be the lime render we’d specified on the outside of the building. We could have reduced the thickness or even specified another type of render, but I think both Kay and I agreed we hadn’t come this far to compromise on things like this!

     

    There is another option to cutting costs

    Obviously not everybody will have this luxury, but we decided that paying more was the way to go.

    So we’ve come in between the £400,000 original budget and the £612,000 contract value.

     

     

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  • HPH194 : What are the hidden costs of building a house? – with Paul Testa

    HPH194 : What are the hidden costs of building a house? – with Paul Testa

    Paul Testa from Paul Testa Architecture talks about how to predict the costs of a house build and shares his tips on limiting a self-build budget.

    Interview with Paul Testa

    Architect Paul Testa’s interest in construction led to coordinating and teaching the technology course for the MArch in Architecture at Sheffield University. He’s also a tutor and lecturer for the Sustainable Architectural Studies Masters course at Sheffield University. He is a member of AECB (Association for Environment Conscious Building).

    Build cost is not necessarily ‘cost per square metre’

    Paul aims to help clients gain realistic expectations of their project’s costs. They start by assuming a mid-range, bespoke new-build would cost roughly £1500 a square metre. They then use their cost calculator to add in additional costs, taking into account factors like slope of the site, higher specification and external works.

    To price the whole project, Paul says self-builders should include connecting utilities, landscaping, and contingency in the overall build cost. If an architect or builder prices your project at £1500 a square metre, remember this may not include all the costs of the build.

    A steeply sloping site

    Fees are affected by more than just project size

    It is important to have accurate cost predictions for your build and these do not just relate to square metres. Paul explains that the cost of consultants isn’t tied to the size so much as the complexity of the project.

    Some costs, such as surveys, might depend on both the size and the complexity of the project. Paul recommends adding 30% to your construction cost for planning and building regulations fees and any other costs. Some of these don’t change with the size of the build, so the fee will be a greater percentage of the build cost for a smaller project.

    Utility costs can vary from site to site

    Paul has found the cost of connecting gas to be quite consistent, but not so for the electricity supply. The cost can vary hugely depending on the work involved in making your connection, and remains unknown until the application is made. Furthermore, Paul warns that there is no room for negotiation, saying, “It’s a captive market unfortunately.”

    “Most contractors won’t have sufficient insurance for the whole project”

    Contractors will have insurance to cover their liabilities (public liability and employer’s liability insurance) and potentially for their equipment on site. The architect also needs professional indemnity insurance and public liability insurance to cover the implications of design decisions. Paul advises clients to procure insurance to cover the new building and materials.

    Claiming back VAT may depend on your contractor

    Some contractors don’t pass on the cost of VAT: the client never sees that cost and the contractor just claims it as part of their quarterly VAT payments. This may be beneficial for clients who don’t have the cash flow to pay upfront for the build plus VAT and then reclaim the VAT later.

    Often clients prefer to procure large single ticket items (e.g. windows) themselves, to avoid the contractor’s overheads and profit. In that case, Paul reminds clients they should budget to cover that VAT cost until the end of the project.

    Keep back at least 5% of your budget as contingency

    To deal with unknowns such as the ground and weather, Paul recommends having “something there to cover you, a minimum of 5% but more generously 10%”.

    He warns that stretching both construction budget and contingency “can be quite dangerous.” He advises spending more at the end if you have money left, rather than pushing to do absolutely everything without compromise.

    Expert advice during planning helps predict cost more accurately

    Although he cannot completely mitigate the risks of unknown costs, Paul ensures that the correct investigations are done as early as possible to try and minimise additional costs. “Certainly on the bigger jobs where there is more scope for value engineering,” he says, “we will try and bring a quantity surveyor or an estimator in at roughly the planning stage.”

    This expert can give a budget cost for the build. If it doesn’t fit within a client’s budget, Paul’s team can make changes before the planning application is submitted, avoiding later amendments and resubmissions.

    Avoiding the tender process can actually save money

    Ideally, Paul likes to find a contractor he wants to work with and that the client is happy with, who will “buy into” achieving the building at the budgeted price. He relies on the expertise of the chosen contractor to ensure that the detailed design matches that budget.

    Although Paul acknowledges the benefits and drawbacks of both routes, he doesn’t believe the tender process is the best way of procuring a building, saying “We actually incentivise that in our fees and we charge less for a negotiated price with a contractor than we would do for dealing with a full tender process.”

    Contractor availability can be as important as cost

    Paul works with a pool of preferred builders, although this can change over time. He explains that the best contractors can be booked up to two years in advance. Although clients might be disappointed by delays, they usually come round. “If they want the very best product, they want the very best people to do that,” he says.

    Engaging the contractor earlier in the process can mean that delays are avoided. Having agreed an approximate start date with a contractor, Paul stays in touch while developing drawings, maintaining agreement on budget and timescales. He says, “By the time we’re ready and the contractor’s ready, everything’s drawing together.” However, he adds, “it doesn’t always work that perfectly.”

    Tender processes have their own drawbacks. A four to six week process can lead on to reviewing prices, interviews, and value engineering. After all this, the contractor’s availability might be delayed another year. It can be difficult for a client to ignore a much cheaper quote but Paul warns, “Normally, if it’s too good to be true, it probably is.” The project ends up costing as much but with extra difficulties.

    A passive house can be built for less than £50,000!

    In 2013 Paul’s team submitted a design to the National Self-Build and Custom Build Association’s annual competition ‘Self-build on a Shoestring’. The brief asked for a detached family home, on a very simple flat plot, for £50,000 or less, including all materials and specialist labour but assuming utility connections were already in place.

    Paul’s approach was to make “a simple construction that can be built by the average self-builder”. While mainly a “materials only” cost, it included specialist input such as commissioning the MVHR system, certifying the electrics, gas installation and digger and scaffolding hire.

    Not only did their design offer a 70m2 family home for around £45,000, it was also designed using the passive house planning package. Paul says, “We delivered a building that achieved passive house for less than £50,000 and would be a compact but very comfortable single family home.”

    Delivering build elements constructed off-site to manage costs and time on a steep site

    Five top tips to keep build costs to £50,000

    • Remove main contractor: get hands on, do physical work, and do your own project management
    • Reduce risk by choosing a manageable construction method, such as a simple softwood timber frame.
    • Minimise the number of materials.
    • Maximise the function of each element, e.g. exploit oriented strand board (OSB) in three ways: as an airtight layer, internal wall linings and structurally, to stop the building twisting.
    • Choose larger format materials with cheaper production and installation costs, such as fibre cement slates rather than timber cladding.

     

    Find out more

    Visit the website of Paul Testa

    Follow Paul Testa on Twitter

    Follow Paul Testa on Facebook

    Visit the website of AECB (Association for Environment Conscious Building)

    Transcript

    Download a transcript of the interview with Paul Testa

     

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  • HPH187 : What keeps a self-builder awake at night? – with Will Kirkman from Ecomerchant

    HPH187 : What keeps a self-builder awake at night? – with Will Kirkman from Ecomerchant

    Will Kirkman from Ecomerchant shares the key results of a survey the company ran to find out what self-builders worry about most.

    Interview with Will Kirkman

    Will didn’t actually get a PAYE job until his 40s. Assorted pursuits over the years, including farming and metalwork, eventually led him to civil engineering. He now runs Ecomerchant, a sustainable building materials supplier.

    Will says that self-building is a unique and new experience for most people who do it, so there can be a lot of uncertainty along the way.

    In an effort to find out a little bit more about the market, the company surveyed customers and identified the top five worries.

    1. How much should my project really cost?

    Total build cost is made up of many components. It can be hard to work out what proportion of the total should be on various upfront fees and professional services versus the construction itself, let alone establish actual costs. As dreams become reality, controlling costs can also prove tricky causing anxiety levels to rise.

    Will acknowledges that there is a sliding scale depending on how ‘standard’ the build is and how hands-on a self-builder plans to be, but suggests an indicative cost of between £1200 and £1800 per square metre.

    When it comes to build cost, trusting the professionals is important. Will suggests the core three team members would ideally be client, architect and builder, and recommends engaging with the building materials supplier as soon as possible.

    Will says there are ways to prevent the budget being blown by unforeseen problems. If a builder is doing something for the first time, the quote is likely to take into account this increased risk. So it is wise to choose an architect and builder that is experienced with your preferred build system.

    2. Am I getting good value and good quality?

    Will says, “I think this is about being sensible about what your expectations are and also understanding what people’s skillsets are.”

    He argues it is reasonable to want a house to perform in the long term and therefore expect it be built to a high standard. Unlike the volume housing market, self-builders are in more control of this; but success relies on the entire build team sharing a common understanding of what they’re trying to achieve.

    Will recognises that people can be tempted by short-term savings, especially if their project is going over budget. However, these savings will often cost more in the long run; some examples include:

    • A relatively inexpensive paint can peel off or fail in other ways;
    • Plastic baths will always move, leading to gaps along the silicone, and possibly leaks and damage;
    • Internal doors contribute massively to the acoustics of a building and cheap ones won’t insulate noise well.

    Aesthetics can also distract from a product’s core function. Will reminds us that “value and quality are different things to taste.” Concentrate on how something needs to perform, when weighing up options and prices.

    3. Am I paying too much?

    Being new to the build process can mean people worry they are paying too much. Whatever your budget, you will want to feel that you spent your money wisely.

    While a huge budget may make some decisions easier, Will thinks you are better off being wise than being wealthy in terms of the build; of course money is critical, but getting the job done the way you want it is important too.

    A good way to better understand the process, without adding costs, is to network within the self-build and construction environment. Asking how people have used products and materials will help and you can even learn from other people’s mistakes.

    4. How can I find a reliable supplier?

    While big builders’ merchants might compete in terms of service and special deals, they tend to offer a similar selection of products driven by industry standards. Keeping things simple makes life easy for everybody concerned, but this means self-builders typically encounter problems when it comes to getting more in depth advice, especially on less common building techniques. Will explains, “What builders’ merchants are generally not keen to do is to invest an awful lot of knowledge at the counter front or in the branch, because they don’t see a return for it easily.”

    Will argues that there is a need to promote local builders’ merchants, who are more likely to support regional build systems or non-standard construction methodology.

    5. Who do I turn to for help and advice?

    A good starting place is looking at case studies and finding out what other self-builders are doing. For general help and advice, Will says it’s best to talk to someone who has done what you want to do.

    For technical or professional help, he suggests that a sympathetic architect who understands your ambitions can help find tradesmen with the right experience. However, Will also notes that when he has supplied some building companies with new materials, such as lime plaster for the first time, they realised it wasn’t too difficult and were happy to offer this new skill to customers.

    Other avenues of research include the Internet and roadshows. Will points out that this stage of the process doesn’t have to cost much, so it’s well worth testing the water before you spend a lot of money.

    Some of the relevant information might be too technical for the ‘average punter’ and this is where you might have to abdicate responsibility to the experts. For those wanting an eco-home, it can be hard to work out what that might even mean and the right questions to ask.

    Sustainability can mean different things to different people

    An eco-home could be summarised as: benign in construction, use and potentially in disposal. As Will says, “It benefits occupants’ health and wellbeing, it doesn’t pollute the environment and demands very low levels of energy.” He adds that most buildings built using eco principles feel like really nice houses!

    Some people worry that they aren’t creating the best possible eco-home, but self-builders need to set their own realistic goals. Will compares the desire for an eco-home to healthy eating. “Doing something is better than doing nothing. One salad a week is better than no salads a week. And we’re not expecting everybody to be vegan. There is a happy medium that is entirely personal to every single person.”

     

    Find out more

    Visit the website of Ecomerchant

    Follow Ecomerchant on Twitter

     

    Transcript

    Download a transcript of the interview with Will Kirkman
     

    The Future of Housing

    During our interview with Will he mentioned our documentary The Future of Housing.

    This explored the quality of housing in the UK and how we might improve the situation.

    There’s also a chance to see some exemplar projects.

     

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  • HPH168 : An example of how much it costs to hire an architect – with Allan Corfield

    HPH168 : An example of how much it costs to hire an architect – with Allan Corfield

    Allan Corfield from Allan Corfield Architects (ACA) explains how his approach to services and fees differs from traditional architecture practices in the UK. He describes the staged services his practice offers, giving indicative costs.

    Interview with Allan Corfield

    Allan Corfield is an architect who aims to educate and help homeowners deliver their one-off dream home. He’s spent the last eight years building his practice based in Scotland focusing on self-builds. Their location isn’t an obstacle to working further afield as Allan factors into each fee proposal two or three face-to-face visits during each stage. Currently working on their 250th project, they now operate across the UK and are involved in projects with construction costs ranging from £70,000 to £2 million.

    Percentage-based fees will increase if construction costs go up

    Allan’s approach is different to the majority of traditional architecture practices in the UK who work on a percentage basis, charging 7-10% of the construction cost for their services. Allan prefers his approach because self-builds have a set budget and if you don’t know what your architect’s fee is going to be, you can’t plan ahead. He also argues there’s no incentive for an architect to save you money if their fee will drop in line with reduced construction costs.

    As can be seen on the ACA website, Allan’s practice splits the build process into different stages which are priced separately as fixed costs. This allows self-builders to budget for architectural fees knowing they won’t change as the project goes on. At the end of each stage, ACA asks if clients are happy to go ahead with the next one. Allan recognises that a self-builder may run out of money or there may be a change in family circumstances meaning they can’t commit and finish their project. So his approach offers flexibility and the ability to stop if necessary.

    An example of ACA’s fees based on an estimated construction cost of £250,000:

    StageFixed Cost (excl. VAT)% of Total Fee
    Initial Design Development£5,00025%
    Planning Submission£4,00020%
    Detailed Design Development£6,00030%
    Production Information£4,00020%
    On-site Supervision£250 per visit (optional)5%

    A detailed project brief is essential for the design stage

    Allan explains, “You want to get a design that you love, so that’s our initial design stage”. The most important thing for a client to get right is the project brief. ACA encourage clients to think about how they’ll use their buildings, e.g. an outdoors family may benefit from a wet room attached to their garage. Clients considering details like these help the architect design a home, not a house. ACA ask clients to create lots of different Pinterest boards, including a dislike board, as this helps them gauge what clients like aesthetically.

    ACA use the client’s project brief to propose a couple of initial design options, usually two variations on a theme. Often a third option evolves by combining preferred elements from the first two, which is then typically revised a couple of times until the client’s happy. Their design service ranges from 2-D drawings for lower budget projects to full 3-D modelling where clients can ‘walk around’ their house.

    The first stage also includes a cost check to ensure the design is affordable and self-build elements are achievable. And if there are any contentious elements that could affect planning permission, for example rural location, they make a pre-application enquiry or get a planning consultant in during the design stage.

    Make neighbours and planners feel they’re part of the process

    The cost of the planning stage may seem high but a lot of work goes into getting a planning application approved. Allan explains their high success rate is due to the amount of supporting information they provide, saying, “We’re very good I think at getting a lot more of our clients’ desires through the planning process than other practices because we give really good rendered images.” The thinking behind their design is explained in detail using a Design & Access Statement accompanying the application.

    ACA always ensure they know the local planning policy. Allan comments, “Actually it doesn’t matter where we are or where we come from. If you know the regulations and why you’re going to get something through planning, you shouldn’t have an issue.”

    Before submitting an application, Allan recommends clients discuss their drawings with neighbours so they feel they’re part of the process. While some may have objections, you can also benefit from letters of support.

    It’s advisable to get certification before starting to build

    The third stage is detailed design development. The architect and engineer will spend time researching and inputting information like SAP / PHPP calculations, but many things need to be confirmed by the client such as construction methods, materials, finishes, heating strategy and the level of energy performance.

    Within England’s building regulations system there’s an option to give notice to start work followed by a drip feed of information as the build goes on. Allan realises this can seem attractive to self-builders who may have experienced delays and be eager to get started. However, he prefers to put together a well thought out and detailed package for review and approval before construction starts (as is mandatory in Scotland), cautioning, “If you do rush ahead it will always cost you more in the long run.”

    Construction drawings show how the design should be built

    Stage 4 is called Production Information. The level of detail required in the previous stage demonstrates compliance with building regulations but doesn’t show precisely how the design will be built. Construction drawings are particularly important for self-builders, to ensure contractors use the methods agreed between client and architect.

    With low energy buildings or fabric first approach, you’ll need to have all the details worked out because there may be methods and products that are new to the builder. And with off-site construction methods, it’s down to the client to review and sign for a set of drawings and make sure they’re in line with the window and door schedule (e.g. ensuring the window openings match the kit size), so the cost of retaining your architect to help make sense of the complicated documentation is money well spent.

    You may not need as much on-site supervision as you might think

    The final stage is on-site supervision. In England, building control inspectors visit the site to assess work and provide assistance, but limited funding in Scotland means they don’t have time to come out, so you don’t have that safety net.

    Traditional architects often ask for a monthly retainer for site visits, but Allan feels this shouldn’t be necessary if the architect has provided all the required information and you’ve hired competent contractors. So ACA usually provide an adhoc service for this stage, charging a fixed price per visit if the client requests one. The exception to this is when ACA provides mortgage certificates, where they have to certify a phase of work (e.g. groundworks) has been completed before the lender will release the next chunk of money.

    Architects should be able to justify their fees

    When a project ends, ACA compare the time spent on that project versus fees charged. Quarterly reviews also help to ensure their fees are set appropriately, which will vary according to a client’s budget and requirements.

    Allan comments that building your own home is a very personal thing, and the deciding factor when choosing an architect shouldn’t be solely cost. He acknowledges his practice is slightly more expensive than some of their competitors (but a lot more cost effective than a comparative practice down south, even accounting for travel costs) and justifies their fees, saying, “We’ve got a better team, so we can charge the fee that we do because we actually deliver on what we need to.” He adds the majority of their clients take the full service through stages 1-5 and nobody has come back and quibbled over the fee.

     

    Find out more

    Visit the website of ACA

    Follow AC Architects on Twitter

    A big thank you

    Ben would like to thank Chris Marr from the Content Marketing Academy for connecting us to Allan and for facilitating the interview.

    If you’re a business owner, looking to serve your customers better in our digital world, it’s definitely worth learning more about what Chris does.

     

    Transcript

    Download a transcript of the interview with Allan Corfield

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  • HPH058 : Does it Cost More to Build a Passivhaus? – with Chris Parsons from Parsons + Whittley

    Chris Parsons from Parsons + Whittley architects shares his experience of the costs behind Passivhaus.

    Chris outside

    Interview with Chris Parsons

    Chris Parsons from Parsons + Whittley architects has always had a focus on making buildings as efficient as they can possibly be. With the issues around global warming and trying to reduce carbon emissions, this is why they found a great synergy with Passivhaus.

     

    Achieving Passivhaus in Larger Buildings Can Have Less Impact on Cost

    The larger the building, the more efficient form factor you have and the less impact there is on cost.

    However with smaller buildings, such as the domestic dwellings being delivered by Parsons + Whittley in the social housing arena, there is always an impact on cost.

    N.B. This episode (from this point onwards) is specifically talking about smaller residential buildings.

     

    Costs Will Increase Because There’s More in the Fabric of the Building

    There are practical reasons why a Passivhaus will cost more than a traditionally built house:

    1. There is often a lot more insulation being used
    2. Windows and doors are much better specification, and hence cost more
    3. The ventilation strategy often uses mechanical ventilation with heat recovery (MVHR)
    4. Addressing airtightness will require certain additional products

    On the flip side, there is likely to be a simpler mechanical infrastructure in the house because there will be a reduced heating requirement.

     

    There are Big Benefits for a Comparatively Small Extra Cost

    By investing a little extra to create a building that reaches the Passivhaus standard, there are numerous advantages:

    1. The building will use less energy, thus reducing running costs. This also means there are fewer carbon emissions.
    2. The building will be more comfortable and have a healthy environment (improved air quality).
    3. The building will cost less to maintain because it has been built to a higher quality.

     

    Legislation is Needed to Improve the Quality of All Housing

    If the capital cost of housing is divorced from the running costs (as is currently the case in the UK) there is little incentive for developers to build to a high quality, particularly if they can already sell their houses! For this reason Chris believes building regulations should be tightened up.

     

    There’s a 15% Uplift for a Passivhaus Scheme

    Chris shares information from his Passivhaus schemes.

     

    Wimbish

    This was Chris’ first scheme, 14 dwellings in Essex. At the time the construction industry (in the UK) hadn’t delivered Passivhaus in a multi-unit arena before and as a consequence procurement was a challenge. A cost exercise with another 14 unit (Code for Sustainable Homes – Level 4) revealed that they paid a 12% premium to reach Passivhaus standard.

    Wimbish

    Wimbish Passivhaus scheme in Essex

    Ditchingham

    The Ditchingham scheme was built at a time when the housing market was going through a downturn. With the same contractor they were able to secure it for a 6% increase.

    However, over the course of the project they realised that perhaps this was more to do with negotiation than actual cost.

    Ditchingham

    Ditchingham Passivhaus scheme in Norfolk

    Burnham Overy Staithe

    More recent schemes have generally been shown to be around the 12-15% uplift.

    Burnham-Overy-Staithe

    Burnham Overy Staithe Passivhaus scheme in Norfolk

    Chris concludes: “At the moment we are around about 15% more for a Passivhaus scheme over and above the standard we would otherwise deliver.”

    There is a Cost Attached to Risk

    Chris explains that there is a difference between cost and price.

    A contractor will always build in a contingency to cover the unexpected (and in the early days Passivhaus was an unknown!). So even if the contractor believes the cost is X, they will assess the risk and add Y.

    This means that the price to the client will be X + Y.

    Chris believes that if the client were prepared to take on the risk, they would reduce their costs in the long run.

     

    Embracing Simplicity Will Keep Costs Down

    What Chris likes about the Passivhaus standard is that it comes down to a set of numbers.

    He says: “As a designer you can start with a pencil sketch, run it through the software [PHPP], make sure that you are somewhere near those numbers and then continue to develop the scheme. Every time we’ve done that, simplicity has been the easiest way to achieve the target.”

    This is about simplicity in terms of detailing and how the space is used.

     

    A Passivhaus is Worth More in Europe

    If there is demand for buildings that meet the Passivhaus standard and people recognise the value of it, then it may get to the stage where people are prepared to pay a premium for it.

    In parts of Europe this is already the case, where that premium is 3 – 5% more.

    Chris concludes: “If I was going to pay some extra money for a Passivhaus, I would want to be sure it was one so I would like to see certification adopted as a means of quality control and a means of quality assurance.”

     

     

    Find Out More

    Parsons + Whittley

    Follow Chris Parsons on Twitter

     

    Transcript

    Download a transcript of the interview with Chris Parsons.

     

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