Construction costs

How are the construction costs of a house calculated?

The cost analysis begins with the acquisition of the plot. We will not get into details about land costs and any additional taxation costs. We will address the costs relating to the house’s construction, and will also show how one can minimize “surprises” or in professional terminology remove the “unexpected” clause.

A construction budget can be divided into 5 main parts:

1. Planners

This consists of an architect, an engineer and special planners.

The planners’ fees are not the same for everyone. They depend on their qualifications, experience and reputation. An architect’s fee can range between tens of thousands of NIS and hundreds of thousands of NIS. The engineer’s fee depends on the size of the house and its engineering complexity, and can range between 10,000 NIS and 30,000 NIS before VAT.

One should be aware of the planning and construction committees’ requirements as to special planners in such areas as plumbing or acoustics, or of special requirements that relate to the area in which the house is being built.

2. Skeleton and roof

This part makes up 20% to 25% of the total costs of constructing a house. There is a common error that the skeleton and roof constitute 33% of the costs.

A flat roof cast from concrete will be part of the skeleton budget, whereas a tile roof will be budgeted separately. The costs of a tile roof can vary, as such a roof can have a horizontal gypsum ceiling or a ceiling with bare wooden beams. The type of tile affects the price as well. Portuguese tiles, for example, make the roof more expensive.

3. Systems

These systems include water, electricity, air conditioning, alarms, aluminum and flooring. They are very complex budget-wise. Price differences are wide and directly depend on the type of material selected and on the required level of finish.

For example, for the flooring one can use 80×80 granite porcelain tiles that cost around 70 NIS per square meter before VAT. However, there are tiles of the same size that cost 500 NIS per square meter before VAT.

In the area of aluminum windows, the budget depends on the type of profile selected, on the glazing, the blinds and any window shades. The same house can budget aluminum 200,000 NIS higher.

High quality kitchen cabinets can range between 50,000 and 500,000 NIS.

As you can see, there can be extreme price differences between options.

4. Fixtures

This includes woodwork, plumbing fixtures and lighting fixtures.

5. Outdoor development

Decks, pergolas, walkways, parking areas, fencing, swimming pools, etc.

How not to exceed your budget? Press here

Why Austec Shamir?

The benefit of building your house with Austec Shamir is that you know right from the beginning how much your house will cost. Everything is stated clearly in the detailed technical specifications that address every construction detail and thoroughly and reliably reflect every expense that relates to the construction project. This way there are no surprises or unexpected expenses.

The recipe for building a home without exceeding your budget has three main aspects:

  • Detailed execution plans that are prepared before any work begins.
  • Minimal changes over the course of construction.
  • Detailed, accurate technical specifications and coordinating expectations between the contractor and customer before construction begins.

At Austec Shamir we have over 25 years’ experience and more than 1,000 houses around the entire country.