Property Clinic: Options for getting the job done

Inflation and rising costs make completing building projects exceedingly difficult - but there are options for saving and delaying costs

Building Engineer Kieran McCarthy is the design & build director with KMC Homes, serving Cork and Limerick. He is also co-presenter of the RTÉ show Cheap Irish Homes. Picture: Denis Minihane.

Hi Kieran, hope you might give some advice, but this might be more financial? We have planning permission in the last year for a 2,100 sq ft house in a sort of ‘’H’ shape that planners seem to like right now. 

The problem is we haven’t the money now to finish it out because of rising costs. Should we start and go as far as we can? It’s a single story design with bedrooms in one half. We are renting at present, and have our first child, she’s two. 

Thanks, Siobhan and Shane

Hello Siobhan & Shane,

Thank you for your question. It is truly frustrating watching the rising building material costs at present and I have yet to come across any economist/investor who has a full handle on the situation. 

Most are looking to historic markets as a means of understanding our predicament but our current circumstances are somewhat unique and though we may be over the worst of the pandemic, thankfully, we don’t as yet know how the war in Ukraine will fully play out.

I am not fully au fait with your particular circumstances (your ages, other family circumstances etc) so I have to make a few assumptions here. What I propose to do is to advise you as if you came into my office with your drawings and budget dilemma.

My general advice to a young couple is that your most precious time is time at home with your children (because they will eventually grow up and leave home).

As such I always feel that the earlier you build a home (so that young children can grow in their attachment to it) and you can enjoy this time of your life. You also get to enjoy living in a better home, designed around you and your family, for longer.

To this end, it appears that the biggest issue you have is a budget issue. So, you have designed a ‘H’ shaped bungalow. Again, not being privy to your design journey to date, this is an expensive building to build for two key reasons.

Firstly ‘H’ Shaped houses are expensive because they have a high wall to floor ratio. I.e. there is a higher percentage of external walls (more insulation, windows, block work leaves, wall ties, roof complexity) compared to a simpler house shape (‘L’ shape, ‘T’ shape, etc).

Secondly you are building a bungalow (again I do not know if this is a particular requirement of yours or driven by the planners) but if you were able/open to a two storey house then you will save on costs here too. A two storey house has less foundations and roofs, both of which are expensive and dramatically drive up your cost per square foot. 

You could look at a slight reduction in size too if you were open to this as modern architects are can be very space efficient if say your tell the that your may space allowance is 2000 sq ft and try to ensure you have no single storey, i.e. your ground floor plan and first floor plan on top of each other.

If you were therefore open to a redesign, then you would likely save considerably on your budget by opting for a more budget aligned design. 

Yes, you would have to wait until say the beginning of next year to build, all going well, but you would likely be in a better place in terms of your budget and with any luck, in an economic climate if rising interest rates globally, you may find that inflation may have cooled.

What you could also consider is creating an inflation buffer for your project. Perhaps have high and low ranges for your pc sums/client selections. 

Most of these options are not chosen until half way through the build (high-end tiles, floating vanity units, stone worktops, glass balustrades, herringbone floors) so there is certainly more that could be saved here if you needed additional monies during the build to stave off other rising costs.

When it comes to external works, you could choose to build pillars, boundary walls, electric gates, tarmac, kerbs, external paint at a later stage and save a very considerable amount here too to give you real peace of mind.

So, I am shooting in the dark here a little as I am not familiar with your exact circumstances or even if this type of semi-nuclear option is of interest to you? 

But, perhaps it will show you where savings can be made either in your existing design or perhaps in a new more budget-conscious option and give you some sort of comfort as you embark on your exciting new home journey.

• Building Engineer Kieran McCarthy is the design & build director with KMC Homes, serving Cork and Limerick. He is also co-presenter of the RTÉ show Cheap Irish Homes.