Owner Builder? Owner Management? or Hire a Builder? – CompactHomes

Owner Builder? Owner Management? or Hire a Builder?

Owner Builder? Owner Management? or Hire a Builder?

Considering building a Compact kit home. You have 3 options to consider,

  1. Owner Builder - You can choose to take on the role of an owner-builder and personally oversee the entire project.
  2. Hire a builder – You engage a builder to handle the work and build the home for you.
  3. Owner-manager – You manage the project where you complete some tasks while subcontracting tradespeople for specific jobs.


Although the first two options are popular, they may not be suitable for everyone. Some customers may lack the confidence or time to undertake the project themselves. Engaging a builder, while cost-effective compared to traditional builds, can still increase the budget and limit control over the process. Additionally, in the current post-covid climate, reputable builders are in high demand, leading to higher costs due to material and labour price hikes. There's also the risk of builders facing financial difficulties and potentially not completing the project.

However, the third option of owner-manager presents a compelling alternative that you may not have considered. It offers several positive aspects, both in terms of finances and personal satisfaction.

What does owner-management mean?

Owner-management, also known as project management, involves hiring different tradespeople required for the construction of your home, such as a carpenter, concreter, plumber, or electrician. While it requires organization and research on your part, owner-management provides three key advantages:


Cost savings - By choosing owner-management, Compact customers can save up to 30 percent of the total build cost. These savings are made by removing the builder’s margin, you get rewarded for managing the project. These substantial savings make the effort of organizing tradespeople well worth it.


Greater control - Owner-management gives you greater control over the construction process. You can choose the trades people you want to work with. You may also have friends or family that are trades people you can hire and assist you through the process. You control the payments of trades as you go ensuring the quality is up to standard before paying the final invoice.

Risk Management - In contrast, engaging a builder often requires upfront progressive payments, leaving you hoping that the outcome meets your expectations. While most builders deliver satisfactory results, there is a risk of encountering dissatisfaction.

Choosing owner-management for your Compact project empowers you to achieve cost savings and retain control over the construction process.


How much will a builder charge to build the kit home?

We get asked this question everyday as you can imagine there are a few variables that need to be considered,

  • Sloping or flat block
  • Soil category
  • Location and access to site
  • Concrete slab or stumps
  • Wind rating
  • Any non-standard modifications or design changes

Are just a few to consider. As a general guide we suggest you double the kit price and add 15% for a full turnkey home.

Example – Valencia 68 kit - $65,850

                   Subfloor kit - $12,900

Total kit - $78,750

Builder cost $78,750 + Kit $78,750 = $157,500 + 15% = $181,125

The above prices are a guide please get in touch with our team to chat further about your project.

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