A Real Example of a New Build Using The realtor.co.nz Build Guide
Kia ora, I’m James, part of the team at realtor.co.nz. In this step, I’d like to walk you through my full new build, which was completed utlising, and sometimes helping form, the steps and stages from the realtor.co.nz Build guide. This article will involve sharing insights from a recent project in North Canterbury, which has now achieved code of compliance.
Please note that this is a personal perspective and is not intended as financial or building advice.
Understanding Your Reasons for Building
The first step in any build is understanding your reasons for doing it. For us, the decision to build was straightforward. In our chosen location, there were very few properties available, and none of them matched our criteria. We weren’t just looking for a home; we were seeking a place that would allow us to connect with nature and each other, a retreat from the busyness of everyday life. We envisioned a modern home that was not only structurally sound and positioned to take in stunning views but also incorporated future-proofing features like energy efficiency, natural disaster resilience, soundproofing, and a low-impact footprint on the environment.
Key Things To Factor When Building
Next, let’s talk about the key factors that had to be considered for the build. This was a remote project on a sloped site, covered in native bush. At 650 metres above sea level, the site experiences significant temperature fluctuations throughout the year, which impacted the building timeline. The remote location also meant that finding builders and contractors was a challenge. The site was two hours from Christchurch, an hour from Hanmer Springs, 45 minutes from Culverden, and an hour from Kaikoura. With fewer tradespeople willing to travel to such a remote location, it was important to be strategic. An electrician was secured from Hanmer Springs, a plumber from Culverden, and a local building contractor from Waiau, about 20 to 25 minutes away. These were key factors in making the project feasible.
Another consideration was the logistics of getting supplies to the site. Due to the remote location, many materials had to be transported from Christchurch, either by the contractor or by myself. Frequent trips to the site were necessary, delivering materials and helping to manage waste and rubbish to keep everything tidy. With the seasonal conditions in mind, the aim was to complete the project within an eight-month window. The ground typically dries enough for work in October, so the plan was to finish excavation and landscaping by November, allowing the site to settle before starting the foundational work in December. This allowed for roughly eight months, from January to June or July, to complete the build before heavy snow set in. Fortunately, this timeline was met. It was crucial to work within that window because once the snow arrives, the site becomes difficult to access, and when it melts, the area turns muddy. These were the essential factors to consider for this particular build.
Site Analysis and Pre-Design Assessment
As part of the site analysis and pre-design assessment during the due diligence process, we arranged for a geotechnical report to address a key question: Was the land, which was quite sloped and located in Canterbury, a potentially earthquake-prone area, suitable for building? If so, which part of the land would be most suitable for construction, and what type of dwelling could the land support?
The geotechnical report provided excellent results across the three building sites, with the primary site—offering a view—being the most favourable. This confirmed that the primary site was viable for building the house. With this knowledge, we could then organise and plan the overall landscape across the section, allowing us to determine the necessary landscape excavations and ultimately finalise the exact location for the build site.
Although this wasn't know during the initial site analysis, the actual position of the build footprint ended up slightly further up and back from where the testing was conducted, only by a few metres. One of the other test sites was immediately behind, extending even further back from where the build eventually occurred. This allowed us to be confident that the area between the two sites was consistent with the conditions of both.
In terms of the infrastructure evaluation, the build site was expected to be 15 to 25 metres from both the water and power connections, which were conveniently located near the road. The site had an easterly-facing orientation, meaning it received morning sunlight until the sun passed over the mountains to the north and west. This positioning meant that we would lose sunlight approximately one and a half to two hours before sunset. The wind orientation was predominantly sheltered, thanks to the surrounding mountains.
The design of the property suited a small-to-medium footprint, which aligned with its sustainability goals. We ensured that all water runoff, whether from rain or stormwater, was collected and stored in a 4,000-litre tank, as planned. We also collaborated with local authorities and neighbours to minimise the impact of the build, particularly concerning excavation and water diversion. Keeping the community informed and approachable throughout the process helped address any concerns that arose.
The site analysis, along with the geotechnical report completed during the due diligence period, gave us confidence that the land offered at least one and potentially up to three favourable building locations. With some tree cutting and trimming, we could open up exceptional views for both summer and winter, which would be further refined as the project progressed.
Researching the Build Process and Simpli Portal
The next step was to research the building process. Fortunately, from my previous work and the creation of realtor.co.nz, I had a good understanding of the building process. I also had a solid grasp on how to manage a project, break down the stages of construction, and align them with the timeline to effectively manage the budget. I knew which professionals I needed to contact early on to get cost estimates for the project. I felt confident that effective communication would be a strength of mine. Combining my past experience with ongoing research and insights from friends and potential partners in this endeavour, I knew I had the resources to address any questions that arose. I organised the building process into clear milestones and stages to keep everything on track.
One aspect that stood out was the use of the Simpli Portal for building consent and compliance. The Simpli Portal is a tool designed to streamline the building consent process in new home construction. It acts as a unified platform for homeowners and professionals to manage documentation and compliance efficiently. Overall, I found the Simpli Portal user-friendly and straightforward in its structure. However, one challenge I encountered was that you can't always rely on the council for advice regarding the documentation you've submitted or that they have generated. For instance, when you pass an inspection, the council sends you the documentation, which you then upload to the Simpli Portal. If they have any questions about it, they issue a request for information (RFI). Interestingly, they may ask questions based on documents they themselves generated, which can be a bit confusing. This was one of the key lessons I learned.
To stay organised, I had all the documentation stored in relevant folders for each stage, including a dedicated folder for council consents and inspections. This made it easy to access the information quickly. I recommend using a platform like Dropbox or SharePoint to store all your inspection records and documentation in one place, so you can easily retrieve them if a request for information comes through.
Setting a Preliminary Budget
One of the key stages is setting a preliminary budget, which can be approached in a couple of ways. The first option is to start with a set amount of money and work backwards to determine what can be achieved within that budget. The build calculator on realtor.co.nz is a useful tool for reverse-engineering the costs of a house build to see what you can get for that sum. Alternatively, you can start from the other direction by designing the property you want and calculating all the associated costs, starting with the land purchase. This includes the costs for land, council fees, legal fees, excavations, and the build itself, to give you a comprehensive overview.
In my case, I used the first method, knowing how much money I had for the project. This allowed me to purchase the land at a specific price, as I had selected that particular site for reasons I’ll explain later. From there, based on the land, the geotechnical reports, and the costs for excavation, I planned out the three-phase excavation process. This included clearing the preliminary site, the secondary site, and preparing the area for the 330-metre septic tank field. Using the building calculator, I worked out the component costs and determined the level of quality I wanted. Typically, you can choose between low, medium, high, and premium options. I aimed for a good build that would last at least 50 years with minimal issues, so I avoided anything on the lower end and focused on mid-to-high-quality fittings and trades.
I didn’t go with the cheapest quotes because I understood that for a rural build, delays caused by tradespeople not doing things right the first time would end up costing more in the long run. I needed to be confident that the partners I chose would show up when required and do the job correctly. While I could have saved money by choosing the lowest bids, I took a broader perspective. I considered how much time I wanted to spend on early maintenance or dealing with issues that shouldn’t arise at all.
Based on this approach, I calculated all expected costs and presented them to a builder, excluding the actual figures from the Excel model I created. After receiving feedback, the numbers were surprisingly similar. There were times when I came in under and the builder over, and vice versa. Ultimately, The final costs stayed close to my initial estimate.
On the realtor.co.nz website, you’ll find that land purchases typically account for 20 to 30% of the total budget. There are also design and consent fees, construction costs, and infrastructure and site work expenses. In my case, infrastructure and site work costs exceeded the typical 10% due to the remote location of the site, the sloped terrain, and the significant amount of native bush that needed to be cleared to create a solid building platform.
The website suggests a contingency fund of 5 to 10%, but I allocated 20%, given the remote location and potential challenges. At times, main contractors would report unexpected issues requiring additional funds. Doing a bit of research and verifying the costs against distributor prices helped ensure that we met in the middle when it came to negotiations. Getting into this habit is crucial because it can save a significant amount of money over time, depending on your level of involvement and willingness to manage these details.
Overall, at this point in time the build ended up within 3% of the initial budget, not including the contingency fund, which was outside the main budget. Balancing dreams with reality was important throughout the project. I aimed for a property that would be both practical for living and exciting for our family to visit. While there were compromises on some elements, I didn’t compromise on quality. I knew that if I achieved the build within the budget, the property would retain its value in the current market and beyond, even though selling wasn’t part of the plan.
Ongoing budget vigilance is essential for any project. With a background in web, tech, and software project management, I understood how budgets can shift and the importance of staying on top of them to remain within the expected range. I see it like playing darts: as long as you hit the dartboard, you don’t need to land on the bullseye. The goal is to avoid missing the target altogether, which could blow the budget out of the water.
One of the most commonly referenced shows in this context is Grand Designs, where you might see someone start with a $1 million budget, only for it to balloon to $1.5 million and eventually hit $2.3 million due to unforeseen challenges.
The more time you spend investigating the land, contractor availability, and other details before reaching the foundational stage, the less likely you are to experience budget blowouts. The biggest budget deviations tend to occur before the foundations are laid because, after that point, everything should be a known factor between yourself, your main contractors, and your relevant contacts and contracts.
Known Factors and Contracts
As we discuss known factors and relevant contracts, the build contract with the main construction company proved to be a vital document referenced many times throughout the project. In fact, it came up no fewer than ten times. My familiarity with the contract saved both time and money and kept the project on budget. Knowing what I was responsible for and what costs I could push back on helped clarify when the main contractor was liable for expenses.
One of the most critical aspects of the build contract was the target date for practical completion. This anchor date was crucial to understand, along with the implications if it was missed. The contract also allowed for changes to the overall sum through written or unwritten variations. Written variations could be accepted or declined based on specific terms in the contract, which was particularly important when an issue arose with the time required to affix the internal lining. Due to a slower method involving hidden fixings rather than the traditional brad nailing, there was a request for additional time. However, I was not liable for any extra cost because no written request had been approved before the work began.
Even though I wasn’t obligated to pay, I observed the quality and pace of their work and could see they were doing their best. It wasn’t an attempt to inflate costs but rather a matter of cost recovery. The end result looked fantastic, so we negotiated a fair solution. The contract laid out my options clearly, and although I could have refused the additional cost, the effort and quality they put into the work led me to allow a slight budget adjustment. Since the financial impact wasn’t significant, it made sense to proceed, knowing that the final look and feel of the internal lining were exceptional.
In situations like this, the contractors could have rushed the job to meet the original timeline, but the hidden fixings and clear-stained pine tongue and groove meant there was nowhere for workmanship to hide. If they had done it quickly, I would have had to live with the results for decades. By allowing them the extra time and care, I ensured that the work met the high standards I wanted for the property’s aesthetic. The balance here was crucial—not pushing too hard to stay on time or budget if it risked long-term quality.
These micro-decisions often arise and significantly impact the relationship with your contractor and the final outcome of the build. Understanding when to enforce the contract strictly and when to be flexible is essential. While everything has to be reasonable, it’s important not to let contractors inflate costs or underquote to win the job. Spending time on-site, building rapport with the workers, and reading reviews all contribute to better decision-making.
Another key aspect of contract management is getting your legal team to review the contract before you proceed—this is an absolute must. One clause in my contract allowed the main contractor to increase the contract value by up to $50,000 through unwritten substitutions. I immediately flagged this as a concern because, given the amount of time we’d spent discussing prices and adding contingencies, I knew that the prices I had included were likely higher than the wholesale or trade prices they could access. There was no reason for the final cost to increase by such a significant margin.
To mitigate this risk, I negotiated the clause down to $5,000, acknowledging that some unforeseen costs might still arise. Indeed, a few things did crop up, but by limiting the potential increase, I protected the overall budget. In some cases, contracts may be templates designed for larger commercial projects, so your lawyer can help identify and adjust any clauses that don’t fit your specific build.
One useful tip was uploading the contract into an AI tool, like ChatGPT, to quickly reference and ask questions about specific clauses. While not a replacement for legal advice, it provided a helpful overview and saved time by pulling up verbatim contract details. This gave me confidence in the decisions I was making, knowing they were both legally sound and right for the build.
Land Ownership Types
As part of the due diligence process, reviewing the land ownership types was crucial. For me, it was essential that the land was fee simple. I didn’t want any restrictions or third parties having a say in what I could or couldn’t do with the land, aside from the usual requirements from councils and local groups regarding covenants. My plans were always to build a small to medium dwelling, so nothing that would deviate significantly from a standard build. However, it was important to me to retain full control over the land and everything on it, ensuring that I could manage it as I saw fit for the foreseeable future. This decision was driven by a need for stability, peace of mind, and the fact that the land is a long-term investment.
Choosing A Hardware Store
When it comes to choosing the best hardware store for your new build, my preferences changed over time. For 10 to 15 years, I was a loyal customer of Bunnings. I had a trade card early on, which gave me trade discounts, although they were relatively small—about one to two percent on standard items, with slightly better discounts on wood and bulk purchases. Bunnings’ convenient locations and easy-going service made them my go-to store for a long time.
However, during this build, things changed. Bunnings often didn’t have the products I needed, and obtaining those products became increasingly difficult. This led me to transition to Mitre 10. I found that Mitre 10 offered more bespoke products and was willing to negotiate better trade discounts—savings that amounted to thousands of dollars over the course of the project.
Now, I’m much more familiar with my local Mitre 10 MEGA in Hornby, Christchurch. I go there knowing they will almost certainly have what I need, and their trade discount typically makes their prices better than Bunnings. It’s crucial to have a reliable hardware store, especially for those smaller items like locks, buckets, tools, and gardening equipment, which are essential throughout a build. Being familiar with the store helps streamline the purchasing process and keeps everything running smoothly.
I didn’t expect to transition from Bunnings to Mitre 10, but that’s what happened, largely due to the superior trade-level customer service and expert advice at Mitre 10. It’s invaluable to have a store where you can bounce ideas off knowledgeable staff and get the support you need. For example, there was a time when I ordered a series of doors, and they missed a few components. Since it was their error, they resolved the issue quickly and at no extra cost to me. This kind of service prevented frustrating delays and additional expenses, which is essential when working on a project of this scale.
Building Cost Components and Maximising Construction Budget
When maximising cash flow throughout a build, smart financial strategies can make a significant difference to the budget. One approach that can help is using an interest-free credit card to cover expenses along the way. This strategy provides some flexibility with cash flow by giving you an available amount each period. For example, if you have $10,000 that you know you can pay off at the end of the month, you can avoid paying interest on that borrowing for the month. While you will incur lending costs as soon as you use the card, you would have incurred them anyway, possibly at a lower rate. Some cards also offer rewards, such as cashback or Airpoints. I used this strategy to maximise cashback opportunities.
My cashback credit card offers 0.9% of the total balance with no cap, so I knew that for any products or services purchased with the card, I was effectively getting just under a 1% net discount. This cashback would be returned at the end of the financial year. Additionally, I saved on interest during the period that the amount was on the card before repaying it. The key to making this strategy work is being mindful of when your card interest starts and ensuring that your repayments are consistent and on time. It’s also helpful to track your spending by keeping it all on one card whenever possible.
When considering the cost components of a new build, there are several key areas to manage. At the start, you have legal expenses for conveyancing and purchasing, as well as other costs such as geotechnical reports and administrative fees. The first significant non-legal cost is usually groundwork, such as site preparation. This is one of the first steps in the home building journey, as you prepare the land where the house will sit. The costs can vary widely depending on the site, as no two properties in New Zealand are the same. Soil testing for toxicity might also be important, especially if the land is near a vineyard or farm, where pesticides or fertilisers could be present on your side of the fence. A LIM report may not catch all potential contaminants, so if the property is near a farm or downstream from one, testing water or soil could be worthwhile. In New Zealand, geotechnical reports are essential, particularly due to the earthquake risks, especially in the South Island and Canterbury region. Material and labour costs can vary greatly, depending on the types of contractors you hire and their ability to do the work in-house versus subcontracting. The range of materials available, from budget to high-end, also impacts costs. It’s important to decide where you want to position yourself in terms of quality, ensuring that the materials align with your goals and values for the build.
Systems and utilities, including water, electrical, plumbing, gas installations, alarms, HVAC systems, and security systems, are also important components. For water, a stable supply from the council or a bore is ideal. Electricity can be either on or off-grid. In my case, the property had a connection to a residential water supply and the national grid at the boundary, which was very convenient. However, the plumbing situation required a septic system, as there was no sewer on site or nearby. After researching septic systems, I chose a significantly larger system than initially needed, considering the potential to build a minor dwelling in the future. The cost of the unit, along with resource consent, installation, and drainage, was relatively low compared to the total project cost. I selected the ABS 2000 from Oasis Clearwater, which is one of the best in its field. Given the remote nature of the build, I wanted a system that wouldn’t struggle to perform, ensuring long-term reliability. Plus, there was strong technician support available in North Canterbury.
For security, I installed a standard set of cameras that I can monitor remotely, given the rural location. Although I didn’t need a water tank for potable water due to the connection to the residential supply, I installed a 4,000-litre stormwater tank. This was crucial to divert water away from the house, as the downpipes would otherwise direct water into the ground near the foundation. The tank, positioned down a slight slope, ensures that water doesn’t accumulate around the house.
All interior fixtures and finishes were selected to align with the overall aesthetic and design of the house, which I designed in a modern Scandinavian style—simple, with straight lines and no curves. The materials used were primarily wood or natural-based. Interior finishes, from benchtops to bathroom fittings, were chosen from a consistent set of vendors, ensuring a cohesive design throughout the house.
In terms of landscaping, the property is still in the early stages, so the plants are small and haven’t had time to go through a full growth cycle. However, the overall look of the property from the outside is strong. It’s the first of its kind in the village, distinct from the typical log cabins in the area. My goal was to ensure that the property not only met but exceeded all New Zealand building standards and was easy to maintain. The cladding is a thermally modified pine with a clear stain that enhances the natural beauty of the wood while providing durability in the alpine environment.
Looking ahead to future costs beyond construction, I considered ongoing maintenance, repairs, and inspections. Since the build is mostly natural, using wood inside and out, maintenance will be essential at a regular cadence. However, with proper care, the wood should last 50 to 100 years. Before signing off on practical completion, I arranged for a full property inspection by a registered building practitioner (LBP) to ensure everything was in order. The inspector spent two hours on site and confirmed that the build was extremely tidy, with no significant issues, aside from minor things like tightening door handles.
Environmental Impact Assessment in New Home Construction and Matching Property Types to Your Land Choice
When conducting an environmental impact assessment for new home construction, one of the first things I noticed upon viewing the land was the potential to create a stepped system on the sloped site. I realised early on that this would require significant excavation and groundwork, which would alter the natural environment. The removal of native scrub was necessary to clear space for the different zones, including the top section, the building platform, the midsection, and the bottom area. Each of these areas had distinct purposes. The top was mostly to remain planted, while the building platform needed clearing and levelling. It was dug out to a metre below ground level, then rebuilt in 15-centimetre increments, using nuclear density tests and compaction to ensure a stable foundation.
The midsection, slightly sloped, was cleared to allow access for vehicles and equipment. It will be replanted later. The bottom area had a second driveway installed, consisting of shingle and metal. Below that, we cleared space for the septic field, where a BS 2000 Must Blue water system was installed 10 to 15 centimetres underground. In my environmental impact assessment, I identified that land disturbance was unavoidable. However, I have a plan to replant native trees and shrubs around the building platform, managing their heights to preserve the view. Within three to five years, the site should have a similar level of vegetation to what existed before construction.
The property for this build sits at 650 metres elevation, in the foothills of the Canterbury Southern Alps, near the Marlborough border. The house needed specific features to suit both the location and local climate, as well as adhere to local covenants. I opted for a small footprint, double-storey house to maximise space. The design follows a Scandinavian minimalistic style, with a 35-degree gable roof made of colour steel and sustainably sourced New Zealand timber for cladding, which we stained brown. This design was crucial to ensure the house fits naturally into its surroundings and performs well in the area’s climate, where winters are colder and summers warmer than average. The cladding, insulation, and thermal properties of the house make it well-suited to the environment.
Deciding on the Type of House to Suit Your Land and Project
Deciding on the type of house was straightforward. As mentioned earlier in the article, the choice of a wooden log house or a wooden building made sense from the beginning. The plan always included a gable roof with a strong pitch of 35 degrees. With these ideas in mind, I wanted to design a house with a low footprint that achieved my main goal—three full bedrooms on the second floor.
On the ground level, the house would have a lounge, a full kitchen, a toilet, a full bathroom, and a laundry. This was the overall layout I decided to go for. The house was naturally designed to be attached, but there are no other houses within 50 or 60 metres. It would have standalone facilities and utilities, blending into its environment while featuring an alpine aesthetic. The interior and exterior would match a Scandinavian minimalist theme, complementing the overall look and feel.
Choosing the Right Builder and Assembling the Right Team
Choosing the right builder and assembly team is crucial. Not only do you need to trust that they will deliver the project to your expectations, but you’ll also spend a significant amount of time discussing and negotiating with them. A strong relationship with your builder or construction company is essential, especially if your project involves additional tradespeople.
For my build, being in a remote location meant I had a few options for a primary construction team. I sought local recommendations, which led me to two teams. One proved difficult to contact, even during the initial phase, which raised concerns. If they weren’t available when I needed them early on, they likely wouldn’t be responsive later when problems arose, which would make managing the project remotely challenging.
The other team, however, was responsive and willing to work with a hybrid approach. They provided the core building materials and team, while I supplied the electrician, drain layer, excavation company, and certain building components like cladding, flooring, and bathroom fixtures. We went through a thorough quoting process, and while their quote was slightly higher than expected, it was within a reasonable range.
In my experience, communication is key. For instance, I struggled to secure a recommended local electrician, who was unresponsive despite repeated attempts. This lack of communication early on made it clear that any issues during the build would be harder to manage. In contrast, a larger company I contacted in Hanmer Springs responded promptly and professionally, giving me peace of mind. Their pricing was higher, but their reliability, access to resources, and ability to stick to the project timeline outweighed the cost.
Fast forward a year and a half, and my experience with this company was very positive. Their proactive approach and availability made a significant difference, especially in managing the primary build team and other trades. While working with a smaller, cheaper team might have saved money upfront, the long-term benefits of having a reliable, responsive contractor were well worth it.
In a remote build, any issues can fall back on you, especially if your contractor isn’t able to handle them. Having a team that can solve problems onsite without needing constant input saved me time and, in the end, probably reduced overall costs.
Looking back, assembling the right team was critical. From the excavation team to the drain layer, each played a crucial role. They also helped source other experts, such as geotechnical specialists, ensuring the project’s success. Ultimately, if a contractor isn’t easy to contact at the start, it’s likely they won’t be available when you need them most. Always choose a team with sufficient staff and resources to ensure your project stays on track.
New Build Project Management Tools and Building Contract Guide for Clients
For managing my new build project, I relied on a series of spreadsheets, which is a strength of mine. I used Excel for tasks like quantifying materials and quantity surveying. I also mapped out timeframes based on milestone payments within the building contract, so I didn’t need a complex project management tool. However, having an integrated tool to track progress would have been helpful—similar to the resources found on sites like realtor.co.nz and the I Am Building step guide, which manage the building process in a clear order.
When it came to the building contract, I made sure to have one in place. The builder I selected had a default template, which I reviewed with the help of my lawyer. The contract had been drafted with input from a legal company, which added a layer of transparency. This allowed me to address any potential concerns early, and my lawyer’s review confirmed it was a fairly standard contract with minimal issues.
One key change I made was reducing the contract variation clause from $50,000 to $5,000. This gave me peace of mind that my budget would stay intact, with no unexpected cost increases. The contract covered a wide range of items, including the approval of plans, commencement and completion dates, variations, site conditions, delays, defect reporting, warranties, and payment schedules. Delays in delivery were particularly important later on, as I successfully claimed compensation for a missed completion date.
Throughout the project, any minor defects were addressed and resolved promptly. For example, after generating a defect report, the builder fixed all issues within the first week of my being onsite. Having a clear contract ensured both parties were protected, and I could reference it to resolve any disputes. While the legal review cost me initially, it saved me significant money in the long run by protecting me from additional costs and delays.
For anyone considering a new build, it’s essential to seek legal advice on the contract, whether you use a template or one provided by the builder. Taking the time to get a lawyer’s advice can save you thousands—or even more—if any issues come up during your build. Proper legal oversight can prevent potential injuries, errors, or financial losses during the build.
