What Does “Fixed Site Costs” Actually Mean?

Understanding the term 'fixed price'

After considering the base house price and the cost associated with purchasing land, the next major component to consider in a budget for any new home build are site costs. These are the costs associated with your specific block of land, which arise from preparing the site for construction, and can change depending on your block’s soil classification. Because these costs are so variable, they can be challenging to deal with, particularly for those working to a fixed budget.

Many builders promise certainty around the cost of a new home by offering ‘fixed site costs’. However, while this phrase can look very attractive at first glance and provide a level of comfort, these offers too often come with conditions that mean your total site costs could still be subject to significant variation. So, it’s imperative that before you sign any building contract, you know exactly which site fees are, and are not, included.

A comprehensive approach to site fees

According to Carlisle Homes’ House and Land Manager, Taylah White, it’s common for people to be confused by what the phrase “fixed site costs” means. 

“Often, it’s only once we break down site costs in detail with a customer that they actually realise they’re not comparing apples with apples, and that their seemingly low quote for fixed site costs from another builder has a long list of costs that aren’t covered and could potentially be added to their build contract later on,” she says. 

“By contrast, when Carlisle Homes says we offer fixed site costs, we really mean it. And they’re fixed from the moment you pay your deposit.”

The list of costs that Carlisle Homes covers as part of our Fixed Site Costs option is comprehensive and includes: 

• The costs that relate to preparation of the building site, such as earthwork, rock removal and drainage, as well as additional engineering requirements like slab upgrades, bored piers and deepened beams. 
• Council requirements for managing construction, like temporary fencing and timber footpath crossovers. 
• Developer requirements, such as specific facade treatments and roof pitches, and fibre optics. 

All of these are included in our pricing. In fact, we are very transparent in advising that there is just one cost that isn’t included in Carlisle’s Fixed Site Costs option – corner facade treatments, for blocks situated on a corner. Apart from that single factor, if there are any surprises with your block of land that lead to increased site costs, Carlisle Homes wears that additional cost and you don’t pay a cent extra, so you can embark on your home-building journey with confidence and surety.

According to Carlisle Homes’ House and Land Manager, Taylah White, it’s common for people to be confused by what the phrase “fixed site costs” means. 

“Often, it’s only once we break down site costs in detail with a customer that they actually realise they’re not comparing apples with apples, and that their seemingly low quote for fixed site costs from another builder has a long list of costs that aren’t covered and could potentially be added to their build contract later on,” she says. 

“By contrast, when Carlisle Homes says we offer fixed site costs, we really mean it. And they’re fixed from the moment you pay your deposit.”

The list of costs that Carlisle Homes covers as part of our Fixed Site Costs option is comprehensive and includes: 

• The costs that relate to preparation of the building site, such as earthwork, rock removal and drainage, as well as additional engineering requirements like slab upgrades, bored piers and deepened beams. 
• Council requirements for managing construction, like temporary fencing and timber footpath crossovers. 
• Developer requirements, such as specific facade treatments and roof pitches, and fibre optics. 

All of these are included in our pricing. In fact, we are very transparent in advising that there is just one cost that isn’t included in Carlisle’s Fixed Site Costs option – corner facade treatments, for blocks situated on a corner. Apart from that single factor, if there are any surprises with your block of land that lead to increased site costs, Carlisle Homes wears that additional cost and you don’t pay a cent extra, so you can embark on your home-building journey with confidence and surety.

What exactly do site fees mean?

Site fees refer to the costs associated with preparing a piece of land for construction. These fees can include expenses for clearing the land, leveling the site, and ensuring proper drainage and utilities are in place. Site fees can vary significantly depending on the condition of the land, its location, and any specific requirements for the building project. Understanding site fees is crucial for budgeting purposes, as these costs are in addition to the purchase price of the land and the construction of the property itself. Accurately estimating site fees helps avoid unexpected expenses and ensures a smoother building process.

Is it beneficial to have a fixed price? 

Having a fixed price for a construction project can be highly beneficial. A fixed price contract provides clarity and certainty regarding the total cost of the build, protecting you from unexpected price increases and budget overruns. This type of contract outlines all expenses upfront, including materials, labor, and any additional fees, allowing you to plan your finances more effectively. Fixed price contracts also simplify the project management process, as they establish clear expectations and reduce the risk of disputes over costs. For many homeowners and investors, opting for a fixed price contract offers peace of mind and financial stability throughout the construction journey.