Calculate ancillary costs from the outset
In this article, we will give you an overview of the most important ancillary construction costs using the checklists “Ancillary costs for the property”, “Ancillary construction costs for the construction site” and “Ancillary construction costs during house construction”. Because in order to avoid expensive surprises, the ancillary construction costs absolutely also belong on your “house construction costs” checklist. The rule of thumb helps you to estimate the amount of ancillary construction costs even before the actual planning. Because many builders ask themselves the following questions again and again: Is the price quoted by prefabricated house suppliers realistic? What are the incidental costs of building a house?
Construction companies are of course aware of the desire for reliable figures and therefore advertise unbeatable fixed prices. A prefabricated house for 150,000 euros sounds tempting. However, the ancillary costs of building a house, which can amount to up to 20% of the total costs, are often not or only partially included in the complete price of prefabricated house providers.
Rule of thumb for ancillary construction costs
Individual ancillary costs can usually only be foreseen at an advanced stage of planning, for example when you have a specific property in mind. For the first estimate of what costs realistically come to them when building a house, therefore, first the rule of thumb for ancillary costs. When planning your house construction and calculating your budget, it is always advisable to add at least 15% to the cost of the house construction and land price. The more financial buffer you plan for, the more relaxed you will ultimately be in the event of unplanned expenses. Indeed, a recent survey by Almondia found that 3 out of 4 homes will be more expensive than originally planned. Be prepared to either include these ancillary costs in the one-time construction financing or cover them with equity, otherwise you will be forced to accept less favorable terms when renegotiating with the bank. How much of a buffer should be planned for when building a house depends on the individual situation, but a guideline can already be identified here for the ancillary construction costs: it is usual to plan for 15% for the ancillary costs, but it is not unusual to plan for up to 20% of the total costs when building a house. If you are a cautious planner, you should plan for an extra 5% as a buffer for unforeseen costs.
The overview of ancillary construction costs in advance
In our series of articles on ancillary construction costs, we have compiled the ancillary costs for the land, the ancillary construction costs for the construction site and the ancillary costs for building a house with numerical examples. Even if the percentage share of the total costs is a good guideline: Some ancillary construction costs depend on the size of the house, connection costs, on the other hand, are always the same, no matter how small the house may be. However, a quick overview of all ancillary construction costs as a checklist beforehand.
Checklist: Incidental costs for the property
Broker commission for land search
Real estate transfer tax
Land registry costs
Land charge order
Review of the construction contract
Please note that even if a plot of land is available, there will be additional costs for the building permit and the inspection of the building contract.
Checklist: Incidental construction costs for the construction site
Soil survey and subsoil expertise
Demolition of old buildings
Green waste removal
Connection of construction electricity and construction water
Create construction road
Excavation for basement and floor slab
Export of accumulated soil
Note: Survey costs are incurred in multiple phases of construction. The survey for the official site plan is already necessary for the building application and accounts for about one third of the costs. For the sake of clarity, we have nevertheless combined these into one item for surveying costs.
Checklist: Incidental construction costs during house construction
Development costs and house connections
independent construction supervision
Carport or garage
Terrace depending on construction and material
Note: The costs at this stage depend greatly on the desired equipment. We have listed those that are often desired and forgotten when estimating costs.
Consider the biggest factor in the ancillary costs: the plot of land
The largest items in ancillary construction costs are determined by the nature of the land. In addition to any demolition work or development costs, this also includes the load-bearing capacity of the ground and possible pollutant loads. So, for example, if you buy a plot of land with a house, the costs of demolition and waste disposal are so high that you should by no means invest only the average percentage for ancillary construction costs. We have therefore summarized in particular detail in a separate article what you need to bear in mind when buying land in order to avoid (or factor in) an explosion in ancillary costs.
Incidental construction costs definition
Incidental construction costs definition according to DIN 276
DIN 276-1 for the construction industry is used to determine the production costs for buildings. The standard serves to structure costs and contains principles of cost determination and cost control. It thus regulates precisely what are colloquially called construction costs and ancillary construction costs. However, under “Cost group 700 ancillary construction costs”, the standard mentions, for example, builder’s tasks and financing costs, which in general understanding are not counted as ancillary construction costs. Important items such as “preparation and development” or earthwork for the excavation pit fall under other cost groups of DIN 276. Since, as a general standard, it naturally does not include any guideline values or rules of thumb, it is also of only limited help to home builders when it comes to estimating the actual costs for their house project.
Incidental construction costs in the German Valuation Ordinance (WertV)
The Valuation Ordinance may deviate from DIN 276 in individual regulations. It is of no concern to most builders because they want to live in their home and not sell it. Indirectly, however, it does have an impact, as some lenders pre-screen the value of the home being built to determine if the construction outcome is sufficient collateral for the loan. And those who build as investors naturally want to know in advance exactly what the house will be worth later.