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The 80% Rule: Why Most Building Costs Are Determined Before Construction Starts

One of the biggest misconceptions about building a new home is that construction costs are controlled by the builder.

By the time the builder starts construction, however, many of the decisions that determine the cost of your house have already been made.

The size of the house has been decided.

The foundations have been designed.

The structural spans have been established.

The roof shape exists.

The windows have been selected and positioned.

The bathrooms and kitchen are located.

The house has been positioned on the site.

In other words, a very large proportion of your eventual building cost is determined during design—not during construction.

I sometimes describe this as the 80% Rule.

It isn't intended as a precise accounting formula. The point is that the greatest opportunity to influence the final cost of a building occurs surprisingly early in the project.

And this has an important consequence:

If you want to control your building budget, don't wait for the builder's q...

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Why Two 200m² Houses Can Cost $200,000 Apart

Why Two 200m² Houses Can Cost $200,000 Apart

Two houses are both 200m².

They have the same number of bedrooms, similar bathrooms, a double garage and comparable interior finishes.

Yet one costs $850,000 to build and the other costs more than $1 million.

How can that be?

When people start planning a new home in New Zealand, one of the first questions they often ask is:

“What is the building cost per square metre?”

It sounds like a sensible question. Unfortunately, it can also be very misleading.

After many years designing houses, I have found that the number of square metres is only one part of what determines the final building cost.

The geometry of the house, roof design, structural spans, foundations, glazing, site conditions and even where you position the house on the section can have an enormous effect on cost.

This is also why good architectural design can potentially save considerably more than simply choosing cheaper finishes later.

Let's look at why.

1. A Square Me...

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Renovate or Build New? How to Decide What's Right for Your Home in Nelson Tasman

Renovate or Build New? How to Decide What's Right for Your Home in Nelson Tasman

Should you renovate your existing home or start again with a new build? Discover the key factors homeowners should consider before making one of the biggest decisions they'll ever face.

For many homeowners, there comes a point when their house no longer meets their needs. Perhaps your family has grown, your lifestyle has changed, or your home simply isn't performing as well as it should. The big question then becomes: Should you renovate your existing home, or would building a new home be the better long-term investment?

There isn't a one-size-fits-all answer. Every property, budget, and family is different. However, understanding the strengths and limitations of each option can help you make a more informed decision.

At Stephan Meijer Architecture Ltd, we work with homeowners throughout the Nelson Tasman region to assess their existing homes, understand their goals, and determine whether renovation or...

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How to Find a Great Section in Nelson/Tasman

How to Find a Great Section in Nelson/Tasman Before You Build

Choosing the right section is one of the most important decisions you will make when planning a new home.

A great piece of land can make a home easier to design, more affordable to build, warmer in winter, cooler in summer, and more enjoyable to live in for years to come.

A difficult section, on the other hand, can add unexpected costs through earthworks, retaining walls, drainage, access, services, council requirements and complex foundations.

At Stephan Meijer Architecture, we help clients across Nelson, Richmond, Mapua, Motueka, Wakefield and the wider Tasman region assess sites before they commit to buying or building.

Start With the Sun

In Nelson and Tasman, good solar orientation is one of the biggest advantages a section can have.

A north-facing site allows your home to capture winter sun, reduce heating demand and create bright, comfortable living spaces.

When looking at a section, ask:

  • Where is north?

  • ...
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Cost Control & Builder Selection | Nelson Architect NZ

Cost Control and Builder Selection: How to Build Better Without Blowing Your Budget

Building a new home is one of the biggest financial investments you'll ever make.

Yet one of the most common misconceptions is that choosing the cheapest builder will save the most money.

In reality, successful projects are usually the result of good planning, clear documentation, realistic budgeting and selecting the right builder—not simply the lowest quote.

At Stephan Meijer Architecture, we help homeowners throughout Nelson, Tasland, Richmond, Mapua, Motueka and the wider Tasman region design homes that deliver outstanding value while keeping construction costs under control from concept through to completion.


Cost Control Starts Long Before Construction

Most people assume costs are controlled once building begins.

In reality, around 80% of a home's total cost is determined during the design phase.

Every decision affects the final budget:

  • Building size

  • Roof complexity

  • Struct

    ...
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