Self-build homes negotiating discounts
Contents |
[edit] Introduction
Self-build homes involve purchasing a significant quantity of materials, goods and plant. This gives a degree of purchase power that can allow self builders to negotiate discounts.
In very simple terms, the greater the value of the items being purchased from one supplier, the greater the opportunity to negotiate a discount. This means there can sometimes be benefits from buying more items from a single suppler rather than a number of different suppliers, or sourcing every item direct from manufacturers. There can also be benefits to joining organisations that are able to exploit group purchase power.
Maximising discounts may require that items are purchased in batches, rather than one at a time, and it may be beneficial to show the supplier details of the proposed development so they can gauge the scale of the works involved. Negotiation can be easier where more than one quote has been obtained so that prices can be compared and one supplier played off against another.
Discounts of 10% or more may be possible. Trade accounts may be available to self builders, and these may include an automatic discount and a credit facility for payments.
It is important when assessing potential suppliers to check samples of the items available, and also to determine the lead time for ordering items in relation to the project programme.
Also, be aware that lower-price items may be available simply by changing brand, reducing cost without affecting performance. This requires research, but some suppliers may be willing to give advice.
[edit] Group discounts
Significant savings are available by joining groups that have already negotiated group discounts for self builders:
- Register on the self-build portal and become a supporter of the National Custom and Self Build Association (NaCSBA) which run a suppliers directory offering up to 20% discounts.
- Join the National Farmers Union as a countryside member for discounts on plant hire, materials and goods, with free mainland delivery.
- Local self-build associations may have negotiated group discounts.
[edit] Contractors
Custom home developers and kit home suppliers may have already negotiated discounts with suppliers for a range of products that the self builder might want to purchase, and may be able to give advice on the purchase of other items outside of the contract
Contractors working for the self builder should already be benefitting from discounts, and it is important to verify that these are being passed on to the self builder, and that items are not being charged at the full price. Contractors may be able to give advice on the purchase of items outside of the contract.
[edit] VAT
Self-build homes and the conversion of non-residential buildings into dwellings may qualify to reclaim the VAT paid on eligible building materials and services. The building must not be intended to be used for business purposes.
See VAT refunds on self-build homes for more information.
[edit] Organisation
It is important to be properly organised when purchasing large quantities of goods and materials, with files for:
- Requests for quotations.
- Submitted proposals and prices.
- Orders.
- Confirmation of orders, prices and delivery.
- Delivery receipts.
- Invoices (separating the VAT element on the direct purchase of materials).
- Accompanying product literature such as; assembly instructions, operating manuals, spares and consumables information, maintenance and repair depots.
- A ledger recording all payments and financial commitments.
- Receipts of payment.
Other issues to address when obtaining quotations and placing orders include:
- Allowing for cutting and wastage.
- Purchasing spares and consumables to take full advantage of purchase power.
- Obtaining warranties wherever possible.
- Obtaining servicing and maintenance quotes at the same time to take advantage of competitive leverage. This might include; boiler plant, heat exchangers, security systems, sewage treatment systems, automatic gate systems, garden maintenance and so on.
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
Mental Health Awareness Week with ABS
Architects Benevolent Society programme of activity.
CLC publishes domestic retrofit competency framework
Roadmap of Skills for net zero.
May 13-19: Moving more for our mental health.
Understanding is key to conservation.
Open industry engagement survey seeks responses
Institutions and the importance of engagement.
National Retrofit Hub unveils new guide
Digital Building Logbooks and Retrofit: An Introduction.
Top 50 firms awarded 52bn of projects in the last year
New engineering data shows.
Enhancing construction site reporting efficiency
Through digitisation and the digital revolution.
Noise in the built environment
BSRIA guide TG 20/2021.
17,000 people suffer conditions as a result of exposure to excessive noise at work.
Turning down the noise: Auditory health
A pervasive risk with far-reaching consequences.
Getting the most out of heat pumps and heating
How heat pumps work and how they work best.
Plumbing and heating for successful retrofit and renovation
Low temperature underfloor systems and heat pumps.
Cost-of-living crisis and home improvement plans
Starting on the right footing and top tips for projects.
Delays on construction projects
Types, mitigation and the acceleration of works.
From Chaucer to Fawlty Towers.
Electrotechnical excellence, now open for entries.
Net zero electricity grids BSRIA guide NZG 5/2024
Outlining the changes needed to transition to net zero.
CIOB Global Student Challenge 2024
Universitas Indonesia wins for second year running.