Sunday, July 8, 2012

Unit Rates and Thai House Plans To estimate the Cost of building a House in Thailand

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This report is based on my recent palpate of admittedly going through the process of obtaining estimates of the cost of construction a house in Thailand together with getting quotations from builders in Thailand and also using unit build rates (how much square meter) to build a resignation house in Thailand.

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How is Unit Rates and Thai House Plans To estimate the Cost of building a House in Thailand

We had a good read. For the benefit of yourself. Be sure to read to the end. I want you to get good knowledge from Mortgage Rate Trends.

It will be useful to anything retiring in Thailand or planning to retire to Thailand and build a resignation house.

The Two Main Two Ways To assessment the Cost of construction a House in Thailand

There are basically two ways of pricing a construction project in Thailand.

1. Using Unit Build Rates To assessment The Cost Of construction A House

The first and simplest method is by using Unit Build Rates, i.e. How much per square meter it costs to build the house in Baht/m2. There are a range of Unit Build Rates for houses in Thailand and these vary agreeing to the acceptable of the construction and the location in the country.

There are other factors that affect the price of construction a house in Thailand and these are not ordinarily allowed for in unit build rates.

Just one example is that the cost of construction depends greatly upon the particular manufacturer chosen as quotations for the same asset from different builders varies greatly.

Unit rates for use in estimating the cost of house construction are effortlessly ready where I live in the United Kingdom (Uk). There are many websites that list these unit rates and also there are pricing books that give rate per square metre for a range of construction types and sizes. This method is ordinarily used in Great Britain, and other Western countries to work out a budget cost for construction a house.

However, in Thailand the situation is different. I have not seen any 'official' Unit Build Rates for Thailand but some websites, notably those Forums catering for expats living in Thailand, give some rough figures from habitancy who have built their own resignation house in Thailand.

But that's all they are - a guide - and admittedly barely worth using even for budgeting purpose.

Two Examples from Thai Websites of Unit Rates for House Build Cost in Thailand

From A1Real.com

Bangkok: "As of March 2006, buyers had to pay 81,975 baht/m2 in average to secure a condominium unit in central area of Bangkok compared to 72,596 baht/m2 in the last twelve months".

From Thai-AirPark.com

Chiang Mai, Northern Thailand: "A house built to western acceptable will cost in the middle of 160 to 300 Euros / m2″ (At 45 Euros/Baht (Jan 2010) that works out at 7,200 to 13,500 Thai Baht per m2).

Notice how the unit rate for these two examples are so different.

Another way to get unit rates for Thailand is to approach Thai builders and architects. Unit Build Rates recently sent to me by one of Thailand's foremost Bangkok-based design-and-build associates are in the range of 15,000 to 20,000 Baht/m2.

The method of application of the Unit Build Rates is simple. You work out the total floor area of the proposed construction together with all floors and multiply by the unit rate. There is no need to find or involve a manufacturer for this method once you have decided on the the unit rate to use.

There are potential inaccuracies in this approach because the mix of different types of usage will be different in different building.

For example, using my own proposed asset in Pak Chong, Thailand, as an example, the house is a typical 'post' house and half of the ground floor is left 'open' to be made into usable rooms at a later date and the other half simply has blockwork walls to for a workshop.

Clearly the unit rate for these areas is different and different from the first floor that contains kitchen, bedrooms and other living area.

Another example of different type (and hence costs) of construction usage using my Pak Chong house as an example is that on the first floor I have a very large (compared to the rest of the house) patio area and also an additional one semi-open area both of which would be a much lower cost to institute than the living room areas.

The fact is that new build houses in Thailand are very often of fully different style and layout to other houses. This is in comparison with the Uk where new houses are often built in their hundreds all to the same design. Every person knows what you will get in a '3 bed semi-detached house' in England. In this situation unit rates can be safely applied.

So what area is used in the cost calculation? Do you use the total area together with the ground floor open area and workshop and the first floor patio and semi open area plus the living room areas? Or do you use the unit rate just for the living room and take a division of the unit rate for the lower cost areas?

The question is that I don't know the basis for the unit rate in the first place. I.e. Either it was for a asset similar to mine with the open areas included, or Either it was for a asset with a greater division of actual living area.

In conclusion the Unit Build Rates method in Thailand can only be used to get a very rough idea of the likely cost and is admittedly not strict enough for establishing a budget.

2. Obtaining A Quotation From A Thai manufacturer For construction A House In Thailand

This method depends upon looking a manufacturer to get ready a quotation based (usually) a set of drawings (also called house plans) for the asset in question. (The house you want to build to retire to in Thailand) Obviously, the more strict and detailed the house plans, the more strict the quotation can be.

Other documents may also be provided to supplement the house plans and these consist of a Scope Of Works describing the scope of the project (not ordinarily produced in Thailand) and Schedules. The Schedules are typically a schedule of finishes, schedule of doors, ironmongery etc.

There are three major difficulties with this method.

1. Obtaining The House plans And Other Documents

I'm lucky in that I can use the Autocad Computer Aided Drawings (Cad) software container and am familiar with construction institute so I was able to produce my own Cad drawings and schedules for my planned resignation house in Thailand.

Also, I didn't start with a blank sheet of paper, instead I downloaded some existing Thai house plans from the Thai Government website (Search for 'download Thai Government House Plans') and excellent one to use as a starting point for my own Thai house design.

If you don't fancy this do-it-yourself approach you will have to find man to make the house plans for you. Whilst this is easy in (if somewhat expensive) in the Uk, if you try to find a Thai Architect to do this for you then you may have problems.

Firstly looking an Architect in Thailand is not easy although I did find an architectural and construction firm in Bangkok and I subsequently appointed then to make the construction drawings for my own house - but that is an additional one story.

Secondly, how do you explicate to an Architect what you want? This is particularly difficult (impossible?) if you don't already have your own initial drawings as I did and if you aren't in a position to sit down in the same room as the architect and pour over ideas and concepts.

Doing that by email from starting from scratch from covering of Thailand is next to impossible.

2. Translation Of The Documents Into The Thai Language

This is not so difficult if you are ready to pay for a translator in Thailand.

A translator can admittedly translate the schedules but adding Thai to Cad drawings in not easy unless the translator also knows how to use the Cad software! My own house plans and schedules are in English only and I was able to get a quotation from a Thai builder.

You might try English only and just get the translator to translate the technical phrases that the manufacturer doesn't understand. Again, much easier to do if you are in Thailand alongside the translator and builder.

3. looking A manufacturer In Thailand

This can be one of the most difficult tasks you have to do.

My wife has contacted at least six builders from within Thailand and only one has produced a price. That price was based on the house plans and schedules that I produced but was about double what we expected, at 2.1 million Baht, which works out at 16,000 Baht/m2.

The write back we get from most of the builders is that they are too busy to work on providing a price for a small house build job. It seems that many builders are engaged on large projects in the coastal resorts of Thailand (e.g. Phucket) and that our tiny puny project in Pakchong is not worth their while.

The method I used to find builders consisted of knocking on doors "You have a nice house, can you tell me who the manufacturer was?" I find it easy to approach habitancy and one day I was chatting with the security Guard at our hotel, "The Mansion" at 8/8 Soi Tedsaban 8, Mittrapap Rd., Pakchong, Thailand, and he announced that he could get a price from at least two builders.

We took him up on that offer but never received the quotations. One was too busy and the other wanted 5,000 Baht up front before making ready a quotation in case we didn't opt him as our builder! By the way, the security Guard said that his commission was 10 percent!

In this short seminar on how I obtained budget estimates for a resignation home in Thailand I have covered the two main methods, using unit rates and house plans, to secure a budget price and the advantages and disadvantages of each method. Also I have explained the three difficulties you will face when trying to get a manufacturer in Thailand to give you an assessment for construction your resignation house in Thailand.

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