ODYL | Premium Quality Glulam/CLT House
The total cost of a turnkey house
When you look at websites of pre-fabricated houses with prices, they quite often look surprisingly low and attractive. And when you go into detail, you find out that the price given is the minimum one can put on paper for “house only”. Then you need to add x, y, z with upgrades, finishes, transportation, plot preparation etc. and end up with a very different amount.
What should you consider when planning building a house and making cost calculations?*
*Please note that we speak about element/modular houses. On-site building and price offers often work differently. We write about the benefits of pre-fabricated and on-site houses here..
The Process
1. Planning and Design
Standard project: Typically €0 for architectural and production drawings (changes would cost extra).
Tailor made projects: 5-10% from the total building cost.
Most expensive parts to project: any non-standardised special parts (e.g. hidden rain-gutters, pools, hot-tubs, special lights)
2. Building licence
Every country is different and has different costs involved.
Prices can vary across the EU: building licence + energy compliance documentation = minimum €2000 up to €50,000 + VAT.
3. Production of elements/modules
House elements (walls, floors, roof panels) are manufactured in a factory under controlled conditions.
This stage ensures high precision, quality, and weather independence.
Usually a fixed, contractual price which varies greatly based on the project. Typically given as a part of the total “turnkey solution”.
4. Logistics
Elements can be designed in a way that they fit into standard trucks. E.g. structural elements for a 50-60m2 house should normally fit into one standard truck which limits logistics costs.
Transporting modular houses would always be more expensive as based on the size of the house, there would be several modules (called transporting “air”) and loads can be “oversized” and require special transportation.
Important to note: if access roads are not suitable for trucks then “the last mile” can be expensive to deliver due to unloading and reloading. Modules cannot usually be delivered to difficult access plots unless helicopters are used. Elements can.
“Keys to the house” solutions starting from €5000 for e.g. a 60m2 house, up to €15,000 for the same size. Depends on the solution and plot location.
5. Plot preparations and on-Site Assembly
Plot preparations and external connections can cost €10,000 or €150,000 – it depends on the location. Read about our experience building in the wilderness.
Elements or modules are assembled on-site, often within days for the main structure.
The house is quickly brought to a “weathertight” or “lockup” stage (walls, roof, windows, doors installed).
Interior works can take form weeks to months, dependent on the design and size of the house.
“Keys to the house” from foundation and including installation and being built with acceptable quality materials and solutions, would start from minimum €2000/m2 + VAT.
6. Final Inspection and Handover
Quality checks and final inspections are performed.
Any necessary adjustments or touch-ups are made.
The house is handed over to the owner, ready for occupancy.
Typically included in the price.
7. Usage licence
Always depends on the country where the installation is done.
Usage licence documentation + notary and administrative fees can be from €0 in some countries to 5% of the property value (even more in specific areas).
8. Structural and Craftsmanship warranty
Structural standard: 10 years, 2 for craftsmanship.
Typically included in the price.
Most expensive potential “extras”
Energy
No electricity connection is most likely the most expensive extra as the cost of getting connected to the grid can be very high.
Land preparation
Dependent on the location, getting permissions, cutting frees, planning the ground, digging ponds can end up being quite expensive.
Upgrades
Wooden parquet instead of laminate, tempered glass instead of regular, larger terrace, better appliances, non-toxic paints etc, etc. And you end up with a considerable “extra”.
Transportation
Dependent on the distances, can become a considerable amount.
Water
Dependent on the location, getting drinking water can also be a considerable extra cost. Also, building water access locations for the fire department.
Demolition
This rarely happens, but if there is an old house that requires demolition, it’s surprisingly expensive.
What to keep in mind with non-direct costs
Pay-back period
This is time consuming and certainly not 100% accurate, but should be done and it does help with decision making. We wrote about the pay-back period calculation methods in this article.
Maintenance cost
Strongly related to the pay back period and not easy to calculate.
The overall logic is that every material and appliance has a life span and the quality of it determines when you would need to replace it/refurbish it.
Extra works
A house usually doesn’t include lights, plumbing, installation of appliances (e.g. TV, oven, fridge etc). Make sure that you know what is included.