Small custom home building firm

Self-builders who own a plot, people replacing an existing house, and landowners building a home for themselves or family.

A fixed-price or cost-plus contract paid in stages as the build progresses, with your margin on top of trade and materials costs.

• Site management and programming
• Reading plans and building regulations
• Pricing and cost control
• Managing subcontractors
• Clear communication with clients

• Public liability and contract works insurance, plus employer's liability if you take on staff
• Planning permission and building control sign-off are needed for the project, check who is responsible under your contract
• Structural warranty: many mortgage lenders expect one, so check which providers accept a small builder
• Construction (Design and Management) Regulations and site health and safety duties, check what applies to you
• Cash flow and fixed-price risk if material costs rise or the ground conditions are poor; you will need working capital to cover trades and materials between stage payments
• Check the VAT treatment of new-build homes and how it affects your pricing
• Rules and approval processes can differ between England, Scotland, Wales and Northern Ireland

Startup costs are typically around £40,000 to £150,000, depending on your insurance, equipment and the working capital you set aside. You will need cash to cover trades and materials between stage payments.

Monthly revenue is typically estimated at around £8,000 to £40,000, depending on how many projects you run and their size. These are revenue estimates, not profit. Check cash flow and fixed-price risk if material costs rise or ground conditions are poor.

Check who is responsible for planning permission and building control sign-off under your contract. Check structural warranty providers, Construction (Design and Management) Regulations, insurance, and VAT on new-build homes. Rules and approval processes can differ between England, Scotland, Wales and Northern Ireland.