Our submission is a compact ‘forever house’ designed for a couple of retirees. Its environmental design and space-efficient planning make excellent use of the site, allowing them to live near their children and give them room to roam. With Fundamental House, we have reinvented the ‘granny flat’ as a super cool, small, sustainable and separate dwelling, no bigger than a modest apartment. Outside, the space between the two pavilions becomes a courtyard/outdoor room that effectively doubles the living area. We chose the building site for minimal impact and clearing of trees, and used passive design principles throughout.