If you do not have a circular saw, most home improvement stores will cut plywood to your speculations. The floor indentation does not need to be deep, only a perceptible difference will encourage your parakeet to that area for nesting and to keep eggs from rolling around.
Domestic parakeets breed readily in captivity, but are picky when choosing their ideal nesting space. Parakeets, or budgies, require specific amenities for their egg laying habitat. By designing a homemade nesting box, you can accommodate the needs of your maternally motivated pet parakeet.
Homemade Parakeet Nesting Box
On a circular table saw cut six 6-by-6 inch squares from the plywood sheet. Sand squares to remove splinters and rough edges. Measure and mark one of the wood squares directly in the middle. On another square, use a hammer to pound a 2-inch dimensional indentation directly in the middle.
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With drill and 2-inch hole saw bit, set the pilot bit on your mark and drill, making a 2-inch hole. Half an inch directly under the hole, drill a small hole using 1/8-inch drill bit. Sand away splinters. On either side panel, drill an 1/8-inch hole toward the middle and 1 inch from the bottom.
Glue sides and bottom of wood together, creating a box without a lid. The indented square is the floor. Allow glue to dry. On your lid square, mark two places on the same side, 1 inch in from either edge. Place half of each hinge on the inside of these marks, and fasten with wood screws. Fasten the opposite side of the hinges to what will be the back side of the nesting box.
Use the 1/8-inch drill bit to make two holes an inch apart for inside or outside mounting. Run solid-core single-strand medal wire through these holes for mounting.
Cut two 2-inch pieces from the dowel and glue one into the hole under the entrance as a perch and one in the side 1/8- inch hole as an inside perch. Fill box with 1/2 an inch of pine wood shavings.