Thank you for my chance to have a good competition, I would like to upload my final submission you to review and comments.
I try to avoid of digging as much as possible, so if wou want more clearance high you could digging more into earth. I propose you a bedrooms layout with the family room in there like a interconnection between rooms, and rooms to terrace, although it not in your design task. Family room would become special space where you could cartouche it with family material such as: beach images, small collection,.. where separate from common guest; it also become good place when kids play and study together. The laundry also an extra of your task, it attached with garage, so if you do not use, turn it become storage.
Thank you and regards,