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This should be a spot that is best suited to your rabbit's needs. The location, in combination with the cage itself, will provide the shade the rabbit needs to keep from overheating in the summer and should also keep them out of bad weather in the winter.  Rabbits can get heat stroke because they only sweat on the pads of their feet. The only bigger danger than heat to outdoor rabbits is cold. A heater won't work for two reasons: the rabbits will huddle to it (and are more than likely to burn themselves), and it can also start a fire. A basic rabbit cage, also known as a hutch, is simple a box that is raised off the ground. Standard rabbit cages are made of wood and wire, and are big enough for the rabbits to sit up on their hind legs and to stretch out.  Decide on the height, width, and depth of the box of the cage. This is a good starting point for your design. Make your enclosure at least five feet deep by six feet long and tall enough for the rabbits to not hit their fuzzy heads on the roof when they jump. If more than one rabbit inhabits the space, make it a couple feet longer. Decide how far off the ground the cage should be. To keep the rabbits from predators, make sure it is at least 3 feet off the ground.  The cage is usually long enough to have two sections, in order for the rabbits to have a separate sleeping section. The sleeping section should have solid sides, so that the rabbits can snuggle inside if the temperature gets cold. The roof of the cage can also function as its door, with the roof attached on one side with hinges, so it can be lifted up. It should not be totally flat, as a pitched roof with an overhang will keep rain out more successfully.  There is no one way to design the cage but as long as the structure is secure and the inside is big enough for the rabbits, you are on the right path. You will need a saw and a drill, in addition to a staple gun and some snips to cut wire mesh. The saw and drill will help you make the frame and the staple gun and snips will help you to attach the wire to the frame. Additionally you will need a tape measure and pencil to make measurements and mark them. A rabbit cage has all the basic things a house does: a roof, walls, and a floor. However, unlike a house, the roof of a rabbit cage can function as its door and the floor and some of the walls are usually made of wire mesh.  Get wire mesh that has gaps small enough so that the rabbits can't get their heads stuck in it. Steel works well, but there are many safe varieties (just make sure it is not lead). You will also need enough wood to build the frame you have designed. While the size of the lumber doesn't really matter, it may be easiest to get basic 2 x 4 lumber from your local lumberyard or home improvement center. Add up all of the measurements from your design in order to figure out how much lumber you will need to build the cage frame. You will also need a tight metal mesh for the bottom of your cage. While much of the floor will be covered in natural bedding material, such as hay, the floor underneath should not be solid. One reason for this is that a mesh floor allows urine to leave the cage, so your rabbit isn't sitting in it. Materials for the roof should include plywood, roofing material, and hinges to attach the roof to the box of the cage. You will also need additional plywood to build a few solid walls on the cage. Alternatively, you can buy an all wire cage from a pet store and then build a frame around it. This will allow you to completely remove the wire cage from the frame in order to clean it.  Some sources even suggest using wood pallets as the wood for your cage. You will need to take the pallet apart and reuse the pieces.

Summary:
Find a well-shaded and protected area of your yard to place the cage in. Design the cage. Gather tools. Gather materials.