New Home Construction Costs and Planning
Planning and People Skills are Essential
Ingredients in Building a New Home
By Mark J. Donovan
|
|
Whether you are hiring a general
contractor or have plans to act as your own general contractor, new home
construction is a major undertaking and is not meant for the weekend do it
yourselfer. Building a new home involves planning and attention to detail.
It also involves people skills, particularly if you are working as your own
general contractor. There are many subcontractors required when it comes to
building a new home, and hiring the right subcontractors and knowing how to
work with them in an effective manner can be a real challenge.
|
|
Without these specific skill sets
your new home construction costs and schedule can quickly go up in flames.
Over the past 25 years I have hired
many home construction contractors and subcontractors for building new homes and
home additions. I have also acted as my own general contractor. I was burned
along the way in some cases, but I also learned from my mistakes. Chief amongst
my learning experiences is not only having a good set of construction
blueprints, but also a well thought out and documented plan of action. |
 |
Attention to detail is really the
name of the game. From finding and hiring the right subcontractors to selecting
and costing out all of the building material for every aspect of the
construction project.
New home construction costs can
quickly mushroom when details are not worked out in advanced. New home
construction costs can escalate due to many reasons including:
-
Making changes to plans,
particularly after the work has already been performed.
-
Schedule slips that force you to
scramble to find new subcontractors or pay premiums to already slated
subcontractors that have yet to start on the project.
-
Delays in selecting key building
materials, such as light fixtures, flooring and cabinetry
-
Lead times on home building
material turn out to be longer than planned forcing work slowdowns, or even
worse subcontractors stopping work and moving onto other projects
There are also factors beyond your
control that can impact new home construction costs. These items include:
-
Rainy or
Extremely cold or hot weather conditions
-
Delays in
material lead times from home suppliers
-
Subcontractors
that miss their agreed upon start dates
The trick with all of these types of
items that could impact your new home construction project is to keep in regular
communication with your subcontractors and suppliers and plan for contingencies.
Do not assume the weather will be perfect and that there will be no cost
overruns. Include in your schedule and new home construction budget buffers for
time and money.
| Typically I like to budget about 10% for each. If in the end
the project is completed faster or you did not use the 10% contingency
funds, then enjoy your new home sooner and buy yourself some new furniture
for the home. People always seem to forget the need for adequate furniture
when building a large custom home. |
Photo by Mark Donovan |
As part of new home construction
costing and planning exercise it is important to write down all of the expected
subcontractors required for the project. The list of necessary subcontractor
types can be a couple of dozen or more when you consider the range and scope of
a new home construction project. For example, a partial list of subcontractor
trades would typically include:
-
Excavator
-
Foundation Installer
-
Septic Designer
-
Septic Installer
-
Well Digger
-
Rough Framing
-
Electric
-
Plumbing
-
Insulation
-
Drywall
-
Finish Carpentry
-
Etc….
The list can go on for quite some
length depending upon the features required in the new home.
Finding and Hiring
Home Construction Contractors and Subcontractors
Finding and hiring the right home
construction contractors and subcontractors can be even more of a challenge.
Start by talking with friends and relatives that may have recently completed a
home remodeling or construction project. Also check with your local home
improvement store or building supply center.
In addition, there are online based
contractor referral agencies such as
RemodelingAffiliate.com that maintain a
nationwide list of screened and fully vetted out quality contractors. Once
completing their free on-line form, 3 or 4 of their qualified contractors in
your local area, with the particular skill set required, will contact you.
Hiring a General
Contractor for your New Home Construction Project
When hiring a general contractor it
is important that you get several bids and that their bids entirely conform to
your new home construction blueprint plans and any addendums to the plans that
you may have. Make sure their bids include this type of language in the contract
so that they have no excuse to deviate from the plans to save costs or time.
Finally, before signing a contract
with a builder it is wise to have your attorney review it. This is particularly
important if you do not own the land on which the home is to be constructed, as
you want to ensure that there are no leans or other types of encumbrances on the
land associated with the new home.
So before embarking on a new home
building project, make sure you have a good set of blueprints and a well
thought-out and detailed plan. With these in hand you should be able to keep
your new home construction costs under control and get the finished home you
desire.
For more help on how to build a custom home, see my
New Home
Construction Bid Sheet.
The
New Home Construction Bid Sheet
provides you with the knowledge you will need on how to plan for the building of
a custom home,
and what to look for when hiring contractors for your new custom home building
project. It
also includes a detailed cost breakdown table and spreadsheet for estimating
your own new custom home building costs.
How to Finance your Home Remodeling Project -
can help provide funds for your new home improvement project if financing is
required.
Related Custom Home Building Articles
Additional Building a Custom Home Resources
Custom Home Building Price Quotes For FREE,
No Obligation!
Fill out our 3-5 minute quick and easy form, and receive a free price quote
on custom home building from one of our prescreened and licensed custom home
builders. This process is free and there is no obligation to continue once you
receive your custom home building price estimate.
|
