Start off every New Home Construction Project
with a Budget Estimate
By Mark J. Donovan
Home construction budget
estimating is essential for understanding the total costs for a new home
construction or home remodeling project. As a matter of fact, establishing a
home construction budget estimate should be the very first item in your new
home construction plans. By developing a new home construction budget
estimate you can establish a financial plan that includes determining the
overall cost of the project, how much to finance, and a cash flow schedule.
In addition, a home construction
budget helps to establish limits on the size of the new home construction
project and the features in it.
Establishing a home construction budget estimate not only provides a top level
new home cost construction estimate, but also includes detailed cost estimates
for each phase of the new home construction project. Initially the costs for
each phase of the new home construction project can be swags until you actually
begin to get quotes from building contractors and their subs.
As home builder contractor bids come
in you can refine your new home construction budget estimates.
New home construction budget
estimating also prepares you better for talking and negotiating with home
builders and home remodeling contractors. By establishing a new home
construction budget estimate upfront for each phase of the project, you can
better assess the contractor bids coming in. By comparing your estimates with
the contractor bids you can make more intelligent decisions on who to hire or
what to include for specific features in your new home construction.
When personally generating my own new
home construction budget estimates I have found it helpful to use a tool such as
Microsoft’s Excel program. Using this tool I have been able to create
comprehensive home construction cost spreadsheets that contain all of the major
trades required for the project, such as excavators, foundation contractors,
framers, electricians, plumbers, roofers etc, and within each one of these major
trade categories creating separate breakout line items for individual costs that
automatically get rolled up under the major trade categories and the overall cost
of the project.
Photo by Mark Donovan
In addition, I also include budgeted and actual columns so that I can track my
real costs to my budgeted costs throughout every phase of the project.
If you are interested in downloading one of my personal Microsoft Excel based
Home Construction Budget Estimate Spreadsheet templates and its associated Bid
Sheet, check out my
Home Addition Bid Sheets and select the one
that is appropriate for your new home construction project. The home
construction and remodeling spreadsheets are editable and automatically role up
trade categories and total home construction costs (estimates and actual).
So whether your new home construction project is a new custom home, a home
addition, a bathroom or kitchen remodeling project, or simply finishing an attic
or basement, start off by generating a new home construction budget estimate. As
you develop home construction plans and receive contractor bids you can update
your home construction budget estimates accordingly. By establishing a home
construction budget estimate up front, you will reduce cost overruns and in the
end attain a new home construction living space that better meets your personal
and financial dreams. For a comprehensive new home building
checklist, see my
New Home Construction Bid Sheet. The New Home Construction Bid
Sheet provides a request for quote checklist section that you can provide to
prospective building contractors. It also includes a comprehensive new home
construction cost breakdown table, in Microsoft Excel format, that allows the
contractor to include his projected new home construction costs for every phase
of the project.
How to Finance your Home Remodeling Project -
can help provide funds for your new home improvement project if financing is
required.
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