The process of building is chaos waiting to happen. However, with the proper controls and an informed plan, building can be a series of predictable activities from the beginning of design to the first enjoyable night in your new home. This Q &A will answer some of your preliminary questions about selecting a builder and setting a budget: Just like your first meeting with a custom home builder!
Should I hire a design-build firm or a separate architect and contractor? And how?
There are regions of the United States where design-build is the most common and therefore the most efficient process. Generally, these are places where design styles are more uniform and building sites are not too challenging. Use of a separate architect and contractor is more prevalent where design styles are varied, architecture is more adventuresome, and building sites are more challenging, such as here in the Roaring Fork Valley. The following advice applies to both these situations:
Even though the tendency is to cut the process short and go with one recommendation, it is best to do some homework. Ask around. Managers of the local suppliers, such as lumber yards, are clever sources for information about local builders. Find out whose projects go smoothly, who is organized and easy to work with. Local building agencies typically are allowed to give you only a list, but with a few well-angled questions, you can ascertain their personal attitude about contractors. Ask as many sources as is practical. Try real estate agents, local attorneys and business leaders.
Narrow your list to a final short list and interview each of them personally. The level of sincere interest in your project is a good determinant of how well they will perform in the future. This will be a long relationship, often lasting two years, during which trust and cooperation will be crucial. Ideally, pick both the architect and the builder at the same time, so that you have a team working cohesively from the start.
How do I get a budget to begin with? And how do I stick with it?
Every project is driven by cost considerations, whether it is a $150-per-foot residence or a $1500-per-foot starter castle. The wants and dreams of the owners and the design of the architect will soon bump up against the budget limit. It is true that a huge percentage of dream home designs are significantly over the desired budget. Perhaps as many as 70 percent of designs are over budget, often by as much as 30 percent. Therefore, the earlier costs are identified and a realistic target budget established, the better the chance for a smooth process.
Initially, price per square foot can be useful as a guideline. However, line item budgets eventually need to be developed. After all, you don’t compare the price of a Mercedes to a mid-grade Chevy by comparing the cost per pound!
We call our process at Wodehouse Augello Builders the “budget before design.” This is a written set of guidelines with clear responsibilities and accountability for each member of the team, including the owner, leading to a more realistic cost estimate. The following items are typical ingredients in the establishment of this real budget:
The challenges and nature of the building site. The size in square feet of the envisioned structure. The cost of the design including all the outside consultants such as engineers. The envisioned quality of finish, using other homes and photos as samples. The builder’s fee. Site costs, such as landscaping and bringing in utilities. Permits and hook-up fees for utilities.
Between 80 and 90 percent of a project’s cost is determined by the complexity of the design. So, in order to bring a project back in step with a desired budget, owners often begin to chop items out of the design. The trouble is, once a dream is visualized, it is hard to imagine doing without. What typically happens is these items find their way back into the project as change orders during construction, which is much more costly in terms of time and money. To avoid this common pitfall, involve your builder from the beginning and give him the authority to be the “guardian of the budget,” to ensure the final design is realistic for the budget.
Many decisions will need to be made during building. Unforeseen changes in site conditions, products, weather, or budget all affect building, as well as structural challenges or outdated specifications. This is why there is the need for intelligent on-site supervision. It is impractical, burdensome, and highly unlikely that all decisions as to structure and finishes will be made at one time when plans are being developed. For this reason, we at WA compile lists of decisions organized by the dates when we will need them, so that the team and owner can anticipate decisions well in advance.
We also send our owners and design team a weekly update that describes the work being done as well as the work that will be done the following week. This way, our owners are never taken by surprise or asked to make decisions without enough notice and information. With proper planning and communication from your builder, you can feel in control throughout the process.