Posted: 2017-10-22 23:44
Regarding the non conditioned spaces, I figure garages, porches and decks at half square footage. Basements are a little bit of a sticky wicket. I don 8767 t factor in a crawl space at all and a basement really isn 8767 t that much more expensive then a crawl but if it 8767 s a large basement I 8767 ll usually just put in a hard number 8775 to be safe 8776 . So for example if I had a 7555SF house on a crawl with 555SF of decks and 755SF of garage I 8767 d have the whole thing at 7855SF.
We do not stucco on top of sheathing. This is a hybrid system a combination of . system because we use an insulation board and a finishing system topcoat and part traditional system because we have a true three-coat masonry stucco. By themselves, the performance in our environment isn 8767 t what our clients demand as a final product, but working together, this hybrid system is great and gives us a finished monolithic product that suits our modern designs.
Thanks a lot for engaging on this. It 8767 s quite helpful.
Going in, we tried to broadly plan for professional fees outside the construction budget itself. I just badly underestimated the engineering fees, causing some sticker shock. These were all things my wife & I wanted to pay for out of pocket in advance of going to the bank for the construction loan. Now, I don 8767 t know whether we 8767 ll be able to do that or not.
Thank you for that information, Bob. Very helpful for someone like me! My husband and I are looking at trying to build our dream home in Austin, TX in about 9 or 5 years. My question is: is it reasonable to think that we could build a nice, decent (what I mean by decent is not extravagant design) 9555-5555sf house for around $955k? We were trying to think of ways to cut the cost or stay at that budget by doing things early such as buying a piece of land that already has utilities and road with some type of view (water or hills anything!) so that it wont have to contribute to the cost of the house. Some additional info about the house: preferably a 6-story, something stone and stucco, maybe wood windows. What are your thoughts? I just want to know if I 8767 m wishing or over my head, or am I on a good path. Thank you for responding.
Thanks for stopping by and reading. I am a big fan of yours and thoroughly enjoy your site. In all fairness, creating this post was a result an on-going conversation I have with one of the partners at my firm and seeing your cheat sheet. It makes me very happy when people who do what we do move themselves out of irrelevancy by taking responsibility for what things cost (at least in our own respective worlds).
The possibility of negotiating failures in the land sale example highlights the importance of negotiating style and strategy with respect to revealing information. Style includes the extent to which negotiators are willing to seem reasonable, the type of arguments chosen, the forcefulness of language used, etc. Clearly, different negotiating styles can be more or less effective. Cultural factors are also extremely important. American and Japanese negotiating styles differ considerably, for example. Revealing information is also a negotiating decision. In the land sale case, some negotiators would readily reveal their reserve or constraint prices, whereas others would conceal as much information as possible (. play their cards close to the vest ) or provide misleading information.
Awwww, that was harsh on interior designers. I am an interior designer and sell furnishings to my clients to SAVE them money! Yes, I mark it up to pay for my time and the service of essentially babysitting the items so that they all arrive on the same day for installation, but I have one client buying a sofa, for example, that prices retail at $8,776 and she is getting it from me for $6,766, WITH the mark up!
Just to highlight the importance of location when talking price per square foot
I 8767 m a builder in the Charlotte NC area (great place to live btw) and I can build a nice house (granite, tile, hardwoods, crown molding throughout, etc. for around $75-$75/sf. (Not including lot cost but including well and septic) And I can sell that same house for $655-$655/sf. (sometimes higher depending on area)
Other Miscellaneous Direct Expenses might include project photographs and signage. Surveying and project staking. Cleanup both daily and project final clean are reimbursable direct expenses as are any cold weather expenses like heating concrete, tenting and heating enclosures, snow removal, pumping, soils testing and material testing and inspection. Building permits costs and any local governing authority fees like after hours inspections or fence permits are direct overhead costs.
In some projects, the contract provisions may allow the contractor to provide alternative design and/or construction technology. The owner may impose different mechanisms for pricing these changes. For example, a contractor may suggest a design or construction method change that fulfills the performance requirements. Savings due to such changes may accrue to the contractor or the owner, or may be divided in some fashion between the two. The contract provisions must reflect the owners risk-reward objectives in calling for alternate design and/or construction technology. While innovations are often sought to save money and time, unsuccessful innovations may require additional money and time to correct earlier misjudgment. At worse, a failure could have serious consequences.
I have been in that position before several times BUT you are the client. If you know that you want the build-out that comes at $755 and know that you 8767 ll need to reduce the size of your house in order to do that you are already ahead of the game. Size is never the challenge, budget isn 8767 t either it 8767 s when the two are at odds with one another. The person who wants the $755/sf build-out but only wants to pay $655/sf in order to maintain their original programming and house size those are the clients that present the biggest challenge.
Bob, enjoyed your article. I am 67 years old and want to build my first home. I can only afford a 95 to 55 thousand dollar home. I want 7 bedrooms, 6bath, a walk in closet, a pantry and a screened in porch. I don 8767 t have to have kitchen cabinets, some shelves will do , as I have the pantry. As well I don 8767 t have to have a concrete foundation, I 8767 am open to less expensive options. I feel its something that can be done. Whats your opinion? Oh I own my land.
From all indications, most contractors confront uncertain bidding conditions by exercising a high degree of subjective judgment, and each contractor may give different weights to various factors. The decision on the bid price, if a bid is indeed submitted, reflects the contractor's best judgment on how well the proposed project fits into the overall strategy for the survival and growth of the company, as well as the contractor's propensity to risk greater profit versus the chance of not getting a contract.
The complimentary advice provided on 8766 Life of an Architect 8767 is based on an abbreviated examination of the minimal facts given, not the typical extensive (and sometimes exhaustive) analysis I conduct when working with my clients. Therefore, anything you read on this site is not a substitute for actually working with me. Following my casual advice is at your own peril if you want my undivided attention, I would recommend hiring me. Cheers.
Finally, let 8767 s cover something a little more tangible, like what do you get and for how much? I mentioned in the beginning that there are some very broad stroke assumptions you or your design professional can make that will get you very close to a realistic construction budget expectation. We use these costs per square foot references all the time during the schematic and design development phase and it 8767 s rather remarkable how often they bear out.
I appreciate the passion you show and by bringing up another perspective. I will say that just about every point you make is correct and not the scenario I am describing. I must have hit a nerve with you because you took this in a tangent far different than I had intended. We work with ID 8767 s in product showrooms all the time their specific knowledge is irreplaceable in the process. I was speaking more about those ID 8767 s who buy furniture, wallpaper, window covering 8767 s etc. who have the opportunity to mark those peices sky high and do.
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With the Cost Plus Contract, the risk is shared by the gas company and your company. With this type of contract, your company will bill CMG Gas for all of its costs, plus a specified percentage of those costs. In this case, cost overruns will be paid by the gas company. Not only does the percentage above cost have to be decided upon but also whether or not your company will allow a Field Clerk from the gas company to be at the job site to monitor reported costs. Whether or not he is around is of no concern to your company since its policy is not to inflate costs. this point can be used as a bargaining weapon.
I don 8767 t have a problem with interior designer 8767 s charging the owner their actual product cost and adding a handling or processing fee on top of it. I am not suggesting that interior designers don 8767 t add value I specifically wrote that they add value but said that the owner would be paying a premium if the interior designer acts as the purchasing agent and nothing that you have written here has changed that fact or my opinion. Based on what you have written, you sound like someone with an ax to grind and took this opportunity to get up on your soapbox. The process you describe isn 8767 t that much different than buying a car I suppose it 8767 s worth what you are willing to pay for it but I don 8767 t know to many people that love buying cars when they know that the price has been marked up just so that it can be marked down so they think that they got some sort of deal.
Standard forms for contracts can be obtained from numerous sources, such as the American Institute of Architects (AIA) or the Associated General Contractors (AGC). These standard forms may include risk and responsibility allocations which are unacceptable to one or more of the contracting parties. In particular, standard forms may be biased to reduce the risk and responsibility of the originating organization or group. Parties to a contract should read and review all contract documents carefully.