Residential Building Costs

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	How much will my house cost?
			Building and construction costs vary from region to region and Southern New England is among one of the most expensive areas in the country in terms of land costs and building materials and labor costs. Project costs will also vary greatly from bid to bid due to the fact that every construction company has different values and ideas as to what they should charge for  their services. Even if you submit detailed construction drawings, it is very hard to differentiate one estimate from the other because it is not apparent to you why there is such a large difference between the high and low bids. Variables such as experience, accessibility, volume, overhead and just plain robbery come into play and affect the total number. So what do you base your decision on? Basically, this depends on the type of home you will be building. We already know that land costs, permits and engineering are fixed costs. Site costs such as land clearing, blasting, septic systems, wells, excavation, and driveways are very substantial and variable costs. Depending on the size, difficulty and condition of an approved building lot, site costs will range from $50,000. to over $100,000. The balance of the project costs are materials and labor to build the house and allowance costs to finish it. On the average, in northern Fairfield county, building and allowances costs range from $150 per square foot for standard "spec" construction to over $400 per square foot for custom "build to suit" luxury construction.
	What should be included in the total costs?
			An accurate project estimate should include; design, permits, engineering, surveys, site work, foundation, masonry, framing, exterior trim and siding, windows and exterior doors, porches and decks, roofing, gutters, insulation, electrical, mechanical (heating/cooling), plumbing, sheetrock, interior trim and doors, interior stairs and balustrades, manufactured and site built cabinetry, finish flooring, appliances, interior and exterior painting, and miscellaneous allowances and options.
	What are allowances?
			Allowances are items which you as the owner choose in terms of materials. In other words, the costs of these materials and their related installation costs are determined by the choices you make and preferences you have. For example, an appliance allowance may be as low as $10,000. to as high as $30,000. depending on the brands chosen by you. Usually when purchasing a house that is built and ready for sale, the allowances will be very low in order to entice you with a lower overall sales price. If you decide to purchase more expensive items (upgrades), it is reflected in a higher sales price. When building a truly custom home, these decisions can be made up front and included in the contract price. This allows you to see what the project will really cost and allow you to adjust accordingly beforehand. The more allowance choices you have in the contract, the more control you have in the project. Allowance items should include; landscaping, terraces, walkways, exterior hardware, storm/screen doors, shutters, interior hardware, stone/ceramic tiles, stone slabs, countertops, fireplace hearthstones/surrounds, wood flooring, carpet, interior and exterior painting, bath accessories, shower doors, mirrors, kitchen and laundry appliances, range hood, manufactured cabinetry, site built cabinetry and furniture, wall paneling and wainscoting, coffered or beamed ceilings, plumbing fixtures, electrical fixtures, alarm/security systems, phone/computer systems and audio visual systems. By having all these choices, it allows you to personally customize your home and create a unique and comfortable environment. Obviously, there are a lot of choices and decisions to make along the way. Maybe too many. Only a few experienced custom builders will be more than happy to assist you with the selection, ordering, delivery and installation of your allowances. Most builders won't even consider it, they don't care. We do. It's our job. We are construction managers, advisors and consultants. We work for you and your interests only.
	Can I use standardized pricing to compare my bids?
			Standardized construction cost estimates are just that, standardized. They are national averages adjusted by region and reflect the median costs for standard construction in defined areas. This is all well and good if you are building a standard home. Why build a standard home when there are hundreds to pick from already on the market? They are called "spec" homes. Some spec builders even call themselves custom builders, but they are still speculating and building a standard home. Custom for them, maybe, not for you. In order for them to list their homes in a competitive real estate market, they are forced to minimize their costs. What does that mean for you? Minimum standards for all of the allowance choices mentioned above, if they are even included at all. Never mind the minimum standards for all the important items like heating, cooling, exterior doors and windows, roofing, insulation, plumbing, electrical and so on. Things you won't notice because you don't know any better. Do you really know the difference between a steel boiler and a cast iron boiler by looking at it for thirty seconds? Efficiency, durability, warranty. Do you know what a hydro-air heating/cooling system is and how it works? Maybe, maybe not. We consider it to be part of our job to educate you as a consumer, so that you are able to make informed, solid decisions regarding the products that we incorporate into your new home. Remember, we work for you and your interests. If you intend to build a truly custom home, standardized pricing must be adjusted to include more than minimum pricing on the items and allowances mentioned above. You must also add for costs not included in the pricing schedule such as land costs, engineering and site costs. These can only be determined upon a thorough evaluation of your proposed building lot. Many builders offering approved lots do not allow for worst case scenarios which result in cost overruns and ultimately affect the overall budget numbers. Most builders won't shop for a lot with you, because they can't mark it up. Therefore, they believe there is no point to it. We do. We believe that it is very important to the outcome of the project if you choose a workable, well priced building lot that is suitable for the home that you wish to build. Not all building lots will accommodate your home style and type. It's very simple. Take the time to choose well. We will assist you in the search, location and evaluation of your lot choices.   In our own experienced business practices, we prefer that our clients are adequately educated on the many different aspects of the homebuilding process by suggesting that they read as many appropriate publications as possible. Educated clients make sound financial decisions.   KNOWLEDGE IS A VERY POWERFUL AND COST SAVING TOOL.   go to our home page make a request

Building Advice

Here’s building advice that’s as good today as it was a hundred years ago.

A simple and rapid plan for estimating the cost of any building is by comparison. If carefully done, it will give figures that may be relied on. We will suppose that a party desires to erect a building. Let him select such a house already built in that vicinity as shall represent, in style of architecture and character of finish, about what he desires to construct, and of which the cost of building is known; then compute the area or number of square feet covered by the building; divide the number of dollars of cost by the number of square feet thus found, and the price per square foot is ascertained.

Thus a house 40 feet by 40 feet covers an area of 1,600 square feet; it costs $8,000; and dividing $8,000 by 1,600, shows $5 per square foot. Now what will be the cost of a similar house covering 1,400 square feet? 1,400 x $5 = $7,000.

This plan will do very well to approximate roughly to cost. A better and closer one is to ascertain the cost per cubic foot. Thus, a house 40 feet by 40 feet, and an average height of 30 feet. 40 x 40 x 30 = 48,000 cubic feet, cost $7,200, or fifteen cents per cubic feet. Then a house containing 57,000 cubic feet, at fifteen cents, would cost $8,550. Where all conditions of comparison are equal, such as equal facilities for buying, equal advantages in capital, credit, good management, etc., one can very closely, by this last method, ascertain about the cost of such a building as he proposes to erect.

George E. Woodward, Cottages and Farm Houses, 1867

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The cost of the proposed work is like the algebraic x, an unknown quantity, unless one of two methods is adopted - and they are open to adverse criticism. To sell a house for thirty thousand dollars one must ask thirty-five for it; to build a house for a prescribed sum one must name to the architect twenty per cent less. It is quite impossible to determine whether it is the ambition of the architect, or the extravagance of his client, or the unstable scale of prices for either labor or materials, which makes this a truism; but certain it is that no one ever yet built within his first-named sum. If time were plenty and years did not count, it could be possible to use the other method of keeping within a certain amount. The architect would then finish his drawings and specifications, from excavations to brass keys, and draw and sign all contracts. Then, by adding the amounts, he would know the entire necessary expenditure. This sounds simple, but experiment has proved it to be almost impracticable, as well as unsatisfactory to the owner, for it makes changes impossible, and few know from drawings what the completed structure will be.

If the purse is small, let the necessary economy be confined to the elimination of ornament, but never let it tempt the builder to slight the construction of the house. Where there is a choice between showiness and worth, put effect aside, and aim first of all to have the house well constructed of durable, but not extravagant, materials.

The House & Home, 1897

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