What Large Items Affect Your Building Budget?

Here we are identifying five items that will affect your building budget. Anything can affect the budget, however these are some common major blunders.

1. Design Changes – whether made by the contractor or the home owner, it can have a major effect on the cost. If this is done BEFORE construction starts – with clear communication as to cost, then everyone involved is making an educated decision. If these changes are made AFTER construction has begun, or after that particular item is done, then you will have RE-construction costs added to the bill. This single item can be the most devastating hit to the budget. A simple solution is to plan, plan, plan.
2. Job Site Surprises – Some surprises are impossible to plan for without research. You may find that there is an underground spring that only shows after the foundation is dug. You may find that there is a large rock base that will require special equipment for removal. Some of these things may cause your septic tank to need to be moved or extra work done on the foundation. Often times there are small indicators in the land that would tip your contractor off to do the extra research – sometimes not.
3. “Soft Costs” these are permits, taxes, and temporary power to site… If your builder is not familiar to the area, they may not be familiar with these costs. One builder found he had grossly underestimated the taxes to the city he was building in, due to the fact that he was unaware that they had a PER BEDROOM tax on top of the ones that he knew about. Since he had never encountered this before, he didn’t know to ask about that in research. This added $8000 to the budget in one fell swoop.
4. Unclear Contract – Did you assume that all door handles were included and the contractor did not include pulls on any cabinets? Did you assume molding around the fireplace and the contractor had a plain wall? Did you assume the bathrooms included towel racks and bars? Shelving in the closets? Lights in major closets? These are all items to discuss before signing the contract so that both you and the builder are on the same page.
5. Upgrades – even though you had planned on tile surrounding the fireplace, did you decide to get handmade/cut tiles instead of ceramic mass produced? Did you decide that you wanted a downdraft vent in the kitchen instead of the overhead? Did plumbing fixtures go from basic to oil rubbed bronze? Be aware of these changes and make sure that you are communicating with your contractor about costs.

It’s all about planning and communication with your contractor. Those are the key suggestions for keeping your costs close to your budget.

Have you found any tips for keeping costs down? Let us know your ideas…