| Getting
Started: Whether
you need more space for a growing family or you're building
the house of your dreams, careful planning will help ensure
the success of your project. Using the steps below as
a guideline, you can take control of the process while
maximizing value at each project phase.
Building
funds: Key
to the success of your project is determining a budget
to build your remodel or new home. Depending on the size
of your project, the funds may be acquired through a construction
loan, home equity line of credit, cash savings or a combination
of the three. When working with a lender you'll want to
discuss the market value of your home before and after
the new construction. Note that as
a free service, many realtors will provide you with value/sales
of comparable homes in your neighborhood.
This information will help you determine a budget to match
your long and short-term goals.
Cash
reserves: Every
construction project has its own set of challenges, and
by want or necessity, is subject to changes in the field.
For this reason it is wise to include a 10% cash reserve
beyond your known project costs. This will help protect
you in the event there are unknown site conditions that
boaden the scope of work. It also serves as a nice cushion
to fall upon should you decide to pursue additional upgrades.
Hiring
a designer/contractor: After
establishing your budget, you'll need to interview designers/architects
to begin the design phase of your project. For a new home
or large remodel, look for a designer with proven expertise
as well as familiarity with local building codes and building
departments. You should ask for examples of their projects
to ensure their work reflects your style and building
vision. On smaller or interior remodels, you may chose
to work with an interior designer that can provide space-planning
services. Interior designers will also provide valuable
insights into interior finish selection and overall design
aesthetics.
This
is also a good time to begin interviewing contractors
who can provide feedback during the design phase. Their
input can determine if your proposed design is feasible
within the budget you've decided upon. You want to avoid
the disappointment of getting your heart set on the perfect
design only to submit your plans to your contractor and
learn that your proposed design exceeds your budget.
Behrens-Curry
can help you find the best resources necessary to make
your dream home come true.Use
Behrens-Curry to find:
-
An integrated design/build solution to keep your budget
on track
-
Recommended architects and interior designers
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Recommended sub-contractors and suppliers
Building
Costs: The
first question a homeowner typically asks when considering
a home improvement project is “how much will this cost?”
Typical ranges for new construction in the Bay Area vary
anywhere from $190.00 to $350.00 a square foot. Of course,
this is based on a number of key criteria including:
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Site access
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Style of home
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Location, materials
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Local building requirements
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Interior finishes
And
that's just to name a few. With a remodel it's more challenging
to gauge a per square foot cost without factoring in the
specifics of the project. For example, you may be adding
on a second story that calls for additional work in other
parts of the house. Necessary work may include reinforced
foundations, additional sheer walls, updated electrical
panels, and a new furnace or water heater. These are all
issues that can factor into your final costs. Conversely,
adding a basic bedroom or office will cost much less than
a kitchen, which typically has more needs to address such
as plumbing, electrical issues, and new fixtures and cabinets.
To best manage your budget, engage your contractor during
the design phase. Then, when design approval and structural
documents have been completed, secure a final bid.
Evaluating
bids -- Fixed and variable costs: A critical
part of managing your project costs is understanding which
components of the bid are fixed prices and which ones
are variable costs. Each contractor will bid your project
differently, so it's very important to make sure you are
comparing “apples to apples”. For undefined items such
as, floor coverings, countertops, cabinets materials most
contractors will provide an allowance typically based
on a per square foot or per lineal foot estimate. Allowances
are variable costs that are adjusted based on the actual
materials you select for the given job component. While
one contractor may provide a proposal that is 15% less
than another contractor, he may have also included allowances
that don't reflect the quality of materials you want in
your home. Interior finishes can represent 15-25% of your
total costs so this ultimately has a significant impact
on your total costs. The best way to keep your bids on
a level playing field is to have your architect or designer
provide per square foot cost estimates for undefined items
so that each bid is consistent.
Interior
Finishes: As discussed above, allowance items
are part of a contractors bid to estimate cost of undefined
items in your construction documents.Examples
of allowance items include:
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Countertops
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Floor coverings
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Tile
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Trim details and materials
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Cabinets
-
Doors
A
great way to jumpstart your project is to research and
select your interior finishes prior to breaking ground.
You can identify and prioritize items that are “nice to
have” and a “must have”. By providing this information
to your contractor during the design phase, you'll be
able to better determine the final scope of work based
on how these options align with your budget. By providing
all or part of this information prior to the final proposal,
you'll have a more accurate estimate, which will ultimately
help you better manage your total project costs.
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