Home Building Costs - How to Control Costs in Nine Simple Steps
By Mel Inglima
With good preparation and guidance, it’s easy to keep costs under control. Whether you’re getting ready to build or remodel, it makes sense to have a well defined strategy to follow.
In times when home values are questionable at best, your “pre-launch” preparation becomes your most valuable asset. Identifying and implementing strategies for the entire project before you begin, no matter how long this prep takes, is the best way I’ve found to keep a lid on your spending and stay within budget.
Cost Control Strategies
A good home building dream, that is well planned, deserves action. For a project to be completed within budget, you need to make certain commitments and stick to them. Here’s how you can ensure your success. Both with your preparations and the execution of your project.
1) Use a Home Building Coach:
Whether it’s a retired builder, your uncle Phil, or your father-in-law, find a trusted advisor who is thoroughly experienced in the home building trades. This building professional, as your coach, will help you devise and implement a strategy to carry you from beginning to end.
2) Plan Every Phase:
Home building and remodeling have defined steps and phases. A complete step-by-step outline, that is prepared before you begin your project, is essential to controlling your costs. Your coach will be indispensable in this preparation.
3) Use Traditional Building Methods:
If controlling costs is critical to you, then using the tried and true for your building materials and methods will help you avoid costly surprises during construction. Labor costs can rise suddenly and dramatically when workers face the unknown.
4) Keep Plans as Simple as Possible:
Simple plans make things less expensive but they also have another advantage. There are fewer surprises that can lead to spiraling costs.
5) Search for Deals:
During most building projects, owner builders will find that some things end up costing more than planned. Diligent research and prudent shopping can offset many of these by landing good deals on labor and materials for other aspects of the project.
6) Don’t Budget Too Narrowly:
There is always the desire to keep costs as low as possible. It’s a mistake, however, to budget this way. For instance, if you plan on you and friends providing 50% of the labor, budget as though you’re only providing 25%. This way, if you end up not having enough time yourself, or if your friends don’t show up, there’s money in the budget to hire others.
7) Keep the Project Moving:
Delays can cause problems. Delays can allow interest charges to pile up. Delays in one phase can impact other phases. Keep the project moving forward through excellent control over your pre-set strategy. Work closely with your experienced coach.
Resist Making Changes:
Follow the house plans. However, there will be times where a change order (or a deviation from the plans) becomes a necessity. Deal with them as quickly as possible. But, self-generated and unnecessary changes during construction are often costly and unpredictable. One change can lead to another and another.
9) Keep Your Eyes Open, but not Big:
Big eyes can lead to disaster. Your eyes must be open and you must remain alert, but stay the course. Don’t let new ideas and interests influence you. Solve the “big eyes” syndrome in the planning stages and stick with the plan.
