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PARAMOUNT

RESIDENTIAL CONSTRUCTION MANAGEMENT

A Connecticut Builder of Custom Luxury Homes and Estates

 

 

Residential Building Costs

Are you planning to build new or remodel in Connecticut? Do you need advice before you sign contracts? Do you really know what you're signing? Are you absolutely clear on what is included and what is not? No matter how many nice things contractors say or promises they make, if its not in writing they aren't obligated to do it. Are you, your family and your home protected from any mishaps during construction? What does the fine print say? Your lawyer does not know the building and remodeling business well enough to spot trouble far in advance, nor does he really have the time. If you're not sure, you can have your contracts reviewed by a consulting company with over thirty years of experience in residential building contracts and agreements before you commit to something you'll regret later. Ask the contractor to email to you a copy of their contract in a PDF or Word format. You may forward it to us by email for review at paramountresidential@charter.net at your convenience. Please make sure that you include the information necessary for us to contact you after the review is completed. This offer applies to Connecticut residents that are planning to build a new home or start a sizable remodel in 2008 and 2009.

 
  How much will my house cost?
 

Building and construction costs vary from region to region and Western Connecticut 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 3 acre building lot, site costs can range from $50,000. to over $125,000. 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 construction to $350 per square foot for "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 work for you and your interests.

 

 

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.

We have recently formed an association with Amazon.com in order to provide our potential clients (and those in need of building knowledge) with an array of valuable informational literature relating to the practices and pricing applicable to the construction of their new home. Please feel free to access the recommended texts by clicking on the following pre selected links.

 

       

       

       

 

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