Estimating house building costs is the first step toward controlling them
Building a new house is a major undertaking. It is a multi-phase project with disaster potential every step of the way. For such a task to be completed smoothly, many different partners have to come together and work diligently toward final completion. Communication and coordination are absolutely essential to sustain steady, uninterrupted progress. Not only does every step of the construction have to be well planned, but so do costs. In construction, costs can get out of control very quickly. Plan them as closely as you plan the work and costs can be better controlled.
Instructions
1. Order a good set of house plans. Make sure you also order a materials list with the plans. Rely on the materials list first and foremost in your estimations, since the architect who designed the house should know best how much of which materials are needed for constructing the house.
2. Separating labor and materials gives a more exact accounting of just where the money is being spent
Make two separate lists, one for materials and one for labor. Add the two each time you estimate the cost of another step of construction toward completion. Be wary of contractors who give you abnormally high "estimates" which do not agree with the materials list the architect, who drew the plans, says the job will take.
3. Research material and labor costs. Use the internet and local library. Talk with family and friends who have built most recently. Establish a range for what each aspect of the construction will cost. Include 20 to 30% cost overruns, since construction can be a very uncertain endeavor.
4. Site preparation costs are generally estimated by the number of hours the heavy machinery will be run
Complete your new house building cost estimate in an orderly fashion. Get lot preparation estimates first. Write down this cost as the first item in your final estimate list.
5. Call foundation companies, as opposed to brick and block masons, and plan to pour the foundation instead of using block and mortar mix. (Poured foundations eliminate the joints of cinder block and mortar mix foundations and reduce moisture issues.) Use your house plan's foundation specs to get the most competitive estimate here.
6. Framing must be square, plumb and level to build a first-rate house
Use your materials list cost per square foot to set the framing cost. Hire the crew with the most accuracy, experience and best dry-in time estimate. Schedule this part with an eye on the local weather guessers, since framing should be completed quickly and in dry weather.
7. Go by the same format as you work your way through to the final estimate. Complete electrical and plumbing estimates, drywall, roofing, finish carpentry, and flooring. Write down each price total combining materials and labor. Total the entire list, and you will have a pretty close cost estimate.
8. Depending on where you live, materials and labor will be about equal parts of the total costs
Check your total estimate. Use a round figure of $75-$100 per square foot (excluding site preparation, landscaping and driveway). Plug in the figure your market says is correct for similar houses built in the area. For example, if you are building a 2,000 square foot house, multiply 2,000 times $75, to get a total of $150,000, or $100 per square foot times 2,000 square feet equals $200,000. Re-examine and adjust your totals if your estimate exceeds this range.
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