The Construction Process

CONSTRUCTION TIME for a custom home is typically about 9-12 months depending upon the complexity of the home.

CONSTRUCTION INSPECTIONS
With a complete set of plans detailing the home as agreed and complete specifications detailing what is in the home the construction of your home will usually be inspected by your lender at the following times, prior to funds being disbursed. The same inspections are performed by the town building department.

• Foundation of the home is complete
• All exterior walls are constructed, roof system is complete
• All framing, plumbing, electrical, heating, insulation, etc. is complete (This inspection is made prior to the drywall or plaster being installed.)
• When the drywall or plaster is complete
• When the cabinets, trim, and other finish materials are complete
• The final inspection is made when the home is complete. You will also inspect the home at this point and will have the opportunity to point out any areas that need to be corrected. 

COST

The typical builder works on a margin percent of the sales price of the home. This margin represents the gross profit remaining after all direct construction costs are paid. The Builder must pay all overhead expense, all current and future warranty cost, all supervision cost, and much more out of this amount. Furthermore, there are normally numerous unforeseen cost items plus increased costs due to inflation during the building process that the builder must absorb. This also comes out of the gross profit.

There are a limited number of suppliers and labor providers for custom residential construction. We have good track record on the Cape as well as a sterling credit rating. I would love to tell you that our purchasing power allows us to purchase items at a much lower price than others. However, in reality it is a very competitive industry and most credit worthy builders pay about the same price for the goods and services that they purchase. If there is a cost advantage it is typically because one builder is purchasing and providing a lower quality service or product than another.

If three different builders were to prepare a bid on the same home with the exact same finishes and level of quality I would be shocked if there was more than a 1% variance in price between those builders. The problem is that this rarely happens. Each builder will include different items in the home as standard and their trades will have different quality levels than the other builder which make a very real difference in the price. This makes comparing builders prices almost impossible.

The important point is to find a builder that you trust. Everyone should agree exactly what will be included in the home as well as the quality level that can be expected.

COST PER SQUARE FOOT

Cost per square foot is a commonly asked question of builders. It is impossible to give an accurate answer to this question. Each home is quite different and the items included or not included make a major difference in the cost per square foot. There are probably 10,000 variables that can impact square footage cost due to home design, specifications, site conditions, and much more. In other words, final price depends not only on a building's size, but also on the house's geometry, the level of architectural detail, and the lot conditions.

For budgetary purposes only, we will review a range of costs based on reviewing your finish preferences. Many builders offer a low price per square foot with minimal specifications for the home assuming that the Buyer's will upgrade to their expected quality level once the home has been started. Personally, we do not like to be on either side of this type of surprise and we doubt that you would either.  If there is a major difference in another builder's cost per square foot for the same home you can be sure that there is a difference in the quality, features and finishes included, or some other tangible item.

CONTRACTS & FINANCING

Once you have decided upon the builder, the design, and the cost of the home it is time to sign a Construction Contract. Contracts are typically fixed price or cost plus.  We will be happy to review the pros & cons of both. We will require a deposit and will progress bill you as the construction progresses according to the payment schedule of our contract.

If you will be financing we will be happy to provide any information to your financial institution that they need regarding the project. The lender will inspect the home as it progresses prior to disbursing funds to you and typically when the home is complete the lender will convert the construction loan to a permanent mortgage loan.

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