CONTRACT & COSTS
Once a formal decision has been reached to hire Pyramid Brothers Contracting as your new home builder we can move forward with a construction contract.
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The contract will include all costs associated with building your home from material costs with contractor markups and trade labor fees to contingency amounts that allow for overages or unexpected cost. We offer three different contract options depending on the scope of the job, the three options are:
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Fixed price
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Cost plus
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Construction management fee
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We can explain all three options and come to a mutual agreement on which option will serve you the best. The contingency amount, also known as the escalation allowance, is usually a percentage price and keeps you from coming out-of-pocket in the event of issues or additional unknown needs. Contracts are generally broken down by the following:
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Construction Costs
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Labour Costs
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Equipment Costs
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Material Costs
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Permits and Additional Fees
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Escalation Allowance
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Inspection and Survey Fees
Construction Costs: Soft Vs. Hard
Construction costs include hard costs and soft costs. Hard costs are controllable, fixed costs like time and labor, various trade’s contract prices—for example, the painter will get a fixed price of $10,000 to paint a 2500 square foot home, and materials excluding extra’s that may be required due to surprises popping up during the build.
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Hard costs only change according to the price of the finishing materials used in construction. High-end materials, for example, will cost more than the lower end equivalents. Soft costs fluctuate depending on the contract.
These costs cover everything not included in the hard costs such as:
Land related costs
Architectural, engineering, and legal fees
Insurance and bond coverage
Design consulting services
Additional Cost management or project management services
Realty taxes, land surveys, and environmental testing
Permits
Appraisals and inspection fees
Construction trailer and equipment
Energy consumption fees
Finishing Touch Factors That Affect Costs
Besides land prices, architecture and design services, labor and materials, building permits, fees, insurance coverage, and additional equipment needs, the end cost to build your new home will increase or decrease based on whether you use high-end or low-end finishes or require additional equipment like bobcats and cranes.
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This lists some factors that will increase or decrease the cost of your project.
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Your desired home size, square footage, and the number of stories and rooms you want will all determine a higher or lower price when building your home. A larger home requires a larger foundation, additional building materials (more planks, more drywall, more beams, additional windows), and a longer build process which also increases labor costs and time associated with the build.
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Your home’s shape also makes a difference. Square homes are typically easier and faster to
build than say a circular home that would require custom building materials and mechanical's
to be installed.
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Your roof matters as well. There are different shingle materials and the slope and accessibility
of your roof will cause the price to fluctuate. A gambrel, for example, has many gables and eaves,
which mean more cutting and specialty pieces to lay roof on.
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Materials include everything from the beams used in your foundation and drywall that you’ll hang your pictures on to lighting and faucet fixtures. Determining price range is almost impossible until you know what type of materials you’ll use. Counter tops, for example, come in many different options and price points as do cabinets and paint colors.
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Appliances are another consideration in building prices. Your basic appliances include an oven and stove and a fridge. However, your newly built home might need more like a new washer and dryer for your awesome laundry room. Appliances range in price from a couple hundred dollars to thousands of dollars for high-end products.
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Mechanical Systems. You’re heating, air conditioning, water, septic or sewer systems all come in high-end or low-end options as well. You’ll want to consider the cost of all mechanical equipment as well. For some materials, it is worth it to spend more.
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Design features include your finishing touches such as crown molding, paint colors, bathroom vanities, counter tops and cabinet materials and colors. The number and location of your bathrooms, size, and location of closets, and if you want additional organizational features.
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Landscaping design and planning. Cost increases come from options like running an outdoor speaker system, creating ponds or garden areas, adding trees or structural features like porches, patios, and play sets, or putting in a pool.
PROJECT COSTS
