Cost overruns come in two forms. One type is due to insufficient planning before the project begins. Often people view hiring an architect or house designer as a luxury. But a good architect can help you define the project on paper before you sign a contract for construction. With many things undefined, there are ample opportunities for unexpected added costs to come up. Make you materials, finishes, and fixture selections early on so you don’t get unpleasant surprises later. Think through the entire project and try to anticipate as much as possible. Make sure your drawings and specifications describe the work to be done so there is little ambiguity. Unclear construction documents will open the door for extra charges from your builder. An experienced design professional can help you with this. It’s not just their skill you are buying when you hire them. You are also buying their experience.

The second type of cost overrun is actually more common and is self-inflicted. I’m talking about scope creep. By this I’m referring to the gradual addition of work to the project. We are all prone to this. It may seem like a good idea to add a built-in cabinet or refinish another room’s floor, or a multitude of other tasks ”while you’re at it.” And this is all well and good. Often doing some these other things while you are already dealing with the turmoil of construction makes sense. It often can cost less than doing it later since the craftsmen you need are already on the job for the original work. But be careful. You can add what seem like small things only to realize later that they add up quickly. You’ll look back and wonder how you managed to blow your budget so badly. You’ll feel like everyone wants to keep charging you more money. But in fact, you were the initiator of those changes and added costs.

Building a house or remodeling a house requires some good planning and budget discipline to keep costs under control. Don’t let yourself get into budget trouble. It’s a lot like dieting. You have to have the will power to push yourself away from the table before it’s too late.

Read more articles about home design and construction at my other website, www.about-home-design.com.

Don’t overplay your hand. You might be holding all the cards right now, since every builder is very hungry for work. But pushing too hard can cause the builder to dig in and not want to negotiate no matter what. Effective negotiations should always leave both parties, the builder and yourself, feeling each came out well and didn’t have to give up too much.

My advice is that when you are negotiating, you need to always give the builder a comfortable reason to adjust his bid without him feeling like he is simply changing his number. No builder wants to be seen as saying, “I was trying to charge you that higher amount, but now that you’re pushing me a little, I’d be happy to only charge you this much.” It makes it look like he was trying to gouge the customer in the first place. So my suggestion is to always change the scope of the project a little bit, or suggest the builder ask his subs or suppliers if there is any way they can reduce the costs of the work. That way the builder can come back to you and say, “Now that we deleted the fancy tiles the cost has come down…” or “I really pushed my subs and got you these savings…”  This lets the builder be the hero in getting you a better price, even if part of the reduction actually came from their own anticipated profit. They never have to say they cut their price, even if they did.

One other good tactic is to simply say, “I have a couple of prices and we are going to make a decision tomorrow. Please give me your last, best price to help with the decision.” This opens another opportunity for the builder to trim his profit without setting a new precedent he may not want to be publicly known. But you’ll still get the benefit of the discount he quietly created for you.

Another good approach is to evaluate the price they gave you, determine what you think the price should be, maybe three to five percent less, and then say to the builder, “I need to get this price to “X” or else I can’t go ahead. If you can do something to tweak you price to “X”, I’ll sign the contract.” Of course, in this scenario, you need to actually be ready to sign the contract. Your target number needs to be realistic, too.

Some cost savings can come from simple changes that make the builder’s work easier to do or coordinate, yet still give you the end result you are wanting. I always ask the builder for his suggestions and ask him to identify any places we might be spending too much without a compensating benefit. I do this even if the price was below our budget. You never want to overspend unwittingly.

Negotiating with both parties interests in mind will get you a great price and leave the builder happy to have gotten the job. When everyone is happy, the work always turns out better.

Have you had success or an interesting experience with builder negotiations? Post a comment and share it with us.

If you would like to read more articles about house and home design, please visit my other website, www.about-home-design.com.

There are two reasons for that. First is the cost. Traditional, all masonry fireplaces are very expensive to build. The entire chimney must be built of masonry and the tall column of cement blocks, bricks, and terra cotta flue liner is very expensive. Plus, a true masonry fireplace requires a foundation to carry the weight. That adds more cost. Pre-fab metal units have taken over the marketplace for cost alone. Some pre-fab fireplace companies are Heatilator, Majestic, and Heat-n-Glo. These fireplaces have some limitations on the size of the firebox opening. If I need a particularly large opening, I turn to Isokern. This is a fireplace that is made of a special type of concrete block system, but it does not require the full masonry flue. So it is a compromise between the design freedom of the traditional masonry fireplace and the cost benefits of the pre-fab units.

Wood-burning models of pre-fab fireplaces are readily available, but in spite of that, most of my clients choose to set these fireplaces up with gas logs for the sheer convenience of starting and stopping a fire whenever they want. Many people have grown tired of chopping and carrying wood, cleaning up the mess and bringing bugs into the house and give up the ambiance of a real wood fire in favor of the convenience of a gas log fire. These days, there are many very good choices of gas log sets that provide a realistic wood fire look. Because most of the heat goes up the flue, fireplaces are not energy efficient. They can actually draw more heat out of a house than they can provide. Fireplaces should be viewed as decorative elements in a house.

Some gas fireplaces require a vent pipe and others do not. The vented gas fireplaces give the most traditional look since they do not have to have glass doors on the firebox. But vented gas fireplaces must have the damper held open permanently according to the building code. This allows heated air from the house to continually escape up the flue twenty four hours a day. This is obviously an energy loss. Open fronted, vented fireplaces also use the air inside the house for combustion and can allow combusted air to return back into the house. People who have allergies or sensitivities to petroleum products could react negatively to this. For those people, a direct vent fireplace might be a better solution.

Direct vent fireplaces take outside air for the combustion and vent the combusted air back outside. No indoor air is used. No pollution is added to the indoor air. No heated house air escapes the house. They cost less initially because no chimney is required. A direct vent fireplace can add heat to the house, but not as efficiently as a gas furnace. The major objection to direct vent fireplaces is that a fixed glass panel covers the firebox. Sometimes people describe this as an aquarium look because of the glass. But there are decorative frames for the glass that make it look like a set of good glass doors.

All in all I would say that most of the fireplaces I design are gas log types with the exception of outdoor fireplaces. For those, wood-burning is still the preference. Of the indoor fireplaces, most are the vented variety primarily because of the appearance. People prefer the traditional open faced firebox. But in some situations, the direct vent type is the best choice, especially if finding a location for the flue and chimney is difficult or cost is a priority.

Click on the comment bar to tell us your story.

If you would like to read more articles about house and home design, please visit my other website, www.about-home-design.com.

Can you compare an addition of a simple room with no plumbing or special features with the cost of a kitchen addition full of cabinets, countertops, plumbing fixtures, and appliances? The kitchen addition could cost twice what the simple addition would cost based on the “cost per square foot.” What if an addition was to be built on flat land, clad in vinyl siding, and contained only a couple of simple windows. It would be much less expensive than an addition built on sloping land, clad in fieldstone, full of high-end windows, and included a soaring ceiling. Comparing the cost of these two projects would be like comparing apples and oranges.

While the “cost per square foot” method is a flawed way of estimating construction costs, it is the only tool we have for preliminary estimating. Builders do not use this method for calculating the actual cost of your project. In my book, Designing Your Perfect House, I discuss this in some detail. Here is a short excerpt:

“The “cost per square foot formula” is not, I repeat, not the method your builder will use to establish the actual cost of your house. These figures are determined after the builder has calculated every piece of the building, how many pieces of plywood, how many bricks, etc., added up those costs, added in the labor costs, added in his overhead and profit, and come up with a bottom line number. Then, most builders will go back and divide their calculated price by the number of square feet to see what the “cost per square foot” is. They can then compare this number with similar numbers for recent projects they have built to see where you stand relative to those.”

If you want to get a rough idea of what your addition will cost, you have to find comparables, just like appraisers do when they are placing a value on a house. Talk to some local builders and ask them to show you similar projects they have built. Look for projects that match your scope, level of detail, and the types of things that were included. Pay attention to the way the addition attaches to the existing house. The more the existing house has to be altered to accept the addition, the more the project will cost. Once you find some comparable projects and you learn what they cost per square foot, you can apply that cost to your project with some modest level of confidence. Be sure to add something for inflation in costs from the time the other project was built until now. Costs never seem to go down so there is no reason to think your project will cost less. Although in these economic times, you can find some pretty good deals in construction.

Asking several local builders will give you a rough idea of what to expect in terms of cost for your addition. Even though their answers will vary, their opinions can help guide you. But keep in mind that until you actually design your addition, draw up good construction plans and select the items to be included, no one will be able to give you a precise cost for your project.

Click on the comment bar to tell us your story.

If you would like to read more articles about house and home design, please visit my other website, www.about-home-design.com.

     This is the correct thing for homeowners to be doing. But other times a homeowner might simply refuse to pay knowing that legal action by the builder will be expensive. The cost of suing might exceed the amount of money being held so it would not be worth it. The builder is forced to walk away from the money he is owed and the homeowner is unethically enriched. It’s truly sad when this happens. I wish there weren’t people in this world who would take advantage of hard working builders this way.

     At a project meeting today, a builder I know reminded me of the way builders guaranteed they would get paid in years gone by. Every house had a fireplace that was built of masonry, not the prefabricated type we use today. Unbeknownst to the homeowner, when the builder built the chimney, the he would insert a pane of glass horizontally inside the flue several feet above the fireplace. If he later had trouble getting paid when the house was completed, he would leave the glass in place.

     What happened is whenever the deadbeat homeowner would light a fire in the fireplace the house would fill up with smoke because the flue was blocked by the glass. When the fire was out and the homeowner looked up the chimney to see what was blocking the flue, he could see light at the top because the glass was clear. There was no visible blockage to be found. He would try another fire and once again have a house full of smoke.

     Frustrated, he finally calls the builder, even though he owes him money. The builder says he’s sure he can fix it, but he needs to have the final payment on the house before he’ll come out to do the work. Left with no other choice, the homeowner begrudgingly pays the builder. The builder pockets the money and asks the homeowner for a broom. Puzzled, the homeowner goes and gets one. The builder kneels down in front of the fireplace, jams the broom handle up the flue, and bashes the pane of glass into tiny pieces.

     He sweeps up the broken glass and says, “Your flue should draw nicely, now.” And he walks away fully paid.

Click on the comment bar to tell us your story.

If you would like to read more articles about house and home design, please visit my other website, www.about-home-design.com.

    I think the best way to reduce your living space is to write out what we architects call a “program.” This is the first thing i do when doing a house design. This is a list of needs and desires plus a target size for the spaces you want. It’s a good idea to multiply out the areas of these rooms, include hallways, closets, stairs, and other small spaces and add them up to get a total. Take that total and multiply it by 1.15 to add 15% for the area the walls themselves take up. You’ll end up with the total square footage your house design will need to include all that you want. If this total is too much, go back and reevaluate what rooms and spaces you included. Trim out the excess. I discuss this process at length in my book, Designing Your Perfect House. A good, well thought out program will become your road map to the right sized house design.

     When reevaluating your programmed spaces, it’s a good idea to try to double up usages of rooms. Try to imagine dual purposes for the same areas. Maybe one of those guest rooms for occasional use by the grandchildren could double as a sewing room or office for your day to day living. Maybe you don’t need the formal living room and it could be replaced with a smaller library or even a reading nook. Do you need a separate formal dining room plus a breakfast area? Could those dining functions be combined? They probably can be, it’s simply a matter of how the space is designed and where it is located in the house design. A good architect can help you shrink the square footage without shrinking the house’s livability. Do we really need to keep all of the junk we seem to accumulate over the years? Could the guest room bath also serve as the powder room? Good house design is a matter of trimming the fat and keeping what is essential.

Try to think of how you really live and throw out the space you never or rarely use. Make your house design efficient. One great book that deals with the concept of living smaller and can help you with ideas is Sarah Susanka’s Not So Big House. I highly recommend it.

Click on the comment bar to tell us your story.

If you would like to read more articles about house and home design, please visit my other website, www.about-home-design.com.

     Well, I don’t just guess. That can get you into trouble. In the early design stages, I depend on some rough cost-per-square-foot rule of thumb. I discuss how to calculate the square footage in my book, Designing Your Perfect House in some detail. This rule of thumb guideline will work for the initial preliminary design to at least get you in the ballpark. But before the work of finalizing the documents can be done, I talk to a builder who builds houses at the level my clients are expecting and ask him to give me a calculated estimate based on my preliminary plans, site plan, and elevations.

     This is still not a finite figure that can be used for a construction contract. But it is better than the early guess based on the cost per square foot. I ask him to give me a “bracketed” number. The low number is an amount that the cost of the house could not possibly be lower than without doing surgery (reductions or redesign) on the plan. The higher number is the amount we are unlikely to exceed unless we start selecting exotic things. This budget range could be as much as $200,000 on a large house. But I’ve found this to be helpful for my clients. If we are at the top of their budget with the builder’s low-end number, then it’s back to the drawing board. If it’s within the range, then we proceed, always cautiously, with our eyes open. If the budget is well above even the high number, which really never happens, we go have a party.

Click on the comment bar to tell us your story.

If you would like to read more articles about house and home design, please visit my other website, www.about-home-design.com.

      Natural day-lighting is something that has been under appreciated and undervalued in recent decades. But the current renewed concern about green building and high energy costs have changed that thinking. A good architect can help you orient your house properly on the land to maximize the benefits of free day-lighting without resulting in overheating of the house in summer months. In a well designed house, you should not have to turn on your electric lights during a sunny day. Simply placing windows on the southern walls (in a northern hemisphere site) will gain significant daylight, but the costs to cool the house will soar as the house will overheat badly. You will give up more energy money than you will save. Properly designed overhangs are needed, deciduous plantings, and sometimes shutters or shades can be used to maintain control over the natural lighting in your home. Indirect, reflected daylight is best. Direct sunlight is to be avoided. In addition to the heat gain direct sunlight can give, fabrics and carpets can fade under the intense rays of direct sunlight.

      There are many types of artificial lighting to choose from for your home. And without some training and experience, making the right selection can be tough. Fortunately there are many good lighting stores owned and operated by well trained, knowledgeable people. You can take advantage of their training and experience for free. Most of them will spend a considerable amount of time with you working out a lighting plan for your home, helping you select the best fixtures based on looks, style, type of light the fixture provides, cost of the fixtures, and energy efficiency.

      Having a good, well thought out lighting and electrical plan before you begin construction of your remodeling or new house construction project is one of the keys to controlling homebuilding costs. Costly extras often come from changes people make to the electrical work when they discover things they failed to consider before signing the contract with the builder. The more you can think through your electrical and home lighting plan, the more money you will save and the better lighting your new or remodeled home will have.

Click on the comment bar to tell us your story.

If you would like to read more articles about house and home design, please visit my other website, www.about-home-design.com.

      Many electricians base their price on the number of junction boxes they install. Each switch, each electrical outlet and each light fixture counts as one box. So if you add an overhead light and a wall switch, this counts as two boxes. Usually, the location of the boxes does not matter. It is the number of boxes that is critical to your homebuilding costs.

      The preventive medicine to avoid this cost calamity is to have a good, well though through electrical plan drawn up prior to the builder preparing his price. Your architect or residential designer can help you with this. They can show you what you need and help you avoid “over-lighting” your house. Over-lighting is a real peril and can really add homebuilding costs quickly. Many times I see people put a light above the vanity in a powder room and also include a ceiling light. In real life, the light above the mirror will light the small powder room quite sufficiently. The ceiling light will never be used. Be sure every light is essential before you toss it in to the plan. These things add up. If you really want to control your homebuilding costs, you need to place lights with care.

      Also, try to avoid over-controlling the lights. It’s easy to start adding switches to control every light from every entry point to a room. Try to be prudent about this. You will want to provide what is called a lighted “path of travel.” This is a path that takes you through the house with switches along the way so you can turn on the light ahead of you and turn it off after you have passed. A simple example is a hallway with a switch at each end that operates the hall light. Rooms like dining rooms that have two entry points should have one of the light in the room operated from both entry points. These are called three-way switches in the construction world. But the other lights in the dining room do not have to have three way switches. Only place those switches near the primary entry point. If you come into the room from the other direction, you will have to walk across the room if you want to turn on the other lights, but you will save a lot of construction money by using this switching strategy in every room and you also won’t end up with a bunch of unsightly switches all across your walls.

      Control your lighting impulses and prepare a good lighting plan and you will gain control over your homebuilding costs.

Click on the comment bar to tell us your story.

If you would like to read more articles about house and home design, please visit my other website, www.about-home-design.com.

    I got a note from a prospective client recently asking for my advice on what construction costs might be for a new house. They were in the early stages of planning and wanted to get an idea of how much their new house might cost. Here is my answer:

    I have recently had a house price out at $170 per foot and another as high as $275 per s.f. There are a lot of variable that can affect the cost, as you can imagine. The formula I use is to include all of the “heated” square feet. I do not count the garage and/or porches. This formula is sort of the industry standard. For budgeting purposes, I would suggest using $200 per s.f. as the low end and $250 as the higher end. Of course, it is possible to go considerably higher. The variability of cost is due to different exterior materials, the shape of the house, the appointments within the house, and the site considerations. But above $250 per s.f., the added cost is attributed to particular items, like very expensive cabinetry or particular site conditions, and things like that. It’s hard to get more definitive than that until the house is designed and those numerous variables are known.

    My suggestion for calculating your square footage is to list out the rooms and spaces you want, including staircases, closets and hallways, if you can. Then assign target sizes to those spaces. It can help to use your current house and its rooms as guidelines for the target room sizes. Then multiply out the areas of each room, total it up, and then add ten or fifteen percent to the total. That added percentage is to account for the area used up by the walls themselves. Three running feet of a typical interior wall takes up one square foot! And the percentage accounts for inefficiencies in the actual house layout. Not every room will end up exactly at the target size. Then multiply the total by $200 and also by $250. That should give you a high and low number and a feel for where your construction cost will be.

    Incidentally, when stating these costs of construction, I am including all of the sitework, like landscaping, driveway, irrigation, etc. These costs estimates also anticipate a three car garage, a front porch, a screened porch, and things like that. The figures also include all permits and inspection fees. They include everything that would be in you contract with the builder.

    I will say that right now is a terrific time to build because the marketplace is hungry and prices are good. Lumber is very low, vendors are anxious to make deals, and even the builders are trimming their markup to get projects signed up. I think that in a couple of years we will look back at today and say, “Wasn’t that a great time to build? Everything was such a bargain.” Once the economy improves, the prices will surely go up quickly. Now that oil prices are going back down, some of the materials that went up due to the very high oil prices, like shingles, will likely go down sometime soon because of the slowdown in demand for construction products.

    Take advantage of this Golden Opportunity to get your dream house built at a price you will never see again. The woes of Wall Street can be a bonanza for you.

Click on the comment bar to tell us your story.

If you would like to read more articles about house and home design, please visit my other website, www.about-home-design.com.