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Breaking Down Costs for Residential Builds or Renovations

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If you're new to owning or operating a construction company, you're likely starting with smaller projects, such as residential remodels, renovations, or builds. The key to running your business is understanding the total costs of projects and creating accurate estimates. There are many factors to consider when composing an estimate, and it's essential to consider these factors when putting a bid together.

To Build a Home

Based on national averages, it costs about $155 per-square-foot to build a new home. This means a 1,500 square-foot home will cost around $232,500 to build, and a 2,500 square-foot home will cost approximately $387,500.

The Breakdown

The reason these costs are so high is because of every variable that goes into building a home. The details, labor, and materials all add up. Each step of the process requires a specific type of specialized knowledge. Because of that, contractors often have to bring in subcontractors for different phases of the building process:

  • Permits and Preparation– Before any work begins, the first step is to apply for permits. Getting your permits will require that you've already assessed what your design will be. Permits will be needed for land changes, plumbing and septic systems, building construction, electric systems, and any other major part of the building process.
  • Sitework and Excavation– Once permits are obtained, the site work and excavation can begin. This process is when a crew comes in to clear the land of big rocks and fix the land's grade. If a septic tank is being added, they will excavate space for that as well. Often, this involves a crew laying the concrete foundation as well.
  • The Foundation– The foundation is the structure of the home. After excavating the land, the concrete foundation will be poured according to the building plan’s specifications. After the concrete has set, a waterproof membrane is applied to the foundation walls, and sewers, drains, water taps, and any other plumbing needed for the first-floor and basement are installed. After the foundation work is done, there will be an inspection to approve the foundation for moving forward.
  • Frame– The frame building is the next crew to come into play. They will build the structure of the home based on the blueprints. They build structures for the roof, walls, and floors. They may also do the siding or put the initial layers up to cover any exposed wood.
  • Systems– The plumbing, electrical, and HVAC systems are next to go in. While the walls are still open and exposed, all the lines and tubing needed to run these systems are installed in the home. This step requires a significant amount of fittings and takes a lot of time and material to complete.
  • Interior Finishes– After the home systems are installed, adding drywall, paint, cabinets, and all the interior finishing touches can begin. There are many materials needed when working on the interior, such as fittings, handles, and fixtures.
  • The Exterior– The last step is to add the roof, siding, and all the other exterior details. This can include the driveway, landscaping, and yard layout. Adding exterior details is another intricate part of the home building process that requires lots of materials, including nails, screws, and siding panels.

Accurate and Efficient Cost Estimation

Calculating an accurate estimate for a home build or renovation by hand can seem like an impossible task. The prices of materials, labor, and more can fluctuate, making the entire process complicated. This is why many companies chose to use cloud-based estimating software.

The software can use live data to accurately estimate the cost of every stage of the building process. For example, when pricing the electrical systems, there is electrical estimating software data that uses national averages to help ensure your quote is as accurate and competitive as possible to help keep your bottom line covered, without selling yourself short.

Quick and Accurate Estimates

The best way to land any construction project is to be professional and have a detailed proposal. The quicker you can send out an exact estimate, the better chance you will land a job. Many companies have gone out of business due to underbidding. Because of this, it is essential to get your estimates right the first time around. By making the right moves when composing your assessments, you can get all your jobs done within budget.

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Syandita Malakar Hi guys this is Syandita. I started Business Module Hub to help you all to post updated articles on technologies, gadgets. Although I love to write about travel, food, fashion and so on. I quite love reading the articles of Business Module Hub it always update me about the new technologies and the inventions. Hope you will find Business Module Hub interesting in various way and help you accordingly. Keep blogging and stay connected....!
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