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Save Money by Building Smart |
| Cost-Saving Tips |
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| By Jim Cooper |
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The question I'm most often asked about log home construction is, "How can I hold down the costs?" I have developed a series of suggestions that, taken together, I call "building smart." Some suggestions involve compromises that not everyone wants to make, but a surprising number of them call for nothing more than common sense. Building smart is as much about the way you approach the construction process as it is about the construction itself.
Building smart starts right after you decide you want a log home. Most people begin by gathering information about the kind of log home they want. They visit models, fill boxes with sales literature and talk to numerous representatives. Some even visit the manufacturer's facilities. But collecting information is not, by itself, building smart. Building smart starts with how that information is put to use.
A good first step is to visit someone who has the kind of house you want. Preferably this will be someone who has lived there for at least a couple years an would not a connected to any way to the purchase of your own home. Local Realtors, lenders, construction suppliers and your local building permit office are good sources for names of log home residents. Some shoppers simply stop at attractive log homes and ask the owners if they mind answering a few questions. Most log home owners are proud of their homes and willing to share information. Even those who have experienced problems will often offer valuable advice.
Such research carries a word of caution. The building process can be extremely stressful (especially for someone who didn't build smart), so you should listen carefully to criticism as well as acclaim. When a home owner is critical, ask yourself if it has something to do with the log home kit or something that pertains to the construction process. If an owner says, "It took a lot longer to build than we expected," find out whether the home owners had a realistic expectation of construction time to begin with. If they were expecting to move into their house two months after it was delivered, where did they get that idea? From the manufacturer? A dealer? Their builder? Criticism is often based on miscommunication.
The second step in building smart, therefore, is avoiding miscommunication. As you visit home owners and gather information, keep notes on questions to ask your log home dealer or builder. If home owners comment to you that their home cost more than they anticipated, try to find out where the additional costs came from. Did the manufacturer add costs to the package price that the home owners weren't expecting? Did the builder charge extra for things that the home owners thought were included? Trim work and finish costs are often the source of cost overruns. Builders generally quote prices based on the most basic trim work. The only way to be sure that a builder's price represents your wishes is to show the builder a picture or drawing.
So the third step in building smart is to keep a scrapbook. Put into it drawings and photographs of all the details of the log home you plan to build. Include illustrations of beam work, cathedral ceiling finishes, lighting fixtures, appliances, floor coverings (ceramic, vinyl, wood and carpet), wall coverings (drywall, tongue and grooved wood, paneling), windows, doors, appliances, heating and cooling systems, cabinets, hardware, stairs and trim (door, window, base, closet and bath). Use this scrapbook to show your log home dealer and your builder exactly what you want. Make sure they have the information before giving you prices, and make sure all competitors for your business get the same information.
Recognize that, unless instructed otherwise, builders base contract prices on the most basic materials and methods. Suppose you want ceiling fans in every room. What you have in mind is a combination light and
variable-speed fan that can be switched independently, perhaps with a remote control unit. Unless you tell your builder, you may visit your job site one day to find an electrician installing an
off-brand, singlespeed ceiling fan and light that are operated by
pull-chains. What often follows is a brisk discussion of who is trying to take advantage of whom. Unless you gave your builder documentation specifying the type of ceiling fan before finalizing his contract, he has fulfilled his contract obligation.
At this point, you can upgrade to tie fan you want, for a price. The price of the upgrade may be considerably more than the cost of the fans because, first, the builder is going to have to try to return the old fans for which the supply house will offer only a partial refund, if any; second, the builder will be billed by the electrician for the additional work of removing the already installed fans, waiting until the new fans arrive and then returning to the job site to install them; and third, the new fans may involve wiring changes, fishing wire through recently covered walls or removing flooring to expose wiring run through I beams, which means additional carpentry, drywall work and painting or varnishing.
This additional work and expense could have been avoided by giving the builder a picture of the desired fans before he presented his contract and then verifying that those were the fans included in his contract price.
The reason, incidentally, the builder may not have included more expensive fans is not that he is trying to gouge anyone. He knows he is bidding against competitors who also will list prices of basic fans; if he adds $1,000 to $2,000 for the better fans, his bid will seem higher. Even telling the customer does not make up for the psychological disadvantage presented by a contract price several thousand dollars higher than a competitor's. Experience has taught him that most consumers who lack a realistic awareness of building will simply respond by saying, "I know the fans I want can't cost that much more."
The ceiling fans here can serve as a parable for many of the details of log (or conventional) home construction. This experience, caused by nothing more than Miscommunication between builder and buyer accounts for probably
three-fourths of the cost overruns and half the disasters in construction projects. Repeated in 10 variations during a construction project, it can add $10,000 to $20,000 to the cost of a home. Scrapbooks are much cheaper. Once you have interviewed some home owners and prepared a scrapbook of features that you want included in your home, it's time to study floorplans and designs. Here, before submitting your floorplan to a builder for a bid, is your last major opportunity for controlling costs. Take a hard look at features in the design of your house. If it is has more than four corners, odd angles, complicated rooflines, multiple dormers, many large or custom windows, extensive porches or decks and multiple fireplaces, it will cost substantially more, regardless of the log package price.
Look for things that could be added later such as decks and porches. Look for ways to "square-up" the house, unless a complicated design is what you want (and are willing and able to pay for.) Don't fool yourself that minor cosmetic changes or small labor contributions, such as staining trim, are going to substantially reduce the cost of your house. Ask for a specific amount of price reduction for any labor activity you intend to perform when you request a contract price.
So, the real secret of building smart is preparation. Gather as much information as you can about what will go into your home. Be objective and listen carefully. Your reward will be a home much closer to your dream than if you leave things to chance. |
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