Some Costs Are Harder to Predict Than Others

Site work is a good example.

When you are building on acreage or an undeveloped lot, you may not know exactly what you are dealing with until work begins. Clearing, grading, drainage, soil conditions, driveway construction and utilities can all create variables.

Lumber can also be surprisingly difficult to estimate.

Two homes can both be around 1,800 square feet and have dramatically different framing costs depending on the design.

One house might use $12,000 worth of lumber while another could use $32,000 worth of lumber.

Complex rooflines, ceiling heights, structural beams, spans and other design details can make a significant difference.

Those are the areas where experience and a realistic contingency matter.

Control the Costs You Can Control

The best way to reduce the risk from unpredictable costs is to get firm pricing on as many predictable items as possible.

Cabinetry is one example.

Once the cabinet layout is established, you can usually get a very accurate price before construction gets too far along.

The same applies to many of the selections inside the home, including:

• Light fixtures

• Plumbing fixtures

• Tile

• Flooring

• Countertops

• Cabinetry

Countertops are a perfect example of why this matters.

There can be a huge difference in price depending on the material and selections, but once the cabinet layout and countertop square footage are known, there is no reason that cost has to remain a mystery.

The homeowner can make that selection early, get an actual price and know exactly what is being spent.

Flooring works much the same way.

Instead of carrying a vague allowance and hoping everything works out later, you can select the material, determine the quantity and establish a realistic cost before it becomes a surprise.