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• About Us  • View Testimonials  • Construction Programs  • Construction rates  • Comparing Options  - Loan offers from different    banks  -Construction cost estimates  -Building new or remodeling    VS buying an existing home  -Being my own contractor   VS using a general contractor  - Get Answers  • Educational Resources  - ABC's of Construction    Financing  - Stick-Frame Home    Information  - Log/Timber-Frame Home    Information  - Modular Home    Information  - Lending Dictionary  - Construction Dictionary  • Bank  - Refer a customer for a    construction loan  - Learn more about    construction loans  - Receive consultation on setting    up our own construction    loan program(s)  - Get added to the Construction     Advisors network of lenders  - Get Answers  • Contact US   How to Budget One of the most important areas of planning for you home will be budgeting. Budgeting is determining the maximum costs that you can incur for everything involved in building your home. You will undoubtedly have a maximum amount of money that you will want to spend building your home. How you budget can vary dependent upon who is building your home: With a General Contractor With a Site (Project) Manager When I'm the Owner/Builder With a General Contractor When you have hired a general contractor to build your home, the amount of concern that you have in budgeting should be pretty simple. You should have a set price that you and the contractor agreed upon and it is the contractor's responsibility to meet that commitment. The important thing to remember is to make sure that the price was agreed upon using a fixed price contract. Fixed Price Contract A fixed price contract is critical to building a home when using a general contractor. This contract means that there is a set price and if costs go over that price then the general contractor is responsible for the difference. Many contractors like to use what is known as a "cost plus" contract. This is a contract that means the homeowner is committing to paying the contractor fee and all costs of construction without a guaranteed price to build the home. Material Takeoff List Some people may find that they want to complete their own material takeoff regardless of whether they have hired a contractor or not. The process is simple. A material takeoff list is turned over to various materials suppliers or subcontractors in order to get bids back to estimate total job costs. In order to get the most accurate cost estimates you will want to supply a copy of your blueprints if you have them. Cost Estimation Software There are many computer programs available that can assist you in budgeting for your project. Some programs are provided by your house plan developers that can actually upload your exact materials list so that you don't miss any materials for your budget. All of the plans offered on the Construction Advisors find a plan search engine are compatible with the cost estimation software which can also be found on our website. You can visit the find a plan center by clicking here or you can visit the cost estimation software center by clicking here. Doing Work Yourself A very important part of budgeting for your home will be determining if there is any work you can do yourself. Doing work on your own can help you reduce overall costs but it is important to discuss this with your contractor in advance. Some contractors will allow this and some will not. With a Site (Project) Manager When you have hired a site manager oversee construction of your home the amount of concern that you have in budgeting should not be too involved. You should have a set price that you and the site manager agreed upon for his/her fee. The important thing to remember is to make sure that the fee was agreed upon using a fixed price contract. The fee will be a flat amount or an hourly rate. You can then use the site manager to complete your budget for you just as a general contractor would. Fixed Price Contract A fixed price contract is critical to building a home when using subcontractors. This contract means that there is a set price and if costs go over that price then the subcontractors are responsible for the difference. Many contractors like to use what is known as a "cost plus" contract. This is a contract that means the homeowner is committing to paying the subcontractor fee and all costs of construction without a guaranteed price to for them to complete their work. Material Takeoff List In most cases, if you have hired a site manager you will want the site manager to use his/her material suppliers and other vendors. You may find that you want to have a hand in this process. The process is simple. A material takeoff list is turned over to various materials suppliers or subcontractors in order to get bids back to estimate total job costs. In order to get the most accurate cost estimates you will want to supply a copy of your blueprints if you have them. Cost Estimation Software There are many computer programs available that can assist you in budgeting for your project. Some programs are provided by your house plan developers that can actually upload your exact materials list so that you don't miss any materials for your budget. All of the plans offered on the Construction Advisors find a plan search engine are compatible with the cost estimation software which can also be found on our website. You can visit the find a plan center by clicking here or you can visit the cost estimation software center by clicking here. Doing Work Yourself A very important part of budgeting for your home will be determining if there is any work you can do yourself. Doing work on your own can help you reduce overall costs but it is important to discuss this with your site manager in advance. Your site manager will help you determine if you can actually save money by doing work on your own. When I'm the Owner/Builder When you are acting as an owner builder to build your home the amount of attention that you have in budgeting should be very detailed. You are individually responsible for making sure you budget properly. Budgeting does not have to be difficult. You simply must be as prepared as possible in obtaining your bids. Fixed Price Contract Obtaining a fixed price contract from subcontractors is critical to building a home when you are the builder. This contract means that there is a set price and if costs go over that price then the subcontractors are responsible for the difference. Many contractors like to use what is known as a "cost plus" contract. This is a contract that means the homeowner is committing to paying the subcontractor fee and all costs of construction without a guaranteed price to complete their work. Material Takeoff List The process is simple. A material takeoff list is turned over to various materials suppliers or subcontractors in order to get bids back to estimate total job costs. In order to get the most accurate cost estimates you will want to supply a copy of your blueprints. Completing this step is the most important in getting your budget right so spare no details. Cost Estimation Software There are many computer programs available that can assist you in budgeting for your project. Some programs are provided by your house plan developers that can actually upload your exact materials list so that you don't miss any materials for your budget. All of the plans offered on the Construction Advisors find a plan search engine are compatible with the cost estimation software which can also be found on our website. You can visit the find a plan center by clicking here or you can visit the cost estimation software center by clicking here. Doing Work Yourself A very important part of budgeting for your home will be determining if there is any work you can do yourself. Doing work on your own can help you reduce overall costs but it is important to discuss this with your subcontractors in advance. You may be able to do certain work that subcontractors perform but not other work and it will be important to know if they will charge you less if you split a job, let's say, 50/50. Experience the Construction Advisors difference today —Contact Us to get started!

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