Most problems on residential projects that ‘go wrong’ occur prior to the commencement of construction. Many problems occur when a budget is still largely theoretical, a builder has not yet been appointed and a floor plan is being developed based on a family’s ‘wishes’ rather than the ‘reality’ of the constraints that exist.
There are several key decisions that a family’s priorities can turn into very real changes to a home vs. A lot of paperwork. Sequence is where most of the weight of these decisions is to be found. In other words, the order in which these decisions are made can matter more than the decisions themselves.
Bring the builder in before the drawings are finished
Design-Bid-Build Projects – Most Custom Home Projects are Design-Bid-Build Projects. The Architect completes the Design of the custom home and then issues the project for Bid. It is typical for the first bid to come in way above the family’s initial estimate for the custom home. In many cases, it is possible to eliminate 6 weeks of additional Design and costly changes that are typical of Design-Bid-Build Projects.
Testing a shortlist
A shortlist of custom home builders Charlotte NC families would consider, assessed on evidence (not presentation) would include builders who can provide the following information and more.
- Three projects of comparable scope and finish level, with contact details for the owners, including at least one completed more than two years ago.
- A sample estimate showing how allowances are structured and what sits outside them.
- The average change order value as a percentage of contract price across recent work.
- Named site supervisors and how many concurrent projects each carries.
Budget in tiers, not in a single number
The typical family has a fixed budget, allocated to different categories of spend (e.g. Kitchen). But building a house is not really about categories of spend. There are really four tiers of spend in building a house, the structure and the envelope (i.e. The outer walls and the roof); the systems (i.e. The plumbing, the electrical, the HVAC etc.); the fixed interior finishes (i.e. The flooring, the cabinets, the counters etc.); and then the discretionary items (i.e. The ‘decorating’).
The contingency. This should be included in the family’s budget as a line item. Most builders have a contingency for unexpected problems on a building site but this should be worked into the family’s budget, not just assumed by the builder. A flat building site with straightforward design would require about 10% of the total budget but sites with slopes, bad soils, wells and septic systems and very custom millwork require a much larger contingency of 15% or more.
Where influence sits across the project
| Stage | Ability to change cost | Cost of making a change | What to settle here |
| Site selection and feasibility | Very high | Minimal | Lot constraints, utilities, orientation, buildable footprint |
| Schematic design | High | Low | Square footage, story count, roof complexity, structural approach |
| Design development and permitting | Moderate | Moderate | Mechanical strategy, window schedule, cabinetry layout |
| Framing and rough-in | Low | High | Nothing new. Confirm only what was already specified |
| Finishes and closeout | Very low | Very high, with schedule impact | Color selections and minor hardware substitutions |
Design around the household’s actual week
When architects and designers create a plan for a family’s future home, it is usually based upon future events and the way that the family will entertain in their future home. But for most families, it will be on typical Tuesdays and other days of the year, that they will spend time in their future home. Therefore, mapping out the family’s typical morning for a week of weekdays and typical evening for a week of weekdays, will give them an idea of how well a certain design will work for them in real life. It is worth walking that weekday map through with Charlotte NC custom home builders early, since a plan that suits ordinary routines is far easier to price and build than one shaped around occasional gatherings.
Three planning tests worth applying
- The arrival sequence. Where do bags, shoes, sports equipment, and mail land between the car and the kitchen? If the answer is the kitchen island, the plan needs a mudroom with real depth.
- Acoustic separation. Bedrooms sharing a wall with a media room or a laundry will be regretted quietly for a decade. Stagger studs, insulate interior partitions, and keep plumbing chases out of bedroom walls.
- Twenty-year flexibility. A ground-floor room with a full bath adjacent serves as an office, a guest suite, a teenager’s retreat, and eventually a main-level bedroom. That single move outperforms most add-ons.
Spend on what cannot be replaced later
Changes to things like countertops, faucets and lighting can be made within a weekend or so. On the other hand, changes to the structure, envelope and systems of a building can only be made after those elements have been completed and therefore are much more expensive to make after completion of the work.
Air sealing, continuous insulation, the correct installation and flashing of all penetrations through the building envelope and a correctly sized HVAC system to meet the calculated building load will determine the comfort level and cost of the house for the life of the house. Look for the blower door test results before the house is drywalled. Find out how many supply registers are in each room and where the returns are located.
Inspection points families should attend
Family site visits to their home under construction should total 3 visits. The first visit would be after completion of the framing of the home and prior to installation of the insulation. The second visit would be after completion of the installation of the insulation and the required air sealing of the building envelope. The third and final visit would be a pre-drywall visit. During this visit, the builder will confirm several family priority items including, switch height, rough-in of appliances, and adequate blocking for future installation of grab bars and heavy shelving.
Treat decision-making as a scheduled deliverable
There are many factors outside of a builder’s control that can affect the completion of a custom home. However, the biggest cause of delays is typically related to the family not having made selections in time, rather than the trade not being available on time. A good builder will provide a selections calendar with specific dates for each decision and will outline the procurement lead time for each item.
Decide who will decide on changes to the plans and set up a process to approve change orders. Set up a time frame for how long you will take to respond to changes to the plans. Families who assign one decision maker and have a weekly call to review progress of the home building process complete within budget more often than families who are trying to complete within budget while deciding on changes to the plans by consensus in the moment.