Pricing and Costs
“How Much Will It Cost?”
This is probably one of the first questions that comes to mind for any savvy homeowner. Your home is one of your largest investments, and you want to be sure you continue to spend your money wisely. Everyone deserves fair, honest, and transparent pricing practices, and to that end, we are here to help. To find out what your home improvements should cost, and why, read below!
1. Our Transparency
Our Commitment to Transparency
To begin, we write thorough contracts that protect both your rights and ours. We always want you to be in the know, so we conduct reconciliations down to the cent every two weeks. That way you know exactly where your money is going. You are also welcome to request an audit at any point if you have any further questions. Our pricing models come in two varieties: Cost Plus and Fixed Price. How do they work? Read below:
Cost Plus:
Cost Plus factors in the cost of the materials and the cost of labor, plus an additional 20-30% depending on the job type. The 20-30% is a figure agreed to in your contract at the beginning, and it does not change. The reason for that range is because some projects incur a much higher operating cost for the construction company than others. Most of our contracts operate on the cost plus 25% model. We buy materials as they are needed, when they are needed, in stages. The advantages of this system are that it can adapt to changes in the market, all expenses and savings are shared equally between us, the builder, and you, the homeowner. If material costs go down during the building process, your costs go down too. Another advantage is if you decide to change anything during a project, it is relatively easy to implement into the contract.
Fixed Price:
Fixed Price is a set price agreed to and established in contract before any work takes place. A flat rate if you will. If market conditions are relatively stable, we estimate the completed price as accurately as possible, and then that sum is paid. We then order and store all materials required within two weeks (two weeks is often the maximum a quote is valid from most vendors) to lock in the price. This pricing model works best for smaller projects such as bathroom remodels, since they have fewer moving parts and materials to store. In this scenario, you are protected from price changes in the market. The main disadvantage to the fixed price system is that it doesnt scale well for larger projects.
2. Pricing Factors
Pricing Factors
Many factors can change in the market at large, sometimes even on a weekly basis! These can often influence your final price. As your builder, we do our best to shield you from these changes and make sure you stay in the know.
Tariffs – These frequently affect the price of common imported building materials, such as lumber, aluminum, and natural stone.
Supply Shortages – You’ve likely heard the phrase: “supply and demand” When supplies are delayed or stretched thin, prices can spike.
Labor Shortages – An unavailable or unqualified labor force means higher prices charged by the workers who remain.
Taxes – Did you know? Sales tax alone in our building area ranges from 8-%11, but averages 10%.
Storms – A large storm or hurricane can slow or halt projects in progress. They can interrupt basic services such as shipping and electricity. Often, they alter the local economy for months and create a powerful vacuum for both materials and labor.
Inflation- US national inflation averages 3.4% per year, but construction materials have inflated 9.6% in the last year.
The bottom line is: we have extensive experience dealing with all of the above factors, and we want to guide you and help you save money. Whether it’s by using bulk suppliers, stockpiling, returning unused items, recycling, contractor’s discounts, long-standing relationships, or by recommending proven, yet fairly-priced products that we know well.
3. Your Choices Matter
Your Choices Matter
We keep you involved every step of the way; it is your house after all! However, the final price of a build depends largely on what you choose. Light and plumbing fixtures, hardware, flooring and other surfaces. We call these finishes, and they are your way to make your home custom, truly unique. As you probably know, not all materials are created equal. For example, some types of tile can look almost identical, but cost more than 10x the price, the same can be said for countertops, flooring, or really any non-structural element. Ultimately, as our client, you have the final say, but we will always try to save your money when we can.
Change Orders
It’s not uncommon for your ideas to change throughout the duration of a project. Perhaps you get excited seeing all of the progress and want to add a little more. That’s where a change order comes in. During a Fixed Price build, this document makes sure that both parties are in mutual agreement to a modification to the project and initial price and it provides proof in the future should the cost of the project come into question.
4. Our Averages
Average Prices for Green Coast Living in Baldwin County, AL
New Driveway or Patio – $7,000- $35,000
Bath Remodel $15,000- $40,000
Kitchen Remodel – $35,000- $80,000
Covered Porch Addition – $40,000- $115,000
Porch Enclosure and Air Conditioning Added – $20,000- $90,000
From Ground Up, Air Conditioned Home Addition – $70,000- $360,000
Custom Home (Land Excluded)- $175- $300 per square foot.
Waterfront Home (Land Excluded)- $250- $400 per square foot.
Deck or Dock/Boathouse – $15,000 – $175,000
As you know, every project is unique. Precisely where your price falls between these numbers will be based on your personal choices and exact location.
5.Budgeting
Building a Budget
Every home project should have a budget. Our goal is to give you a realistic idea of what your build will cost. We want to help you get the best value for your money and at the same time still achieve your desired result. Many projects do have minimum budget requirements, and we offer Builder financing to homeowners who qualify. Based on the size of your project we will assess if we can do what you want for the amount you are prepared to spend. For the well-being of all parties involved, we want you to be sure you will have the funds needed to complete your home plan. Open communication is crucial at this stage, it is much better to consider potential problems before a project, not during.
Our Agreement
After reviewing the scope of work, Preliminary Plan, and the estimated cost of your home project we will sign a Design/Construction contract along with you. A 25% deposit will be taken at this time, as we typically have projects split into 4 total payments. We encourage you to visit The Process and About Us pages to learn more, and feel free to reach out to us about any further questions you may have!
6. The Difference
Defining a Job:
A remodel can be a completly different thing depending on who you ask. For some people, its just a coat of paint and some trim. For others, it could mean replacing everything down to the framing, even moving load bearing walls! As designers and home builders, we are equipped to handle remodels of any complexity or size!
Why Do Estimates Differ Between Builders?
– Unfortunately, some builders do not list all of the costs when estimating, such as sales tax, but will charge you later anyways.
– We always list all costs up front, even if it may cause us to lose a bid.
– Some are not paying for proper licensing and insurance, so they can afford to charge less while putting you at great risk.
– We are fully licensed and insured, meeting the requirements for the state of Alabama, Baldwin County, and the municipalities where we work.
– Some use low-quality materials and don’t guarantee their work.
– We put a comprehensive warranty on all of our projects.
Experience the difference today! Contact Us