Building a Budget for a Sedona Custom Home

How do you go about building a custom home construction budget for the custom home you plan to build?  Custom home budgets can be created in more than one way.  Here are two distince approaches for you to choose from

1. Cost per square foot approach.  The most generalized approach is the cost per square foot approach. There is a vast range from the low $100's to over $200 per square foot quoted by builders. In Sedona, Arizona for example, these variations depend on whether the home is a very basic builder grade home or custom luxury home. The variations can also be attributed the qualifications of sub-contractors and the quality of materials used.  Buyers please beware: You frequently get what you pay for ¦and you don't get what you don't pay for!
2. Upfront planning and design approach.  Many people stop at the cost per square foot method, but if you are looking for a higher level of accuracy you can consider taking your project into design with a professional to get the project out of your head and onto a set of drawings prepared specifically for cost estimating. You can start with Preliminary Drawings ┬¥ prepared by a professional to drill down on the scope of work and submit them for Preliminary Pricing ┬¥. Here you will actually get a budget with line items for the components of the work like site preparation ┬¥, framing ┬¥, doors and windows ┬¥, roofing ┬¥, on and on. Finally you can move on to Final Construction Documents ┬¥ after all your decisions are specified in the drawings including your interior work like cabinetry, tile, etc. This level of documentation will give the most accurate pricing and reduce the need for the dreaded Change Orders.

Construction Documents are your best friend. These documents are also known as Permit Drawings , Working Drawings , Blue Prints  or just Drawings . However you label them, they serve four distinct functions.

1. Permits:  They are used to obtain a building permit, meaning that that are drafted in the language of construction and life safety so that building officials can certify that the project is in compliance with local and national codes.
2. Design Intent: They serve to nail down the design intent of the house by specifying all the elements of construction from the structure to the interior design.
3. Accurate Pricing: They serve to qualify and quantify the construction so that the Builder and team of sub contactors can understand the scope of work and price the components of materials and labor. Important Note: The more detailed the drawings, the more accurate the pricing. Conversely, a loose crafted set of drawings will leave too much guesswork and a false representation of costs. It is very important to hire a technically proficient architect or house design to prepare your documents. It is also equally as important to select a professional that will detail the interior design as carefully as the building envelope, since as much as half the cost of your house is the interior.
4. Bidding.  The Construction Drawings can also be used as Bid Documents. The same set of drawings can serve as a tool to compare the cost from multiple Builders to obtain apples to apples ┬¥ numbers. The level of accuracy on materials in particular will be very high. Labor costs however may still vary, so it is important to look deeply into the cost proposals for differences in labor and markup costs. Low Bid ┬¥ vs. High Bid ┬¥The numbers are not the final answer! The lowest bid may have too many exceptions, and the highest bid may have too much embedded overhead cost. In the end you must trust the integrity of the Bidder, this means the contractor's reputation and experience, so do your homework. Hire a design professional who has worked with many different builders and who can advise you of the subtle differences.