Construction is about managing and mitigating risk, whether it’s safety or budget; minimizing and mitigating risk is why we plan and organize as much as we do. When deciding on which type of agreement to pursue for your project you need to ask yourself some key questions, am I comfortable bearing the risk of potentially increasing input costs between signing the contract and completion of the project and in return, getting the best possible pricing for my project? Or am I not comfortable taking that on, and therefore ok with paying a little bit more to be able to have a reasonable level of certainty of overall cost from the beginning? 

There are three contract options to consider for your project and in this blog, we’re hoping to help you determine which is best for you. 

Quote

Pros 

Certainty of a fixed price for a defined scope that’s established before developing the contract.

Cons

A higher margin for the builder is required to offset the possibility of increased input costs during the project, meaning if the project goes well for the builder, the homeowner will pay more than they otherwise would.

Thoughts

By choosing a quoted contract for your project you lock in a price for a set scope of work, for which the builder supplies all labour and materials. Because the risk of increases in input costs from the time of signing the contract to the time the project is completed, is eliminated for the homeowner, the builder needs to build in a larger margin to hedge those risks. This means that if things go well, the builder will make more profit and the homeowner will pay a higher price than they otherwise would have. However, if input costs rise, the homeowner is insulated from those increases. 

Because the builder supplies all materials and labour in a quoted contract there is very little required transparency in the relationship, it’s as simple as payments being dispersed at pre-agreed stages of completion. This may be a benefit to some who don’t want to have to review invoice packages on a regular basis and just cruise through with piece of mind.

To avoid change orders, which will not require transparency, the homeowner needs to provide the builder with as much information and detail as possible before the quoting process starts. This means a complete scope of all selections, millwork, etc. The more information provided, the more accurate the quote and the less chance of a change order during the construction process.

A quoted contract can also be set up with allowances for finishes based on per square foot or per piece costs to allow for decisions to be made during the process.

Project Management 

Pros

The homeowner benefits from the builder’s network of suppliers and trades to get the best price possible for the inputs into their project. The homeowner only pays the true cost of the project plus a management fee.

Complete transparency and a fully aligned approach.

Cons

Risk of input costs increasing between signing the contract and completion of the project. 

Thoughts

A project management contract is the most transparent option available for your project. The homeowner benefits from a lower fee from the builder as well as access to the builder’s pricing for suppliers and subtrades. The client also gets a completely transparent view into their project, all receipts and invoices are submitted for review and peace of mind. 

When engaging in a project management contract with a predetermined fee, both parties are moving together toward a goal with total transparency and as a team. A project management approach fosters idea sharing, value engineering, collaboration, and creativity. Along the way there may be better ways of completing different aspects and if there’s freedom to collaborate, versus complete adherence to a scope in order to reduce change orders, there’s more possibility for efficiency and the best possible outcome. 

A project management contract also allows for more time as the project unfolds to make final decisions. 

If a project management contract is right for your project, you can help minimize costs and overruns by being as upfront and transparent as possible from the start. The more information and selections that can be provided early, the better. This allows for the highest level of detail and exacting budgeting that can bring you close as close as possible to a quote at the lowest possible management fee.

Hybrid 

Pros

Locked in pricing for key aspects of the project while still allowing for a more dynamic approach to the finishing.

Cons

A higher margin for the builder on quoted aspects of the project.

Thoughts

Not everyone can have all the information and selections completed upfront for their project, especially a custom home. If you’re realistic with yourself and you know that’s not possible, a hybrid model may be right for you. 

In a hybrid model the builder can quote the known aspects of the project, for example, excavation, framing, insulation, drywall, exterior finishes, etc. and operate on a project management basis for the finishes on the interior. This allows a level of comfort and certainty for the items that are quoted and a known basis to work from when making selections as the project develops. 

As with a complete quote, the margin for the quoted portion of a hybrid contract will be higher than pursuing a project management option, but the safety assured may be worth it, while still benefiting from a project management style for the remainder.

Which is best?

At the end of the day, there isn’t a right answer that applies to every project, just as every home is unique, the approach required is the same, unique. We’re happy to talk through your renovation or new build project and tailor an individual approach that makes sense for you. 

Elevators have long been a sign of opulence rather than what they truly are… utility and practicality. 

When you’re building the custom home of your dreams you want to build for the long term, make it livable for you and your family into the future, an elevator can be a critical component for future proofing your investment.

Why would I put in an elevator?

Sometimes, a building lot constrains the option of putting all of the square footage on the main floor of a bungalow and you need to go up. Obviously, as we age, a bungalow with less stairs is the ideal, but if that’s not an option due to the constraints of your property, an elevator can be a great addition. The elevator will allow you to move yourself and “things” between floors easily, as if you didn’t have the stairset from the main to second floor allowing your home to be usable well into the future.

If you can build a bungalow but you still want to be able to use the basement regularly even if mobility becomes challenging, then an elevator is the way to go. It will allow you to easy access while maintaining a discreet profile and not having to rely on intrusive stair lifts or other options.

When should I put in an elevator?

The best answer is now, while you’re working through designing your new home, include it. Even if you don’t put it in today, having it planned as part of the building will allow you to more easily integrate it later on. If you choose to have an elevator be made part of your design but don’t want to install it, the hoist way can easily be made into a hallway closet on each floor until the time is right.

Of course, the sooner you put it in, the longer the cost is amortized over and the utility gained can be enjoyed over a greater period of time, they just make lugging stuff up and down so much easier. If you opt to put it in in the future, there will be a bit more work involved in deconstructing the closets in the hoistway and prepping everything for installation.

What does an elevator cost?

Honestly, they’re surprisingly affordable, a nice three stop (basement, main, second) elevator will run +- $ 30,000.00 installed and go up from there. When you consider potentially renting a stair lift in the future and not having the same utility then, or over time, it’s almost a no brainer when compared to the total cost of your new home.

Is an elevator right for my custom home?

Maybe… probably, you just need to weigh the pros and cons and at least consider it as an option. When you’re building your dream home you don’t want to leave any stones unturned, and this is one that can have big benefits for your lifestyle now, and tomorrow. 

The answer to this question is, as usual, “it depends”. What’s your style? What’s your budget? Do you want to maintain it?

Modern Style Siding

There are many options that fit into a modern aesthetic when it comes to siding for your new home or renovation project. Wood, steel, ACM, composite cement , composite plastic and stucco are all common options.

Wood

Wood is a great design choice for modern styled homes, it adds a softening affect that can make, what is sometimes a harsher style, more homey and comforting. The orientation of the siding vertically or horizontally can really impact the final look, even when using the same product in the same colour.

Standing Seam

Many people refer to standing seam as “metal siding”, it’s panels, usually 16”-22” wide with seams on either side that lock together. Standing seam can look very cool in a waterfall installation, where the roof panels cascade down and connect to the wall panels. Standing seam siding is a very intense and impactful look that can be used for the whole envelope or in specific areas.

ACM (Aluminum Composite Material)

ACM panels are really common in commercial and institutional applications, they’re very durable and don’t oil can like metal does. ACM panels are best utilized in areas where a flat surface that’s perfectly straight and smooth is the goal. It’s also a great product for large fascias and capping columns.

Composite Cement

Composite cement comes in many different profiles, the one most common for a modern look are panels that mount into a track system. It gives a similar appearance to ACM but at a lower price point.

Composite Plastic

These are products like NewTech, it’s a composite core with a plastic wrap on the outside. It’s great for achieving a “slat wall” look on the outside of a modern styled home and can add a hit of natural colour while still maintaining the design intent.

Stucco

Using stucco can also be a great choice for modern design. It can be installed with grooves to add some interest to the design. It also provides 2” of continuous foam insulation on the exterior of your home. This drastically improves the efficiency of your home vs. not having installed a continuous insulation.

What do the different siding options cost?

Again, that depends on the complexity and quantity, but we can give some direction on which is most and which is least expensive, below is a ranked list from least to most expensive for the different siding options for a modern style home.

1. Stucco
2. Composite cement
3. Wood
4. Standing seam
5. Composite plastic
6. ACM

What kind of maintenance should I expect with my siding?

Of all the options above, wood will be your most maintenance intensive option, and if you get a quality prefinished product, the maintenance is pretty minimal. Most wood siding finishes are going to be guaranteed for at least 12 years, after which time you may need to do some spot touch ups and eventually, if you want a new look, refinish the entire surface. The actual siding (not just the finish) will last at least 35 years with some lasting 50+ with proper attention. There’s lots of 100+ year old buildings out there with the original wood still on them!

Stucco will also need some maintenance at some point, the colour is painted on and inevitably over time it will tend to fade. Recolouring stucco is not intrusive, it’s just a matter of repainting it and you’re good to go!

The other options are zero maintenance, sure they will fade (slightly) over time, but that will be minimal, the only real maintenance is keeping it clean!

On the question of “when to clean my windows?” the answer might surprise you.

Most people associate cleaning their windows with a “spring clean”, of course that’s great and it’s nice to have clean, clear windows to let the natural spring light in, but the most important time to clean your windows is the fall. 

The fall? Why? 

During the winter months we want our windows to help us gain the heat that’s available from the sun to help with the heating of our homes, this is called solar heat gain. The solar heat gain you can get from your windows is materially affected if they’re dirty, you get the most benefit when they’re clean! 

The opposite is true for the summer, but no one’s saying it’s nice to have dirty windows in the summer, it’s just not going to benefit, in fact, it may hurt your home’s performance a bit to have nice clean windows because you’ll be picking up more of the solar heat gain, but that’s what blinds are for!

Not everything is as intuitive as it seems but when you think about it, it makes sense.

As with most questions in construction, when asked “should I renovate or tear it down and rebuild?”, the answer is “it depends”. There are many factors to consider when trying to answer that question, but let’s run through a few of the key ones here.

Addition? Where?

One key question to ask on during the renovations or new build decision process is “how big and where would your potential addition be?” If you’re considering a large addition that’s going to remove the main floor of your existing home and build up, and go out the back, you may find the spread between a new build and the renovation you’re considering to be less than expected. 

A lot of labour goes into the demolition phase of an extensive addition and renovation to get us to the point where we can start moving ahead with the actual building. When tearing down and starting from scratch, we only have a couple days of demo, and usually less cost, before we’re off to the races. This is especially true for an extensive addition that adds to the existing footprint, because the excavation and concrete phase will be close to as long as a fresh new build. 

If you’re planning an addition on top of the existing house, with an addition that increases the foundation footprint substantially, then a new build should be a top consideration.

Basement

Another area to consider is the basement. Do you use your basement a lot? Are you planning to use the basement often in your newly completed home? What’s the height of the basement in the existing home? 

Most of the new homes we construct have a minimum basement ceiling heigh of +-9’, this means you get another completely usable floor in your house that you may not currently have if you have an older home. Further, when we add large windows to the basement, we completely open up for light to flood in, making it not really a “basement” after all. This means you might not actually feel the need to build quite as much square footage as you thought, reducing time and costs.

If you’re doing an addition, of course the added area can have the same +-9’ depth and more windows, but the existing basement will remain the same height, unless it’s underpinned.

Main floor height 

When we build a new home we usually have ceilings that are 10’ + on the main floor, most existing homes are closer to 8’. If the main floor is restructured to raise the ceiling height to 10’ or more, there is a lot of labour and design work involved to ensure the change is executed properly. 

When building new, 10’ is the standard and we go up from there!

Existing set back conditions 

One factor that can nudge things in the renovation direction is if there are close existing lot set backs that you want to maintain. If you tear down the existing house, you will need to adhere to the current zoning bylaws and therefore, the current set back requirements. Of course, you can go through the committee of adjustment process to obtain a variance, but it won’t be the same. There is still a potential that the new addition will have to adhere to current zoning, but at least the existing can remain. 

If you push a new build close to the property line, depending on the flanking neighbour’s houses and soil conditions, you may introduce the need for shoring as well, which can be costly. 

How much can you really save?

We’re not just talking about money. How much of the existing house are you actually saving to complete your vision? If you’re just going to end up with an old, not properly waterproofed foundation and a really out of level main floor that has all the openings changing, it’s really not worth it, you should build new. 

If you’re adding a simple addition and the existing house is getting updated, not full revamped, then renovating may be the path forward.

Budget considerations 

The budget for any construction project should always be established up front and prioritized throughout the design phase. If the budget fits a renovation, design for that budget. In the end, a complete renovation with an addition and lots of changes to the existing house as compared to a new build will likely save somewhere between 8% and 12%, as long as the existing home is in solid condition and able to receive the changes.  

Timeline for permits and construction

It’s worth considering the process for obtaining approval for an addition versus a new build. In some municipalities, the approval process for an addition or renovation is more streamlined.

“So what should I do, renovate or rebuild?”

The bottom line is, if you’re going to change the entire house and add considerable square footage, then a new build should be a strong consideration versus renovations. However, if you’re looking to add some square footage and keep things relatively the same in your existing home, then a renovation and addition is probably for you. 

We’re always here and happy to discuss your options with you to find your best path forward, reach out and let’s talk about it!

It depends…

You’ve decided to embark on the journey of creating your perfect, just for you and yours, custom home and now the question of “how much will it cost?” is right on your front door step. The answer isn’t as straightforward as it can be made out to be; “it depends” is the most accurate and honest response when asked.

What does it depend on?

Custom Home Design (and we don’t mean finishes)

The design, the bones, the systems, of your ideal custom home can have an outsized, but often not thoroughly considered effect on the overall cost of your custom home build. It’s not just the material costs that can swing with a design, it’s the labour involved in the execution. 

For example, a modern style home with huge windows, tonnes of steel to achieve the airy open spaces we all love requires a completely different approach from the beginning than a traditional home with primarily engineered and dimensional lumber. Modern homes with extensive steel to create the openings require extra planning up front to ensure the steel drawings and then window shop drawings are amalgamated so they work together on-site. Starting this, sometimes months long, process when final construction drawings are ready is critical. 

Once all the steel and windows are accounted for and a permit is in hand, someone needs to put it all together. An integrated framing and steel crew is imperative to success, there is more labour and many more moving parts than with a traditional home design, just ask the welder!

If the overall cost is a high priority (and for most people it is), then the most important thing to do upfront is establish your comfort zone with your budget for your custom home and tailor the design to meet that number. Trying to work backward is counterproductive and can lead to costly revisions to your drawings and delay the application for a permit. 

Now let’s talk finishes

The finishes selected for any project, and especially a custom home can absolutely make it what it truly should be, however, selecting finishes can also swing your budget drastically. There are always options to achieve a design intent that can be higher or lower, that’s why we need to work together to make sure you arrive comfortably where you want to be. We continually monitor and track decisions to give you a real time view of where things are at and flag any potential overage before moving ahead.

What does a custom home cost per square foot?

We build custom homes, each one is completely unique and one of a kind. The question of budget per square foot is completely subjective to your home and style. As referenced earlier, a modern home with large openings and lots of glass will be more per square foot than a traditionally styled home with simpler construction. 

Your budget will also dictate the allowances for finishes that work, you can manipulate the cost per square foot significantly with those decisions; keeping within allowances or splurging on certain details. 

Generally, we build custom homes that are in the low $ 500’s per square foot up to $ 800.00 per square foot. It is completely possible to achieve a lower price per square foot as well as higher ones!

How do I determine what to budget for my custom home?

Talk to us, book a meeting, let’s sit down and really get into what’s important to you and your family. Once we have the key metrics, we can offer a path that aligns us with your goals. We can provide you with thoughts and general guides for budgets based on our meeting. We’re easy to talk to and we always like meeting new people!