How to Plan Construction Costs

Determine costs before you start.

Most of us have heard horror stories from friends or neighbors about projects that were started and never completed due to cost overruns. The key to preventing this type of disaster is careful planning of construction costs before ground is broken.

Things You'll Need

• Computer with an Internet connection
• Graph paper
• No. 2 pencil
• Calculator
• Means Construction Estimating guide
• 100-foot tape measure

Instructions

Determine the Scope of Your Project

1. Discuss the overall objective of your project with your significant other. Having a clear understanding of the objective makes decision making easier as you encounter inevitable obstacles.

2. Measure the area that will be added or changed to determine the square footage.

3. Visit local building stores and choose the needed materials. Be sure to get a per-square-foot price on any materials.

4. Create a materials list from Step 3 and roughly price out what these materials will cost. Leave blank lines for the cost of items you're not comfortable estimating, such as drywall, tape and texture, and framing materials. Add 30 percent of the materials cost to get a rough estimate for labor if you're hiring a contractor . If your project is an addition, you need to add the costs for the permit and inspection process.

5. Create a document detailing your objectives, any special needs this area has and what you expect from the end result. Include your materials list as an addendum. Include a rough sketch of your project on graph paper and put the documents in a three-ring binder for all correspondence relating to the project.

Determine A Rough Price

1. Purchase an RS Means construction estimating guide on the Web or at a local building supply store to get a per-square-foot construction cost for an addition based on the type of materials used. There usually are sections for estimating kitchen and bathroom remodels, also. This estimate is good but can be off by up to 15 percent.

2. Use your materials list created in the last section to get a more exact price, and use the Means guide to get framing costs. This will give a more accurate figure on your costs.

3. Make any adjustments necessary to fit the project within your budget. Revise your materials list and cost estimate accordingly.

4. Update your overall document and get it ready for review by any professionals you are engaging.

Calling in the Pros

1. Get bids from licensed contractors. Visit www.reliableremodeler.com and www.servicemagic.com to get up to three contractors to bid your project. Take them on walk-throughs and give them a copy of your document. Ask them to provide detailed estimates for materials and labor, as well as an estimated time frame.
   If your project is an addition, a designer or architect will have to create a blueprint before getting bids, and you need to start the permit process.

2. Review the bids carefully against your document and the RS Means guide to see whether anything seems out of line. Don't be afraid to question your contractor on individual line items.

3. Choose the best overall bid based on cost, experience and overall knowledge.

4. Ask your contractor if he foresees any possible "gotchas." If so, work with him to quantify them and add their cost to your estimate.

Tips & Warnings

• Be sure to shop for the best prices, and don't forget the Internet as a source of good deals. Cheaper isn't always better -- be sure to get materials that are capable of handling their predicted level of use. Listen to your contractor. He or she has years of experience in creating such remodels and additions and can have some great cost-saving ideas.

• If you see that the project you had envisioned will cost more than you can reasonably afford during section 1, go back and revise its scope until you can fit it into your budget. Alternatively, you can always get a construction loan.

References

• Reliable Remodeler
• Service Magic
• R S Means