JAG construction performs a two stage budgeting process. Phase one is the budget estimate. During this phase, we will develop a detailed spreadsheet outlining an understanding of the costs involved in building your home. Most prices will be based off our previous experience and current market prices. We may acquire a few bids at this point, but most items will be unit prices. We will also highlight any outstanding areas of concern, as well as additional opportunities for increased efficiency or design related cost savings.
We will then schedule a meeting with you for a line-by-line review of the budget estimate. This meeting is the ideal time to ensure customers understand the many steps involved in building their home. It is also a good chance for us to ask you more detailed questions about your expectations and ideas for the finished product. During this two to four hour appointment, we will discuss and potentially change items in the initial estimate, and ultimately establish the final budgeted cost. This final budget estimate should arrive at a value within 5% to 8% of the overall building estimate. If the estimated cost to build is over the customer’s budget, we will offer suggestions for cost savings. If the overage is substantial, we may need to go back to the design team and consider alterations. If the estimate is on target for your budget goals, we will move into the next phase of our budgeting process.
Phase two is the quoted Estimate. At this point, we request a deposit of $2500 - $5000 depending on the size and scope of your project. In this phase two of pricing, we send your plans out to bid and get firm prices from our team of reputable subcontractors and suppliers. We also further examine any unanswered questions about products or assemblies. We will conduct site visits with subs to confirm site conditions and related costs. We will also work with you to finalize utility connections and permits for sewer, septic, water, well, electricity, etc.
At this stage, we ask you to go shopping! JAG can connect you with our preferred vendors and suppliers to look at items such as plumbing fixtures, lighting, appliances, tile, flooring, countertops, cabinets, etc. The more items that can be selected before construction starts, the more accurate the budget will be. This stage of the pricing generally takes two to three weeks. When complete, we sit down with you to review the budget line by line again, this time highlighting items that have changed or confirming selections that have been established. If, at the end of this meeting, we are still on target for your budget needs, we will be moving in the direction of signing a contract to build your home. Once a contract is signed, we would either head towards financing or construction. If bank financing is not necessary – then hooray! It’s time to pull a permit!
If financing is required, we move to the next step…