How to Save Money on Construction Costs

If you are building a home, you might have thought of ways to cut costs. There are mainly 3 ways to save time and money on construction costs. First, avoid unnecessary mistakes. Second, cut back on upfront costs. Third, make the home less expensive to occupy.

Before undertaking a home construction project, you should communicate with your contractors. Specify your requirements clearly. Misunderstandings between the builder and the contractor can lead to costly mistakes. Do you want the project to be finished before a certain date? Let the contractor know about your deadline.

Make the home safe

Choose fire resistant materials for building the home. They are not exactly cheap, but they make the home more salable. Many of these materials are combustible, but fire takes long to affect them. This gives occupants enough time to escape. Fire resistant windows in particular are popular with buyers.

Use reclaimed materials

You will perhaps want to explore the possibility of using reclaimed materials in the project. Objects bought from home improvement stores also tend to be less expensive. If you can find a Habitat for Humanity store somewhere near you, you will be able to find good quality cupboards and other fittings for deeply discounted prices. If there are items that you want to procure on your own, you should communicate this with the contractor.

Add sustainable features

Buyers now look for sustainable features that will make the space less expensive to occupy and hence the builder needs to incorporate them into the building. Install water efficient fittings in the bathroom and the kitchen. They will reduce the utility bills of the occupant.

Many builders now install solar panels and home wind turbines. While the upfront costs can be high, they help reduce the energy bills of the homeowner. The builder can also quote a higher price for these homes.

Prefabricated homes

If you really want to save money, you should consider prefabricated homes. Modern prefabricated homes are well-built and energy efficient. Better still, they look stunning. In certain areas, you can construct homes with reclaimed shipping containers.

Reduce labor costs

Labor costs can add up to the cost of construction. Before your workers arrive, make sure that they have everything they need to work with. This includes construction materials and tools. If you make them wait around, you will incur huge losses.

Obtain all necessary permissions

Before starting the project, you have to ensure that you have obtained all necessary permissions. A stop work order can cause costly delays and also invite fines.

Don't compromise on quality

As a builder you will want to save money on building costs, but remember that for the buyer the home is an investment. Hence, opt for fittings and features that will make the home more salable over the years.

Appliances with WaterSense and Energy Star labels are becoming popular with buyers. WaterSense is the measure of an appliance's water efficiency. An appliance needs to be at least 20% more water efficient than conventional appliances to qualify for this label.

Buyers, in particular, are looking for materials that will recoup their cost while they sell the home. Laminates may be less expensive. But hardwood or tile flooring makes the home more salable.

While building the home, saving money alone cannot be the sole objective of the builder. Instead, builders need to look for ways that make the finished project more salable and livable. This involves adding energy efficient features and fittings that recover their cost.

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How to Avoid Common Framing Errors

Simple things can make a big difference. This is particularly true in the home construction industry. It is true that home construction is not a technologically advanced field. We still use more or less the same technologies that we used ten or twenty years ago. However, better building materials are available now and they significantly improve the structural stability and performance of the building.

Here is a quick overview of common framing mistakes that can lead to callbacks and complaints:

Installing sheathing as a single span: Sheathing needs to be installed over 2 or more spans.

Installing strength axis in the wrong dimension: It is generally a good idea to install panels with their strength axis across the supports.

Sheathing that isn't properly supported: If the wooden panels are cut less than 24 inches in width, they will probably deflect over a 24” panel. Since these panels are usually installed on the roof ridges, workers may walk over them during the construction. If the panels are narrower, you will have to support them with edge support clips.

Installing glued laminated timber upside down: These beams tend to be of the unbalanced kind. Generally, different levels of bending stresses are assigned to the tension and compression zones. If you find the label 'Top' on the top lamination, you must ensure that that side of the timber goes up.

Panels that are not properly spaced: When installing panels, make sure you space them properly. Panels made of wood may expand or shrink when there is a difference in the climate. When they are exposed to moisture, they may expand.

If panels are installed with hardly any space between them, expansion will be prevented. This may lead to buckling. To prevent buckling, there should be a gap of 1/8 inches between panel ends and edge joints.

Fasteners that are overdriven: Improper fastening will lead to aesthetic and structural problems. They are the number one cause of call backs.

Inconsistent joist spacing: Make sure that the deflection across the floor is consistent. If not, expect a lot of call-backs from angry customers.

Inconsistent floor gluing

Squeaking is one of the most common complaints about wooden floors. If the floor system is properly glued and nailed there will be no squeaking.

By following the five framing principles given below you can prevent these common mistakes.

·         Wooden panels tend to have a strength direction. If you adhere to this rule, you will be able to prevent most deflections.

·         Since wood has a tendency to expand or contract, you need to ensure that the panels are properly spaced.

·         Make sure that your building practices are consistent. Inconsistent materials, framing and alignment can cause a lot of problems.

·         Most vapor related problems can be prevented by using vapor retarders.

·         The builder or the contractor also needs to ensure that the sheathing is continuous. Continuous sheathing will offer greater resistance against high winds.

Improperly built field notches

If the field notches are made improperly, they may compromise the structural capacity of the framing member.

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Is the Construction Industry Gearing Towards a Recovery Phase?

The construction industry has been struggling with recession for a long time. However, now it looks like that the recovery phase is finally here. The Kitchen & Bath Industry Show and International Builders’ Show, which were recently held in Las Vegas, saw large crowds indicating that the age of recovery has eventually arrived. Various global and local factors contributed to the slowdown in the construction industry. The financial meltdown saw many people losing their jobs, lowering their disposable income. All these factors resulted in lower demand across the board and the construction industry was not immune to it either.

 

The industry is definitely showing the signs of recovery. While attending the International Builders’ Show, we decided to check out local communities in the town. We visited various neighborhoods – notably Harmony Homes’ family-oriented Silhouette community. The tour was very comprehensive as we got to witness the polar opposite ends of a spectrum. In January, the NAHB/Wells Fargo Housing Market Index was slashed from 56 to 46, losing 10 points. However, by the time of the trade show in Las Vegas, the sentiments were upbeat again.

 

The contrast between the ends of the spectrum was visible during the show. The higher end of the market held itself up well during 2013 and is continuing to do so. However, the lower end of the market is not so predictable. According to David Straub, Las Vegas division President of Toll Brothers, the company sold 39 properties in the range of mid $500s to mid $600s.

 

The construction industry is now poised for a bounce back, but the indicators are still not clear. We surmise that the industry needs to ask itself certain questions to see where it stands on the recovery curve. It is time for a little introspection on the following lines:

 

The industry needs to predict whether it will see the return of first-time buyers in the market. It also needs to see if the lower end of the market is going to hold itself up steady. The industry also needs to stimulate first-time buyers with more engaging opportunities to avoid high rents.

 

The industry also needs to pay attention to macroeconomic factors. The domestic economy seems to be picking up. However, it is yet to be seen whether there would be enough job creation to see a bounce in house ownership stats. This factor will help shape the future of the construction industry.

Another macro-economic factor to be considered is related to banking and mortgage regulations. These regulations will determine banks’ and mortgage lenders’ willingness to financially back the property purchase decisions.

 

Various states such as Colorado and California are looking to develop master planned communities. These plans will give a boost to the construction industry.

 

Construction industry also needs to scale up. In the past couple of years, the industry has sustained itself by writing down its assets and cost-cutting measures. However, this method is not sustainable. The construction industry needs to see that it will be able to thrive in coming years and retain is profitability. The industry also needs to become more efficient.

 

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Home Construction: An Industry Rebounding with Optimism

The home building niche and its associated businesses have been instrumental in bringing about numerous cycles of economic recovery. This has helped the nation to recover from the aftermath of the economic crisis. Today, the home construction industry is actively addressing the renewed interest in home ownership and long term home rentals.

It Could Have Been Better

The number of homes built for occupancy and rentals grew steadily during 2013. This positive outlook is expected to sustain through 2014. As impressive as this might seem, it doesn’t reflect the potential of the industry. Home builders usually take upon 1.7 million homes during a year that is not hammered by recessionary cycles. Addressing the demands of younger, smaller families and home rental-seekers, the industry could have done much better. The resurgence has been impaired by the devastating effect that the slowdown had on the entire housing sector.

Understand How Recession Took a Serious Toll

During 2005, the home construction sector was at its peak. No amount of supply could meet the ever-rising demand. During this period, homeownership statistics were very high across the nation. However, some policy mistakes and regulatory oversights combined with the forthcoming recession ensured that an unprecedented shock was delivered.

Demand gradually declined and rising interest rates further mocked interest homebuyers. As the national and global economy started crumbling, house prices declined but not sufficiently to stimulate a rise in demand. Potential home buyers grew more skeptical about their sources of income and lending had already become too stringent.

It should be noted that the industry was among the first to show signs of recovering in a battling economy. The process has taken five years but its former glory hasn’t been restored, yet. Yes, the housing construction business grew impressively by double digits for two consecutive years—2012 & 2013. However, this growth seems impressive because during the preceding years, the demand was abysmally low. The journey of recovery has been slow and steady so far but now it seems ready to push through.

Having Recovered, Industry is set to Grow Insatiably in 2014

The overall picture seems rather encouraging for the next two years. A number of reasons explain this optimism across the industry.

For starters, genuine buyers who had been stuck during the slowdown years are set to return, i.e. demand homes. Whether they are first-time buyers wanting a new apartment or families trading for a bigger home, this is genuine demand that will drive ownership. In the last few years, homeowners have been very cynical about home ownership. This sentiment is fast changing. Job growth rate had impressed during 2013 and this trend will continue during 2014 with no palpable reasons for hiring to decline. Young adults are increasingly finding more jobs and getting better wages. Leading economic, trend-analyzing firms expect household incomes to increase and smaller businesses to recruit more during 2014.

Optimism Mixed with Some Caution

Construction firms are keeping a close watch on prices of building materials, ensuring that they are prepared for an unwarranted price hike. The national economy can do little if a major, international catastrophe emerges. More jobs need to be created across the nation to ensure that demand from first-time home buyers doesn’t decline.

Concluding Thoughts

The market is looking ripe for more home-ownership deals. Savings rates have dipped, bringing a cheer to families who have been waiting for normalcy to return. The stock market seems renewed and lending is becoming easier with financing institutions feeling more confident. Some mortgage trends are still in the negative but the numbers aren’t too alarming to halt the overall optimistic trend. The political instability that plagued the economy now seems largely cured. The much-argued stimulus packages and spending cutbacks aren’t derailing the enthusiasm of an upbeat market. Hiring is rising across the industry as demand for new homes is no longer being speculated.

Building A Home: What Steps Are Involved?

While building a new house is an exciting experience, it can be equally stressful. Sometimes you will need to make changes to the plan and then the construction takes longer than expected.

Indeed, the first step in building a house is buying a plot of land.

Getting all permissions

The next step is to submit your building plan and get it approved. If the lot doesn't have access to public water, the plan should include a well. It should also include a septic system if a sewer isn't already in place. Remember that there are fees attached to each one of these permits. In some states you might require permission to clear the lot.

Health inspectors will supervise the work on the septic system and the well. There will be yet another inspection after the well has been dug and the septic system has been installed.

Clearing the lot

You will probably have to cut down a few trees before building the house. This might require a permit.

Laying the foundation

You need to obtain all permits before you start building the foundation. Since the rest of the construction will be built on the foundation, it has to be strong. There may be 1 or 2 inspections during this phase. They are done to ensure that the contractor is building the foundation properly.

Framing

Once the contractor has built the foundation, they will start working on the framing. In some states, roof rafters are considered as part of the framing. However, in some other states, the building laws state that the owner has to hire an engineer to sketch the plans for rafters.

There will be some inspections during this phase too. Once the framing is ready, the contractor will put the sheathing on the roof and the exterior of the home. The windows and the doors will be installed afterwards.

Siding and roofing

The shell of the house should be ready before roofing and siding contractors can begin their work. When it comes to roofing and siding materials, you have got quite a few options. Be sure to hire contractors who specialize in the kind of materials you choose.

Plumbing and electrical work

The plumbing and electric work can start simultaneously. There will be 1 or 2 inspections during this phase.

Interior walls

The next step is to install the interior walls. Drywall (also known as sheet rock or plasterboard) is the most common material used to make interior walls and ceilings. Dry walls need to be hung. Since only a good drywall installer can hide the visible seams between the sheets, hiring an experienced person is imperative.

When the interior walls are in place, the work on the kitchen and the bathrooms can begin. Sinks, cabinets, countertops, and hookups are installed in the kitchen. Bathroom fittings can be expensive or inexpensive depending on the owner's preferences.

Painting and flooring work

Painting is usually done first just to make sure that the paint will not spill on the flooring. Several kinds of flooring are available. Depending on your budget and preferences, you can choose tile, wood, vinyl or carpet. Your home is almost ready now.

Landscaping

Some builders may also take care of landscaping. If they don’t, you will have to hire a landscaping company.

 

Green Building That Is Out Of The Box

As a builder, you want to build high-performance homes that will stand the test of time, be beautiful, and give your clients maximum function. It is important, however, to do your part in being more sustainable as well. That is why you want to consider taking existing homes and turn them into products to build a new home, which is good for the environment and can offer materials that you may not even be able to get anymore.

Rethinking Building A Green Home

Most people think of a green home as one that is energy and water efficient, but it can be so much more than that. Reusing materials, such as bricks, flooring, windows, and molding, can be a way to be sustainable and green as well. Deconstruction can be more expensive and time consuming than a classic home demolishment, but its benefits to the environment, homeowner, builder, and the community more than outweighs the extra cost. You may even be able to get a tax deduction for donating materials that were saved.

What is deconstruction and how is it different than demolishment? It is when a building is permanently dismantled in a way to salvage as much of the materials possible. From windows to bricks to wood flooring to moldings and more, most any material can be saved to allow it to be reused in another home or to serve another purpose. Demolishment does not concern itself with salvaging and takes the broken and unusable materials to the dump.

The best benefit to deconstruction and reusing materials is that many materials, such as those found in a 100-year old home, may not even be available anymore. Bricks from long closed down brickyards and old-growth wood cannot be purchased at your local home improvement store. They offer not only a functional purpose, but also a richness and beauty that cannot be found with new materials.

Builders Should Think Green

What if there is not an existing home to deconstruct? A builder should be thinking about green long before the site is even cleared. Whether they purchase reclaimed materials from a supplier or include more environmentally friendly materials found at the building supply, being green is not just a color for St. Patrick’s Day. It is a way of life that many clients are choosing to espouse not just in their everyday life, but in their building choices as well.

By finding a deconstructed material store or site in your community, you can not only build with materials that have stood the test of time, but also save the environment by decreasing the distance that they will be transported and the energy used in manufacturing new materials. This is an important consideration for many buyers, which is why you want to be sure that you consider adding this to your business practice.

If you are looking for a way to bring new clients to your building business, think green. It may be the key to taking your company to a new level with an entirely new demographic of clients. Consider deconstruction for your projects. You may find that it can make your homes even more beautiful, as well as green and environmentally friendly.

How to Save Money on Building Costs

Who doesn't like to live in a house that has not been occupied by another family? However, the cost of building a new house can be unaffordable. That is the main reason people turn to the resale market. But there are ways to cut costs and save money.

Use thin bricks

Bricks are known for their strength and endurance. They also add a touch of elegance to the building. But bricks are expensive. If you are trying to cut costs, you should consider cheaper alternatives.

Bricks don't play much role in ensuring the structural integrity of the house, so it is possible to get away with something less costly. For example, thin bricks, a popular alternative, are not as thick as regular bricks. They are also much less expensive. By substituting regular bricks with thin bricks, you can give your home the classic beauty and elegance of brick housing. And these affordable housing materials won’t burn a hole in your pocket.

Use stock house plans

Getting a custom plan drawn up can be expensive. There is one way out - use a stock plan available with builders. There will be plenty so finding a beautiful plan is not all that difficult. Be sure to choose a plan that is more or less similar to the one in your dreams. When you use a stock plan, you can save several thousands of dollars. There is yet another advantage to choosing a stock plan. These are designed by experienced engineers and may be structurally and conceptually more sound than your plan.

Be your own contractor

If you know a thing or two about construction, you could perhaps be your own contractor. This is perhaps the most effective way to cut building costs. There are some downsides as well. You will have to be present at the construction site most of the time. You will need to choose and buy building materials on your own. You will also need to supervise the works done by your subcontractors. As you may have already imagined, this is not easy and requires a lot of skill. But the monetary benefits make it worth your time and efforts.

Go vertical

Land cost is perhaps the biggest cost involved in building a new house. If you already own the land, this is not a problem. But if you have to purchase a lot, you will have to shell out tens of thousands of dollars.

The only viable solution, in this case, is to buy a small lot and build up. A two-story building of 3000 square feet will cost much less than a single story house of the same size because you need much less land when you go vertical. However, be sure to use simple and clean construction lines. If you use complex geometry, building a multi-story house can be much more costly.

Paint the home yourself

If you have got a few spare hours, you could perhaps paint your own home and save up to $10,000. If you can get the help of a few friends or family members, you will need only a couple of days to finish painting a full house. In addition, you can save money on materials and paint.

Building a new home is possible, even if you are on a tight budget. You just need to be really handy and a little more involved in the work.

Smart Green Retrofits for Managing Energy Bills

When it comes to energy savings and green home improvements, instead of expecting huge returns, understand the latest bottom line – you can hold against skyrocketing energy costs by going in for some smart retrofits.

In general, energy prices have increased substantially in the last 10 years, especially in certain parts of the country. Even though there was a slight fall in natural gas prices since 2008 and there was stability in electricity prices for a while, there have been upward trends in prices of both since 2011.

According to the estimates of the Energy Information Administration of the US, there will be an average yearly increase of 2.3 per cent of the costs of residential energy right through 2035. If these projections are accurate and your average annual energy bill is $2,200 today, an increase of 2.3% works out to $50 more in the first year if your consumption pattern stays constant. In such a scenario, you’ll have a bill close to $4,000 by the time you get to 2035. Ouch, that’s going to pinch.

Dependable energy saving retrofits

When the sole reason for making retrofits is managing energy bills, look out for projects that offer the maximum returns for your investment.

As a rule of the thumb, try to fight the 2.3% yearly average by going in for green home improvements which reduce your energy usage by 5% or above and require a reasonable initial investment. Remember to find out whether your state government or utility offers tax credits and rebates for such improvements.

Some suggestions:

1. Insulate and seal ductwork running through spaces without heating. Though it may not appear glamorous, doing this in places like the attic and garage can improve heating system efficiency by 20% and you might manage a 5% overall bill reduction. A few hundred dollars of investment will be required for hiring an HVAC pro for the job and labor and material costs.

2. Get a programmable thermostat. If you don’t have one already, getting it and programming it correctly can help you save about 8% on your energy bills on an average.

3. Seal air leaks and add attic insulation. This is one of the soundest energy-saving improvements. By sealing and insulating your home, you can bring down energy bills by almost 10%. Regard upgrading attic insulation and sealing air leaks as a combination job for maximum benefits.

 

The bottom line

Don’t expect huge savings in your energy bills when you opt for green home improvements. It makes better sense to go in for green retrofits that are likely to offset increasing energy prices.

 

How to Save Money by Building a Low Cost Home

Even if you are not an expert, there are still ways to save money on home construction. Here are some cool tips to keep your home building budget within reason.

Split the costs

If you feel that you can’t afford the property because it is too large, you should consider buying it with a family member or friend. After purchasing the lot, you can split it into smaller lots. This saves money. Better still, you will be able to get a great lot for an attractive price.

Choose a problem lot

Some lots are less desirable than other lots. For example, a narrow lot or a hillside lot will have fewer takers. As a result, these lots are usually sold for much lower prices. If you can find such a 'problem lot' for a great price, don't hesitate to buy it. With the right floor plan and a great contractor, you can build the house of your dreams on any lot.

Waterfront lots

If you are looking for a waterfront property, you should opt for a lot facing a bay or a canal. These lots are much less expensive than lakefront or oceanfront properties. You will still have easy access to a water body.

Use low cost materials

Choose building materials that require less maintenance. Examples are: metal roofing and vinyl siding. Of course, these materials are more expensive, but they will easily recover their costs because you will not have to spend money on repairs or replacement.

Visit demolition sites

You will be able to collect used bricks, wooden doors and old barn wood from demolition sites. These materials are perfectly usable and usually don't cost anything. Of course, you will have to haul them away on your own.

Don't splurge

Avoid the temptation to splurge except for those truly important items. You can't, for example, skimp on doors or windows because they are important for the safety of your home.

Bigger isn’t necessarily better

Don't build a house that is bigger and better than any other house in the neighborhood. These monster homes are unlikely to command a good price when you decide to sell them.

Monitor all the materials used for construction

Don't let the contractor use low quality materials unless they are ready to make a cost adjustment.

Hire a certified contractor

An experienced will have established good relationships with subcontractors and suppliers.

Avoid site preparation

Site preparation can be expensive. Avoid lots that require extensive preparation work. Blasting rocks and clearing trees can be expensive.

Don’t alter blueprints

Don't change materials or blueprints during the building process. These changes can cost a lot of money.

Add width not depth

If the depth of the home is more than 32 feet, you will have to use specially designed roof trusses. This can be expensive. If you want a large house, add width or extra stories.

Consider vinyl flooring

If you feel that you can't afford to have hardwood flooring or ceramic tile at the moment, use vinyl flooring. You can add tile or wood directly on top of vinyl at any time.

Use a stock plan

Getting a plan custom-drawn can be expensive. Instead, choose one of the readily available stock plans. You will be able to customize it to get what you want.

Don’t build huge garages

If you have just two cars, you probably don't have to build a garage that can accommodate three or more vehicles. If you are looking for storage space, you should consider putting up a shed in the garden.