What drives up costs more than anything is the attitude that "it's only $500, $1,000, $3,000 extra. That's not much in the context of what we're spending. So go for it!"

I've seen this repeatedly in custom builds.

On the other hand, when I build for myself or for resale, I consider every cent as money out of my pocket that I could use for something else. That's why you'll find me on site rinsing mud off extra 2x4s so I can return them and counting and recounting bricks so I don't overorder and end up with unreturnables.

Change Orders!!!

What drove up the cost of our build so far, mostly my expensive tastes:
1)Cabinets..wanting a certain look instead of just accepting what is the standard average everyday cabinet today..
2)Granite Countertops
3)Making the House UD compliant. (BIG Expense)
4)Not liking "average" My own tastes in lighting, flooring etc.
5)Contractors not making smart decisions on my behalf....
(Only happened once)
We went overbudget on Cabinets including countertops by $11K, Floors so far by $3K, Lighting by $2K, Plumbing $2K, Appliances by $9K. We planned to go over by $30K so we are so far doing fine there.

Closing on Aug 11th, Yay!!

The important thing is to make a spreadsheet that you can keep track as you go, where your overages are. We opened a moneymarket accout and each time we knew of an overage, we placed the cash to cover it into that account. That way we didn't accidentally spend it. We will also know exactly how much we spent on the house when done, not just how much the contractor spent so that we can insure it properly.

Laney

Here is a link that might be useful: Our Home Build

My answer will be the "regional answer" but its the truth.

For us, the "big budget item" is going to be raising the entire house 8 feet off the ground. We are in New Orleans, and the new code is to be 3 feet off the ground because of flooding. During Hurricane Katrina, our house had 6.5 feet of water, so what would be the point of the manditory 3 foot elevation.

So we are biting the bullet and going up 8 feet. Which is going to cost an arm & a leg, but it will give me a little piece of mind. A little less worry, so to me- its worth it. We're gonna use the "ground level" as parking & storage.

we found that the builder "allowances" were just unrealistic. For most of the allowances, we actually got quotes from the suppliers before signing the contract for the quality of finish materials we wanted and we increased these allownaces in the contract to ensure the budget mathced our expectations. For these items we stayed within 1% of the budget. However - there were 2 areas where this was not done and of course that is where we had the problem;

1) Exacavation - our builder completely underestimated the costs to clear the land, dig the foundation, put in well, driveway, sepetic etc. It got so bad that in the middle of our build I started getting bids from other exacavation contractors - and that sent quite a message to both builder and excavator who eventually adjusted the prices a bit. But in the end this was by far the biggest overrun we had. As it turned out, the builder lied to us on this part of the budget - he told us he was sure the budget was fat enough to cover the costs. Turned out he never got quotes on these items when he estimated the budget (I got that out of the excavator). I think the builder knew it was going to me more than what he put in the contract and he was affraid that the actual costs would have scared us away.

2) Electrical: the builder budgeted assuming minimum code even though I had handed him a detailed electrical plan well before the contract was drawn up that required more than min code. I asked him if the budget included our plan - yes he said. Another lie.

The bottom line is that you have to double check every allowance item to make sure the budget will meet your expectations. Make sure you get copies of quotes for these before you sign on the dotted line. It takes a lot of up front work to make all the selections but it will reduce the risk of overrun.

Make sure you have another 10 to 15% of reserve cash to cover the unavoidable oopses. And make sure you keep a spreadsheet to track of all budget items (what you actually spent) as well as any upgrades you make which tend to add up quickly.

As told above, "tweaks" and not having a detailed contract.

This happened to me on the very first house... hollowcore doors instead of solid; to-minimum-code electrical instead of what we had requested (what's with those electricians who think 2 outlets is sufficient in the kitchen?!!). Upgraded flooring, etc. Total overage 15% in the days when that was more than three years' pay. I suspect I made all the classical 'mistakes' from accepting the GC's contract (favoring him like you wouldn't believe) to not having made necessary decisions in advance.

I would like to think I learned from that. Now I make it a point to know what I want and what I'm getting [right down to the exact model number and color], BEFORE the contract is signed. And then have a very tight contract, cost-plus. I want the GC to make a fair profit, and I don't want to waste money.

And, I've learned that if it isn't written down and signed in agreement by all parties, then you either won't get it or you will get the bare minimum. See sniffdog's #2. Although some subs/contractors lack truth, a lot of times they just go on doing what they've been doing and totally forget that you want something else.

And, always, a 15% cash-on-hand fund for the unexpecteds. 'Unexpected' means the fund is for the boulder which stalled the basement digging, or the hurricane which carried away half the studs. It is not for tweaks or upgrades or COLA increases.

I suspect that the biggest expenses and/or the biggest disappointments occur when one does not become sufficiently involved before the build. Some people seem to expect that the builder is also a mind-reader, and will make the choices you like even though you never knew him before the build. Some people also seem to expect that he will build for you without any consideration for the time spent in making those choices... in other words they think that he should -- for free -- figure out what you want and what you will be happy with, regardless of how long it takes and how many other aspects of the build will be affected. Those same people seem to forget that a house is a structure, and one doesn't change window size or door placement without also changing the structural integrity. And most of all, they don't understand that once the build begins, changes [aka tweaks] COST.

Your biggest savings will be to know what you want before you begin. In detail and with great precision. And remember that tweaks made on paper cost very little compared to tweaks made in wood.

Most folks have great difficulty doing 3-D visualizing of a 2-D drawing. Once you have what appears to be a satisfactory floorplan, make or have made a to-scale model, with your to-scale furniture in it. You might catch that the 6-foot bureau won't bend to accommodate the U-staircase, or that a two-foot window doesn't let much sun in -- or that in summer those lovely window-walls will bake you out of the family room. Anything that you learn from the model can be easily changed BEFORE the build, which is a lot better than learning and trying to change during or after the build.

We utilized the basement of our teardown and added crawl spaces to expand the footprint. While excavating for the rear crawl we discovered a swath of bog/silt/ancient riverbed? and had to go down twice as far for the foundation. (Turns out this swath runs for miles, ending in ravines at Lake Michigan.) Additional expenses: excavation, concrete, soil removal.

The city's building review board halted our build for six weeks in winter. Water entered the basement and despite pumps, the result was mold. Our insurance covered $15K of the mold remediation team but we were out $1K and t-i-m-e.

Illegal city interference cost us about $5K in att'y fees and more t-i-m-e. They awarded a demolition permit, then complained the house had architectural value -- AFTER it was leveled. They awarded a building permit, then halted work while a neighbor fretted that we might build something other than the permitted plans. All this extra-legal dithering came from a mayor-appointed citizens board and there was no practical recourse for the homeowner. (We could have sued; waited a year for the case to come up; watched the city withdraw at the last moment.)

Windows are a biggie if you want Pella archtops, french doors, between-the-glass shades and muntins. Look at a doubling of price for BRB-demanded simulated true divided lights. (Add ongoing maintenance for a window washer for these panes.)

Fixtures and appliances add up. Mouldings, casings, doors, locksets. Hardwood floors. Tile and tile setters. Baths and kitchens are money-grabbers. Paint and painters.

In-ground sprinklers, terraces, driveways, garage doors and openers, landscaping...they pop up when you think you've already emptied the kitty. Then you get to buy rugs and furniture, plantation shutters and roman shades!

Some snafus:

Twice replacing cracked wall tiles in the shower -- before discovering the tile setter had failed to spread the sealant mat all the way under the shower floor and up over the threshold.

Warming three north-facing rooms with a small boiler and hot water piping under the floors because the HVAC guy was an eejit who didn't provide enough forced air heat supply.

Architect dropped undercabinet lighting in the kitchen off the final plans -- only discovered after cabinets were in and there were no outlets for the lights; had to retrofit.

We only had one change order. We'd planned two sets of triple french doors along a LR wall. When the doors were on site and the cutouts framed I realized that the positioning stopped your eye at the section of wall between the glass instead carrying your focus out to the back yard. We re-positioned the doors as three sets of two.

You'll learn a lot of things you never cared to know -- and it still won't be everything you needed to know! LOL

Most folks have great difficulty doing 3-D visualizing of a 2-D drawing. Once you have what appears to be a satisfactory floorplan, make or have made a to-scale model, with your to-scale furniture in it. You might catch that the 6-foot bureau won't bend to accommodate the U-staircase, or that a two-foot window doesn't let much sun in -- or that in summer those lovely window-walls will bake you out of the family room. Anything that you learn from the model can be easily changed BEFORE the build, which is a lot better than learning and trying to change during or after the build.

This is where good home design software pays for itself. It will build a 3D model for you, quickly and accurately. If you see something that needs changing, the software will handle that in seconds, at most. With good software and a fast graphics card it will do it nearly instantly. There is no need to build a second model to see if your "paper" change works. If you still want to build a scale model, good home design software will print the cutting outline for you.

I like what is known as the "doll house view," which is supported by the better programs. I have linked a random doll house view below. I don't even know what kind of software was used. I'm not pushing any particular brand.

These 3D views let you spot potential mistakes before you pay to have them built in to the house. Even $500 or more software becomes cheap if it can save you several thousand, or a lifetime of living with a serious design mistake.

Here is a link that might be useful: {{gwi:1477991}}

Poor planning, unrealistic expectations. The only thing that we went over on budget was the foundation, which had to be engineered, at the last minute. Never mind I had asked the contractor to soil test 3 months prior...

$15,000 worth of dirt

"UNFORSEEN CONDITIONS", like no studs in the walls, not much in the way of a foundation, etc. etc. These are what drive the cost up, and finishes are where you can adjust the cost back down. By the time you find these unforseen conditions, the finishes are pretty much the only place to take from. That's when you have to have a reality check about how important those custom cabinets are, the marble tile in the bathroom, the custom lighting fixtures, etc.

The other cost killer is not having well-detailed architectural plans that truly reflect existing conditions. Complete plans help avoid those ugly conversations with your contractor about what is included and what is not, and also help avoid that panicky feeling in the middle of the night when you realize you just "forgot" about a major bit of site work.

What really drives up the cost of a build?

Dishonest and/or incompetent builders

Lawsuits

Attorneys

Here is a link that might be useful: More info about bad builders & dream/nightmare homebuilding

I doubt "Attorneys" REALLY drive up the cost of a build -- except in the rare case. A more common answer is the hundred dollars here and there -- it is very easy to do that enough times to REALLY add up. And most "allowances" in a contract are totally inadequate.

$9000 worth of dirt.

Great comments, thanks to everyone. Question, what is "UD compliant"? And, am I to understand that we should choose everything, from the lighting fixtures to trim to doors to appliances...before we get an estimate from contractors? Trying to understand how the timeline works here.

The more you have chosen before you even approach contractors, the less over budget you will be. We had selections for everything prior to having the home bid by contractors. This ensured that they were using the right siding, roofing, stone, etc and that they had a proper allowance (or the actual number) for tile. There is a wide range of price points in appliances, windows, light fixtures, plumbing fixture, etc. Having these selected early ensures that your won't blow an entire allowance on one item.

You doubt that attorneys drive up the cost of a build? So, over $100,000 in attorney fees didn't drive up the cost of our build?

Well, let me tell you, they did and before you ask, yes, we had our contract with our builder drawn up by OUR attorney and it still didn't protect us. Yes, we checked our custom builder's references and he came up squeaky clean. Problem was, he was an idiot and dishonest.

Please do not be disillusioned into believing that bad builders are a rare case. Far from it.

Perhaps you are not looking for truth or reality, you'd rather just focus on how people blew the budget by picking the expensive faucets. That's okay, I was in that fantasy world at one time too.

There is no "allowance" in a contract to cover dishonest and/or incompetent contractors, but I assure you, they can turn your life inside out before you can blink.

Here is a link that might be useful: Other

armomto3boys, we have had calls, emails and people stopping by hour build wanting the dirt....I did not realize "pile" of dirt had become so valuable!

sallen2008
Yeah, who knew?

SINCEWE.

I had a teacher that used to say that what drived up the cost of a build was the SINCEWE :)

I really hope you are not in that situation.

Is "SINCEWE" anything like "might as wells"?

"While your doing this, you might as well add that. While your at it, you might as well do this" CHACHING!

Or the "WereOnlyGoingToDoThisOnce"? j.

ha ha ha

Yes sierraeast!!!

I was not sure how to say it.

Honey, SINCE WE are doing this room bigger, why dont we place a cabinet here!

Baby, Since We always wanted a pool, lets take advantage that the bulldozers and the trac hoe are here so they can dig the hole :) Its is just 2,000 for the digging

My DH is one of them: it is just $300, it is just $800
when we built our last house :)

What will drive it up faster than all most any thing is the number of suites that are involved.
Oh and the owner/you not being able to say no. Or being able to listen to the builder.

We are our own GC and I was very meticulous in understanding the costs beforehand and where we may decide to upgrade. Early on we decided to upgrade HVAC to geothermal which added $20k. We had room in the budget for that. Also, picking out all Kohler instead of the cheapie plumbing fixtures added $10k, which we paid out of pocket (oh, but I'd love that $$ back now!).

One area that has been a complete surprise was our lumber yard bid. We have been short quantities on almost all material (except windows and doors) which has added up. This was an area I relied on them to do the estimating, as they also did the plan drafting for us. Also, watch for any bids that look "too good to be true". We had a siding bid for $9k to install James Hardie from the guys who also underbid framing ($18k vs. another bid for $43k). They did a great job framing but walked away from the siding job - and the next best we had was $17k. So, don't always count that the low bidder is going to follow through.

Good luck!

I'm going to paraphrase a friend (we were chatting about this subject):

"Oh, the unexpected surprise wasn't the cost of the house" (and it wasn't, finish cost was abt $1K below estimate), "it was all the other stuff... you know, drapes and the sod and landscaping and doormats and bath towels that look good with the new tiles and the chairs for the breakfast bar..." Apparently, the "other stuff" has so far cost about $50K with more to come.

mimi2 ~ yes, the more decisions you make in advance, the less stress will occur during the build. And the fewer times your wallet will be hit unexpectedly. Keep in mind that \*everything\* can cost from below\-builder\-grade to hand\-craft and that means the price can range from X to 20 times X. For example, if in advance you specify a mid\-grade faucet in a specific style/model/finish, you will likely NOT get an elcheapo nor be charged double the cost. IOW, pre\-planning gives you both cost and quality control. OTOH, no one can predict the cost of any thing to do with earthmoving (wells, driveways, foundations) nor the weather \-\- those two issues can be prepared for, but not controlled. frog\-hopper \-\- I consider 3\-D programs to be an excellent part of the designing process, but they can't be taken outside to see how the sun shines into the kitchen at 5p nor can you line the walls with paint chips to determine which is really the color you want. And, I've noticed that no matter how good the program, most people still don't see that the bathroom door will slam into someone shaving at the sink, or that there's no room to walk behind the dining room chairs, or that the overstuffed recliner cannot be carried through a 32" door. Literal hands\-on seems to improve the mental connections. But yes, if one doesn't want a to\-scale model for the last reality check, then it's far better to have a 3\-D program than only 2\-D paper.

I consider 3-D programs to be an excellent part of the designing process, but they can't be taken outside to see how the sun shines into the kitchen at 5p nor can you line the walls with paint chips to determine which is really the color you want.

Home Designer Pro can do exactly that. In fact, it will show you how the sun will shine in any part of the house at any given date and time. Of course, you have to be able to tell it the building site's lat and long and the house's orientation on the site. The program has provisions to accept that information and also terrain data, if the site isn't flat.

There are also digitized paint and wall covering samples that can be loaded into the program. They are available from several major manufacturers at no cost. I can't say how accurate the color rendering is, though.

And, I've noticed that no matter how good the program, most people still don't see that the bathroom door will slam into someone shaving at the sink, or that there's no room to walk behind the dining room chairs, or that the overstuffed recliner cannot be carried through a 32" door.

That is primarily because people don't think about those things unless they train themselves to do so. Reading a few good books on design helps. Studying random stock plans in order to find as much wrong with them as you can helps too. Many of them are so bad that you can make a sport of it.

Once someone grasps the concept of how not to design a house, using roof off 3D views, such as the "dollhouse view" helps immensely. Good software lets the user place correctly proportioned furniture and people into the 3D visualization to see what works and what doesn't. It is a great tool for someone willing to take the time to learn it.

Home Designer Pro, which I use isn't cheap. Its suggested retail is $500. In the scheme of things, as in building anything other than an econobox house, it is a bargain considering how many expensive problems it can help you to avoid.

I have to agree with suzie snowflake. It isn't really the lawyers she's complaining about, it's the need to use them when your builder is bad. Even the best contract can't protect you from every eventuality.

We spent our entire build forcing our builder to do things over 2, 3 and sometimes even 4 times until they were right. It was very unpleasant and would have been totally unnecessary if he had just properly supervised the job. But he didn't and he never learned. As we got to the end he was doing more harm to the job than progress, we ended up in a protracted negotiation between our lawyer his. We're still cursing our builder as we find things wrong that shouldn't have been rocket science to get right.

Good thread. Anyone have anything to add?

Every single item not explicity detailed in the contract and specs before you start. On specs, we had everything from the type and number of screws to paint colors to cabinets to....everything. Each step away from 'everything' you step; up goes the price.

Our foundation just got put in, framing starts on Friday. here are the costs that crept up on us ALREADY-ink not even dry on P&S:
1. Adding square footage. I never thought adding 2 feet to the width of a garage would cost be $3200.Be careful when loking at plans and make sure that the garage can accomodate your vehicles. I had to find out myself later only for the builder to tell me, "yes, it is too small for your car". thanks!
2. Appliances-We are $3500 over our allowance of $2500 which typically includes a crappy appliance package-well ours did. If you cook, plan on $6000+ for appliances and I bargain shopped and got Whirlpool Gold stuff.
3. Cabinets and Granite-This is a no brainer. Who doesn't go crazy with this stuff? The kitchen designer could sell me anything....
4. Windows-Adding windows costs extra money. Make sure before sending in an offer for a design that you look closely at these in case you want to add any and put it in your offer.

My advice, know what you are going to spend up front and up your allowances on the offer for the big stuff so you aren't surprised. Or know up front how much you are over so that you can budget it.

I am also going to echo everyone else on here, the "well, since we are alrady doing it" costs add up insanely!