SHOP PRODUCTS
Houzz Logo Print
lapsangtea

Bid cost vs. contract costs

lapsangtea
7 years ago

What are fair expectations in costing fluctuation between an initial bid from a contractor, for a new build based on architectural plans, and a firmed up pricing going into contract stage?


We worked with an experienced architect to design our build, then put it out to several contractors to bid. Collected references on all contractors, met with them all to review their bids. We went with the middle bid, not the lowest. Frankly we did our homework well before selecting the bidders, and all of contractors did pretty well in the interviews, but we chose the one with sterling references all over, that has over the last decade in our area bent over backwards to ensure a good reputation for on time delivery and clear communication, clear costing of all change orders, no surprises, etc. The firm with sterling references. Nonetheless, we end up with a contract presented to us that is 35% over their bid. It is a combination, not one thing, leading to the upwards revision in pricing. A couple of their suppliers made errors initially, they themselves didn't understand some of the demands of the plans, as they are a bit beyond the type of work they'd done before. Scope of work has not changed in the interim , just some further detailing into the plans in the permitting stage. Yet costing in our contract comes in well above what was priced in the bidding stage-- to the tune of 35% more. Obviously this is unwelcome news to us--we can't afford to start a project 35% above the bid, with allowances for some things that could well go up from here yet. We'd be dumb, I think, to do so. So we lose the good faith deposit we put in (to book the contractor as we were going through permitting and planning) if we decide to scrap the project? Any advice, comments? Thanks! Sigh!

Comments (51)

  • PRO
    Virgil Carter Fine Art
    7 years ago

    What type of construction contract do you have, and what was the bid based on--lump sum contract, cost plus a fee, etc?

    What is the builder's explanation for a contract which is 35% over what they bid? I'd like to do business that way!

    If their subs made errors in the bid, then shame on them. If the builders didn't initially understand the plans, shame on them for not looking more closely. If you let them go back and pad their bid, shame on you!

    Sounds like the builder is busy, the plans and specs call for more than they are used to doing, and so he's making you decide whether or not you really want to use him. If you do, it's going to cost you 35% more than he said. Don't forget the 10%-15% contingency on all new construction!

    Have you considered going to one of the other bidders, assuming their bids are acceptable?

    You had to give this builder a good faith deposit to bid on your project? And now he comes back 35% higher than his bid? There's a word for this--criminal!

    lapsangtea thanked Virgil Carter Fine Art
  • just_janni
    7 years ago

    ^^^ and you should NEVER have to lose a deposit with this material a difference than the initial estimate. That's classic bait and switch unless they can very specifically show how YOU changed the plans.

    But sadly - I find that it's getting harder and harder to get someone to give you a truly accurate quote / estimate and hold to it - especially if you have something "unique"

    lapsangtea thanked just_janni
  • Related Discussions

    Bids and Typical Costs

    Q

    Comments (7)
    I would not attempt to estimate your project via computer ... I would get a few more estimates. Prices can vary by quite a bit by region ... I'd guestimate in my market that would be high but I don't know your project details. However .. your system of estimating is a bit optimistic ... the kid next door might use such a system .. not a full time contractor. How about over head ?? ... phones .. trucks .. insurance .. equipment ect. .. a technician at $10 an hour on the books is going to cost a contractor no less then $104 dollars a day and thats NOT a plumber .. Warranties cost money and so does standing behind your work. How about profit ? .. contractors don't work for wages ... retirement ? .. Health insurance ? ... on and on .. have you checked the price of gas ?? .. driving for one project might cost as much as three valves ! Again .. get a few more estimates and check references and local contractors board. Good Day ...
    ...See More

    Cost to build vs cost of material

    Q

    Comments (4)
    You will have to break it down by each individual component to get a good idea. Also are you going to do any yourself?. A bunch of the components will be close to 50% material 50% Labor. That is what I am finding here in Kentucky, not sure about Canada. I would guess your insulation and HVAC will be considerably more than here both in Materials and labor. By subcontracting yourself you have already saved a chunk! Hope someone responds that can give a better answer :)
    ...See More

    What kind of contract is this--fixed or cost plus?

    Q

    Comments (4)
    It appears to be a turn-key (not owned by you until finished) Fixed Price contract with Allowances for some items. Allowances are like small Cost of the Work contracts within a Fixed Price contract. These Allowances should be well defined in the contract. I've never known anyone to be responsible for permit fees other than the owner of the project but if the builder owns the project until the end I guess the permit fees would be part of the Fixed Price unless specifically excluded or listed as an Allowance.
    ...See More

    For those that used a Cost-Plus Contract...

    Q

    Comments (7)
    Use me as your "what not to do." We built our house in a cost-plus arrangement. I asked, and asked, and asked for detailed specifications and a detailed control cost estimate. The builder essentially said, "I don't do those, trust me." He is the most talented builder in town, and we really wanted him to build our house, so we trusted him. It worked out for us, but we did end up spending almost $100,000 more than we intended. Before signing the contract, the builder gave us a number that he thought we would spend in building the house. Then, we made him put a clause in the contract that effectively says for every item we chose that will affect that # (up or down), we will get a change order. That way, we would be able to track where we were in relation to the initial "estimate." As anticipated, that didn't work. The change orders amounted to about $25,000, yet we ended up almost $100,000 over that initial number. The builder also gave us a copy of the estimate that he gave to the bank. That estimate was about $35,000 more than he told us he could build the house for and told me, "Don't use these numbers; they are inflated." Inflated? Then, why did we exceed those inflated numbers, by a large margin? At about the 3/4 point through our build, the builder recognized that our costs were skyrocketing, and changed his "plus" component from a percentage to a fixed amount. That did save us a little ... but we were still almost $100,000 over the original estimate. Lesson for you to learn: Do not sign your contract or begin your build until you have a real estimate in hand that the builder will stand behind. Also, realize that all of those $1,000 - $5,000 upgrades that don't seem so much individually really add up. Did I really have to have the $6,000 bathtub or add the steam shower to the master bath? In hindsight, nope, but at the time I made those individual decisions, it didn't seem like that much money. Now, changing the hardwoods from oak to walnut ... that's a cost worth it because the hardwoods now make an incredible impact. I love my new home. It's perfectly built and exceeds my expectation. Fortunately, we saved like crazy during the year that we built and were lucky enough to sell our prior house early and fall into a house-sitting situation where we lived virtually rent-free for a good 7 months. That enabled us to still close on the house, even though we were way over budget. There were a few very stressful weeks when it looked like we were going to have to walk away from it because it ended up so expensive. Our builder gave us copies of all receipts and invoices every two weeks, so we were able to track the mounting expenses. We just didn't have a real control estimate to use to gauage when and where we had exceeded budget. Good luck and learn from me!
    ...See More
  • User
    7 years ago

    You should get your deposit back. 35% is not in the ballpark.

    I agree go back to one of the other ones.

    lapsangtea thanked User
  • cpartist
    7 years ago
    last modified: 7 years ago

    That sounds like a classic bait and switch and I don't care how many good reviews. It sounds crooked to me.

    I could understand if you bid it out without complete plans but if your plans were pretty much complete, then that's way off base.

    If he won't give you your money back, I would suggest seeking the advice of a RE lawyer.

    lapsangtea thanked cpartist
  • Brian 's
    7 years ago

    Who knows what 35% is, I do not see how can anyone here advice you without knowing the facts. Cost normally did not increased 35%, however 35% of what?

    35% of 100,00 - could be easily justified.

    Concerning is this:

    >A couple of their suppliers made errors initially, -

    not good, but happens

    >they themselves
    didn't understand some of the demands of the plans, as they are a bit
    beyond the type of work they'd done before.

    Is this some sort of passivus, ICF, steel, Breckenridge, too complex floorplan? Consider an alternative then.

    lapsangtea thanked Brian 's
  • User
    7 years ago
    last modified: 7 years ago

    From the little you have told us it appears you have good grounds for canceling and getting your money back. Good faith goes both ways.

    lapsangtea thanked User
  • lapsangtea
    Original Author
    7 years ago

    Thanks all, still kind of shell shocked here. I've been stewing on this, will come back later today to answer some questions/update. To briefly address some: I don't think it's any intentional bait and switch or a case of a busy builder not committed to this job. Builder wants this job and they are very reputable, but they also didn't price in all the steel beams (and labor) they now realize is required for an open plan the architect designed. That's one of the main differences. There are a bunch of others, all carefully explained to us in a long meeting. Sigh. @Brian's I don't know what ICF or Breckenridge is--not passivehaus, floorplan is not complex. I am not talking 100K (does anyone who has hired an architect custom build for a contract of 100K?) rather a house that is moving towards 7 figures all in that was before firmly in the mid 6 figure range. 630 has become 855 and that's without including any landscaping at all, without including the permitting, structural engineering, design fees (architect is separate contract, but 630 had previously included coverage of some minimal landscape repair and permit fees; 855 has these out, so in reality costing increase is more than 35%) We are working from an existing footprint/foundation of a house that is coming down. @Virgil Carter: type of contract is I think what you'd call lump sum? That is, we have a total $ amount that is figured based on all the specifics in a detailed contract (a few things that aren't yet specified--a particular faucet, a particular tile-- are figured via itemized allowances). Looks like we are pulling the plug, but now I'm out significantly in all the architectural and permitting fees because the project was not supposed to be in this (new) price range, so we'll have to sell the property at a loss, and no new house. But apparently these people all think I"m made of money I don't have; unfortunately for them 200K+ added on is a lot more than a mere hitch in the plan for me. No can do.

  • just_janni
    7 years ago

    I am so sorry about this - I'm living through something similar, but I was not bright enough to stop. I will tell you that even if you signed at the upper cost, it never simply stays there. It would be worse as you moved ahead (from experience) and is a huge stress inducer.

    lapsangtea thanked just_janni
  • cpartist
    7 years ago

    I would have a combined meeting with architect and builder and ask them how to get it down to your cost. Or I would find a new builder at least. The fact he left out some major things would lead me not to trust him no matter how "reputable".

    The most "reputable" builder in my area I wouldn't use if you paid me. He charges more and even though he's a custom high end builder I could see where he cut a few things in his finished homes

  • User
    7 years ago
    last modified: 7 years ago

    I take it there was no structural design information on the drawings given to the builder. That was a risk that should have explained to you and the bidders by your architect.

    IMO open plans are highly overrated and a waste of money. I have only used a steel beam in a house to support 10 feet of exterior brick wall in a renovation.

    I would redesign to simplify the structure and make the plan better as well.

  • User
    7 years ago

    Is it a "real" architect? An architect should know if steel is going to be required.

    Also, is your architect a member of the AIA? If so, read what it says on the aia website about responsibility. You get a house that can be built for the amount of your budget within I think 10%. So sitting down with the builder and revising the design should be part of the process.

    As others have said, if you start out at the top of your range look out...it costs more. I tried to get my spouse to consider options at exactly the same point. I.e. pull the plug. But he was stubborn.

    Our house is nice. It was too expensive. On days like today it seems worth it. Weather perfect, sun reflecting on the water, etc etc. But really...

    We, too, cut the exterior landscape work. It's painful to have a house of this price sitting in dirt and weeds. I'm slowly transforming it but I thought for "near 7 figures" you could find money for landscapeing but we fought like heck to keep it on the revised budget. And we did, but that was a consequence.

    Good luck.

    lapsangtea thanked User
  • lapsangtea
    Original Author
    7 years ago

    @jn3344, yes a real architect with a great portfolio, both residential and commercial work, media coverage of his work, this type of build is *not* different than what he has done before. He would have known about the steel, but I have to figure out more closely what happened--builder didn't realize amount of steel and amount of further structural work to foot in existing foundation, architect had seen the bid and probed builders at bid interview about the commercial windows, the roof trusses, but I don't recall them discussing amount of steel or concrete work, whether the bid was realistic in this respect--so did this only emerge when structural engineer reviewed or did architect not pay attention to whether the bid was realistic in this facet, I don't know. Have to run, be back...

  • freeoscar
    7 years ago

    If you liked the other contractors as well, why not at least go back to them and feel them out for availability, willingness to work on your project, etc.? Why let your project die just because this one contractor messed up his bid?

    And no question that, based on the info you've given us, you should get that deposit back.

  • just_janni
    7 years ago

    I am wondering what your bid package consisted of? Shouldn't the structurals have been included so that the increased footings / concrete / steel was all called out? If so - maybe the "others" paid more attention.

    Again - I'll note that builders that are not familiar with architect designed homes that require things that are "out of the ordinary" they lose their minds - especially if they are what I consider the "normal" builds (all show, no go....)

  • User
    7 years ago
    last modified: 7 years ago

    This is a confusing discussion. If the drawings were not complete there can be no "bid". A bid is binding offer when received. No contractor would submit a real bid on incomplete drawings. When drawings are incomplete it is usual to use a Cost of the Work contract and bid the amount of the fee.

    See if the architect will redesign the house at his cost.

    The comment about the AIA is pretty far fetched. If you read an AIA Owner-Architect Agreement you will see that the AIA does not expect an architect to provide detailed cost estimates as a normal service. That service would be in addition to the architect's normal services for an additional fee. What is often required in such an agreement a preliminary estimate with no responsibility for labor and market conditions, bidding or negotiations and no guarantee that the preliminary estimate still accurately reflect the actual bid or construction costs.

    The common misconception is that an architect can somehow determine the cost of a project intuitively without preparing a detailed construction cost estimate like a contractor would. If you want a detailed cost estimate from an architect you should include it in your agreement as an supplemental service. Of course, not all architects offer such a service.

  • PRO
    Virgil Carter Fine Art
    7 years ago

    Were the drawings and specs complete or incomplete, or did the bidder simply not calculate some of the critical work and is now asking to "rebid" for his own omission error or that of his subs? I agree with JDS, this is a confusing discussion.

  • User
    7 years ago

    Not far fetched. Sorry I researched this 18 months ago when we were in a situation.

    We had a contract with an estimator, but that was on the side.

    At any rate, you pay the guy 50k to design a house you can't build because it costs 2 million bucks? No, I think not. I read it in relation to some publication before you go to arbitration.

    But don't take my word for it.

    Imo ppl really should have attorneys review the contracts anyway. There are a lot of hungry mouths to feed in this business so you have to protect yourself. Live and learn.

    Good luck to the op.

  • cpartist
    7 years ago

    What happened at your meeting?

  • User
    7 years ago
    last modified: 7 years ago

    The relevant terms regarding the performance of architects are contained entirely in the Owner-Architect contract and the laws of the state and municipality where the project is located. No statement, opinion or advice from the AIA or any other professional organization has any bearing on the matter. If you want an AIA document to be relevant it must be specifically mentioned as part of the architect's responsibilities and attached to the contract.

  • PRO
    Virgil Carter Fine Art
    7 years ago

    This is such a confusing discussion. Competitive bidding for construction of a new home (or other structure) is based on: 1) a call for bidding; 2) instructions to bidders, including the type of construction contract and bid which is desired; 3) drawings; 4) specifications, and 5) any other relevant special information pertaining to the project. Either these are complete or they are not. Either the bids are binding are they are not.

    From the OP's descriptions it's simply not possible, so far, to understand the situation other than the preferred builder is now asking for a 35% increase over his previously submitted bid price.

    If it was my project, I'd contact the other bidders to see if they are interested in signing a contract for construction (assuming their bid prices are acceptable). If no bid price is acceptable, a discussion with the architect and selected contractor may be useful to evaluate whether some design and construction modifications are possible to bring the project within the desirable budget.

    Happens all the time. Reasonable people can often successfully work through this sort of situation.

  • rdy2retire
    7 years ago

    In a similar situation. Architect designed house. Interviewed different builders. Got all the plans done, construction, sturcutrual etc. Builder sends in build quote - more than double what we were expecting. (Architect told us a number range of $/sq ft). We are now looking to redesign the house. The builder and architect are working together to try and resolve this dilemma with us. At this point I am not really sure if the Architect thought the cost would be so high. The cost to build the house is what people in the area pay for water front property and our lot is tucked away in the wood. Very frustrating. Puts us months behind on our project. DH wants to keep going. I say take the loss as is (over $25K at this point - plus more as we continue down this line) and buy existing home that is more budget friendly and update it. Sell our beautiful lot at a later date. But this is my DH's dream!


  • just_janni
    7 years ago

    Here is my opinion. (Many) Architects are letting down their clients by not being versed in the local price to build. (And this includes design build firms!)

    MOST clients come to an architect with a budget. As the design process evolves, clients typically don't "pare down" their wish list. There is consistent scope creep, and the architect (as I have found) does not tell the client "no" in order to maintain the budget, but rather pleases the client. They don't ask the probing question "hey, we're adding costs here, is your budget flexible? I know you initially stated that you wanted to spend $XXXK"

    The design is DONE! And the client is so emotionally invested, they want that damn thing built NOW! So- they go out to bid, and they likely bid folks who may not be that used to working with an architect, or building the more demanding houses that are simply what get designed by architects. And then - WHAMMO - the bids come in and everyone is stunned at the costs. You're getting ZERO economies of scale, you're getting (most likely) a house that is above minimum code and therefore more per square foot, and you're asking for a higher level of specific finishes than productions builders (and that may be your $/sq foot baseline, or semi custom new home communities.)

    I worry that there's a void between design and build, and that the best designed house means nothing if the client can't execute their dream.

    And NO ONE wants to go back to the table and start reducing. I'd have rather been told that it was getting out of control FIRST, rather than feel like I am "losing" things after I thought the design process was complete.

  • Architectrunnerguy
    7 years ago

    This is why I always get a builder on board as part of the team from the start. As a matter of fact I can't remember the last time I did a competitive bid project, they've all been negotiated. I know costs fairly well but I don't pretend it's better knowledge base than a builders (and as a sidebar, the reverse is true, a builder should not pretend to know design better than a creative designer, yet many do exactly that and many owners buy into it!).

    And the reasons are:

    -It's all well and good to say "Let's get bids!!!" but rarely are all bids equal. One guy's quote has window brand "X" even though the plans say "Y" because "These guys give much better service", another guy looks at the plans and starts suggesting cost saving measures which are incorporated into his bid, etc.

    -It forces the owner to make a boatload of decisions up front often resulting in "decision overload" which very likely means changes later, the "bid" documents notwithstanding.

    -Folks, we're building a custom home here, not a 7-11, and as a result there's a high level of emotion and therefore changes, both up AND down, ALL of which will be negotiated with the builder on a non-competitive basis. The critical element of trust better exist in the relationship for it to be a happy one so why not address that factor from the start and take advantage of the builders cost expertise from the get-go?

    -And speaking of trust and compatibility, we're not buying a car here where the relationship with the salesman lasts a couple of hours, we're building a custom home where the owner and the builder are going to be joined at the hip for the better part of a year, maybe longer. It's fine to interview builders for an hour or two in a competitive bid scenario but that vetting doesn't compare to being involved with a personality throughout the entire design process.

    -As many of you know, I do all of my conceptual design work in a "real time" format with the owner as an active participant. I've found that the builders often have some great ideas during these sessions too and I like them there for that alone and of course the cost expertise while we're drawing fanciful lines on paper.

    Sorry for the "do-over" but hopefully you can get past this satisfactorily and come out the other end with a successful project.

  • PRO
    Virgil Carter Fine Art
    7 years ago
    last modified: 7 years ago

    Although the situation of discussion in this thread is very confusing and unclear, Jannicone expresses the frustration in these kinds of situations very well. The comments are important to consider seriously.

    Here's one perspective from a (retired) architect's perspective:

    1. Many consumers approach the custom design and build process with conflicting and unresolved wants and priorities from the outset...
    2. Many consumers feel it's important to bring a floor plan to an architect to "show what I'm thinking", but then also say "I'd like to make a few changes with these 6 rooms, the stair, and all of the finishes, beginning with the cabinets, counters and appliances in the kitchen...
    3. Somewhere along the line, "mission creep" frequently appears, with the comment, "while we're at it, why don't we just add this..." Almost every project which has gone over the budget, starts with this comment.
    4. As a pseudo cost savings measure, many consumers only want the architect to draw floor plans and elevations, all of which will be given to the builder to finish. The builder includes a laundry list of allowances for a dozen items or more, most of which don't begin to approach the consumer's expectations...

    And on it goes. Fact is that custom home design is and should be a constructive working relationship between the consumer and architect. Reputable and experienced builders also have a role in the partnership, especially if it's a negotiated contract.

    I'm not sure I agree with ARG about the total advantage of a negotiated construction contract over a competitively bid one, but each strategy certainly has its share of pros and cons. Thus, the decision is one which should be carefully considered and made.

    It's worth saying again that architects are not construction labor and materials experts. It's not their job to keep up with the often daily changes in the cost of plumbing sub contractors and framing materials. That's the builder's job. Architects have no means to control or even manage the degree of competitiveness of a bidding contractor. None of us know how busy s/he may already be, or how serious a cash-flow situation they may be encountering.

    Ask yourself what your response would be to an architect who says to you, "we can't do this; it's not within the budget! This is getting out of control." All the architect can do is suggest a direction or strategy. It's the consumer who makes the decision.

    I couldn't agree more with Janniconte that, "...the best designed house means nothing if the client can't execute their dream..." Very few architects want to practice "paper architecture". Most of us want to see our designs built and the families happy and enjoying the successfully completed project. Thus, the need for a successful partnership! :-)

  • rdy2retire
    7 years ago

    In our case architect and builder have worked closely together on several projects. Prior to our bid we had already take out some space. Now I feel like if I have to keep comprimising on the rooms I would like then it won't be worth it. I could purchase a home for sale and be fine with it. Ugh - it is so frustrating. We kept asking the architect for the square footage and that took so long to get. I really wish he had been more proactive about the budget etc. I don't know if it was because we said we had never done this before - but part of me feels like we have been taken for a short ride. I kept going back to him with design flaws (on the plans) that he should have picked up on. Also, site engineer sent a plan with the wrong footprint (was a larger one that had already been reduced and not the one the construction plans were based on) - that annoyed me. I feel for everyone going through this. You do get emotionally invested - then the rug gets yanked out! :(

  • User
    7 years ago
    last modified: 7 years ago

    It is difficult enough to estimate the cost of construction from complete drawings so it Is unrealistic to expect an architect to be able to design to your budget. The architect would need to start with a prototypical estimate and revise it every week as the design develops. And somehow judge what you can't afford. And many of the finish materials will not be selected until after construction starts. The fee for that service would be prohibitive.

    The only way to control cost in the design phase is to hire a builder as a consultant to prepare and continually revise an estimate. That is something an owner should request and be willing to pay for.

  • freeoscar
    7 years ago

    Our architect was pretty spot on. Our cost ended up about 10% higher than our initial budget, but I attribute that to the year it took from initial consultation until we broke ground, during which construction costs have risen in our area. One of the reasons we chose him was because he has done many similar projects in our town, so we felt comfortable that he would design something within our budget and that would pass the planning board (we knew we'd need variances).

    But throughout planning we were very disciplined about avoiding scope creep. During construction we added some costs once we realized how a few small things could really improve the look and flow of our house. But these things only added about 3% to our construction costs.

  • Andy
    7 years ago

    This won't really help the OP, but reading these stories makes me feel really fortunate to be in the situation we're in.

    We decided rather than hiring an architect, paying them too much money to design a house we can't afford, wasting many months in the process, we would rather go with a design-build firm.

    Fortunately, the best, most reputable builder in our area is a design-build firm.

    After a $3k deposit (applicable toward the contract) and about 6 weeks, we had a design that we absolutely loved, and a contract just a little bit over our ideal budget (but that we could get to if we eliminated the 14x14 screened-in deck or dropped back to a 2 car garage from the current 3.5 car garage.)

    Our builder is known for only initiating a change order (@15% markup) when the customer is driving the change, and only a few things in the contract are handled by allowances.

    So...all sounds great right? But who's looking over the builder's shoulder if I don't have an independent architect representing my interests?

    And that's where I'm perhaps the most fortunate...my best friend is a builder, but not licensed in this state. Super sharp guy. Knows his business. And he will be there with me, inspecting, advising, making sure that the builder is giving me the best advice.

    Ultimately, it seems like every situation is just so different...the companies, the people, the home owner and their priorities...but if I had to climb the mountain some of you guys have climbed, I would have absolutely stopped before I got started.

  • User
    7 years ago

    As I mentioned before it is wise to involve a builder from the beginning but no one designs a house for free even design-builders; the fee is included in the design phase contract. There is no reason to discredit architects as if their service was not worth their fee. Not everyone has a pal willing to oversee their project for free although many architects give their advice on this forum for free.

  • freeoscar
    7 years ago

    JDS - Our architect had a builder estimate the cost of our plan before it was final to make sure we were on the right track, and to point out aspects which added a lot to the cost for minimal gain - it was part of the process he outlined for us before we hired him. Why isn't this something all architects do? I should think that to be a good architect you need to have good relationships with several local builders who should be more than willing to look over plans and give a rough estimate, point out specific high cost aspects, particularly expensive materials/construction techniques, etc. Even less specifically just to get a pulse of the market and prices so that the architect is better informed for their clients.

    We still bid out our project, though we did end up going with that original builder (with whom we had no prior relationship or knowledge of). We didn't need to lock ourselves in with a particular builder before the plans were finalized.

  • Architectrunnerguy
    7 years ago

    I didn't really understand the point of Andy's post either. It came across to me like "Sorry during your vacation at the beach it poured the whole time. When we were there it was fabulously sunny every single day. Perfect weather for us!!!"

  • just_janni
    7 years ago

    Honestly - we started with a design build firm to avoid the very issues of designing something we couldn't afford, or, that a builder couldn't execute and would consistently blame things on the architect. ;-)

    Unfortunately - we still had to make massive changes in the build process and had to GC ourselves, along with hiring a GC / site superintendent. And as I have shared - it's not been "ideal" (ha - understatement)


  • Andy
    7 years ago

    I seem to have hit a nerve. Sorry, I didn't mean to disparage architects in general. I've had good and bad results with architects on commercial projects.

    I am also under no illusions regarding the design cost being rolled into the contract...the fact remains however, I was able to risk only $3k to get a design and a contract. $3k and six weeks. What's the typical exposure with an architect? 5-10 times that in time and money based on this forum.

    JDS, I have a tremendous level of respect for your opinion, your posts on this forum are fantastic. Unfortunately, the vast majority of architects (that I've been exposed to) do not possess your level of ethics or professionalism.

    It's also true that design-build firms present their own challenges, no disputing that.

    My point to all of this was just to suggest to whoever may be reading and figuring out how they will approach their home, if you have a highly reputable design-firm build in your area, they likely will be able to get you to an actual figure to build your home without you first paying a tremendous amount of money.

  • User
    7 years ago
    last modified: 7 years ago

    A "vast majority" of how many? There are more than 100,000 architects in the US. It is unfair to judge them by the actions of the few you have met. If you are using unprofessional architects it reflects badly on you and/or your employer as well.

  • Andy
    7 years ago
    last modified: 7 years ago

    When I say "exposed to", I mean both through anecdotes on this forum and personally. It's not that they are unprofessional. It's not binary. Just because they aren't on the same level as you doesn't mean they are unprofessional.

    Besides, you're just twisting words. You understand the sentiment of my assertion: Just because you're a good architect and perform best practices, doesn't mean that other architects out there aren't leaving people hanging with plans that are 150-200% of budget.

    So I'm curious, is it your opinion that most of the time, when a customer of an architect has a bad experience, it's the customer's fault for picking that architect?

  • PRO
    Virgil Carter Fine Art
    7 years ago

    Yikes! Who's on first, Abbott...?

    From what the OP has posted here, no one can tell why his contractor came back and asked for a 35% increase in his bid price. There could be countless reasons. Any number of circumstances could have contributed to the situation. And who knows who's partially or completely responsible? Hint...no one on this thread because the OP hasn't given enough information. S/he may not even know or understand the situation...

    Chances are, if everyone involved is professional and honorable, there are various solutions to mitigate or correct the budget issue.

    In my limited experience with humans, when there's a serious disagreement over something of substance, chances may be that more than one person has contributed to the situation. But I have to admit, I haven't known that many humans...there may lots of them who are never wrong!

  • cpartist
    7 years ago

    No Virgil, Hu's on second.


  • millworkman
    7 years ago

    Actually Virgil was correct.

  • millworkman
    7 years ago
    last modified: 7 years ago

    "And he will be there with me, inspecting, advising, making sure that the builder is giving me the best advice."

    So your house isn't built yet, you have another builder ready to critique the builder you have hired (I don't see that ending well, lol) yet you say for a fact that you have avoided overpaying an architect by using a "design/build" firm.

    Good luck with your project.

  • cpartist
    7 years ago

    Sorry to correct you millworkman but Hu is a second baseman and SS. (I live with a baseball fanatic.)

  • cpartist
    7 years ago

    yet you say for a fact that you have avoided overpaying an architect by using a "design/build" firm.

    Assuming the house is the best it could be and couldn't have been designed better by someone of your choosing.

  • millworkman
    7 years ago

    But here ^^^^^^ he was on first, lol.

  • Andy
    7 years ago

    This forum is brutal. Thank you for the sarcastic well-wishing. If there's one thing I've learned on this forum, it's that everybody thinks they understand your situation better than you do.

  • Brian 's
    7 years ago
    last modified: 7 years ago

    Andy,

    Sorry, but this reminds me when Cramer accused ofSeinfeld of been Anti-Dentite .

    Next thing you say that the architects should have their own schools. :)

    Right now is a hot season, contractors want to make as much money as they can, also builder could be offered commercial work that pays more, so he is trying to say if you want it that bad prepare to PAY.

  • omelet
    7 years ago

    I read Andy's post before there were any responses to it and I was glad Andy shared his experience. I appreciate being able to read about different experiences.

    Frankly I was surprised at the attacks. The defensiveness and meanness seem quite out of line. I hope the reaction doesn't keep others from sharing their experiences.

    Andy, I actually do sincerely wish you the best on your build.

  • freeoscar
    7 years ago

    Thing is, everyone is saying pretty much the same thing - which is that it is important to have a builder involved before the plans are finalized and sent out for a bid. Whether that's JDS's approach of putting together a builder/architect team, or the Design-Build approach of Andy. As far as the OP goes, if there are details the builder was not expecting, perhaps those can be reviewed and modified to match what he was initially expecting. For instance our final plans showed LED recessed lights. The electrician took that to mean the LED driver type which (outside of labor) are around $150. We explained that no, we were happy with the normal cans with retrofit LED trim kits (around $40). For our 45 lights that amounted to a huge difference of about $5k. We had something similar with the type of divided light windows we wanted. That said, these things added up to less than 10% of the cost - I'm not sure how a builder could be off by 35%, especially as how his initial bid was in context of the other builders.

    If I were OP I'd get my deposit back and then approach on of the other builders.

  • Brian 's
    7 years ago

    >Fortunately, the best, most reputable builder in our area is a design-build firm.

    >After a $3k deposit (applicable toward the contract) and about 6
    weeks, we had a >design that we absolutely loved, and a contract just a
    little bit over our ideal budget >(but that we could get to if we
    eliminated the 14x14 screened-in deck or dropped >back to a 2 car garage
    from the current 3.5 car garage.)


    This is the same thing I have been saying. Having worked for a builder, if builder design satisfies you or require some "minor changes"* - go with it. The cost is nailed down to last stud.


    I do not believe that IF you are trying to build house on the budget, and this budget 400k (may be $500k) I would be involving architect . Now if you are willing to pay $200/per sq ft go ahead.


    @lapsangtea

    As far as original issue: " 630 has become 855" - I can easily see this. Large foundation, upgraded finishes + complicated exterior will do this.... Talk to a builder: ask point blank when can you to put it back in the budget. Most of the time you can build shell for $100k, it is all in finishes. (So reduce finishes for bidding). Get rid of high end faucets - replace with Moens to keep plumbing under control. Always bid 200A service and once you got the bid, ask about "upgrade to 400A". Avoid high-end HVAC (never cost effective), drop hrv/erv and ask about it as an option later IFF you need it. High-end windows add up pretty penny, with little ROI.


    If you want budget construction - act like it. Specify all high end finishes - builder will get concerned and pad pad pad - when your budget goes out of the window.

  • lapsangtea
    Original Author
    7 years ago
    last modified: 7 years ago

    OP here --- sorry I haven't been back yet to update-- been a lot of stressful conversations and meetings going on, as well as my day job and 2 kids. I haven't even been able to read the whole thread yet. (though I did just waste time trying to forget my sorrows by reading the always fascinating appliance forum, lol. Now I promise I'll stick to the task and read anything here I'd missed by way of advice. ) I promise I'll come back to post an update but meanwhile a sincere thanks to everyone who took the time to post advice and suggestions and even abuse (lol, I'm assuming that is in this long thread somewhere..). I'll be back soon when I have time and my big boy pants on. LOL


    ETA: Oh and please don't get mad at me for asking for advice and not promptly repaying the favour with answers to all questions/ coming back to update. I am overwhelmed in all sectors of life right now. Close family member living far away had a serious stroke this week. Too much life going on. I will update, but I swear I am at my emotional limits with this build stuff. Garden webbers handle me with kid gloves ATM, please. :) Thank you. Carry on.

  • cpartist
    7 years ago
    last modified: 7 years ago

    Family always comes first and we do appreciate that you actually came back to let us know. Good wishes for your family member's recovery and for everything working out for you.

    lapsangtea thanked cpartist
Sponsored
NME Builders LLC
Average rating: 5 out of 5 stars2 Reviews
Industry Leading General Contractors in Franklin County, OH