(3-min read)
“For which of you, intending to build a tower, does not sit down first and count the cost, whether he has enough to finish it?” – Matthew 14:28
Building a new home is an exhilarating time, but one with many plates to keep spinning. From strategizing a build timeline to choosing every element that will accommodate every square inch, the process can be both thrilling and taxing. To save money and feel like they are maintaining more significant control of the process, some may choose to forgo the standard practice of utilizing a project manager. While this may seem like a job that any business professional should be capable of performing, one of the more common missteps for do-it-yourself project managers is to underestimate or miscalculate the soft costs associated with home construction. This oversight can end up causing build projects to run tens of thousands of dollars over budget or more.
The Hard Costs vs. The Soft Costs of Home Construction
The Hard Costs
When most of us sit down to crunch the numbers associated with home construction, the vast majority of us will list off items that most frequently fall under the category of “hard costs.” Hard costs are expenses associated with the physical construction of the home structure. Some examples of these costs are the site, site clearance, site grading, foundational elements, building materials, landscaping, construction labor costs, equipment use or rentals, etc. All of these are the “brick and mortar” costs of building a new house.
The Soft Costs
What is frequently called the “soft costs” of home construction are everything else. You may be asking yourself, “but what else is there?” Just as most of us don’t consider these costs, soft costs are comprised of the “invisible” costs of building a home. Some examples of soft costs include the variety of permits, various inspections, accounting, designer’s fees, legal fees, taxes, financing, interest, and the like.
While hard costs still typically outweigh soft costs for a home construction project, the latter still comprise a significant chunk of a building budget. Failure to factor in all soft costs can result in some unpleasant surprises when it comes to finalizing payment details for a home construction projection. When soft costs are accurately accounted for from the beginning stages of a home construction project, the customer is likely in for a rude awakening.
Avoiding Budgeting Miscalculations
Perhaps the best way to avoid budgeting miscalculations and to keep a construction project progressing efficiently is by working with a home construction professional service. The home construction experts from Perry Hood Properties, for example, have helped hundreds design and build the custom homes of their dreams. Perry Hood Properties’ friendly staff assist builders with every conceivable dilemma to ensure a lack of surprises throughout the design, budgeting, and building process.