With the cost of home building on a steady increase, it is very important to find ways to save money when trying to stay on a budget when building your home. The question is how? The following are a few of many ways to cut home construction cost and also increase value to your new house design.
Be your own general contractor (GC)
Being your own general contractor can save you the greatest amount of money. You can save as much as 30 percent. However, being a GC requires a great deal of work, time, and manager skills. You must be able to plan daily task, schedule sub-contractors, make daily on-site inspections, research and order materials, etc. Being your own general contractor should not be attempted unless you have a good understanding of the construction process and the time to invest. If you have experience and are willing to invest the time, then being your own general contractor is the task for your money saving mission.
Purchase building materials without being the GC
To be honest, some general contractors may not work under this agreement. If you can find one who is willing, you can save up to 10 percent or more in the building process. You won’t know unless you ask. Most if not all general contractors buy their materials at a discount and mark the price up to you for a profit. By eliminating the general contractors mark-up you can cut down on this unnecessary spending.
If you take on the task of purchasing materials you will want to ask for the builder’s discount from your local supplier. You may or may not get the same price as your contractor, but you will get better prices as oppose to going through your contractor. Because your contractor will usually have a long standing business relationship with a supplier, the supplier will usually give him better pricing due to the volume of business.
An important step in this is staying on top of the ordering and delivery process. Constant communication with your contractor and supplier to ensure delivery of the correct materials when the subs need them is crucial. If possible, try to work out an arrangement which will allow your general contractor to order the materials from your supplier when they are needed. Just make sure the contractor is ordering materials strictly for your project and is returning any unused materials to the supplier and credited towards your account.
More cost cutting home construction tips without being the GC
The above suggestions will save you the most money during your home building process. Other ways to cut home construction cost that are easy to do includes site preparation, site clean-up, framing, dry-walling, installing windows and doors, installing mill-work, painting, etc. If you are skilled at any of these aspects, cost can be reduced by eliminating the use of subcontractors and doing the job yourself.
The key to doing any work on your project is to make sure you have a clear understanding with your general contractor and his job schedule with the sub-contractors. Your project will be on a strict timetable and you want to do everything in your power to make sure it stays that way. Do not disturb the process by messing up the schedule that has been put in place. Work closely with your GC and stay on schedule with your duties. In the end, you will achieve the money saving results you want.