At Wescraft we know that it is essential to do your due diligence in researching your potential builder.
Out of everything that you will ask, it often comes down to that one crucial question – Price – What is this going to cost us?
As not all builders have the same style of budgeting. You need to establish a strategy and how it may effect your budget. You need to know what works for your personal preferences, your schedule and your finances.
One common way some builders use of handling a construction budget is called “cost plus basic pricing”.
A simple explanation of this method is that they apply a percentage mark up to the cost. It takes the fixed and variable costs associated with building (materials, labour, overhead etc.) and adds a profit margin. It is considered a simple pricing strategy that can be used to boost profits in almost any business. This sounds great for the builder but is it great for you the client? This formula removes any incentive for the builder to keep a watchful eye on pricing, timelines or material costs. In fact it often ends up working in the builder’s favour if the costs end up higher. The framework of the budget can be considerably looser than might be to your benefit.
The method offered at Wescraft is to set a firm contract price.
How does this work? I sat down with Scott and he explained his process.
“First the customer approaches me to talk about the land they have purchased or plan to purchase. I’ll happily meet with them on site and look at the possibilities. We will discuss their wishes and ideas and get an approximate budget. It’s an exciting process to be able to guide them to craft a home plan that is designed to suit their wishes, needs and budget. Once the plans are completed I put together a firm contract price for the project. We create a set of specifications of what exactly will be used in the constructing of the home. The emphasis is on a strong communication as to what can be expected and what will be delivered. The goal is to achieve clarity between both parties and peace of mind for the client”
“As a custom home builder we can alter those specifications at any time. Most importantly we all know what we started with, so the contract and specs can be always be accessed. Once again we can discuss any changes, review the options and agree on a firm price.”
How do I monitor the budget?
“At Wescraft, you always know where you are financially. The payment is in draws. There is a deposit at the beginning and then approximately five or six draws spaced out after that. As we progress at each stage you can see what you are getting for your investment. This combined with the flexibility to upgrade, or simply make a change makes this process as client centered as possible.
At Wescraft we believe that the firm contract price is in the best interest of our clients and believe the key to a successful job is great communication. We pride ourselves on delivering on our promises. On time and on budget.
We think that the answer to the question “What will it cost?” is something that you should have right from the start, and we’re very happy to talk.