Here are 10 easy ways to save money on your construction project, whether it’s a small renovation / remodel or building a new home.
1. Set a budget! It is important that you control costs. The best way to do this is to start with a “do not exceed the number”, written on paper and in your mind. You can get a rough estimate of the construction cost you want to make by searching the Internet and talking to contractors. This will give you enough information to establish your approximate budget.
2. Add 20% to your budget to use for unforeseen costs, which you will refer to as a “contingency fund.” This total should be the final amount that you will pay under any circumstance. Make this number work for you and don’t release any of this money without carefully exploring all the alternatives.
3. Decide how you want to proceed, either acting as your own contractor doing all the work yourself, or doing some of the construction yourself and outsourcing some parts like electrical and plumbing, or hiring a general contractor to do it. of the project you decide to build. This is your first chance to stay within your budget and reduce your construction costs. You can do this through negotiation or through competitive bidding. You can further reduce costs by providing some or all of the materials.
4. Material costs – Once you have determined what you will build and the method you will use to get the job done, you will need a materials list so that you can shop at the best prices. Here’s an area where you can cut costs by comparing prices, for example; between your local lumber store and Home Depot. When making this shopping list, be sure to price apples to apples and oranges to oranges and that the quality of the material is roughly the same.
5. Material Substitution – There can be substantial savings by substituting top-of-the-line material for lower-priced products. You don’t want to get carried away by this approach by going to the bottom of the barrel for quality. You need to consider how long this product will last and how well it will work for you over time.
6. Building permits – There really is no good way to get around permits and associated fees without running the risk of an inspector coming in at a later date and forcing you to be part of your construction, to allow the inspector to determine that the Materials and installation conforms to local building codes. They have the authority to do this in most areas of the country. You don’t want to make the mistake of starting a construction project without having a permit from the local authorities along with the required inspections or you might have to disassemble and redo some of the work.
7. Insurance – Yes, you need insurance coverage while your construction project is being built. Verify that any contractor you hire has insurance before signing any contracts. Your homeowners insurance can protect you for uninsured workers in your home, but check to see if it is covered and if there will be an additional cost. If there is an additional cost, you may want to bid, but as I mentioned earlier, when bidding be sure to compare apples to apples and oranges to oranges.
8. Legal – If you are signing contracts, you should seek legal advice regarding any contract before signing it. Lawyers must be bought for price and quality before agreeing to use their services. Here is one area where you can save money. By looking carefully for a lawyer, you will get good advice at the lowest possible price.
9. Contractors – You could write a book on working with contractors, as there is a large diverse group and everyone wants your business. My Uncle Harry was a purchasing agent for a large corporation and his criteria was “Quality, Price, and Reliability.” This is a very good rule of thumb and requires you to do some research by checking references and reputations before participating. Once you’ve determined the contractors you would like to have, allow them to come up with a competitive offer or negotiate the price of the job. This is a critical time to adjust costs to fit your budget and to save money.
10. Start of work – This is where you can avoid additional charges to your construction project by scheduling work to allow different crafts to be on the job when they are needed and not when they can’t get the job done due to someone else’s unfinished work . or lack of materials. If you are providing the materials, to save money you will need to make sure they are on the project when the artisans need them or face additional charges when they have to return multiple times.
There you have some of the ways I have learned to reduce construction costs, be it a remodel / renovation or building a new home. There is one last point that I would like to add, and that is attitude. Artisans who are treated with respect will generally respond in kind. Yes, you are paying the bills, but remember the golden rule and treat workers with dignity. Trust me on this and it will pay off for you in unimaginable ways. Wishing you good luck on your next project.
