Are you ready to build a custom home but don’t have a full set of plans?

How exciting!! You’re ready to build.  Maybe you’ve found a floorplan online you like but want to make a few changes.  Or maybe you have started talking to an architect to get some rough plans drawn up.  We have an earlier blog post detailing the difference between online plans and hiring an architect you can check out, but either way- you’re on the right track!  At this point, you have 2 different paths to choose from for the pre-construction phase.  You need to have a full set of plans before signing a contract with a builder, and there are two ways to go about obtaining these plans.

A Full Set of Plans

*full set of plans to include (at a minimum) the following:

1. Site plan – including flatwork & utilities

2. Floor plan

3. Reflected ceiling plan

4. Roof plan

5. (4) exterior elevations

6. Electrical plan

7. Engineered foundation plan

8. Engineered structural framing plan

The Two Pre-Construction Paths

Path 1: Manage the design phase yourself.

Path 2: Sign a design agreement with a builder.

There is no right or wrong option here.  It is totally up to you and your specific situation!  We’ll try to lay out the details of each path so you can make the decision that is right for you.

Path 1: Manage the design phase yourself.

Our very first client at JD Rock took this path, and we had an amazing experience with them!  Over the course of several months, they took the time to have an architect draw up plans for their custom home and corresponded regularly to ensure every detail was just right.  Next, they hired an engineer to engineer the plans.  Then, they sent their full set of architectural and engineered plans to multiple builders to bid on their custom home.  Thankfully, we won the job and got to work with these wonderful people!  The project went smoothly because all of the plans were finalized before we started construction.  

I would note – for this project, there was no HOA or official city to deal with.  This made the pre-construction phase much easier as the client did not have to seek approval from these entities.

Path 2: Sign a design agreement with a builder.

The second option for the pre-construction phase of your custom home is to sign a design agreement with a builder.  This option would work best for somebody who may not feel totally confident managing an architect and engineer on their own.  A design agreement hires a builder to manage and coordinate with you, the architect, and the engineer to design the ideal home for you – providing cost projections along the way.  By involving the builder early in the process, you’re avoiding the potential mistake of designing a home that is thousands of dollars (or more) over your budget.  Just to be clear – a design agreement does NOT necessarily lock you into using this builder to construct your home.  At the end of the design phase, you could submit your finalized plans to other builders for pricing and choose the best deal.

So again, there is no right or wrong option here.  You need to decide how hands-on you want to be, and how confident you are in managing the pre-construction phase on your own. Ultimately, choose the option that allows you to sleep in peace at night. We will never stop encouraging you to choose the path with the most peace of mind.

Custom Home Building Concepts You Need to Know - Allowances

What’s an allowance?  When you sign a contract for a custom home, the builder will usually give you several “allowances” for various components of the finish-out.  For example, the budgeted allowance for appliances could be $20,000.  Therefore, your home would be built, per plan, with $20,000 included in the budget for the purchasing of appliances.  This way, you can shop around and pick whatever appliances you desire. But beware- if your appliances of choice exceed $20,000, you will be responsible for covering the price excess or have to select cheaper appliances.  Conversely, if the quoted price for appliances comes back at $15,000, then the builder would write you a check for $5,000 at the project’s end.

So, when a builder sends you a proposal, be sure to carefully review all of the included allowances before signing a contract.  Usually, the following items fall under the category of an allowance:

• Appliances

• Plumbing fixtures

• Tile

• Flooring

• Countertops

• Lighting

• Rock material

• Door Hardware

• Mirrors

• Toilet and bath accessories

Make sure you’ve done your homework regarding these allowances before signing a contract.  You may have always had your heart set on a certain wood flooring (not knowing that it costs $15/SF).  If the builder lists the wood flooring allowance at $8/SF, you are going to be very bummed when you realize how much your dream wood flooring costs – forcing you to settle for something else (or cough up thousands of dollars unexpectedly).

Here are some easy and practical ways to do your homework: 

1. Shop online.  Build a spreadsheet with all the appliances you like and estimate how much you need budgeted for your fridge, oven/range, dishwasher, washer, dryer, etc.

2. Go visit a showroom.  There are a multitude of local vendors around you.  Go visit one of their showrooms and ask for a sales representative to show you around.  This way, you can touch and feel products to determine what you really like.  The sales rep can very easily put pricing together for you.

3. Enlist the help of an interior designer. This is just one of the many ways an interior designer can assist in the home building process. Check out our blog from a couple of weeks ago for an in-depth analysis of interior designers and their benefits.

As always, we are here for your peace of mind and hope this information blesses your construction experience!

Is My Remodel General Contractor Going to Run Away With My Money?

I am sure we’ve all heard this classic/horror story.  A homeowner calls a “remodel GC (General Contractor)” to their home to quote a price for a kitchen rehab.  The GC quotes a price and asks for X amount up front.  No contract is signed, and the requested upfront payment is issued.  A few days go by, and the homeowner has not heard from the GC.  A couple of weeks go by… nothing.  It’s almost as if the GC was never even planning to do the project…?

Today we want to give you guys a few tips so that you are never in this horrible situation that is all too common!

Remodel General Contractor Must Do’s

1. Ask for referrals.  This GC should be able to provide you with, at the VERY least, one or two referrals for people he’s remodeled for in the past.  Don’t hand this GC a dime until you have actually contacted these referrals to verify that this GC is reputable.  Ask for photos of his work to see if you are pleased with his finished product.

2. Does the GC have an online presence?  Are they on social media, and do they have a website?  If the GC has an online presence, they will be majorly incentivized to behave honestly and do quality work – knowing that you as the homeowner could leave a dissatisfied review online.  

3. Sign a contract.  Once you’ve done your due diligence to make sure that this GC has established some level of credibility, the next step would be to sign a contract.  The GC often has a contract of their own for you to sign.  If not, there are countless websites that offer contracts you can purchase (or even download for free).  This contract MUST dictate payment terms.  If both parties agree, it is perfectly normal for a percentage of the contract cost to be paid upfront – just make sure you have this in writing!  It is imperative that the contract stipulates exactly what work will be performed for exactly what amount.  Leave nothing to ambiguity.  Is the homeowner or the GC buying the appliances?  It should say that.  How tall is the new kitchen backsplash?  It should say that.  How long will the project take, and will there be any penalties for late completion?  It should say that.

4. Document everything along the way.  Make sure to keep records of all payments.  After every payment, have the GC sign a lien waiver as evidence that they have been paid.  If conversations were had on the job site about changes in plans, email the GC afterward in writing for confirmation.  

Don’t let the horror stories scare you off from a remodel, but do armor yourself with the knowledge to protect against such an experience. As always, we’re here for your peace of mind!

Custom Home Interior Designers- Why you need them and what to look for

Interior designers can save you time, sanity, and money, and create a beautiful space to top it off! In my never-ending pursuit of your peace of mind, I introduce to you the magic of the interior designer. 

The Interior Designer Relationship

Let’s first start by explaining how interior designers fit in the relationship with the client, architect, and builder. Chronologically, this is how it roughly plays out. The client approaches the builder with a complete (or near complete) set of plans drawn by an architect. The builder and client work hand in hand with the architect to finalize the plans. At this point, a contractual agreement is made between the client and builder over said plans, and construction begins. It is at this point that the interior designer is brought in – once a full set of plans are complete and no more structural changes will be made to the size/shape of the home.

A Really Good Interior Designer Described

What is an interior designer? Or better yet – what does a really good interior designer do?  I have had the pleasure of working with a couple of different designers over the years, and they are worth every penny.  Really good interior designers sit down with the client to get an overall feel for the kind of style they hope to achieve in their custom home (modern, rustic, boho, farmhouse, industrial, etc.). These designers will have established relationships with local vendors. They’ll take the client to showrooms to let them see and touch different materials to aid in making selections. A really good designer will have up-to-date design software that allows the client to (for example) see a simulation of their actual shower with their selected tile on the walls. I can’t emphasize enough the peace this provides for the client as they make their selections. They don’t have to hope and pray while they wait for the tile to be installed to see if they like it. Lastly, a really good interior designer should provide a detailed selections packet (signed by the client) to the builder for seamless communication.  Designers should be in the weeds with a lot of the decision-making. For example, if I, as the builder, am only told what tile is going on the bathroom shower walls – I am left with many unanswered questions. What color grout? What size is the grout thickness? In what pattern does the client want the tile laid? Is there a shampoo niche? If so, where and what does it look like?  How does the edge of the shower tile transition to the bathroom drywall? Is this transition completed with a bullnose tile or a metal trim? If metal – what color? Are you starting to get the idea? This amount of questions may seem ridiculous, but I doubt any client would prefer I attempt to read their mind. A really good interior designer would know what questions to ask and take the time to gain a full and complete understanding of what the client wants.

More Benefits of an Interior Designer

Further, an interior designer will keep your project on track with the selections schedule. This is where a designer really proves their time and money-saving value. Navigating lengthy lead times for materials requires that selections be made early and on schedule to ensure progress is not delayed. A common example is windows. Windows can take months to arrive on the job site, so windows are one of the first selections I require a client to submit. If a client fails to make a selection by the agreed-upon deadline, an extension ranging from days to weeks will be incurred along with a potential financial upcharge. But with an interior designer, you can rest easy and be at peace knowing that you are making all the right decisions at the right time.  

Additionally, an interior designer minimizes your likelihood of change orders. I mentioned earlier that a designer has software that allows you to visualize your selections prior to installation. This decreases the need for later changes resulting from not being satisfied with the look of your selections. Every change order automatically adds time and money to your project. 

A Design Selections List

It is worth noting that many of the great “interior” designers actually design both the interior and exterior components of the home.  Here is a list of all the selections you should expect your interior designer to help you make in your custom home:

EXTERIOR

• Windows

• Exterior Doors & Hardware

• Fiber Cement Siding

• Rock & Mortar

• Garage Door

• Stucco

• Lighting

• Roof Type & Color

INTERIOR

• Drywall Texture

• Paint Colors

• Trimwork

• Interior Doors & Hardware

• Cabinets & Hardware

• Countertops

• Fireplace

• Flooring (Wood, Tile, Carpet, etc.)

• Shower Tile

• Plumbing Fixtures

• Appliances

• Bath Hardware

• Mirrors

• Lighting

Are you convinced yet that you need an interior designer on your custom home-building team?

Custom Home Building Contracts: Understand This Before Signing a Cost-Plus Contract

Last year, we posted a blog about the differences between cost-plus and lump-sum contracts, along with the pros and cons of each. If you haven’t already, I would recommend reading it now! Quick recap: in a cost-plus contract, the client and the builder agree upon a locked-in, unwavering management fee that will be paid to the builder for the project. Any budget overages or remediation work will be at the client's expense; therefore, the risk lies with the client. As a result of decreased risk, the contractor typically reduces their profit which gives the appearance of a “better deal”. In a lump-sum contract, the client and the builder agree upon a locked-in, unwavering CONTRACT price for the whole project. Whatever profit the builder makes will not be revealed to the client. There is no risk for the client should any budget overages or remediation occur- the risk lies with the contractor. 

I have spent the last year and a half working on 4 different cost-plus contracts. I want to emphasize how thankful I am for every client and the opportunity to learn and grow. Starting any new venture involves trial and error and I am so grateful for the clients who have chosen to join in the adventure. We entered into these initial projects believing that a cost-plus contract was the best option for everyone involved. However, on each of these projects, unexpected costs came up. We have not been immune to soaring material prices (like concrete) after our budget was set and the contract signed. All of this resulted in the client having to cough up more money - and I’ll add - disappointedly. Because our contract was cost-plus, they had to experience firsthand the messiness of construction and shoulder much of the stress.

Is a cost-plus contract always a bad idea? No, there are certainly times when it is advantageous. But it is critically important that the client understand how much risk they bear in a cost-plus contract, AND how exposed they are to cost fluctuations. This can really steal from the joy and excitement of building your own custom home. As a builder who wants to glorify God and bless others, I have struggled with cost-plus contracts. Everything in me wants to swoop in and pay for budget overages and remediation work for my clients so they are spared the stress and strain. But when a cost-plus contract is signed and my profit is reduced, I’m stripped of the ability to intervene. 

We want to bless people. Period. If I could go back in time, I would have strongly advised most of my clients to sign a lump-sum contract with me. It may be more expensive (at least initially), but once that contract is signed, they can sit back and enjoy watching their home come together. When budget overages occur and mistakes are made, I can immediately cover them. Your peace of mind and pocketbook are spared the strain. 

This seems to be a theme with many of our blogs, but peace of mind is worth it every single time.

Common Custom Home Building Mistakes- Part 2

Happy New Year! We hope everyone enjoyed a wonderful holiday season with loved ones and delicious food. We at JD Rock are back and excited to jump into another year of custom homes and #bloggieaugie. 

Two weeks ago we left everyone hanging with part one of the most common custom home-building mistakes. Today we are concluding with two more common mistakes. Our desire is to help you avoid these pitfalls and enjoy the most smooth construction experience possible! Without further ado… 

MISTAKE #2 – Not Hiring an Interior Designer

Some builders are specifically gifted with an eye for design and the skillset to bring that design to life on various software.  The Lord did not gift me with an eye for design, and that is okay because I have met some amazing people who design for a living. A really good interior designer is more valuable than most people realize. They’re not just picking paint colors for your walls, they take a client’s fuzzy idea of what they want their home to feel like and turn it into an actual visible drawing.  I’ve had clients, several times, send me a handful of Pinterest photos and say “we want our fireplace to look something like this.”  No two photos will be alike, and I will be left with more questions than answers. This is frustrating for both the client and myself.  The client is struggling to convey what they want their fireplace to look like, and the lack of clear understanding regarding what to install is delaying my construction schedule. A good interior designer will have the software to draw up exactly what the client envisions and clearly dictate what materials are necessary to execute the vision. If you are spending the money and time to build a custom home, it is worth the extra expense to ensure the final product matches your vision.

MISTAKE #3 – Hiring the Cheapest Guy on the Block

1 Corinthians 3:10 says “like a wise master builder I laid a foundation, and another is building on it. But each man must be careful how he builds on it.”  For every custom home, a plethora of trades will be hired to build the various components. It can certainly be tempting to simply find the cheapest guy in town for each of these trades.  While not always true, it is safe to say that you get what you pay for. The cheaper the trade, the more handholding is required. The cheapest guy in town is generally horrible at timely and professional communication (specifically over text and email).  They can be nearly impossible to find if their work is revealed to have problems. Conversely, I have a foundation contractor who is not the cheapest guy in town. I spend a significant amount of money on him for every project. But, he is one of my most dependable and honest trades. He is extremely professional and somebody I am proud to introduce to my clients.  When engineers come to inspect his work, they commend his attention to detail. I never have to worry about his foundations, and that is worth every penny. So make sure to take your time and research to find the best guy, not just the cheapest guy. 

We will continue to share common mistakes in an effort to spare others the headache. However, avoiding these first 3 discussed mistakes will already put you in one of the best positions for a hassle-free construction experience. Take your time and get a full set of plans, hire an interior designer, and don’t settle for the cheapest labor in town if it isn’t the best!

Common Custom Home Building Mistakes Part One

Mistakes are universal across all occupations with an endless list of possibilities. Consider a barista making a simple cappuccino- Did she weigh her coffee grounds accurately?  Was her milk steamed to 135 degrees Fahrenheit? Did she time her espresso shot to make sure it was neither too bitter nor too sour?  Thankfully, if she failed to do any of these things right, she could just remake the drink – costing the coffee shop a couple of bucks and her client an extra 90 seconds. Not the end of the world.

Unfortunately, you cannot just rebuild a house if it does not turn out right. If the following mistakes can be avoided, the client will be happier, and the project will finish faster.  We at JD Rock Construction have made all the mistakes we will discuss.  We are grateful for them because of the valuable lessons they have taught us.  Moreover, we are grateful for the gracious clients who have endured these mistakes with us and for the patience they offered. Today we zero in on one particularly potent mistake…

MISTAKE #1 – Starting Construction Without a Full Set of Plans

This mistake begets most future mistakes.  Proverbs 24:3 says “by wisdom a house is built, and by understanding it is established.”  If you lack a full set of plans, then you also lack understanding.  The human brain can only retain so much data, but a set of plans never forgets what was drawn.  A full set of plans should, at a minimum, include the following:

·         Site plan

·         Floor plan

·         Ceiling plan

·         Electrical plan

·         (4) Exterior elevations

·         Roof plan

·         Engineered foundation plan

·         Engineered structural framing plan

As soon as the builder is given the green light to construct, he will hire subcontractors for the foundation, plumbing, and electrical system.  It would truly be better to hold off on construction a month or two until plans are finalized than to later tear out work because it was not what the client wanted. Let me emphasize that these plans must be final.  If the client signs off on the floor plan, he must understand that any deviation from the plan moving forward will come with a price. Getting plans extensively revised in the middle of the project is a nightmare and will create much more work for the builder and increase the likelihood of error from confusion. Save yourself the headache and ensure you have a full set of plans before commencing construction.

Be sure to check back for part 2 of Common Custom Home Building Mistakes and learn how to create your best custom home build experience!

The Truth About Price Per Square Foot

“What is your price per square foot?” This is the first question most often asked of a home builder and is, also, one of the most difficult to answer. Because the answer is more complicated, we want to help you better understand what is truly involved. It would be incredibly unfortunate for a client to hire a home builder under misunderstood conditions.

So- What does the price per square foot mean?  There are 2 parts to this equation.  The price takes into account the total cost of all labor, materials, and management for the project.  The square footage accounts for the total living area (emphasis on the living). The total living area includes all the areas that will receive heating and cooling.  Therefore, a garage that does not receive heating and cooling, will not be included.  Likewise, porches and driveways do not receive heating and cooling and are also excluded from the square footage. 

Here’s an example to illustrate the calculation: Let’s say the house you want to build has 3,000 square feet of total living area, a 2-car garage, and a 40-foot-long driveway.  The builder has quoted you $600,000 for the project.  Therefore, the price per square foot would be $200 ($600,000 divided by 3,000 SF = $200/SF). 

Now, consider building the same 3,000-square-foot house with a 4-car garage and an 80-foot-long driveway.  Even though the total living area has not changed, the builder will be unable to build the home for $200 per square foot because he has to pay extra for the additional garage and driveway labor and materials. Because the total cost increased, the price per square foot will also increase. The same would be true if the square footage remained the same, but you decided to have all of the walls painted by a renowned artist or selected all appliances from Italy. When the total cost rises, the price per square foot must follow.

Hopefully, these examples make clear that the price per square foot is most impacted by the decisions of the client NOT the home builder. All custom home builders provide the exact same service.  They hire the labor and purchase the materials to build exactly what you want.  The same tile setter would be hired to install $1/square foot tile or $50/square foot tile.  The same plumber would be hired to install standard Home Depot plumbing fixtures or the most expensive Kohler fixtures.  When you see a “famous” home builder on Instagram posting photos of a gorgeous mansion in a celebrity neighborhood, they provide the exact same service as a home builder who builds a modest ranch house in the middle of nowhere.  The price per square foot may be wildly different between the two, but both builders did the same thing- they managed the building of a custom home. 

What distinguishes a builder is NOT their price per square foot; but their approachability and integrity. If you are considering building a custom home, you should absolutely get multiple bids on your house from builders in your area. You will find that they quote you roughly the same price per square foot. However, you should take the time to get to know each builder and determine whether or not you trust them. Determine whether or not you would be willing to communicate with them for the next year or so as they build your home. Then make the decision to hire the overall best home builder for YOU.