Thursday, October 9, 2014

The cost of construction is the cost of construction

The cost of construction is the cost of construction.

I have met with countless people who want to build a custom home but can’t understand why it has to cost so much to build what they want.

The conversation usually goes something like this; first they ask what the average cost per square foot is and I give them a pretty big range that doesn’t really tell them anything. I tell them that they need to give me a set of detailed plans and I will be able to give them an accurate quote on the building of their home.

They then tell me what their budget is and it is usually is too low for the size, style and level of finish that they want. I tell them that they can’t have what they want for what they want to spend and this usually brings on another discussion of why that can be?

I have one simple answer for them; the cost of construction is the cost of construction.

Usually I am not the first contractor to tell them the exact same thing (about the price)but from watching television or talking to their friends they have convinced themselves that they can have what they want for the limited budget they are proposing.

What I explain to them and to a lot of people is that being a general contractor, doing it legally, following all safety rules and regulations, building with premium products and doing it at extremely high standard costs money. Those costs are fixed costs there is no way to get around them no matter how many contractors you talk too.

Unfortunately for most contractors it doesn’t pay nearly as much as you would think it would, we make money but not nearly as much as we should for the amount the houses that we construct are worth.

But we enjoy it, we’re good at it and it pays the bills.

So the next time you are talking to a contractor about building a home remember this simple saying, “the cost of construction is the cost of construction.”

Rob Abbott
Village Builders Inc.

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