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Wednesday, December 2, 2009

Cost of Construction

In 1978 when I started building homes, the average builder had about $35,000 gross profit in a new home, this continued to increase until early 2008 when the builders gross profit went as high as $250,000. Today the builder's average gross profit in a home is near $100,000.
To estimate the cost (materials and labour only) on a 1800 sq ft 3 bedroom, 2 1/2 bath walk out rancher with fully finished basement granite countertops, hardwood and ceramic tile floors (carpet on the basement floors) and a 2 car front drive garage; use a figure of $195/sqft or about $350,000.

By comparison the same new home construction from the average builder including his profit as well as materials and labour is about $450,000 or near $250/sqft.

At Hartley Homes we can save you thousands of dollars in construction costs because we only charge $9,000 per month to build your home, how do we do it, easy! We estimate the time it takes to build your home, usually 4 to 7 months, that means your cost is $36,000 to $63,000. Prior to the start we agree on the time frame to build the home and that becomes a fixed cost, no cost over run we will keep you on budget even if it takes longer than estimated. This can result in a savings of $30 - 60 thousand dollars!

We know it's critical to be on the jobsite every day all day long to supervise every aspect of the construction process. While we are on jobsite supervising and coordinating, we also do much of the labour such as clean-up, prepping, forming and rebar placement of all the concrete slabs, even the finishing work! So instead of hiring a sub contractor like other builders do, we do the work of the subcontractor at no additional cost. Bottom line we save the owner thousands of dollars in construction costs.

We update your budget weekly so know exactly where you stand, plus you will see the exact cost we are billed by every contractor, nothing is hidden, you pay exactly what we pay.


At Hartley Homes we deliver the look and function exactly as promised!

3 comments:

  1. Thanks for the info on the cost of a home. It's actually a lot cheaper than I thought it was going to be. We're looking at going into some custom home construction Virginia Beach and we're finding that the prices are similar to yours here. My wife and I appreciate your openness when it comes to the financial side.

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  2. I know have an idea on how much estimated cost I would incur. I am also thinking about getting an insurance.


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