We have been working with a custom builder toward contracting for construction of a custom “empty-nester” home on a property we own. One glitch that developed recently was an increase in projected cost due solely to an unfamiliar interpretation (on our part, at least) of the plan’s square footage.
– The plans developed by their designer list a figure for the square footage characterized as “over the frame” floor area/footage, which we were told was based on the dimensions to the outside edge of the framing.
– We are now being told that their costs will be increased, based on “appraisal footage” which equals the “over the frame” footage plus 4%.
Q: Is this a common practice/terminology in the custom residential construction industry?
Replies
You're saying the builder is increasing it by 4%, or the bank?
David,
The builder is quoting the increase, based on the "appraisal" square footage.
SF normally includes all of the footprint but the term Square Footage means different things to different people, therefore the discussion always has to include the context that you are working in to define the term.
Your costs are you costs and everything costs something. I wouldn't let this discovery poison your relationship with the contractor. It's far better to discover this descrepencey in your thinking at this stage of the construction rather than sometime after the project is started.
Many of the CAD drawing programs have their own way of calculation SF and that does indeed cause a certain percentage error. I think 4% is certainly within the range of this idea. Do the math...add up a wall that is 5" thick times the perimeter and the sq footage adds up fast. A brick veneer wall is 11" and that chews up sf real fast.
If you dont want to pay for that sf, find someone to install all those exterior walls free. (Just kidding).
Bob's next test date: 12/10/07
The builder can base his pricing on any formula he wants -- size of the bathtubs if that's his thing. What matters to you is the bottom line price -- how he got there is irrelevant.
Or are you saying that you already have a contract at so much per square foot?
I know nothing other then what you wrote of course, but based on your post I would say you're being handed a price increase and the builder had to find a way to "justify" it.
I've never heard of a contractor building a house and basing the cost exclusively on square footage. First, there is the economy of scale. A 1000 SF home is going to be more expensive per SF then a 7000 SF home of the same quality. Second, as I usually tell my clients, trying to price a home by the SF is like trying to buy a car by the pound. There's a big difference between a Buick and a Lexus.
I think you're being handed a line.
Runnerguy
"Second, as I usually tell my clients, trying to price a home by the SF is like trying to buy a car by the pound. There's a big difference between a Buick and a Lexus."Nice line. I'm going to start using it. Bob's next test date: 12/10/07
If you made a deal with a builder and agreed to having him build for you on a price per square foot, you probably deserve to have to put up with whatever curve balls he now wishes to throw.
Oh gee, now THAT'S helpful.
Maybe you forgot and thought you were logged on at JLC.
It's true. Whether or not facts are helpful depends on whether there's anything to be helped.
If your view never changes you're following the wrong leader
OK... you agree... now he "deserves" to have a builder throw curve balls at him?
Not a phrase I have ever heard before.
FWIW I agree that cost per sq. foot pricing on housing is not the way I would ever be buying.
As a GC I wouldn't even touch a project that way .
Maybe after we spent a day discussing your tastes in carpeting, bath and kitchen fixtures, kitchen cabinets, flooring , trim details and materials , roof materials , HVAC systems and lighting fixtures I may give you a price range in terms of sq. ft.
Too many variables for my tastes, among them are the issue of the garage sq. ft. being counted, how about porches, decks, walk sq. footage?