Monthly Archives: March 2022

How Much does it Cost to Build my New Home?

Building your own house is a dream project for many. But it’s not one that should be taken lightly. You cannot just ask the cost without considering so many factors and dynamics. Or else it just a bluff. There are a huge range of financial, legal, and practical questions you should learn before you even begin! First among them is how much it even costs to build a house? Maybe you’ve always dreamed of building your own home. After all, home is where most of life’s biggest memories take place—who wouldn’t want to live in a brand-new house built just for them? The only problem is new things always come with a higher price tag. So how much does it cost to build a house these days? And will you be able to afford it? Some people want to build their dream home from the ground up. When you’re at the helm of your home, you’re in control of the property and its features. Whether you want cutting-edge energy-efficiency or hot design trends, it’s all in your hands. Plus, you avoid the cutthroat competition in the real estate market. But for anyone who planned to build their home since they were a kid, you may need to check your detailed expense estimates. The COVID-19 pandemic and the conflicts in Ukraine, caused the average cost to build a house to increase drastically compared to previous years. So, you may want to review the typical costs waiting for you as a home builder in 2022, including buying land, obtaining permits, designing the property and building it, and the necessary materials ( both structural and architectural). Factors like labor and supply shortages led to increased building costs over the course of the COVID-19 pandemic. So, the overall cost for home builders in 2022 and upcoming year may still be more higher than previous years. The golden rule of house building – investigate the costs in detail before you get started! Remember, unless you’re lucky enough to own a piece of land, or in a situation where you’re tearing down an old home to build a dreamy new one, purchasing land will have to factor into these costs. It’s going to be a whole lot more difficult and expensive to buy that land. Construction costs also vary by region, factoring in elements like local contractors, permits and licenses, materials, weather and even terrain. You can’t design a house on the back of a napkin. You’ll need to work closely with the architect and a builder to create a blueprint that provides a detailed plan for construction of your home. If you can find a design-build firm it would be much better. They can offer more flexible packages than separate ones. A qualified architect/builder not only helps create a practical vision of your dream, but should also know all the relevant building and zoning regulations. One of the single greatest risks to your house construction budget is overrun timelines. Every day that your project goes beyond the budgeted timeline is a day more you have to pay professionals to finish your home. It also has knock-on impacts such as having to continue to pay for your current accommodation beyond the budgeted time. That’s a major problem for cost escalation. Work closely with your architect and builders to create a sensible and achievable timeline for your home build with detailed documentations, contracts and specifications. Beware of being overconfident of how much you might get done yourself – novice home builders failing to appreciate how much time and effort they will have to pump into construction is a common stumbling block. Administration costs money, that’s true whether you’re buying a new home or building your own. That means paperwork and permits must be factored and should be inclusive into your budget.  With the outline of your plans in place, and financing already considered, it’s time to get those pesky permits sorted. You should already have a good outline of the materials you want to use from your architectural and structural plans. Now, base on the details and items on both structural and architectural finishes, the builder now can give you rough estimates. Don’t be misguided on builders offering cheap cost, you will surely suffer.  Take note, that the architects and the builder will just collate on your requirements-and by then the cost be determined more closely. Remember that material costs nowadays regularly fluctuates and increases, particularly if the earlier stages of permits and planning have taken longer than expected. We’re sure you’ve got a good idea in mind of what this might look like, but it’s down to the fine points where costs can start to come in. If your budget is becoming stretched, you could always go for a more affordable and practical interior design idea now, with the promise that you’ll upgrade to that dream kitchen or bathroom later. Sure, it might be aspirational to have that stunning Italian wallpaper and hardwood floors, but it’s not the same sacrifice as removing two bedrooms because you’re fixated on the budget for fittings. If you have the budget, and the desire, you should always hire or consult a professional designer and builder to really deliver on that final piece of your dream home. Furthermore, if you only had considerable budget, work closely to them to understand the dynamics and mechanics. Might be that your budget does not fit with want you want and desire.

Delays of Construction Projects!

You’ve decided that you would like to build a house. That’s great news! Selecting a custom home provides nearly endless possibilities when it comes to personalizing your dream home.
As you might have learned at some point, buying a preconstruction home can be stressful, especially when the date of completion keeps getting pushed further and further back. Not knowing when you will be in your new home is a frustrating situation that many people run into. Knowing common reasons for delays is half the battle, and by gaining a better understanding of what might cause them, you will know what to do if they happen.
In a perfect world, all home builds would stay on schedule, but, in most situations, a delay or two is a normal part of the process. From permit issues to supply chain delays to workforce shortages, and customers financial schemes,  there are many contributing factors.
Based on our experience and keeping an eye on our customers’ experiences, here are five of the most common factors that contribute to delays:
1. The CLIENT doesn’t have financing.
A client might go through the entire prebuild process only to find out that their finances are not in order. Much like purchasing an existing home, there are several factors that contribute to your financial health when it comes to financing a home build. Most common barrier is the unanticipated budget and purchase of new appliances and house furnishing that commonly sacrifice the builder from not being paid. Furniture’s and appliances tends to become the priority forgetting the covenants of their agreements which is also the most common source of future conflicts. Most home builder are more secured if the custom homes was financed by the bank or loan institution. It is also not great to hear for client to demand takeover without full settlement of financial obligations. Remember, builders had partners and stakeholders who also anticipated the same full settlements from them.
2. The inspector isn’t timely.
Inspection is a highly important part of the process, and it can get delayed due to scheduling errors, communication delays, or overspending and clients inability to provide their financial obligations. Although this factor tends to be a bit trickier to resolve because you are relying on the services of another company, you can do your research and make sure you partner with an inspector that has positive testimonials that are directly related to their timeliness.
3. The weather isn’t ideal.
The majority of a build takes place outside, which means the project is subject to the elements, and weather can dictate the pace of a project. Although severe weather can’t be avoided, a clear line of communication with your builder to identify next steps can make a big difference.
4. Materials aren’t available.
Custom selection of fixtures means that your house runs the risk of not having those materials when you’re ready for them. You can also run into issues with necessary materials, such as lumber, due to shortages or high prices.
How to Deal with Delays
1. Contact your contractor or builder.
Just like most situations, communication is key! Contact your builder to find out more information about the situation. Although delays can be frustrating, it’s important to stay calm and be willing to listen and compromise with them. Be sure to bring any important documents or materials and take notes to ensure you’re both on the same page.
2. Get an update on the timeline.
After having identified the issue, come to an agreement on the new estimated completion time so that you can reset your expectations—especially if you are on a tight schedule. Be sure to inform the builder of any legal obligation that relies on completion of the build, such as the sale of your current home. And be sure also that you complied with the financial obligations to your builder. Just stick to the covenants and provision of the Contracts and approved plans. It will minimize conflicts.
3. Create a check-in plan with your point of contact.
Although delays aren’t uncommon, significant changes to a building schedule are—especially those that push the completion date back by months. To help you stay on top of any future issues, create a check-in plan with your builder so that you can receive progress reports. This will give you peace of mind that things are progressing as they should be.
4. Make sure you know how to deal with any future delays.
Multiple delays aren’t common, but they do happen. If one ends up happening to your build, be sure to have a plan in place that will help manage expectations about the future of the build. For example, if the delays are a result of an unresponsive local municipality in regard to permits, ask if your builder is willing to shorten their contact intervals with the township to prevent so much time from passing.

Proper Documentation Misconceptions!

Why is proper documentation and records control so important? What can you do to make sure your documentation and control practices are correct? Proper documentation and  records control, both clients and builders record is important for three main reasons: to protect the contract agreement, to protect the client, and to protect you the builder. Good documentation and records control is important to protect everyone involve—not too much and not too little—to the right people. It also promotes safety and quality. At the end of the day, that’s what really matters. It can also help you avoid liability and keep out of fraud and abuse trouble. If your records do not justify the items or services for which you billed, you may have to pay that money back. Document and records control is a vital practice within organizations to ensure that information is accurate, up-to-date, accessible, and aligned with the nature of the business. In a world where information has become the lifeblood of organizations, it is critical to ensure the proper flow of information and transparency of business activities to help companies function efficiently. Document and records control refers to a set of procedures intended to oversee the creation, review, approval, release, distribution, access, storage, security, and disposal of documents and records. It is the bedrock upon which compliance, accuracy, integrity, efficiency, and accountability are built. In conclusion, document and records control is essential for every organization. Information deserves to be treated with care, confidentiality, and dignity.

Change Orders!

Do documented Change Orders cause Inconvenience?
Change order and add-on is common term in construction industry. But, though you may not have come across it, knowledge of change orders and how to handle disputes that arise from them is important. Change order is used in the construction industry in reference to an amendment or changes or add-on to the construction contract as well as plans with the potential to change the scope of the work to be done by the contractor. Essentially, a change order alters or modifies the work that a contract document requires the contractor to complete. In turn, this increases price of the contract. It also leads to the adjustment of the time required by the contractor to complete the project. For a change order to be valid, the contractor and the owner must reach a separate agreement. Take note, that prior to implementation ensure all proper and detailed documentation as well as full financial settlement of change orders prior. Unfortunately, change orders lead to disputes in most cases. That’s because contractors and owners do not seem to reach an agreement when it comes to changing parts of their contractor scope. The first and most crucial step is to determine whether the change order in question is fact-specific. Determine whether there is real change in the contract. Look at the pre-construction documents, field work orders, request for quote responses from suppliers, and dealing course for the parties. It’s also crucial to consider the order-of-precedence clauses that determine if drawing control or written specifications are necessary. Most contractors proceed with the extra work without securing a change order in writing first in order to please clients. Furthermore, keen details, plans and agreements must be in placed before hitting the ground to avoid future conflicts on cost and timelines. Yes it is really stressful but being careful on details and changes is much better. This will avoid future conflicts. Better be sure than sorry, take it from us, from our almost score of experiences . Remember, change orders and add-on means extra time to prepare the plan and details, extra work, extra cost, and extra time on basic target. Ready? Lets Talk!

Your Kitchen!

The kitchen is one of the most important and traffic spaces in your home. It’s where you plan meals, eat as a family and even entertain guests, so stylish, functional and chic design is common option. Whether you live in a small apartment with limited storage or have a dreamy layout that’s complete with a large marble island, spacious cabinets and sleek smart appliances, there are numerous creative design ideas that can make you enjoy your kitchen much more. There are two distinct design approaches you can take when it comes to revamping your kitchen. You can transform your cooking space with practical, easy updates that won’t break the bank—think hanging new light fixtures, upgrading cabinet hardware or incorporating a great piece of wall art to show off your style. On the other hand, you might feel prepared to take the leap with a major kitchen renovation, which involves everything from installing new countertops and flooring to choosing a statement tile backsplash. It’s best to take the time to figure out the option that works best for your current lifestyle, trends and most of all the budget. If you’re ready for some décor inspiration, stroll and shop some of your favorite kitchen designs online and stores  nearby. There are more than enough expert-approved tips and ideas for every type of interior design lover. You’ll find colorful design schemes with striking paint colors that maximalists would love along with minimalist layouts that are undeniably timeless. The design possibilities are endless. All you have to do is start planning your dream kitchen, if possible, make sketches and list on the possible appliance and utensils upgrade.


Contracts are essential in many different industries and generally need to be as detailed as possible. One way to document details correctly is through the specification section of a contract or made a separate form for clear and detailed specifications. In the construction industry, owners, architects, and designers must be specific about the project’s necessary work for completion, as well as materials to be used and its equivalent. Specifications in construction describe the materials, labor, and skill required for construction development. If contractors are not able to communicate these specifications, delays, change orders, and cost overruns will occur. There is a formal process dedicated to building specifications because they are such a keystone in construction. Building Specifications (also called “specs”) are used as a guide to choosing the right materials duly approved and signed by the owner for the whole and specialized scope. Their overall purpose is to define the requirements for project execution regarding installation, materials, products, procedures, and quality aspects. The specifics that the owner and contractor discuss become the legal documents for the project and a keystone for the project design. The project is more likely to be correctly executed when the description and information are more precise. Specifications can be categorized similar to data because as project complexity increases, access to data is critical to making the right decisions. Additionally, if the contract states the specs precisely, there will be a considerable reduction in risk. Architects and designers create building specifications BEFORE construction starts in the design phase as part of contract documents, drawings and plans. Typically, architects delegate them to other team members, but sometimes, engineers handle them because of their technical knowledge. Construction specifications are detailed within a construction service contract that outline all the important aspects necessary for project fulfillment. Throughout the course of project completion, contractors and construction crews will use specifications as a reference for any questions that arise and to ensure the correct fulfillment of each project requirement. It is also commonly use to supplement architectural drawings and blueprints to describe and document information they may not be able to visually provide. Ready? Lets Talk! Make us your Homechoice!

Construction Contract is it Important?

Why a Construction Contract Is Important?

At the most basic and common, you want to get the house that was promised, and the contractor wants to get fully paid for the house being built. The contract serves to reflect this understanding and covenant, to make sure there is no disagreement before the actual works begins, and to provide a guide to follow in case a problem arises later. Most often your contractor will provide you with a contract that’s ready for signing.  The contract in its original form may have very few terms with very few details, or it may be so detailed and filled with complicated terms that it is hard to understand. Neither of those situations are acceptable. To fully protect your rights, the contract terms should be complete, specific, detailed and easy to understand.

Scope of Work. This section describes the work that the contractor agrees to perform. This work typically includes obtaining municipal or other permits, and furnishing the labor, equipment, materials, and other services necessary to complete the house. This section also requires the contractor to conform the work to the house’s plans (drawings) and specifications, which should be attached and made a part of the contract. Sometimes, even when contract documents are drafted carefully, they contain conflicting terms in the plans, specifications, and/or the written contract. This conflict can lead to confusion and disputes. For example, if the plans depict a master bathroom with one sink, but the specifications call for two sinks, which is correct? Consider specifying that, in case of conflict between the plans and specifications, the specifications will control. And, in all cases of conflict, the contract should be the controlling document. Ensure that a detailed specifications form part of the approved plans duly agreed and conformed all regulatory requirements.

Timing of the Work. You’ve probably heard horror stories about building projects going off schedule. How do you protect yourself against this? Make sure the contact contains information about when construction will begin, the schedule of work the contractor must follow, and when construction will end (in other words, when can you move in). Extensions of time may be granted for delays caused by:

  • -poor weather or other “acts of God”
  • -labor strikes
  • -payment delays caused by the owner
  • -inspection delays caused by the municipality
  • -changes or additions to scope of work , and
  • -other issues that are beyond the reasonable control of the contractor.

While the contractor may be hesitant to agree to it, consider including a provision for liquidated damages. Basically, this provision states that for every day the contractor works beyond the completion date (subject to the exceptions listed above), the contractor will be charged a certain amount. Such liquidated damage provisions protect the owner from delay, and are an incentive for the contractor to complete work in a timely manner.  This provision is not meant to be a punishment, but compensation to cover costs that the owner will incur due to the delay. These might include costs to store your furniture or costs to rent an apartment during the period of delay. Just ensure that the client also fulfill its financial obligations due to the contractor.

Payment. This section should clearly indicate what, when, and how the owner will pay the contractor. Because the contractor will likely be relying on payments from the owner to fund the construction, the payment schedule must provide a steady stream of money so that the house may be built in a timely manner. A typical contract will require an initial payment prior to construction. Then, on a regular basis thereafter, the contractor will submit an application for payment to the owner indicating the amount of work completed during that cycle. Often, the final payment on a project is tied to “substantial completion.” The contract might say, for example, that final payment is due 15 days after the house has been substantially completed. This is not problematic so long as “substantial completion” is defined appropriately in the contract. Therefore, consider defining substantial completion in the contract narrowly by listing specific items, or restricting work after substantial completion to minor repairs. 

Changes to Scope of Work. Sometimes, after construction has begun, the scope of work changes. This could be due to the owner’s decision (let’s add a built-in bookshelf there!), a requirement from the permitting authorities, or the discovery of an unknown property condition affecting construction. The contract should account for the possibility of such changes by requiring written work orders to reflect changes in the scope of work. Never just tell the contractor, “Sure, go ahead with our new plan,” without creating a written work order that both you and the contractor sign. To do otherwise would open the door to additional unanticipated expenses. Make sure to pay the changes and additional prior to work to avoid overshoot to unanticipated expenses.

Warranty. Although not required, many contracts contain express warranties, describing what types of defects the contractor will take care of later, how long the warranty lasts, your maintenance obligations, and what the contractor is required to do to fix the defects. If your contract contains an express warranty, read it carefully and negotiate the terms if necessary. If your contract does not contain an express warranty, consider adding one to the contract.

Dispute Resolution. No matter how careful you are in drafting the contract or how friendly you are with the contractor, a dispute may arise. It is common for construction contracts to require binding arbitration rather than litigation in a court if there is a dispute. If the contract requires arbitration, you may not sue the contractor. Instead, you must submit a complaint to an arbitrator – an expert in the construction industry who will listen to both sides of the dispute and issue a binding decision resolving the issue. Language is as important to contracts as the people who will be bound by their terms. Properly written contracts with language each party can clearly understand could stop many contract disputes before they start. Of course, one cannot predict where and when another party will breach the contract, but with clear and concise wording, any sensible party would be hard-pressed to blatantly deviate from the terms set forth. Due diligence is another key component of successful contracts. Simply put, do your homework and choose wisely who you adjoin signatures with on paper.


If you’re ready to upgrade to a larger or higher-quality home, or new home you’re probably already considering whether a custom home is right for you. The custom route is the sure-fire way to get exactly what you’re looking for, no matter what that may be. Of course, buyers who are new to the custom homebuilding process often have a lot of questions. One of the most common ones revolves around financing. Most people are accustomed to how financing works for a traditional mortgage. But how does financing a custom home differ? Of course, financing for a traditional, pre-built home involves the purchase price of the house, as well as your closing costs. Financing a custom home, on the other hand, includes the purchase price of the land (if you don’t already own it), the cost to build the home, the cost to develop the site, the design and specifications, as well as the lenders capacity to pay and all other closing costs.
The Financing Process
The process of financing a home varies slightly depending on whether you are buying an existing home or building your own. Financing a pre-built home is a one-step process, in which the buyer obtains a loan through a mortgage lender. Financing for a custom home is a two-step process:
1. First, you obtain a temporary loan to get the project started. This is a standard construction loan that includes the cost of your land.
2. When construction is complete, you refinance your initial loan to obtain a regular mortgage.
Construction Loans
Your initial, temporary construction loan kicks off the building process and covers the cost of your land. To secure the best loan for you, look for a lender that offers construction loans at competitive interest rates with little or no money down or even make your land as collateral. Building a new home on your own land gives you the unique opportunity to build . As you can see, the process of financing a custom home is much different from a traditional mortgage. To ensure you get the best rate possible, as well as loans that meet your specific needs, look for a lender that specializes in custom home financing. Seek out a company that offers construction loans with little or no down payments, and will meet your needs for permanent financing options. Most importantly, find a bank that will work closely with you and keep you well informed throughout the entire process. Building your first custom home can feel a bit daunting at first, and you want a lender that makes financing a hassle-free part of the process. Partner also with a builder who can assist your home financing process. Ready? Lets Talk! Make us your Homechoice!