Pre-Construction: A Comprehensive Guide for Budgeting and Planning A Custom Home In Arizona
Embarking on the journey of planning and building a custom home is an exciting venture. Having a complete understanding of what costs may occur with your project helps sustain that excitement during and after the project has been completed.
The Pre-Construction phase is the time to identify and mitigate any risks associated with the project – before it breaks ground.
Having a complete understanding of what costs an owner may encounter during this phase is just as, if not more important than the construction building costs themselves. The owner must obtain “proof of funds” as they enter into this phase and although every owner encounters a unique experience based on their specific project, the following areas are worth considering as you move into the Pre-Construction phase.
Land Purchase
If you have not yet secured land, collaboration with a real estate team to scout and locate the desired piece of land is the first step. Whether intending to reside on the property or sell it post-construction, engaging professional guidance is vital.
Land costs vary based on location and the selection of your real estate team.
Surveyors and Reports
After land selection, the owner must conduct Boundary and Topographic surveys.
Boundary surveys define the property lines of a parcel of land, ensuring compliance with zoning regulations.
Topographic surveys provide crucial data for designing improvements to the land (i.e. fences and walls, streams & rivers, trees, slopes/hills/changes in elevation, buildings, streets and walkways, utility poles, manholes, etc.).
Contractors, engineers, architects and designers use these Boundary and Topographic surveys to best design and plan your project.
Surveyors costs for Boundary and Topographic reports is impacted by the location of the land.
Architectural & Design Drawings
Along with the overall appearance of the project (exterior and interior), the Architectural and Design Drawings may consist of site plans, elevations & building facades, cross-section drawings, floor plans, renderings, custom details, 3D perspective drawings and videos, and/or more.
Architectural & Design Drawings costs vary dramatically when opting for a Licensed Architect or a Draftsman/Designer, here’s why:
Use of a Licensed Architect provides the client with complete custom plans (typically all inclusive), costs can reach five or six figures depending on the project.
Use of a Draftsman/Designer provides the client with pre-determined designs and floor plans, costs may be substantially lower with these options.
Engineered Drawings
Engineered drawings follow architectural drawings and detail how the building will be constructed.
Consisting of the structural, electrical, mechanical, and civil engineering drawings – contractors and subcontractors use these drawings to determine building materials usage, proper location of building systems, and all the additional pertinent structural details.
Engineered drawings costs vary based on complexity of the build and size of the project.
Interior Designer
Although this is an added cost, many who hire an interior designer find it to be a key role to optimize functionality and aesthetics.
Interior designers can help keep the contractors accountable for purchasing the correct materials and constructing the build accordingly.
Interior designer costs vary depending on project size and the designer's credibility.
Construction Consultant
Construction consultants understand the entire process – pre-construction through construction and completion – and can ensure accountability among all parties involved, effectively becoming a single point of contact throughout the project.
Whether helping assemble the right team or working with the team already in place, a construction consultant helps educate and open up dialog with the real estate team, architects, engineers, interior designers, HOA’s, general contractors, and will verify costs and work, to keep the owner fully informed.
Building a luxury home is a massive investment, a construction consultant can ensure that what the client is being presented with is consistent with current market costs during specific phase or throughout the entirety of the project.
Construction consultants services may be utilized for the entirety of a project or for a particular phase and/or specific project need, such as a Pre-Construction Package or obtaining Building Permits.
Construction Consultants costs/fees depend on the services rendered but are often a minor investment justified by the money saved during the process.
Homeowners Associations (HOA)
In neighborhoods with Homeowners Associations (HOA), owners may be responsible for fees and deposits.
HOA approval processes focus on the overall look and finishes of the building. Some neighborhoods have additional building deposits along with the monthly fees due once approved.
HOA costs/fees can vary dramatically depending on location.
Building Permits
City or county requirements mandate building permits for new construction.
The owner is responsible for obtaining these permits, although they may be assisted by a Consultant or Architect to help acquire and verify that all of the proper documents for the project are collected and submitted correctly.
Depending on the complexity shown in the project plans, it may require multiple types of building permits to be obtained.
Building Permit costs vary based on project size, complexity, and the number of permit types required by city/county.
As you can see, pre-construction costs play a massive role in the overall building costs needed to build your future project.
Knowing and understanding pre-construction costs will help your team build financial models that are consistent with the current market pricing and budget the project accurately.
Understanding and budgeting for these potential expenses are crucial steps toward ensuring a successful and financially sound custom home project, VEN Consulting offers a personalized approach to services for your custom luxury home build – Request a Complimentary, No-Obligation 15 Minute Consultation →
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