Rental Property Investor · Austin, TX · Member since 2015 · 280 posts · 176 votes
I reached out to a builder recently who said he could build a house for $125 per sq ft. However, as we were discussing the project in more detail, he mentioned that the price did not include engineering and pouring of the slab, connecting to city sewer/water, or the framing. Is this standard practice? I would imagine a builder would include all associated costs (sans architect) with building a property in his estimated price per sq ft, beginning to end.
Architect · St. Charles, IL · Member since 2018 · 95 posts · 70 votes
7y
I would run from him! Sounds like he will nickel and dime through the whole project. In my experience, the soft costs and development costs are typically not included on a budget $/sf like that. The builder usually includes the shell and a standard level interior finish. With that said, framing and concrete should absolutely be included in that number. It's true that city fees / permits / architects / engineering are separate expenses.
Architect · St. Charles, IL · Member since 2018 · 95 posts · 70 votes
7y
I would run from him! Sounds like he will nickel and dime through the whole project. In my experience, the soft costs and development costs are typically not included on a budget $/sf like that. The builder usually includes the shell and a standard level interior finish. With that said, framing and concrete should absolutely be included in that number. It's true that city fees / permits / architects / engineering are separate expenses.
Investor · Taylor Mill, KY · Member since 2016 · 2k+ posts · 964 votes
7y
@Account Closed That doesn't sound normal. I've never built but have friends that are builders and other friends that have hired builders. Pretty sure the slab is incorporated into the price most if not all of the time.
Developer · New Orleans, LA · Member since 2015 · 1k+ posts · 898 votes
7y
@Account Closed As others have said, it should include all the build costs, but not survey, design and engineering. There will be some items that will be allowances (like cabinets, lighting, plumbing fixtures) unless you do all of your selections in the front end and specify them. Connections to city water/sewage may or may not be in the cost, depending on how easy it is get those cost nailed down early on.
Additionally, the framing material and labor would be a decent chunk of costs. On my recent new construction I have, framing material and labor is running me around $18.50/ft2, not including GC markup.