How Much Is The Cost Of Your Home Construction Project?

Home Construction Project

You don’t have to be a technical person to determine the cost of your home construction project. What you need is the knowledge to read the construction plans. And how will you do it? There are several ways to acquire the knowledge. One, is to browse the web and do some research about home designs. Another, get some tutorials from construction engineers to teach you how to read them. They are easier to understand if you have the basic knowledge about measurements in inches or meters and the use of the tape measure. If you know the formulas for computing square meter, cubic meter and board feet, that would be a great help.

You and everyone else wants to build and have a new house, but the question is – is it something you can afford? To have a better budget plan, you may start with free building cost estimating tools that you can find online, and seek out the hidden costs that are usually overlooked when making estimates. Here are tips from the experts.

Similarly, you must know the kinds of direct materials and their cost that are to be used in the project. Study the kind of labor needed to accomplish every aspect of the work in terms of man-hour. Write down the manpower requirement for the project. Start from the Engineer, construction foreman, the skilled workers and helpers. Apply the prevailing cost of labor on the number of workers you need to accomplish the project. It is a must you should know the labor laws in this industry.

After identifying the two direct cost (materials and labor), try to figure out the supervision cost and indirect materials to be used to finish your home building project. After arriving at the total of the materials, labor and indirect cost, provide the contractor’s profit. It is normally between 10-25% of the direct cost depending on the duration of your home construction project. The tax is separately identified after the contractor’s profit. The final figure you will arrive at would now be your estimated construction cost.

When computing the construction cost, prepare a cost estimate sheet so that every item of work is accounted for. Each item on the cost estimate schedule is backed by a detailed cost estimate computation indicating the quantity or volume of the work to be accomplished, the unit cost, plus the contractor’s profit and taxes and its total value. If you are not yet comfortable with your cost estimate covering your home designs, seek the services of a cost engineer to compare your costing.

Inflation and Changes in Market Conditions

Home Construction ProjectUsually, an increase of around 3% to 6% yearly will be applied to the cost of building a home. If it will still take years before your construction begins, never forget include inflation into your calculations. When using other homes in comparing prices, try to use those that have been built recently, or within the year to be the news from

This construction cost estimate would serve as your guide in conducting the bidding for the home construction project in selecting the contractor to do the work. This will also serve as the guiding figure in monitoring your budget for the project in the implementation of your home designs.