ᐅ Costs of Architectural Services for Prefabricated Homes

Created on: 7 Feb 2011 20:21
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funt4stic
Hello,

I received a quote from an architectural firm for a plot of land and the construction of a prefabricated house using timber frame construction with a precast concrete basement. The house model is from the manufacturer’s catalog, with only slight changes to the interior layout. I am now wondering about two points in the cost breakdown:

1) A commission is charged on the land price (which I can understand), but also on the building cost. Is this normal?

2) Under additional costs, nearly 10,000 EUR is listed for “Architect (building permit / planning permission, design, formwork and reinforcement plans).” Is this a reasonable price for a prefabricated house where only the interior layout is slightly modified?

Regards
I
Interessent
27 Feb 2011 10:40
parcus schrieb:
Some things strike me as more than strange. If I want to build a prefab house, then the point is to buy one complete house at a fixed price, including all services.
That is what I do myself as a general contractor.

What other advantage would the client have? It hasn’t even been specified here which phases of work are included, meaning billing according to HOAI can occur at any time.

Yes, I thought so too and have been very surprised since my first consultation about the “tricks” apparently used in this industry.
R
Renia
28 Feb 2011 17:42
As I read through the posts here, it becomes increasingly clear how large sums of money are being discussed without clear understanding. Often, a general contractor is asked to cover fees like commissions and architectural services for a prefabricated house without any reference to the actual scope of work. I ask you, for a PREFABRICATED HOUSE! Somehow, that name seems misleading if additional money is needed to actually complete the house.

I would only commission the construction of a house if I knew the exact cost beforehand. A price that can increase over time would be unacceptable to me. That borders on deception.
I
Interessent
28 Feb 2011 17:55
Renia schrieb:
As I read through the posts here, I increasingly notice how large sums of money are discussed without clarity. Often, a general contractor (GC) is told, as here, without reference to the actual services provided, that they are supposed to pay commissions and architectural fees for a prefab house?! Please, this is for a PREFABRICATED HOUSE! Somehow, that seems like the wrong term if it still requires extra money to be completed.
I would only have a house built if I knew exactly what it would cost beforehand. A price that can still increase would not be acceptable to me. That borders on deception.

Exactly my thoughts, and that’s why I have objections as well. I feel taken advantage of for precisely this reason.
People boast about having built 1,000 or who knows how many houses, but when you ask for a price, everything suddenly becomes completely unclear. I’m just so annoyed because I expect a precise answer as quickly as possible and I don’t want to spend months researching this topic only to find out the house ends up costing 100,000€ (about 110,000 USD) more.
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parcus
28 Feb 2011 19:30
Of course, the perspective of the company should not be forgotten.
Prefabricated houses usually have a lower market value.
The market is gradually shrinking, meaning a company naturally has to secure as large a share as possible of the ever-smaller market.
But they have to offer better prices than general contractors or architects, because the market value is higher there.

As is often the case, the basic offer is very affordable, similar to a kitchen unit advertised. Once you start adding extras, the price quickly rises.
After all, sitting in a show home, you already feel like you are in your own home.

In conclusion, what matters most is the scope of work for execution and the planning.
Planning in the sense that, for example, an energy upgrade often fails due to the basic modules and necessary technical building equipment is often relegated to the fine print. However, this is frequently referred to later on. Large corporations certainly have legal departments.

In no other area is the contract probably more important than here.
In a 2-4 week construction period, there is hardly any opportunity for response.

However, as a client, one should also consider that everything is subject to a price-performance ratio.
Also, one should never overestimate their own contributions and be persuaded to set them very high.
I
Interessent
28 Feb 2011 21:22
parcus schrieb:
One should not forget the company’s perspective.
Prefab houses generally have a lower market value.
The market is gradually shrinking, meaning a company naturally wants to secure as large a share as possible of the increasingly smaller pie.
But they have to offer a price lower than a general contractor or architect. Because here, the market value is higher.

As is often the case, the base offer is very cheap, similar to a kitchen unit advertised in promotions. As soon as you add options, the price quickly rises.
After all, sitting in a show home, you already feel like you’re in your own four walls.

In conclusion, what matters is the scope of services for execution and the planning.
Planning in terms of, for example, energy upgrades often failing already at the base modules and required technical building equipment frequently being pushed into the fine print, which is then conveniently pointed out later. Large corporations do, after all, also have their legal departments.

In no case is the contract more important than here.
With a construction time of 2–4 weeks, there is hardly any possibility to respond.

However, as a client you should also consider that everything is subject to a price-performance ratio.
Also, one should never overestimate own contributions and be persuaded to set these very high.

Thank you for your input.
In the discussion, I clearly outlined in detail what I envisioned. I was given a figure. When I requested an offer, suddenly that became a problem I couldn’t understand.
The house price stated was based on a slab foundation, excluding earthworks, additional construction costs, basement, shutters, and so on. I rarely felt so foolish in my life.
I replayed the conversation in my mind and am absolutely sure that I provided all these details.
The provider’s response was that this is common practice. But I’m not interested in industry norms; I am referring to the one-on-one conversation and the specified features. This really borders on fraudulent misrepresentation/deceit.
I had never dealt with this industry before, but now I have a small insight into the practices that take place. Very unprofessional methods. I think I can say this openly—I spoke with three salespeople/advisors, all of whom I would categorize as unprofessional/hard sellers.
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parcus
28 Feb 2011 21:50
Okay, the advantage of a prefabricated house is that you just open a drawer and put together a few modules. The result: price = XYZ.

The foundation slab or basement is always somewhat unique due to the ground conditions or utility connections. This means that planning is necessary even with a prefabricated house. Still, a cost estimate or cost calculation should be possible here as well.

My process is more laborious; I first need to gather the client’s wishes and put them on paper in a design before I can say A costs X, B costs Y, or C costs Z.

Everything has its pros and cons. I have no intention here of demonizing prefabricated houses. Of course, as a planner and contractor, I also have my own perspective.

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