ᐅ General contractor / prefabricated house supplier with an existing cost estimate (equivalent to HOAI Phase 4)
Created on: 16 May 2021 12:38
T
TommyNRW
Hello dear house building experts,
we would like to find the right partner for our house construction after obtaining the building permit / planning permission.
Background:
My wife and I have purchased a plot of land and initially searched for a general contractor or a prefab home provider who could offer us a finished move-in ready house at a fixed price. This is important to us, as we have heard many negative experiences from acquaintances regarding price surges when building with architects.
However, the companies we spoke with (and there were quite a few) were not able to address our specific requirements and the particularities of the site in enough detail, at least not before signing the construction contract.
Our plot has some special features: a narrow building envelope (tapering), a tightly defined floor area ratio / FAR, a slight height offset in length and width (about 1m (3 feet)), two parking spaces need to be created, and more. In our opinion, related external facilities such as garages, carports, storage rooms, parking spaces, driveways, etc. must already be planned from the start, as they also influence the actual house. At the latest with these external facilities, all providers referred to their own architectural services, which – as mentioned – are only available after signing.
Since we do not want to rely on the assumption that a satisfactory solution will be found then, we have now decided to work with a local architect. He knows the local conditions very well, has already designed another house in the new development area, and knows how to fully utilize the building permit / planning permission given his good contacts with the authorities.
After HOAI Phase 4, that is once the building permit / planning permission is granted, we would like to have the corresponding design implemented. The architect is absolutely fine with this and has successfully done so multiple times before.
Which providers would you consider most suitable in this case? We are not looking for the cheapest option, but definitely a reliable, experienced partner with a good price-performance ratio.
Thank you very much for your opinions and support.
we would like to find the right partner for our house construction after obtaining the building permit / planning permission.
Background:
My wife and I have purchased a plot of land and initially searched for a general contractor or a prefab home provider who could offer us a finished move-in ready house at a fixed price. This is important to us, as we have heard many negative experiences from acquaintances regarding price surges when building with architects.
However, the companies we spoke with (and there were quite a few) were not able to address our specific requirements and the particularities of the site in enough detail, at least not before signing the construction contract.
Our plot has some special features: a narrow building envelope (tapering), a tightly defined floor area ratio / FAR, a slight height offset in length and width (about 1m (3 feet)), two parking spaces need to be created, and more. In our opinion, related external facilities such as garages, carports, storage rooms, parking spaces, driveways, etc. must already be planned from the start, as they also influence the actual house. At the latest with these external facilities, all providers referred to their own architectural services, which – as mentioned – are only available after signing.
Since we do not want to rely on the assumption that a satisfactory solution will be found then, we have now decided to work with a local architect. He knows the local conditions very well, has already designed another house in the new development area, and knows how to fully utilize the building permit / planning permission given his good contacts with the authorities.
After HOAI Phase 4, that is once the building permit / planning permission is granted, we would like to have the corresponding design implemented. The architect is absolutely fine with this and has successfully done so multiple times before.
Which providers would you consider most suitable in this case? We are not looking for the cheapest option, but definitely a reliable, experienced partner with a good price-performance ratio.
Thank you very much for your opinions and support.
nordanney schrieb:
The general contractor / prefab home provider is better and more affordable if you buy/build a standard house. There isn’t much planning involved since it’s been built multiple times before. No new drawings, no new structural calculations, etc. Prejudice from the 1960s!?
nordanney schrieb:
If you take your architect’s plan to the general contractor, they will give you a customized price and likely add possible cost increases right away. It definitely won’t be cheaper. Whether it actually ends up cheaper or more expensive in a direct 1:1 comparison is unknown. At least you have a certain price guarantee upfront for a defined period (e.g., 12-24 months fixed price guarantee), which you don’t get when building with an architect. This is especially clear at the current time.
And that’s what Tommy ultimately cares about, right?
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nordanney17 May 2021 10:44netuser schrieb:
Prejudice from the 60s!?No, 25 years of professional experience in real estate. netuser schrieb:
Whether a direct one-to-one comparison will ultimately be cheaper or more expensive is unknown. At least you have a certain price guarantee for a set period (e.g., 12–24 months fixed price guarantee), which you don’t get when building with an architect. Of course, there is a price guarantee. It is basically the cost estimate (which the architect also prepares) plus a 20% allowance for possible cost increases. That offers some security, but only until cost increases consume the allowance. Then things can get uncomfortable even with the general contractor.nordanney schrieb:
No, 25 years of real estate experience in my job.From that experience, I hope you can also admit that it can be different with prefab house manufacturers. It’s not always a standard off-the-shelf solution but can also be quite customized without major compromises. Not with all, but certainly with some providers nowadays?
nordanney schrieb:
Of course there is a price guarantee. That is then the cost estimate (which the architect also provides) plus a 20% markup for possible cost increases. It is, of course, a form of security, but only as long as cost increases don’t consume the markup. After that, things get uncomfortable for the general contractor...Certainly uncomfortable for the general contractor in such a case, but quite comfortable for the customer/builder!
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nordanney17 May 2021 11:54netuser schrieb:
From your experience, you will hopefully agree that prefab home providers can also operate differently. It's not always only off-the-shelf, but can also be quite customized without major compromises? Not with all, but certainly with some providers nowadays?Of course. My point was that "off-the-shelf" is the bread and butter business for these providers, where competitive prices and standardized quality are achieved. Custom options are possible as well – but then without the price advantages.nordanney schrieb:
Of course, you can also have a custom build – but then you won’t benefit from cost savings.I don’t want to contradict you outright. However, I would argue that such statements cannot be generalized. There are definitely experiences and counterexamples supporting both sides.
And if we do generalize without 25 years of professional experience, I tend to say that for a layperson without “special requirements,” building with an architect usually ends up being more expensive rather than cheaper. And that’s without any fixed-price guarantee 🙂
netuser schrieb:
Prejudice from the 60s!? Later. It was already in the late 1980s when the general contractors (in my opinion, unfortunately) moved away from standardized house types. However, I get the impression that the trend is currently shifting back there; I keep seeing the same seventeen-and-a-half "different" pseudo-villas (and not many more among bungalows either). Even with the captain's houses, I sometimes only differentiate a Viebrockhaus from a Gussek House by using reading glasses.
netuser schrieb:
And even if generalized without 25 years of professional experience, I tend to claim that for a layperson without “special requirements,” building with an architect ultimately ends up costing more rather than less. My experience with generalizations does not yet span 25 years, but my experience in construction matters is significantly longer—and it tells me that hiring a separate architect only becomes more expensive if you make major mistakes along the way (for example, the often “popular” mistake of acting as your own contractor with the building permit plans in hand, despite being a layperson).
netuser schrieb:
At least you have a certain price guarantee in advance over a defined period (e.g., 12-24 months fixed price guarantee), which you don’t have when building with an architect. In this regard, I have to partly agree with you: “in advance,” a price guarantee was offered with a general contractor direct contract before (by the way, equally for masonry or timber frame panel general contractors). But of course, even with tendering, the quoted prices are fixed (not for a whole year, but with a prompt start and process).
The relatively greatest risks (in terms of cost and quality) in my view occur where homeowners bring their sweet-home simulation houses to general contractors (and in second place: when they bring type designs from other general contractors instead).
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