ᐅ Potential Savings in Residential Construction

Created on: 22 May 2016 20:56
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FamPre
Hello everyone!

My partner and I have recently gone through several homebuilding guides. They included some tips on saving potential that do not involve doing any of the manual work ourselves.

One major point was hiring different trades separately, as general contractors often add 10-15% to the price to cover possible cost increases.

Do you have any other suggestions for saving money without necessarily lowering quality?

Best regards
FamPre
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FamPre
22 May 2016 21:19
It’s only about possibilities. We plan to have the house built by the developer up to and including the wall boarding and will coordinate everything from flooring to painting ourselves.

As Portoalegre said, it’s all about potentials.
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Legurit
22 May 2016 21:24
Was there a thread a long time ago about... otherwise

- simple geometry
- make sure that affordable doesn’t turn into cheap
- determine space requirements and save square meters through good floor plans
- shed instead of a basement (depending on circumstances)
- discipline
- don’t let yourself be driven crazy by what you absolutely have to have
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Mizit
22 May 2016 21:31
Well, by now I believe that nobody gives anything away for free and that a certain quality level comes with a corresponding price. Getting quality x from developer A at price x is one thing – but I don’t think you’d get a truly comparable level of quality from developer B suddenly at price y. Profit margins are likely calculated similarly everywhere. Maximizing profit makes economic sense; they have their respective business management experts in the necessary departments, and if a price from provider B is significantly lower, it won’t be because they are generously giving you a discount. Of course, I’m open to being corrected.

I also find building extremely expensive, and if the land plot already hits hard due to regional factors—as it does for us—I think every attempt to find savings makes perfect sense. But all the research we have done so far always comes back to the point that quality x will cost x amount of money, no matter who you build with, assuming reasonable professionalism.

Doing at least some of the painting and flooring yourself or contracting it out independently will probably pay off; I’m quite certain about that.

Completely subcontracting all trades yourself, however, was strongly discouraged by a friend who’s an architect. You need to have A LOT of time, you must understand exactly what’s involved (which we usually don’t, from a construction perspective), and there’s a high risk you end up saving nothing and still run into serious problems.

Instead, I would look at what minimal standard you can live with. This might mean choosing only the most basic finish line, which I don’t think is necessarily a bad thing.
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garfunkel
22 May 2016 21:34
Interior design.
This is an area where you can both spend and save money. Bathrooms and kitchens are often prime examples. Many so-called "standard" or basic kitchens look almost as good as high-end kitchens, and I’m not even referring to custom-built ones. Even for appliances, the quality of non-brand products is usually only slightly below what brand-name products promise.
In bathrooms, affordable options often look just as good as branded products.
I also think sellers tend to exaggerate the quality differences. Many improvements are minimal, and you don’t really need all the extra features.

This can, of course, be applied to all other living areas. The amount saved in each case may not be huge, but overall it adds up.
jaeger22 May 2016 22:26
If you need to save money, of course you can skip a few things that are not absolutely necessary.

Otherwise, I agree with garfunkel to some extent. When it comes to items like flooring, walls, furnishings, sanitary installations, or the kitchen, you can save quite a bit without sacrificing much comfort. For example, you might save 50% but only lose about 10% in performance. Also, these are things that will need to be replaced after a certain period anyway. Whether I replace my flooring or kitchen three years earlier or later doesn’t make a big difference. For other components that will most likely last throughout the entire lifespan of the house (such as pipes and wiring), you should think more carefully.
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Mizit
22 May 2016 22:35
You also need to take your personal living situation into account.

For example, we have two young children, and whether a third will come remains to be seen. With 2-3 small children, I think it’s unwise to spend the maximum on interior doors, wallpaper, or flooring—especially in the kids’ rooms. Children really put a lot of wear and tear on floors, doors also take a beating, and our kitchen is not handled very carefully either. We will deliberately choose more affordable options for these areas. Of course, not to the extent that the look no longer appeals or the quality is poor. But I also believe that simply choosing a brand-name product versus a non-branded one makes a significant difference for the budget—something you won’t notice in everyday use of the kitchen and doors.