An Owner’s Guide to Building a new Home in the Low Country of … · 2017. 5. 24. · • The Owner’s Representative will understand all phases of your project and be your independent

The GuideBook℠ Building a New Home

in the Low Country of South Carolina and Georgia

“If you do not know where you are going, you might end up someplace else.”

Yogi Berra

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Introduction

Building your home is about making choices: • Where should we locate the house on the site? • Do we want a clean-lined look or do we prefer more traditional details? • What finishes and colors do we like and dislike?

And there are questions about risk: • What will it cost and can we quantify the financial risk of building? • How long will it take? • How do we control costs and change orders during construction? • How do we put together the right team and the experience to minimize these risks?

By making well-informed design choices and by understanding what you are

constructing, you will minimize the risks inherent in building.

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Decisions, Decisions, Decisions…. How do we develop the design of our home and meet our budget? • By making informed decisions—starting with selecting the right team. • By choosing the designs, details, and finish selections you want, with consideration for their

costs. • By understanding the cost implications of the collective array of decisions you make as the

design evolves. • By thoroughly understanding the design, there will be fewer changes during construction,

resulting in fewer cost and scheduling surprises.

By making decisions that are consistent with your goals for design, cost, and

schedule, you will minimize surprises along the way.

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The Project Team

How do we put together our project team? Selecting those who will help you is the most important step in your project. Personal chemistry

and fees are important, but consider the following in making your decisions:

• Attorney: Choose an attorney whose business is real estate transactions and has specific knowledge of the community in which you are purchasing.

• Architect: Understand the design themes in their work and make sure you like them. Look at photos, but visit houses they have designed.

• Landscape architect: Visit work they have done. For example, if you want to use native plants, make sure they have experience with this approach.

• Interior Decorator: If you know what you want, select a designer who recognizes your clarity and has experience with your vision. Look at their work in a house before making a decision; photos can be misleading.

• Contractor: Project supervision is critical to managing quality, costs, and time. Meet your project’s proposed supervisor. Look at projects they completed 5 years ago; do they still look good?

Choose your team for their ability to understand your goals and ask each to

demonstrate how their approach and experience will help you reach those goals.

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Why choose an Owner’s Representative? Your guide and your local presence: Working with the architect, the decorator, and the contractor, the Owner’s Representative will

provide relevant alternatives (not just lots of information), so that you can make effective decisions and minimize mistakes and risks.

• The Owner’s Representative will make certain you understand your drawings and what it will cost before you start building.

• The Owner’s Representative will understand all phases of your project and be your independent guide and your local representative from start to finish.

• You Owner’s Representative will bring a fresh point-of-view, different design ideas, and cost options.

He must have knowledge of: • Heat/humidity considerations for materials • Site conditions • Architectural designs, details, and materials • Local permitting and procedures • Costs and Schedules • Bidding practices • Contract terms and conditions • Construction methods and procedures

The Owner’s Representative will reduce stress (with fresh alternatives and by

providing knowledge at decision points), save you money (by avoiding mistakes and changes in construction), and minimize delays (by avoiding surprises).

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Design Stages

What are the steps in the design process? • The Program (Wish List): This outlines the scope and nature of what you want to build--The

exterior style of the house? Formal or casual interiors? Number of bedrooms and bathrooms? Fireplaces? Garage? Elevator or other special needs? Materials you like?

• The Budget and Schedule: Setting financial goals and expectations early. Planning of design work, approvals, and construction to establish the time line to completion.

• Schematic Design: The architect turns the Wish List into initial designs. These drawings will

include a site plan, floor plans, elevations, and some initial material selections. • Design Development: In this phase the architect will develop the Schematic Design into a

nearly finished state. Sections will be drawn to study vertical dimensions and connections. More dimensions, details, materials, and finishes will be shown. These drawings will include a site plan, foundation plans, floor plans, elevations, sections, and some important design details.

• Construction Documents: Using the approved Design Development drawings, architect will

prepare a package of drawings and specifications for bidding and for construction. Some of these will be used for Approval submissions. These drawings will include site plan, floor plans, elevations, and many pages of construction details. In addition, cabinet elevations and trim details may be shown. The Specifications present standards of workmanship and quality and provide a list of specific materials to be used in the project.

As the drawings evolve, they become more precise and more detailed until they are ready for bidding.

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Schematic Drawings

Schematics show the layout, some materials, and a first impression

of how the house will look.

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Design Development Drawings

These drawings show more details and dimensions with greater accuracy.

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Construction Drawings

These drawings provide the information the contractor needs to bid and then construct your home.

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Conceptual Schedule When will we move into our new 4,000 SF house?

Jan Mar May Jul Sep Nov Jan 2014

Mar May Jul

Construction Wrap-up

6/23/2014 - 7/25/2014

Construction 8/19/2013 - 6/20/2014

Bid anlaysis and contract negotiation

7/15/2013 - 8/16/2013

Competitive Bidding

6/10/2013 - 7/12/2013

Approval Submissions

5/10/2013 - 8/16/2013

Construction Documents

4/8/2013 - 6/7/2013

Design Development

2/25/2013 - 4/5/2013

Schematic Design

1/18/2013 - 2/22/2013

Program (Wish List)

1/7/2013 - 1/18/2013

Closing 1/4/2013 - 1/7/2013

In approximately 20 months. A larger house will take a bit longer.

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Design Considerations

What factors impact the design and the siting of the house?

Site Considerations

• Views and automobile access

• Soils, drainage, and sun orientation

• Setbacks and other ARB requirements

• Local weather and material choices

• Trees and native plants to be preserved.

• Resale considerations

Green Building

• Material choices and sustainability

• Life cycle assessments

• Geo-thermal system and photo-voltaic panels

• Photovoltaic cells and ARB considerations.

• Intelligent energy management systems

• Interior finishes and gas emissions

Existing site conditions and choosing green construction methods directly impact how the design evolves. Knowledge of local conditions is important.

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Cost Considerations

What are significant factors in the cost of construction?

Typically, no one item makes or breaks the budget; it is the array of incremental additions that accumulate and become a budget buster. The size of the building is the largest cost factor.

• Site factors—Do you need pilings? They will cost about $40,000 for an average house.

• Materials and design choices--A copper standing seam roof costs $25 to $30 per SF, depending on complexity and details; a painted galvanized metal roof costs around $10 per SF again depending on complexity and details.

• The number of built-ins and cabinets—These are useful and beautiful but costly to build, install, and finish.

• The amount and type of finishes—tile, stone, and wood are labor-intensive and costly.

The size of the house and the material choices are the most important factors in the cost of building a house.

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Approvals and Permits What approvals and permits are required?

• Environmental Permits—These are typically included in the community subdivision approvals. If you are not purchasing within a community or for example, if you want to add a dock, be sure to ask lots of questions. These approvals can take six months or longer.

• Architectural Review Board--Many communities require a review for consistency with their design standards. This process can take three months or longer.

• Building Permit—Submission of drawings to the local building department is required. This approval will take two weeks or longer.

Gaining approvals can take weeks and sometimes months, often requiring multiple presentations. Allow time in your schedule for meeting these requirements

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Establishing the Construction Cost

How do you determine what is a fair and reasonable price?

You can competitively bid the project with several contractors or negotiate the price with a single contractor. Regardless of your approach, a detailed analysis of each proposal must be completed .

Accepting the low bid at face value is not a smart way to settle on a price; what appears to be low may be so because costs were omitted. The opposite is true for a high bid.

Reasons to bid:

• Since each contractor approaches the project differently, you gain insights and knowledge from their varied perspectives

• From the comparative bid analysis you learn about the real line item costs

• You can use the Owner’s Representative for an independent analysis of costs

• You can do an early round of competitive estimates off prelim Construction Documents.

Reasons to negotiate:

• You can select the contractor you want

• You can involve the contractor in the design process

• You can obtain preliminary cost numbers earlier

• You can value engineer earlier in the process

If you want to obtain the lowest price, then set up competitive bidding. Remember that the lowest initial bid is not always the lowest price for the project.

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The Construction Contract Should you use a standard form for the contract?

A frequently used form is AIA Form A107--2007. This is a standard agreement between Owner and Contractor and is balanced and fair to both parties. A rider with project specific terms can be added, if needed.

Important terms to be defined:

• The scope of the work and the time to complete it

• Cost and payment terms

• The Owner’s and the Contractor’s responsibilities

• Insurance and bonds, if any

• Change Order approval procedures

• Termination and dispute resolution

Using an AIA standard form is an effective way to produce the contract, but you still need your attorney to review it for insurance and other technical terms.

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The Contractor’s Role

What are the responsibilities of the Contractor?

The construction process is often interrupted by unforeseen events or difficulties. The Contractor’s job is to plan ahead, maintaining control of quality and costs, while keeping the process moving forward.

The Contractor’s specific responsibilities include:

• Building Permit application and coordination of Inspections

• Planning and coordination of work by subcontractors

• Quality assurance and scheduling

• Site cleanliness and work safety

• Making timely payments to subcontractors

An effective contractor has well-defined methods and procedures and is planning ahead to ensure the timely completion of the project.

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The order of construction

Building has a natural sequence:

The Contractor will manage the flow of work which may be impacted by weather, availability of materials, and timeliness of subcontractors.

• Site prep, pilings, excavation, and grading

• Foundations and framing

• Fascia, soffit, and roof

• Windows , doors and exterior trim

• HVAC, plumbing, and electric

• Insulation

• Drywall

• Interior trimming

• Flooring and tiles

• Cabinets and appliances

• Vanities, and counters

• Finish electric and plumbing

• Painting and floor finishing

Every project starts in the ground with foundations and goes to the roof peak with framing. Then, the mechanical systems are installed. Finally, the finishing starts.

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The project wrap-up The house is substantially complete; what do we need to do now? • Obtain the Certificate of Occupancy • Prepare the Punch List of items still to be completed or touched up • Obtain Architectural Review Board sign-off and release of any bonds • Get equipment and appliance warranties from Contractor • Get the release of liens from Contractor and each subcontractors • Make final payment to Contractor • Get as-built drawings of utilities on site and in the house

Completing the paperwork and the Punch List at the end of the project is critical and

must not be treated lightly.

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Final Thoughts The process

• Knowing what you are building will minimize the cost and schedule risks

• Make thoughtful decisions based on reasonable options and alternatives

• Seek independent knowledge and experience to support your decision making.

• Local independent representation is often valuable, particularly if you are building from afar.

• Make a realistic budget and design within it, so that you avoid the need to re-design later.

Building is an exciting process. Enjoy making your choices with confidence.

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Prepared by:

HORSEHOLLOW MANAGEMENT LLC Guiding Clients Through the Labyrinth of Building a New Home

WWW.HORSEHOLLOW.COM 912-508-4881

Copyright 2013

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