New Home Pricing – Design & Build, Plan Cost Proposals: Estimating for Results
When we put together new home pricing Proposals, our dilemma is just how far we need to go with upgrading the finishing items. Naturally new home price estimating depends on the home building project budget and how owners feel about the spec finish in the home. Sometimes we have a fairly good idea. Often the picture is still incomplete by the time we finish prelim house sketch design and compile associated costs. Other priorities more often have first claim to the new home budget spend. It would be presumptuous of us to pre-determine what the priority inclusions should be.
The Inclusions Affect the Costs
This dilemma stems from our desire to provide a low total cost, juxtaposed with our duty of care to our customers. We are horrified that it may seem that our intention is to short-change you, and mislead regarding the list of inclusions of the package. It is for this reason we have decided, as matter of policy, to try to maximise the inclusions, within reason. This is so that it is more likely that costs will improve immediately after the initial presentation of the proposal.
It is a policy that has stood us in good stead, and is based on solid reasoning. It also imposes on u,s a duty to approach the entire house design and quote process very professionally.
At AKS Homes, we use a comprehensive new home specification document sheet in our cost estimation system. This provides a detailed list of items in ‘building process’ format, rather than ‘list of inclusions’ format. We do this because a ‘list of Inclusions’ rarely identifies what is NOT included. Ours does, and gives you the option of
adding items or amending the quality, as you go through it in detail. Naturally these options directly affect the costs. The price rises or falls as items in the spec are upgraded or removed, as the case may be. Because the spec is a dynamic between 25 and 35 pages long, there are plenty of opportunities to do so.
Why our New Home Pricing System Benefits You.
As a rule, we now never send the new home specification and pricing via email as a first response in our new home pricing process. we are more comfortable doing so in subsequent revisions. We always make sure we have a face-to-face presentation with the client to impress upon you a few important points for their consideration.
- Demonstrate how the entire costing process is a dynamic one.
- Explain how some factors that influence the overall outcome.
- Show you how to use this to your advantage.
- Make you aware how to control the process with our expert assistance.
- Tell you about the techniques that improve the outcome and the knowledgeable application of design modifications, finishing touches, and smart shopping techniques.
- Begin the process of obtaining several rounds of contractor and supplier quotes to ensure the best possible price & quality, with the most options.
- Explain how this process not only benefits you, but allows AKS Homes hone our techniques and secure better prices and quality for all our clients.
Because we are eager to implement this system every time; you are encouraged to the let the new home pricing process take its course. The entire procedure takes between 2-4 weeks. This also allows us to undertake surveys, perform soil tests, have the engineering design done, and finalise the working drawings in the meantime.
You can therefore be secure in the knowledge that you have the best possible finish, for the best possible price, with the most competent builder. It is only after we finish the new home pricing process, that we formalise the Building Agreement.
We ultimately also benefit throughout the building process, because constant practice improves our service and prices, thanks to you. Savings will be passed on to you. This means that we consistently are able to buck the trend, and deliver consistently improving cost estimates to you as the process unfolds.
All-in-all, it is definitely a win-win by any standard.