Costing & Contracting - Yukon Housing Corporation

CHAPTER 10 Costing & ContractingDo not be too surprised if you are way over budget the first time you add up yourestimates. It is very common for people to initially select materials that are justtoo expensive. A little more research and investigation will usually turn up lowerpriced materials and subtrades. If the total costs are still too high, you will have tocompromise and/or re-estimate some areas of your house. If worse comes toworse, you can also go for a size or design revision on your blueprints. Usually allyou need is to catch your breath, grit your teeth and go back out there and shoparound for some lower estimates.When re-estimating, most people automatically go after the higher priced itemssuch as framing materials or the mechanical trades. Quite often though, a smallcost reduction of each of the lower priced items will add up to a more substantialsaving without a loss in quality of the major construction components. Floor coveringsand kitchen cabinets are very personal choice items that can easily putyou a couple of thousand dollars over budget.Another way to lower costs is by doing some of the work yourself. Rememberthat your main duty is construction management - as a boss would you hire yourself?Be as critical about letting yourself do work on the house as you would inhiring a stranger.The more work you are able to put into your own home, the less you will have topay someone else. But be careful not to overextend yourself. Time is a preciouscommodity that becomes very evident during construction. Family life, full-timejob, construction management duties and even sleep all tend to “get in the way”when you are “sweating a job”. If the progress on your house is too slow you willend up spending more on interest and increased material costs. It may be a goodidea to arrange your financing as if all jobs are going to be hired out. If you doany work yourself there will be additional funds for finishing details, furnishings,landscaping or even turning it back and applying it against the mortgage.Y ukon Housing Corporation|Self-Help Course|Revised 07/2001245