We’ve noted before that almost all our clients have two questions very early in the design/build process. They want to know how long their custom dream home will take to design and build, and how much it will cost. The answers to both questions are “it depends” and “it depends,” but part of the way we find more definitive answers to those questions is in the estimating process.
Estimating is part of the design process, and is in some ways the final output of that process, along with blueprints that show how your house will actually be built. After we’ve reviewed your build site, figured out what you want your dream home to look like, and discussed layout, design and finish choices, we build out an estimate.
The important thing to know about this is that now that we have an estimate, that doesn’t mean we have a final price, with every decision set in stone and a design blueprint that is locked in and final. Instead, what we have now is more of a budget.
For instance, let’s say we’ve shot the moon in designing and finishing your home, and that estimate is at the high end of your initial budget, or even exceeded it, based on the choices made in the design process. That’s not nearly as big a deal as it might seem, because as we noted above, nothing is set in stone (in this case, literally nothing has been set in stone yet—no foundation, no blocks, no fieldstone, no tile, etc.). So we go back and see where we can make some changes that will reduce our estimate.
For instance, the hand-carved millwork you loved? Well, maybe that gets replaced in the basement and bedrooms by something a little less extravagant. A French door on the walkout level could be changed to a sliding glass door. When we make adjustments like this, we’re doing some amateur value engineering.
The term “value engineering” has a specific meaning in commercial or government contracting, construction, or manufacturing. It’s actually a branch of the engineering profession (here’s the website for their international society) and is a very useful process in home construction.
The general idea is to seek out optimum value for a specific investment. For our purposes, it’s a process that emphasizes function and durability over beauty and delicacy. That’s not to say we’re stripping these houses of wonder or beauty or uniqueness—not at all! It’s just an acknowledgement that sometimes we have to compromise certain aspects of our dreams when they bump up against financial reality. (People love the phrase “money is no object” in movies, but in our experience it’s almost always an object in real life!)
The best time to deploy value engineering is during the design and estimating phase. We’ve mentioned this before with regard to change orders, but making changes to the design is easy when it’s all still on paper. We’ll work with you to design a Custom Dream Home that hits the bullseye, while still staying within an estimate that you’re comfortable with. We will help you find places where our budget allows for total freedom as well as the places where we can rein it in a bit without losing any of the home’s utility.
One thing about building houses is that it almost never goes exactly as planned. We strive to anticipate every scenario and plan for every outcome, but the fact is something usually pops up during the build. This can be a mild irritant, like manufacturing delays, or a bigger headache, like a sudden surge in the price of lumber or other materials.
Sometimes it’s a more serious problem, like the excavation turned up a bunch of hazardous waste (this is not at all likely, but it can happen). In those cases, value engineering really shines. The process helps us adapt the plans for your home to accommodate these new developments in ways that help reduce their impact on your budget. That way, your home stays on schedule and on budget, even in the face of these surprise obstacles. And in the end, you still get your dream house.
If you’re ready to get started on designing and building your custom dream home, and want to work with a builder committed to maximizing the value of your investment while also helping you make your dream home your real home, contact us at dottybrothers.com.
