The Design Phase / Navigating the Schematic Design Phase
Preparing a preliminary cost estimate
Once you've refined the space planning and started evaluating materials and systems, it's time to prepare a preliminary cost estimate with an EcoHome project. This step involves creating a rough estimate of the construction costs based on the schematic design, which will help you determine if the project aligns with your budget.
Your architect or designer will typically develop the preliminary cost estimate using industry standards, historical data, or local construction cost databases. Keep in mind that this is an early estimate, and the final cost may change as the design evolves and more detailed information becomes available. It will be worth comparing these estimates with your earlier budgeting efforts to see if any adjustments need to be made to your overall plan.
Steps to Prepare Initial Cost Estimates
1. Break down the project into components: Divide the project into major components, such as foundation, framing, roofing, interior finishes, and mechanical systems. This will help you understand the various cost drivers and make it easier to estimate each part separately.
2. Estimate material costs: Based on your chosen materials, estimate the costs for each component. Be sure to consider factors like material quality, availability, and shipping expenses.
3. Estimate labor costs: Calculate the labor costs associated with each component, factoring in local labor rates and the complexity of the work. Consult your architect or designer for guidance on estimating labor costs, as they may have access to resources and expertise that can help you make more accurate projections.
4. Include soft costs: Don't forget to account for soft costs, such as design fees, permit fees, and financing costs. These expenses can significantly impact your overall budget and should be factored into your preliminary cost estimate.
5. Factor in contingencies: Include a contingency allowance to account for unforeseen expenses or changes during the construction process. Contingency allowances typically range from 5% to 15% of the total project cost, depending on the project's complexity and level of uncertainty.
6. Summarize the costs: Once you have estimated the costs for each component, add them up to obtain a preliminary total project cost. This figure will give you an initial sense of the project's feasibility within your budget.
Refining and Adjusting the Estimate
Keep in mind that the initial cost estimate is a rough projection based on the schematic design. As your project progresses through the design development and construction documentation phases, your cost estimate will likely become more accurate and detailed.
Be prepared to revise and refine your cost estimate as new information becomes available, and consider adjusting your design, materials, or systems to better align with your budget if necessary. Communicate regularly with your architect or designer about cost concerns, and work together to make informed decisions that balance your project's goals with your financial constraints.