Why Do Estimates Take So Long?
The work of building a price and schedule for your custom home is a project in itself.
There’s a reason that quality project estimates don’t happen overnight. Every home is a collection of thousands of individual components that range from large-scale assemblies like walls and roofs to small items like doorknobs and faucets. The builder has to consider every one of these elements when projecting what it will cost in time and materials to complete the home.
How long this takes varies by project type. For instance, a production builder that builds the same plan over and over will be able to generate estimates on the spot in its design center. That’s because even though the company offers some options to buyers, it’s really mass-producing a cookie-cutter product.
Custom homes are different because each one is unique. An estimate for a simple custom home can easily require 80+ hours of staff time, and even more if it’s a complex architectural design with elaborate systems. The logistics of getting the estimate done means those hours will likely be spread out over several weeks.
The builder needs to calculate the time and expense for everything from setting up the site, getting the house out of the ground, framing the shell, drying in the roof, and the rough ins for the many systems (plumbing, electrical, mechanical, automation, security, water treatment, etc.), interior finishes, hard/soft landscaping. Assembling all these numbers is a massive project that requires experience, knowledge, and organizational skills. And, of course, time.
In addition, the builder needs to ensure that the products being priced for the home are the ones the customers want and that the budget will support. In many cases, this means investing time to aid in completing plan callouts and getting clarity on interior design specifications. This clarifying work may need to be done for every line item in the estimate.
The builder also needs to solicit pricing from each respective trade contractor & vendor – from the demo/grading contractor to the plumber and painter. This can be the most time-consuming part of the estimate. If getting the subcontractors’ bids in house weren’t enough of a challenge, those bids also need to be put under a microscope.
The builder needs to ensure that trade & vendor proposals are comprehensive and realistic. For instance, if a drywall bid seems low, the builder has to know enough to ask the drywall contractor how many sheets the estimate was based on, and someone on the builder’s staff needs to check those calculations. When soliciting bids from 50+ trade contractors/vendors, it’s not unheard of for a couple to submit inaccurate bids because they were busy and needed to get their estimate to the builder on deadline. That’s why bids must be carefully reviewed.
All this work is about getting the estimate right. Taking the time to do a thorough and accurate job today will save time, expense, and headaches tomorrow. It’s an area where patience pays real dividends.
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