I'm currently working on an addition to my home and have received an estimate from the contractor. They included a disclaimer that suggests this figure is just an approximation, which makes me a bit anxious about costs potentially rising during the project. I'm curious if this is normal practice in home construction. Should I push for a formal contract that outlines specific costs before any construction begins, especially since I'm planning to meet with the architect and get permits? I'm hoping that having these plans will eliminate most uncertainties regarding pricing. Is it unreasonable to expect a firm cost once I have the architect's designs, or should I just brace myself for unexpected costs throughout the process?
3 Answers
You might be looking at this from the wrong angle. It's best to get the architect to create the permit drawings first and get those approved. Once you have the finalized plans, seek fixed bids from contractors. This way, you’ll avoid surprises, as they will likely include adjustments for material cost increases. It's worth noting that some contractors might not appreciate it if you don’t go to them first, but it's a smart move!
Estimates are typically just rough figures, especially early in the process before the architect's plans are finalized. At that stage, contractors are making a lot of assumptions. Once your architect gets the plans ready for permits, your contractor should be able to give you a more accurate proposal with a detailed cost breakdown. That’s when you can reasonably ask for a fixed-price contract, which can protect you from sudden price hikes later on. It’s also smart to get competitive bids after the plans are in place, so don’t hesitate to share the plans with other contractors to see if you can get a better deal.
It’s completely normal to start with a ballpark estimate based on a preliminary visit. The key is to work with an architect to get some basic plans that allow you to seek multiple bids from builders. Keep in mind that design decisions greatly affect costs, so consult your builder too on what can maximize your budget. Getting clarity on everything from materials to specifics can help you avoid unforeseen expenses down the line.
Thanks for the insights! My builder has told me that their architect will not provide drawings unless I commit to their estimate, which feels off to me. I might be risking potential price hikes once I get those drawings. I just don't understand why I can't get those plans to shop around before I decide.