Project Costs: Figuring Things Out Early (Snack Sized Episode)

We open this snack size episode by asking a simple but critical question. How do we estimate the cost of a renovation or new home when the design is still evolving? We explain that the conversation starts before someone even becomes a client. In our first discovery call, we ask three questions. What is the scope of the project, what is the timeline, and what is the budget. Most people say they do not know their budget because they do not know what things cost. We clarify that cost and budget are not the same. Budget is what you can spend. Cost is what something might require. Without knowing the budget, we would be designing in a vacuum and cannot guide decisions. Sharing a real budget helps us design responsibly. We are not judging anyone’s number. We simply need a target. If a client says they can spend $500,000, we will design toward that amount. If the real number is lower, the client should say so early. Otherwise expectations drift, and the design can quickly outgrow what someone can afford. From there we describe how cost checking works during design. Early conversations are based on experience and ballpark numbers. We promise clients that if they share a real budget, we will design something that is close to it. Sometimes we realize during the design process that the wish list does not fit the budget. When that happens we call a meeting, explain the gap, and pivot early before anyone gets too attached to ideas that cannot be built. One way we can help clients understand tradeoffs is the grocery cart method. During schematic design we put everything in the cart. Then we ask contractors for early pricing. This is not a contract price. It is a ballpark number. Once we see the receipt, we can decide what to remove or change. We also talk about bringing contractors into the process at the right time. Contractors need drawings and clear information to give meaningful estimates. If someone walks a builder through a house with no plans and asks for a price, the answer will be a huge range. If a builder quotes an exact price this early, that's a red flag. Good pricing depends on good information. Another common misunderstanding is the difference between project cost and construction cost. Construction cost is only the building itself. Project cost includes everything else. That means architecture fees, site work, landscaping, furniture, moving costs, and other services. Many homeowners talk in project cost while industry professionals talk in construction cost, which can lead to large misunderstandings. We close by emphasizing one key point. Work with professionals who tell you the truth about costs, even when it is uncomfortable. Honest conversations early in the process make better decisions possible and prevent painful surprises once construction begins. Once you've broken ground, as Sheri says, "You're married."  And a divorce from your team is much harder. (00:00) Intro (00:36) Budget vs Cost Explained (02:34) Why Architects Need a Real Budget Number (04:19) Designing Within Budget Expectations (05:54) The Grocery Cart Method for Early Design (07:28) Ballpark Pricing From Contractors (10:04) Why Renovations Are Harder to Estimate (13:15) Why Accurate Drawings Matter for Pricing (16:55) The Problem With Googling Renovation Costs (18:14) Site Conditions That Change Pricing (19:57) Project Cost vs Construction Cost (22:19) Avoid Professionals Who Tell You Only What You Want to Hear (23:41) Final Thoughts Have questions? Want to be on our show? Email us!  admin@htsspodcast.comLearn about our hosts:Marilyn: Runcible Studios: https://runciblestudios.comSherI: Springhouse Architects: https://springhousearchitects.com Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.