Construction Insurance
These are 10 easy ways to save money when you're building a house or doing a renovation.
1. Make a budget! Controlling costs is crucial. It is best to begin with a "not to exceed number" written down and kept in mind. Talking to contractors and searching the internet can give you a rough idea of the cost of any construction. You will have enough information to establish a rough budget. 2. To cover unanticipated expenses, add 20% to your budget. You will call this your "contingency fund". This sum should be the final amount that you will ever pay. This number should work for you. Do not release any money without thoroughly exploring all options. 3. You can decide how you want to proceed. Do some of the work yourself and subcontract others. Or, you can hire a General Contractor. This is your first chance to keep your construction budget within reach and cut costs. This can be done by negotiation or through competitive bidding. Further cost savings can be achieved by furnishing all or part of the material. 4. Material costs - After you have decided what you want to build and how you will do it, you'll need a material list to help you shop for the best price. Comparing prices between local lumber stores and home depots is a great way to cut costs. Make sure that you price apples to apples, not oranges to oranges, and that the material quality is approximately the same when you create this shopping list. 5. Material Substitution - You can make substantial savings by replacing top-of the line material with cheaper products. This approach is not the best way to save money. It is important to think about how long the product will last, and how well it will perform over time. 6. Building Permits - It is impossible to avoid paying fees and permits. An inspector may come to your home at a later time and ask you to take apart a portion of your building to allow the inspector to verify that it conforms to local building codes. In most parts of the country, they have the authority to do so. It is a mistake to start a building project without a permit from your local authorities. You might also need to go through the inspections. 7. Insurance - You will need to have insurance while your project is being constructed. Before you sign any contracts, make sure that the contractor you hire is insured. Uninsured workers may be covered by your homeowners insurance. However, make sure to check your coverage and determine if you will have to pay an additional fee. You may be able to bid on it if there is an additional cost. However, as I said earlier, make sure to compare apples with apples when comparing bids. 8. Legal- Before signing any contracts, it is a good idea to seek legal advice. Before you agree to use the services of a lawyer, make sure to compare their prices and quality. This is an area where you can save money. You can get good advice for a low price by shopping carefully for an attorney. 9. Contractors - More Info There are many contractors out there, and all of them want your business. I could write a book on working with them. Harry, my uncle, was a purchasing agent at a large corporation. His criteria were "Quality Price and Dependability". This is a good rule, but it does require you to do some research by looking at references and reputation before you engage. Once you have identified the contractors you want to work with, you can ask them for a quote or to negotiate the cost of the job. This is an important time to adjust the cost to fit your budget and to save money. 10. Start the Work - You can avoid extra costs by scheduling the work so that the various craftsmen are available when they are needed. You will need to make sure that the craftsmen are present when you're asking them. Otherwise, additional fees may be incurred if they have to come back multiple times.
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