Construction might be cheaper outside of the big cities, but nonetheless, the pandemic, supply shortages, and high demand, have rocked the construction world causing the costs to skyrocket. Home values are up too, so the cost of construction is commensurate with the cost of buying/selling. If you are still curious why your small addition project could cost upwards of 300K, read on.
Many clients research on Google the cost of construction and come to the builder with a figure like $250-350/SF, expecting their project to fall within this range. This article will discuss the many reasons why your project will fall somewhere outside (higher than) this range. Currently, new construction costs in the Seattle area and numerous metropolitan regions typically range from approximately $400 to $500 per square foot, with variations based on construction quality. For basic construction standards, costs often start at $500 per square foot and can exceed this figure. Notably, the quality showcased in design magazines often reflects significantly higher costs, averaging around $1000 per square foot. At the $400 per square foot range, you can expect a standard home featuring cookie-cutter designs, hardie siding, basic trim, utilitarian white windows, carpeting, and standard drywall finishes, lacking the upscale materials frequently seen in magazine showcases.
For a typical addition, the focus is often on expanding a kitchen or adding a master suite. Consider a hypothetical 15’x20′ addition, totaling 300 square feet. Using a rate of $400 per square foot, the estimated cost is $120,000, which may seem feasible. However, relying solely on Google’s estimates, which may suggest lower construction costs, might lead one to believe that $120k is a reasonable budget. What Google fails to consider are additional factors influencing construction expenses, such as demolition, retrofitting existing conditions, economies of scale, permitting, and professional service fees—areas we will delve into further below. Expanding a house inevitably involves penetrating the existing structure to facilitate the connection between old and new sections. This incurs additional expenses beyond the cost of constructing the new addition. The extent of demolition required directly correlates with labor, temporary support needs (to uphold the structure during demolition), and disposal fees. It’s not uncommon for demolition costs alone to exceed $30,000, thus elevating the total cost of a $120,000 addition to approximately $150,000. When designing budget-conscious additions, our approach focuses on minimizing alterations to the existing structure to mitigate these expenses. Rather than extending the entire rear portion of a house outward, it’s more cost-effective to ensure the addition interfaces with the existing house at its narrowest point possible.
One of the significant costs associated with additions is retrofitting the existing house. After demolition, all removed items must be rebuilt to meet current code standards and seamlessly integrate with the new addition. This process of harmonizing old and new elements entails meticulous labor, requiring a surgical approach to safeguard the integrity of the original structure. Constructing complex, non-repetitive components demands additional time and attention to detail. In addition, older homes often do not adhere to current codes for wind, earthquake, or energy efficiency standards. Therefore, any portion of the house that undergoes renovation must be upgraded to meet contemporary requirements. This entails enhancing insulation, installing plywood and metal hardware to create shear walls, as older walls typically lack the structural integrity to withstand lateral forces from wind and earthquakes. Retrofitting each area in need can add approximately $10,000 or more to the overall project cost.
The same principle applies to flooring, ceilings, cabinetry, electrical systems, plumbing, heating/cooling systems, and other components affected by demolition. Any area impacted by the demolition necessitates updates to integrate seamlessly with the new addition. Questions arise, such as whether the existing furnace can adequately heat or cool the additional space, if flooring refinishing is required to match new areas, or if electrical wiring needs upgrading to safer Romex standards. Additionally, the foundation may need reinforcement to support the increased weight, requiring excavation to add more concrete. Each of these retrofit items typically incurs an additional cost of at least $10,000. In the scenario of our 15’x20′ addition, which initially cost $150,000, if five such retrofit items are necessary, the total cost could easily surpass $200,000.
The concept of economy of scale is often overlooked when relying solely on online research for construction costs. For smaller projects, many expenses remain consistent with larger-scale endeavors. For instance, a concrete pump truck is typically required since concrete trucks may not access backyard areas. Regardless of project size, the cost for such equipment, around $1000, remains unchanged. Similarly, mobilization and rental fees for various trades like excavation, plumbing, electrical work, roofing, siding, painting, scaffolding, and porta-potty rentals are consistent irrespective of project size. Consequently, smaller projects may incur higher costs per square foot, possibly reaching $500 or $600 per square foot, or even more. In the case of our example 15’x20′ addition, this could elevate the cost to approximately $250,000. Factoring in taxes, the total may rise closer to $275,000. For further insights on economy of scale, refer to our post titled “Smaller Homes Cost More.”
The total expenses for professional services may range from $30,000 to $55,000, contingent upon the intricacy of the property. Consequently, the cost of the 15’x20′ addition example could surpass $300,000, particularly exceeding $400,000 to $500,000 for properties with complexities such as steep slopes or projects involving anything beyond basic construction and finishes. The architect is responsible for integrating the work of various engineers into a unified set of documents, essential for demonstrating compliance to the building department. Additionally, measuring the entire existing house accurately incurs an additional cost of approximately $2000. Moreover, the architect designs and drafts the proposed addition, providing comprehensive construction drawings and material specifications to facilitate successful project execution. Typically, these architectural services amount to around 10% of the construction cost, translating to approximately $28,000 in our example.
If you’d like to learn more about our estimating and construction process, visit www.innate-aec.com/about, and if you’d like to get started on an architecture or general remodel project, please visit www.innate-aec/contact. If you would like to learn about our new IOS application JobSync, that helps us manage complex construction projects, please visit www.innate-aec.com/shop.
Many clients research on Google the cost of construction and come to the builder with a figure like $250-350/SF, expecting their project to fall within this range. This article will discuss the many reasons why your project will fall somewhere outside (higher than) this range. Currently, new construction costs in the Seattle area and numerous metropolitan regions typically range from approximately $400 to $500 per square foot, with variations based on construction quality. For basic construction standards, costs often start at $500 per square foot and can exceed this figure. Notably, the quality showcased in design magazines often reflects significantly higher costs, averaging around $1000 per square foot. At the $400 per square foot range, you can expect a standard home featuring cookie-cutter designs, hardie siding, basic trim, utilitarian white windows, carpeting, and standard drywall finishes, lacking the upscale materials frequently seen in magazine showcases.
For a typical addition, the focus is often on expanding a kitchen or adding a master suite. Consider a hypothetical 15’x20′ addition, totaling 300 square feet. Using a rate of $400 per square foot, the estimated cost is $120,000, which may seem feasible. However, relying solely on Google’s estimates, which may suggest lower construction costs, might lead one to believe that $120k is a reasonable budget. What Google fails to consider are additional factors influencing construction expenses, such as demolition, retrofitting existing conditions, economies of scale, permitting, and professional service fees—areas we will delve into further below. Expanding a house inevitably involves penetrating the existing structure to facilitate the connection between old and new sections. This incurs additional expenses beyond the cost of constructing the new addition. The extent of demolition required directly correlates with labor, temporary support needs (to uphold the structure during demolition), and disposal fees. It’s not uncommon for demolition costs alone to exceed $30,000, thus elevating the total cost of a $120,000 addition to approximately $150,000. When designing budget-conscious additions, our approach focuses on minimizing alterations to the existing structure to mitigate these expenses. Rather than extending the entire rear portion of a house outward, it’s more cost-effective to ensure the addition interfaces with the existing house at its narrowest point possible.
One of the significant costs associated with additions is retrofitting the existing house. After demolition, all removed items must be rebuilt to meet current code standards and seamlessly integrate with the new addition. This process of harmonizing old and new elements entails meticulous labor, requiring a surgical approach to safeguard the integrity of the original structure. Constructing complex, non-repetitive components demands additional time and attention to detail. In addition, older homes often do not adhere to current codes for wind, earthquake, or energy efficiency standards. Therefore, any portion of the house that undergoes renovation must be upgraded to meet contemporary requirements. This entails enhancing insulation, installing plywood and metal hardware to create shear walls, as older walls typically lack the structural integrity to withstand lateral forces from wind and earthquakes. Retrofitting each area in need can add approximately $10,000 or more to the overall project cost.
The same principle applies to flooring, ceilings, cabinetry, electrical systems, plumbing, heating/cooling systems, and other components affected by demolition. Any area impacted by the demolition necessitates updates to integrate seamlessly with the new addition. Questions arise, such as whether the existing furnace can adequately heat or cool the additional space, if flooring refinishing is required to match new areas, or if electrical wiring needs upgrading to safer Romex standards. Additionally, the foundation may need reinforcement to support the increased weight, requiring excavation to add more concrete. Each of these retrofit items typically incurs an additional cost of at least $10,000. In the scenario of our 15’x20′ addition, which initially cost $150,000, if five such retrofit items are necessary, the total cost could easily surpass $200,000.
The concept of economy of scale is often overlooked when relying solely on online research for construction costs. For smaller projects, many expenses remain consistent with larger-scale endeavors. For instance, a concrete pump truck is typically required since concrete trucks may not access backyard areas. Regardless of project size, the cost for such equipment, around $1000, remains unchanged. Similarly, mobilization and rental fees for various trades like excavation, plumbing, electrical work, roofing, siding, painting, scaffolding, and porta-potty rentals are consistent irrespective of project size. Consequently, smaller projects may incur higher costs per square foot, possibly reaching $500 or $600 per square foot, or even more. In the case of our example 15’x20′ addition, this could elevate the cost to approximately $250,000. Factoring in taxes, the total may rise closer to $275,000. For further insights on economy of scale, refer to our post titled “Smaller Homes Cost More.”
The total expenses for professional services may range from $30,000 to $55,000, contingent upon the intricacy of the property. Consequently, the cost of the 15’x20′ addition example could surpass $300,000, particularly exceeding $400,000 to $500,000 for properties with complexities such as steep slopes or projects involving anything beyond basic construction and finishes. The architect is responsible for integrating the work of various engineers into a unified set of documents, essential for demonstrating compliance to the building department. Additionally, measuring the entire existing house accurately incurs an additional cost of approximately $2000. Moreover, the architect designs and drafts the proposed addition, providing comprehensive construction drawings and material specifications to facilitate successful project execution. Typically, these architectural services amount to around 10% of the construction cost, translating to approximately $28,000 in our example.
If you’d like to learn more about our estimating and construction process, visit www.innate-aec.com/about, and if you’d like to get started on an architecture or general remodel project, please visit www.innate-aec/contact. If you would like to learn about our new IOS application JobSync, that helps us manage complex construction projects, please visit www.innate-aec.com/shop.
