Anyone familiar with construction knows that prices can get out of hand. Unexpected delays, materials shortages, and unforeseen obstacles can all contribute to a project’s final price–and a vendor supplier’s take-home pay. Some construction projects are more expansive and expensive than others, and vendors get a bigger cut in these scenarios. Take a look at some expense rates for vendors, suppliers, and construction workers across different projects.
New Home Construction
In April 2017, the average sale price of a new home stood at $368,300, according to the U.S. Department of Housing and Urban Development. This price is higher than the average cost of a slightly older home, leading many home buyers to consider building new houses from the ground up.
Statistics from a recent study by the National Association of Homebuilders (NAHB) help detail the costs of a new home building. Homebuilders spent $289,415 on average to construct a 2,800-square-foot house in 2015.
The expenses can be estimated as follows:
- Site work. Engineering plans, blueprints, inspections fees, and municipal filings are commonly handled by a management company or realtor, tallying approximately $16,000 in total costs.
- Foundations and framing. Building foundations is a lucrative business. Excavation, concrete mixing, and supporting materials can cost upward of $32,000. Framing, which covers the roof, trusses, and related materials, can lead to an additional $55,027 owed to construction vendors and distributors.
- Major systems. Plumbers and electricians can earn a pretty penny for installing wiring and utility features during new home construction. These services can cost as much as $37,000.
- Interior construction/design. The inside of the house is what defines the home. Construction vendors, designers, painters, suppliers, and other service providers profit heavily from new home construction. Painting, kitchen modeling, flooring, drywall installation, windows, and the many other cost items that come along with home building can total as much as $85,000 in overall expenses.
Architects are considered the brains of construction projects, and they require specialized training and formal experience. Each practicing architect must have a bachelor’s degree (most have master’s degrees) and must pass the Architect Registration Exam.
Architects often charge $60 to $125 an hour for their services. Some architectural firms and independent contractors charge a percentage based on construction expenses. This percentage is often contingent on whether the contractor is providing remodeling or new construction. When remodeling an old office building, for example, architects often deal with code violations and other issues that arise from previous contractors’ work. Architects charge accordingly for such occurrences.
Architect costs also vary by location. In some parts of Texas, the cost per square foot can average $0.75, while the same service may cost as much as of $3.50 in parts of California.
Certain projects require that architects specifically address specialized permits or building designations. Banks, for instance, require architect blueprints, and some buildings require balconies or public spaces that must meet certain design specifications.
Architects and architectural firms can be costly vendors, depending on the nature and scale of the project. The costs incurred from hiring these professionals are different than home building costs because they require more design than materials.
Any construction project can be expensive, and the range of costs can be all over the place. Planning and careful budgeting can limit unnecessarily expensive decisions, but unforeseen issues can throw anyone a financial curveball during construction.
Are you struggling to get paid for construction work that you (and/or your team) recently completed on a Louisiana building project? Contact our respected construction attorneys today for a consultation. We can help you get fairly compensated.