When you begin the process of building a custom home, there are a variety of important factors that must be considered. (See our ebook for some great checklists) For many homeowners, trying to stay within a specific budget is key to the process. Value engineering is one way to do this, but it’s more than just cutting costs, it is giving consideration to priorities, budget, and your vision. Let’s explore this topic further along with a story of how value engineering can help you create the home of your dreams.
Value engineering a custom home can be a delicate balancing act between cost-effectiveness and maintaining the desired level of quality. While it’s tempting to cut corners to save on expenses, cautionary tales abound regarding the potential pitfalls of sacrificing quality in the pursuit of affordability. From compromised structural integrity to subpar materials leading to frequent repairs, skimping on key elements can haunt homeowners for years to come. The cautionary tales of value engineering emphasize the importance of thorough planning and strategic decision-making to ensure that cost-saving measures do not undermine the long-term durability, functionality, and aesthetic appeal of a custom home. It’s crucial to prioritize investments in critical areas such as foundation, roofing, insulation, and mechanical systems to safeguard against future headaches and ensure the home’s integrity stands the test of time.
Often, clients come to us, looking for an architect to assist them with the design of the home and we have a wealth of resources to help match them with an architect who is capable of serving their needs. Sometimes, a client has already met with an architect to draft the original designs. We work with either scenario, but it’s important for a client to be aware of the fact that an architect is not typically responsible for knowing current material costs or supply chain issues. In addition, the architect may be contracted long before a final budget is determined. Therefore, the designs may need to be reviewed and/or value-engineered to ensure that the home and specifications align with the customer’s budget. This is the job of the builder. It’s important to ensure that you and your builder are aligned on this issue. Many times, builders will value engineer a project to meet a cost requirement. But, if you don’t want to sacrifice quality, these choices need to be made with careful consideration and communication.
In one such case, a couple came to us with a beautiful home design in which they had invested a substantial amount of time, money, and thought. While the designs were gorgeous, the specifications far exceeded the client’s budget. After further discussion, we were able to recommend several areas for consideration. One recommendation was to scale down some of the exterior hardscaping specifications which reduced the budget by about $30,000. In another area, we were able to modify the window specifications by another $20,000. Ultimately, after a few minor adjustments and compromises, a working plan was agreed upon and the project was able to move forward, at the desired budget. Communication is the key when making these types of adjustments to ensure the clients’ goals and budgets are aligned.
As demonstrated in the examples above, value engineering may be required to get your final numbers closer to your budget. However, these discussions cannot take place with vague specifications or without correlation to the appropriate budget line items. Vague specifications would not have allowed us to make alternative recommendations. The client may have had one type of finish in mind, but without clear specifications, the difference between what’s on paper and what is quoted can be two different things, causing confusion and frustration before the project begins.
This example also highlights the importance of the builder and architect having a collaborative work relationship. This is an issue we constantly advocate for, in any custom home building experience. A wise homeowner can be guided by an experienced builder to value engineer their custom home to meet both the homeowner’s vision and their desired budget.
If you are thinking about building your once-in-a-lifetime custom luxury home, be sure to download our FREE ebook: “Designing & Building Your Custom Dream Home: How to Create an Experience You’ll Love to Remember” or visit our website at MuellerHomes.com
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