by Bjorn Slate
One of our most important responsibilities as designers, aside from the ‘fun stuff’ of making beautiful homes that our clients can spend decades enjoying, is the very unglamorous task of managing the cost of projects and our clients’ expectations for the same.
‘What’s it going to cost?’
‘My brother and his wife built a 4000 SF house in Charlottesville last year for under a million’.
‘We’ll be GC-ing it ourselves to save on builder overhead and profit’.
We often hear questions and comments like this early on in our relationship with new and prospective clients. Unsurprisingly, less so from satisfied repeat ones.
The current reality is that construction is more expensive than most care to admit or even acknowledge. And in many cases, the cost per square foot to build new or renovate is higher than the cost to purchase. Most homeowners who are willing to spend what it takes to achieve the results they are after are also willing to accept that to do so comes at a premium that they cannot expect to recoup in a short-term ‘flip’. Terms like ‘legacy’, ‘heirloom’ and ‘generational’ that have crept into discussions of residential design point to a general attitude that a home is more than a house and that for those fortunate to have the means to do so, an investment that bears fruit perennially over an extended amount of time is one worth making.
As architects, one of the most important discussions we have early on with new clients is one about overall project budget. This typically starts with a discussion of a ‘wish list’ of project priorities and an assessment of what this will require in terms of project square footage at various levels of intervention – from light-touch refinishing to ‘full-scrape’ renovations, additions and new construction. A back-of-the-envelope budget can be generated quickly and is often a very good predictor of the ultimate cost of the project. If we and a new client agree that the ‘program’ (goals for the project) and budget are in good alignment, we are all set up for success and a relatively smooth process.
When these two pieces do not align, it is always valuable to have an upfront and frank conversation about reducing program, considering multiple phases of design and construction, or exploring other alternatives altogether. Sometimes it makes the most sense to design a ‘masterplan’ for a full-blown, multiphase project and then hone in on a manageable and effective Phase 1. Discussions like this, and periodic check-ins on the subject, including getting preliminary estimates from a builder or two before a design is fully developed and documented ensures that expectations will be met and that there will not be a crisis of confidence and affordability at the eleventh hour when a short-term rental is lined up and the tiles and plumbing fixtures are all selected.