Pre-Construction

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Building a home or entering into a large remodeling project can feel like a daunting experience. The decisions to be made are as complex as the design and budgeting of the project to as simple as paint and flooring colors. At SBC, our goal is to take all the "moving parts" of the project and bring them together so that you can focus on making only the decisions you need to make, when you need to make them.

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Pre-Construction Service Agreement:

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For many years, industries, like the Insurance Industry, have stressed the importance of receiving "three quotes". And, in the past, we've embraced this way of thinking. In fact, many residential builders offer "free estimates" and SBC has done the same. In fact, we continue to do so with smaller projects. But when it comes to the complexity of building or remodeling a home, it's a flawed way of thinking. First, contractor's almost never price "apples to apples". Second, builders are rarely of equal caliber. Like anything else that's simply thrown together, the "free estimate" is virtually never accurate and rarely "free", in the end. It also encourages a "good enough" attitude that leaves the homeowner disappointed. This mindset might be OK if you're replacing your windshield, but not when building a home.

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At SBC, our goal is to be the "best" bidder instead of the low bidder. Although less commonly used, the PSA is the best way, we believe, for us to gain valuable information that will allow us to provide you with an accurate budget and timeline for your new home or major remodel.

 

Our typical Pre-Construction Service Agreement encompasses:

     Drawings

     Specifications

     Allowances

     Budget

     Architecture and design

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How Does Our PSA Work?

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1. Develop a relationship with the homeowner and anyone else involved in the project.

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2. Assemble a team of experts.

          This may include:

               Architects

               Engineers

               Subcontractors

               Interior designers

               Landscape designers

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3. Provide Professional Insight into

          Constructability

          Material choices

          Preferred vendors and subcontractors

          Design details

          Land/ property development

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4. Selections For Your Home

          We attempt to define as many details, for building materials as possible.

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5. Provide an Initial Budget

          Upon the initial stages of the conversations, we establish a base budget to work from. As the conversation with the homeowner and lead contributors progresses, that initial budget, or home design, may be revised to better reflect the desired end result of the project. Upon completion of the PSA, we should have reached an accurate budget number for the project**.

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6. Project Schedule and Timeline *

          With the various aspects of the project defined, a rough schedule estimate should be reached so that the homeowner, as well as other involved parties, can commit accordingly. *

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7. Plans and Specifications

          Provide a working set of design plans, either by working with an architect or in-house designer.

          Provide cost goals

          Detail realistic expectations for various aspects of the project

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If this process sounds time consuming, it's because it is. The typical "free estimate" will take in excess of 40 man hours, over about a month, to complete. Our standard PSA will take between 2 and 3 months to complete. However, the level of detail far outweighs anything a quick estimate could possibly provide.

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Our Pre-Contruction Service Agreement is drawn up and completed for a fee. This fee covers the cost of our time and resources as well as that of other professionals we utilize in the process.

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NOTE:

* Due to our rural locations, timelines are estimated and used as a goal only.

** Buget numbers are targets and do not reflect changes in both material costs and seasonal shipping fees.

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Why We Use a Pre-Contruction Service Agreement- 

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1. A pre-construction service agreement is a useful cost management tool.

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A typical "free estimate" will ballpark costs. A PSA will allow for more accurate cost estimation, leading to better decision making and, consequently, a more detailed budget, that will include all of the various aspects of the project.

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2. A pre-construction service agreement brings together key personnel and provides a sort of filter.

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Building a home is a very personal endeavor and one that requires a good relationship between the builder and homeowner. Most custom home projects take up to a year to complete and you'll be talking multiple times each week.

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Compatibility is extremely important and, ideally, values should align. At SBC, our priorities are ranked in this order. Quality, schedule and cost. All three elements are important and must be balanced with one another, but as an example, we refuse to sacrifice quality for a minor change in scheduling. If this doesn't align with the client's priorities, they may want to choose a different builder.

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Next, the Construction Phase 

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