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There are several
ways our customers commonly approach to construction process.
The first is to hire a licensed General Contractor.
This method generally involves the least amount of stress, but it is
also the most expensive. The general contractor is hired to
control, build and oversee a construction project. This
individual typically does very little hands-on work, but, instead,
hires-out (or sub-contracts) the various jobs and phases of
construction. The general contractor will profit by providing
the labor and additional materials (above and beyond the log home
package) at cost plus 10% to 20%. If your log home package
costs $70,000.00, and the additional labor and materials cost
$110,000.00, you can expect a general contractor to add $11,000.00
to $22,000.00 or more to the total cost of the project. The
general contractor is thus compensated for the risk of building the
structure and for warranty expenses should something go wrong.
This is how most homes are built, and this is the approach most
lending institutions prefer. It is typically the most
expensive route, but it is also the safest and most conservative
approach. |
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A second approach
to the construction process is the owner/builder method,
where the homeowner acts as the general contractor. The owner
will usually do very little physical work, but, instead, acts more
as a construction manager or supervisor. The owner/builder
seeks and receives bids from sub-contractors and coordinates the
project and building calendar. The owner/builder saves the
money that would otherwise go to the general contractor. Other
benefits include personal control over subcontractors, and the
ability to "jump in" and do some of the work personally,
thereby saving even more money. The owner/builder will
generally pay more for bids than a general contractor would. |
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A third approach is
for the Do-It-Yourselfer (DIYer). As
a true owner/builder, you personally do any amount of the labor you
choose - usually most of it. This, of course, is the least
expensive way to go, but the owner/builder must devote a tremendous
amount of time to the project. This should only be attempted
by experienced carpenters. Most lending institutions do not
encourage this approach, nor does Tennessee Log Homes. Labor
is usually 30% to 40% of the total cost of the project, and the
DIYer should expect to save some of these labor costs.
However, the DIYer should not attempt highly-skilled labor and
should expect to make mistakes that cost time and money. The DIYer
will usually pay more for materials that professional builders and
will spend more for tools, equipment rental, insurance, etc. |
| Whichever approach you take, it is important
to get accurate cost estimates for the entire building
process. This is absolutely essential when it comes to
planning a new home and helps insure a smooth-running project with
minimal delays and surprises. It also brings a bit of reality
to the dream and helps keep it a dream rather than a nightmare.
Click Here to print our Turn-Key Estimate
Worksheet. |
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