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Cost to Build a Home – How to Budget in Labor Costs For Remodeling & Home Building

You never want to under budget for labor. If you are planning a remodel or home building project as an owner builder, the cost to build has to include labor. This, in fact, is one of the biggest line items in any building budget.

Budgeting for labor can also be a confusing and fluid process for an owner builder. You want to be as accurate as possible for your sake as well as your bank’s.

Where Do Owner Builders Save Money?

I’m not a big proponent of doing a lot of your own labor. A good amount of money can be saved by just managing your project and hiring licensed subcontractors to do the work. On the other hand, if you or your close friends have significant skills and available time, รับสร้างบ้านราชบุรี  it is certainly a savings to provide labor where you can.

That being said, mistakes and delays can be costly. Interest charges mount up. Mistakes not only cost more money they take more time. It is crucial to assess your situation honestly and budget accordingly.

Figuring HomeBuilding & Remodeling Labor Costs

There are professionals to help. Owner builder projects are not “go-it-alone” projects. It becomes a matter of using the experience and knowledge of the home building professionals and making your plans accordingly. Here’s how I recommend you go about it.

  • Get a home-building or remodeling coach: This is the first professional you should hire. You are not likely a builder. Your home building coach’s experience with pricing out labor will be a real advantage.
  • Prepare a complete, step-by-step building outline: This guide will provide you with a complete outline of all the labor that is required for building or remodeling a home. It’s a tool that your home building coach can provide and guide you in using it correctly.
  • Divide labor between what you’ll hire out and do yourself: If you plan on doing some of your own labor, always budget in for professional help to fill in for you should you run out of time or energy to do it yourself. Also, never plan on doing things yourself where your competence is in question. It would likely take too long and the potential for costly mistakes is high.
  • Get 2-3 bids for all labor you’ll hire out: Don’t figure on the lowest bid. I normally take the average bid for budgeting purposes. Always check references to see if budgets were met. Additionally, budget back-up money for labor you plan on doing yourself, just in case.
  • Add contingency dollars: Most banks will require a contingency fund. Even if they don’t, I recommend that you factor in at least an additional 10% for labor. It’s a fluid process and things can change.

 

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