SUMMARY
This week, David and Marina of FAME Architecture & Design discuss what clients should spend money on in a remodel or new construction home project. The two cover spec house vs custom house spending, building for longevity and climate events, balancing living experiences and having a quality structure, phasing projects and future budgets, where clients overspend, external factors that affect project spending, things clients can spend less on, solutions to lower costs by 15%, and more. Enjoy!
TIMESTAMPS
(00:00) Spec house vs custom house spending.
“It's very easy to look at the bids, compare the totals or even individual line items, like framing, and decide to use whoever is cheapest. Those decisions happen too quickly. You should ask your GC and architect, "We have three different prices for framing. What am I getting with each of these prices?" Framing comes to mind because if you're building a modern house with clean lines, there's a lot of pressure on the framing to be done well for the finished house to look good. That's different from a traditional or classical house, where moldings and decorative elements can cover up gaps and misalignments. You don't have that leniency in a modern house.” (03:55)
(07:04) Building for longevity & weather change.
“There's an invisible layer to the workmanship that makes a really big difference in the longevity of a house, even though it's something the average person wouldn't necessarily be aware of or interested in. When people hire architects, they want design. They don't necessarily think about the technical aspects of how the building is put together, and that is also not what we present to the client. We present glossy images, cool ideas, and fun stuff. We don't necessarily show them the construction details, window details, or wall sections and explain why things are done a certain way, or why taking something out to save money might compromise the house.” (09:30)
“There's a gap between professionals and clients: Clients aren't familiar with building science, or even interested in it. Yes, if you ask a client whether or not they want their house to be watertight, of course they're going to say yes. The building science is why you’ll hear that another contractor can do the same project for 60% of the price… It’s because they’re not building in a way that makes sense for the long-term investment. Clients should want a house that's going to last 10, 20, or 30 years, and still be good quality, even if you sell it to someone else.” (12:47)
(18:12) Balance between live-in experience & quality structure.
“If I were a client, I'd have a hard time saying, "I need to spend this much of my budget on things I'm not going to see just so my house can last 30 years," when I also want to spend money on things I'm going to experience every day. I want to feel like I'm experiencing the money I've spent. You don't want to spend most of your budget on the core and shell (the bones and envelope of the building) for a resilient house, but then have so little left that you can't afford a decent-looking bathroom or kitchen. With the right architect and GC, you can find the right balance between spending money on the building elements that are necessary for the house to last and spending money on things that make you feel good about living in it.” (18:32)
“The things you see and feel are important because you want to feel like your money has gone toward something you experience every day. A house shouldn't just be a weather-resistant box. When it comes to creating the living experience, first and foremost, it's about the design and layout of the core and shell: the walls, roofs, and windows, and how they're designed and arranged. That doesn't necessarily mean spending a lot on finishes. Instead, it’s about well-proportioned spaces, good flow, appropriate natural daylight, indoor-outdoor connections, and the overall form and sculptural quality of the house. That's where you want to spend your money to get things right.” (21:24)
(30:58) Phasing project & future budgets.
(37:06) Where do clients overspend on projects?
(47:43) External factors that affect project spending.
“People have a tendency to always want bigger: a bigger house, bigger rooms, more storage, more square footage. I don't always agree with that. That's also how budgets get stretched… The more square footage you have, the more the overall cost goes up. I understand the ‘real estate investment perspective’. More square footage means more money when you sell the property. But there's something really wrong about that mindset. More square footage doesn't mean better. The quality of a property, its design, architecture, and features should really be what sways the pendulum of home value.” (48:42)
(50:22) Things clients can spend less on.
(54:57) Solution to lower the budget by 15%.
“If you look at the overall budget of building a typical house, finishes are not always the biggest chunk. The core and shell are. So I would first question the square footage you're trying to build. Can you reduce it? Do you actually need all those rooms? Do they need to be as big as you think they need to be? If you really need to cut the budget, I don't think finishes alone will get you there. Reducing the square footage is probably the easiest way to cut a substantial amount from the budget. This is where the efficiency of the floor plan comes into play. Are there dead-end hallways everywhere? If so, that extra square footage adds cost… you’re paying for foundations and everything else on wasted space.” (56:15)
