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You can have the house of your dreams and live the life you have always wanted by investing in a new home construction.
Also called custom homes, they are generally more expensive than standard production houses but they are built to your specifications.
If you want to build a house on your land, you will need a general contractor to oversee the construction from the planning stages to its completion.
This is a huge investment, with your property being the most important asset you will probably own.
For this reason, it is critical to find a reputable and experienced contractor to build your dream home and provide the best value for your money.
Of course, this kind of project is not easy and will present many difficult challenges. But with a reliable contractor by your side, you can plan and achieve a successful new home construction within your budget.
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According to the Canadian Home Builders Association, around 25% of homes each year are newly-built while 75% are resale of already existing homes.
Several differences can be found between new homes and existing homes. Whether it is for a first home or a retirement home, new home construction offers many advantages that cannot be found in an existing home.
1. You can choose your builder.
If you buy a brand-new house, you can choose the builder after considering their track record, experience, and reputation. You have a better chance of achieving total satisfaction with the results.
2. You get a design tailored to your needs and taste.
New homeowners are more demanding than those one or two decades ago. Today’s standards demand energy efficiency, safety, and high performance. From the materials used for construction to all systems including electrical and HVAC systems, new homes are built to for long-term value and satisfaction.
3. Customization of your home.
From the design, features, finishes, and dimensions of each room, a new home will be tailored to your choices. Unlike the resale market, the new home you build will be 100% based on your personal wants. This makes your home truly yours and adapted to your lifestyle and taste.
4. Peace of mind from new home warranties.
Reputable builders proudly stand behind their work and offer a warranty for your new home. With a reliable after-sales service program, you have peace of mind that your home is built with high-quality workmanship for durability.
Fortunately, it won’t be too difficult to plan a new home construction because our network consists of licensed, insured, and experienced general contractors and renovators.
For more details on planning your project, speak to our partners by requesting FREE and NO OBLIGATION quotes!
What do general contractors do?
General contractors manage and supervise the entire construction project after the designs and plans are finalized or agreed upon.
Their tasks include:
· Devising and implementing a timeline and schedule
· Hire and manage all workers, sub-trades, or sub-contractors
· Purchase and arrange the delivery of all materials
· Obtain appropriate building permits and approvals
· Pay compensation of workers and sub-contractors
· Manage all issues and troubleshoot on-site
· Ensure that all aspects of the work comply with the building codes
General contractors work on different projects aside from new home construction. These projects include:
· Building home additions
· Complex HVAC system installations
· Commercial building construction
· Structural and foundation repairs
· Plumbing and electrical renovations
· Patio, deck, kitchen, bathroom, basement, and other home renovations
You will need a reliable and experienced general contractor for your new home construction. There are distinct advantages to hiring a GC and choosing one with the right experience and track record will ensure success for your project.
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The cost for a new custom home depends on 5 important factors. Your contractor must provide a detailed breakdown of the costs for you.
The work that goes into preparing the site before construction starts will have an impact on your budget.
For instance, rocky land will require more work compared to land that is covered with fine soil. This is because more hours and equipment are required to prepare rocky land. However, the charges for this type of service is generally reasonable.
Size of the house
It should not be a surprise that the size of your home will have a big effect on your total cost. A spacious home with luxurious features will really need a lot of money. If you are on a tight budget, it is best to consider a smaller home.
Houses of the same size can vary in price because of the design. A simple layout costs less whereas complex designs will use more materials and labor and cost more.
For instance, higher ceilings are expensive. With a custom home, your choice matters. The floor plan, layout, finishing materials, and even cabinets and countertops will make a big difference.
Materials – Type and Quality
Your surfaces will use finishes and the type and quality will also affect your total cost. Flooring materials can be pricey if you choose natural wood or stone compared to cheaper alternatives like vinyl or ceramic tiles.
This holds true for every material you choose, from the toilet fixtures, kitchen cabinets, wall coverings, siding, roofing, etc.
Of course, it is worth considering buying high quality materials as they can last longer. You can find many good quality materials to suit your budget. Your contractor is the best professional to guide you in your selections.
Labor for building your new home will also cost a lot of money. Masons, carpenters, painters, electricians, and many other skilled trades will be needed to complete the construction of your home.
On top of this, you will also pay your general contractor who shall supervise and monitor the project from start to finish.
It is very exciting to build a home from scratch but this can feel overwhelming. But despite the challenges, building a new home is truly worth the investment as you can get all the features you want.
There are many aspects to the entire process and each one costs money. Thus, it is necessary to stay on top of things and stick to your budget.
In Canada, the average cost to build a 2,000 square-foot house will cost from $700,000 to $850,000. The cost varies based on the location of the home, too. If you choose luxury features, the price will be higher.
In the Greater Toronto Area and Ottawa, the average price per square foot is between $250 and $350 per square foot. It is much lower in rural areas. Again, the price varies based on the specifications of your project.
The choice you make for your general contractor will also have a big effect on the total cost of your project. Experienced and reliable contractors can save you money because they make zero mistakes and will provide expertise in every step of the process.
General contractors also have a full deck of skilled professionals you will need in your team to ensure successful home construction.
In general, contractors provide a quote for their services by putting a markup on the materials and services that will be used for the project. These take into account the following:
· Compensation of workers
· Liability and insurance
· Overhead costs for operations
Most general contractors charge 10% to 20% of the total project’s cost, also known as the cost-plus method. For big projects, contractors can charge as much as 25% for their services.
The fees are estimated from subcontractor labor, materials, and the total cost. Their fees are inclusive of all services and they will pay all services and materials on your behalf.
How to pay a general contractor
General contractors accept different modes of payment and the schedule will also be stated in the contract.
Most contractors will ask for an upfront payment before the work commences. It is also common for contractors to ask for succeeding payments for every phase of the project until the construction is completed.
If you are looking for a general contractor for your new home construction, we are sure that you have some basic questions in your mind.
We have gathered some relevant FAQS to help you understand more about what general contractors do and how important they are to your project.
What is the hourly rate of general contractors?
General contractors don’t usually charge hourly rates. Rather, they go by a percentage of the project’s cost. Some contractors may agree to provide a consultation with an hourly rate which could be from $60 to $150 per hour for a minimum number of hours.
How much will I pay a general contractor?
Prepare a budget of 20% to 25% of your total project’s estimated cost (labor and materials).
What is the difference between a General Contractor and a Construction Manager?
Both a construction manager and a general contractor play a vital role in construction projects. Generally, a construction manager is hired by a property owner in the pre-construction stage. On the other hand, a general contractor bids for the project and manages the entire construction from start to finish.
Construction managers oversee the project, including the budget, labor, and sub-contractors. He also collaborates with architects and engineers and ensures that work is completed on time.
General contractors manage the daily operations in the construction site and collaborate with the construction manager, architects, engineers, and all construction personnel.
For a new home construction, it is possible to have only a general contractor.
What is the cost of a project estimate from a contractor?
Contractors may charge a fee of $1,000 or less, depending on the size of a project, to provide a project estimate. In many cases, the initial consultation fee can be applied to the contractor’s fee when you hire him for the job.
How do I look for a good general contractor?
It is important to seek at least 3 offers from reputable contractors in your area for the same scope of work, materials, and quality. You can get started by getting free and no-obligation quotes using our short online form.
We recommend that you study each bid carefully and determine your comfort level through interviews with each potential candidate. Always ask questions regarding the bids you receive and look for quality rather than the lowest price.
What is the warranty offered by general contractors?
Most contractors offer a warranty for materials and workmanship for a period of at least one year. Of course, this can vary depending on the type of project and the quality of the contractor. Essentially, reputable contractors take pride in their workmanship and reputation and will stand by the quality of their work.
What are some important questions to ask a potential general contractor?
You must ask questions during the interview, including:
· How long have you been working as a general contractor in my area?
· Who are the suppliers you work with?
· Can I have the details of your license and insurance?
· How many projects do you currently have?
· Can I meet your foreman or see the project he is running now?
What should be avoided when hiring a general contractor for home construction?
Always compare multiple offers and don’t be pressured into making a decision. Avoid relying on the due diligence of someone else; do your own research by checking with the BBB, the local trade organizations, or the Canadian Home Builders Association.
Avoid any contractor offering a cash deal or a no-contract project in exchange for a very low price. Most importantly, avoid hiring a contractor without a license or insurance.
How much can a contractor ask upfront?
It is best to pay no more than 15% of the total cost of the project upfront. Succeeding payments should be made based on the stage of completion of the project or when set milestones are accomplished.
Can a homeowner do some of the work to reduce costs?
The purpose of hiring a general contractor is to have someone experienced and capable to manage the project completely. He will be liable for the quality, timeliness, and cost-efficiency of the project. Thus, it is best to leave the work in his capable hands. Hiring a general contractor has many benefits including contractor discounts for materials and supplies, workmanship, warranties, and peace of mind.
As mentioned earlier, the most important step to take when planning the construction of a new home is to find a reputable contractor.
Your choice of contractor will have a huge impact on the overall cost, efficiency, cost-effectiveness, and quality of your project.
Our network consists of hundreds of qualified, licensed, and insured general contractors who can offer competitive bids for your project.
We have carefully screened and verified their credentials, experience, and track record to ensure your satisfaction and peace of mind.
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