An explanation about why different building contracts can vary widely.

 

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WHAT DETERMINES THE COST FOR AN AREA?

Real estate agents, mortgage loan officers, appraisers…they all refer to the size of the home area when talking about a price for the home. The entire home market uses this square footage (or square meterage) price for establishing home values and listing prices.

  • It IS easy to calculate – simply divide the price by the square footage.
  • Easy to understand. Easy to use (as one way to compare homes).
  • And it’s easily accessible – many real estate websites publish this information.
  • Are the design, amenities and products shown in new homes within your budget?

Because there are so many variables, what is being offered in an inclusive price per square foot between different builders needs to be considered.

However, buying a home on its cost per area requires more information to determine value.

WHAT IS INCLUDED IN THE PRICE?

.One of the major factors in comparing on price per square foot is that the area of the house (square footage or square meterage) can be calculated in many different ways.

Let’s look at an example house plan:

WHAT IS INCLUDED IN THE AREA OF THE HOUSE (how many square feet?)

In this plan the area of the dormitory block is about 700 sf, and the living area is also about the same.
Total livable area appears to be 1400 square feet.

So if the price of the house is $200,000 then the price psf is $142 (200,000 divided by 1400).

If we were to add in the garage, that would be another 20×16= 320 square feet.  Add that in and the price psf is now  $116 ($200,000 divided by 1400 + 320 =1720).

Similarly if we add in the cost of the composite decking (another 600 sqf) the psf drops to $86!

Typically eaves are not included in a liveable area, but some builders will add them in to make their price per square foot look more attractive.  In this example, eaves add another 240 square feet, and the path and steps are another 160 sf. Add those in and the area for calculation increases to 2720 sf.

Including all of these areas we have a price per square foot of $73 for the same house!!!

Similarly are Basements or Attics included? What if, due to a sloping ceiling, you can only stand up in a small portion of that attic?

Any cost per square foot comparison is meaningless if the square footage of these areas is counted differently by various builders.

Check what is the square footage area that is used for calculation.

At Best Envirohomes we strive to be transparent with our pricing.

WHAT’S INCLUDED IN THE CONTRACT?

Have you thought about all the other factors involved?

Builder A includes and hardwood flooring, Builder B figures carpet. Builder C includes garden preparation and a generous landscaping allowance, Builder D’s price only includes grass seed. Was a concrete driveway included?

Such factors don’t af­fect the size of your home but will affect the building cost per square foot.

Best Envirohomes has information about what is included and what to plan for in this article.

IS LAND INCLUDED?

For a new build, generally prices per square foot are quoted for the building only, not the land.

If land is included in the price per square foot, this will affect your comparisons of PSF.

LAND & TYPE OF FOUNDATION?

In Central American countries cenotes are common, which are underground caves that hold water and can be quite huge. You do NOT want your house to collapse into a cenote.

To avoid that catastrophe you can do three things:
1 build lighter – a cement/stone structure is many times heavier than a TUFF+ building, or a wooden house.
2 build on piles which are driven into the ground till they hit solid rock or are deep enough to support the weight of the house. These piles are made from PRESTRESSED CONCRETE which have distinct benefits, especially near the sea or over salt water.

3 build using either a massive slab foundation that is high quality and very deep, or using horizontal piles made from prestressed concrete.
All three of these methods are available from Best Envirohomes builders.

These dates depend on many things, such as sourcing the furniture and amenities you want inside, but it is possible to move from purchasing land to moving in in a year ! Compare this to other builders in  Belize and you will find that this is very efficient.

IS LAND INCLUDED?

For a new build, generally prices per square foot are quoted for the building only, not the land.

If land is included in the price per square foot, this will affect your comparisons of PSF.

 

QUALITY OF THE BUILD?

What is the safety level and strength of the construction?
One way to determine this factor is to consider the Category of hurricane the building can withstand.
BEH homes are Cat 3 hurricane resistant.

How much maintenance is involved?
Do you have to repaint the exterior every few years? Will it rust?
Is there a risk of insect damage?

Is the house insulated? Does it hold the heat at the end of the day?

These factors all affect the price per square foot and should be taken into consideration.

 

TYPES OF FIT-OUT

Your price includes granite countertops! But which granite, the $40 per sq. ft. or the $100 per sq. ft granite? Are the included hardwood floors 3/4” or the cheaper 3/8” thickness? Seeing on a builder’s specifications sheet that granite countertops and hardwood floors are included is insufficient for comparing different builders’ cost per square foot prices.

The fitout also needs to be defined.

What built-ins are included? Is this just a shell?
What are the quality of the plumbing and electrical fittings? A single electrical fitting can range from $10 to thousands of dollars for a chandelier. Who is paying for this, is it included in the cost PSF?

Expensive non-standard cabinetry, countertops, faucets, tile floors, appliances and plumbing fixtures add additional costs. Your kitchen selections alone could increase your home’s overall cost by $10-20 per square foot!

For example, who is paying for the fridge and stove? Typically these are not included.

Countertop cooktop is typically included, but the price for an electrical induction cooktop which reduces your electric consumption and hence costs over time, will add an extra cost.

Also increasing cost without increasing square footage are: fireplaces, lighting, window treatments, and even paint—many builders charge $100 or more each time you change paint colors

QUALITY OF WORKMANSHIP

In order to quote a lower cost, a builder can opt to hire the low-bid carpenter, plumber or electrician to build your home. Highly skilled and caring craftsmen ensure there are no air leaks around your new windows, doors that close by themselves or poor water pressure in your master bathroom.

Cost of labor in determining the PSF of a building is significant, and it is not just the workers. You want to know that the quality assurance has been incorporated into the package, that whoever is managing the building process has the necessary experience and attention to your needs. Such people are paid well and add to the cost PSF.

COST OF UTILITIES

Plumbing

Don’t assume that facilities are standard everywhere, they are not.

You may want to use rainwater. If so you will need gutters and a cistern. Are they included? (typically not)

If you don’t have council supplied water connection, you will need a well. Who is paying for that and the submersible pump to get the water to the surface?

For example, if your building area is not connected to city/town sewerage, you will need a septic tank and soakaway.
Who will be paying for this? Is it included in the PSF?
Will you be getting piping that is PVC or UPVC which is rated for hot water, and do you understand the issues if you don’t get the better quality?

Are the plumbing fittings suitable for the climate and location? If you are on the beach, you need to consider rust prevention etc.

Who will pay for the connections to plumbing?

Do you require water filters and water softener? What is the size of the pressure tank and how effective are the pumps to ensure water pressure?

Who is paying for these items? Are they included in the cost PSF?

Electrical power supply and lighting

In Belize power is supplied by BEL. It takes time and money to get connected, especially if power is not available.

Do you want to be off the grid? SOLAR can be expensive, will this be included in the cost PSF?
What about batteries for SOLAR?

Will you be using low voltage systems for lighting that lower your running costs, and connect directly to SOLAR without an inverter?

Utilities can be a significant cost of ownership both at build time and ongoing. Price PSF needs to take these into consideration.

IS THIS A STANDARD PLAN BUILD OR BESPOKE?

 Builders who repeat build the same plan, can quote you a standard price per square foot. With fixed standards, their economies of scale typically enable them to offer the lowest cost per square foot.

When you want something that is exclusively your design, the ability to predict the cost PSF is more difficult, even with the custom builder’s best intentions.

Even if it was possible to get fairly comparable cost per square foot info from multiple builders, are you going to automatically take the lowest price? How do you suppose the builder with the lowest price per square foot was able to do it?

When it comes building or even remodeling a home, like with most of life’s major purchases, you get what you pay for. So…if you choose to, use preliminary cost per square foot numbers to help you know if you’re “in the ballpark” budget-wise, and spend the time going over the check-list of what you want vs what you can afford.

SIZE AND LAYOUT AFFECT THE PRICE PER SQUARE FOOT

Costs such as permits, government fees and utility hook-ups are constant regardless of the size of home. Smaller homes still have a kitchen sink, dishwasher, range, refrigerator, and microwave— just like larger houses. Therefore, be aware that smaller homes are generally more expensive per square foot.

The type of home you build impacts cost also. By stacking its two levels, a two-story home will have a smaller foundation and smaller roof than a one-story home of similar finished square footage. That is a lower price PSF with a higher risk in the case of a hurricane because of the height.
All the above factors affect the cost PSF.

Yes price PSF is a useful tool for comparison, but please look at the total picture before making your purchase or contract decisions.

IN SUMMARY:

A FIXED PRICE PER SQUARE FOOT OFFERS NO FLEXIBILITY AND REQUIRES CLEAR AGREEMENT ON WHAT WILL BE DELIVERED FOR THE OVERALL PROJECT COST

A CONTRACT THAT DOES NOT CLEARLY DEFINE EVERY ASPECT OF THE BUILD HOLDS POTENTIAL FOR PRICE INCREASES.

 

IN ALL CASES, TIME SPENT IN AGREEING AND DOCUMENTING SPECIFIC DELIVERABLES IS TIME WELL SPENT

PRESTRESSED CONCRETE ADVANTAGES FOR FOUNDATIONS

Advantages of Prestressed Concrete

  1. Contrary to conventional concrete elements, the entire concrete cross-section of prestressed concrete resists applied load. This is because the concrete in tension zone does not suffer cracking and hence it would take part in carrying loads.
  2. The spans of prestressed beams and girders are longer compared with that of reinforced concrete.
  3. Longer span length increases untroubled floor space and parking facilities.
  4. Longer spans results in fewer joints, as a result, less maintenance is needed.
  5. Possibility of steel corrosion and subsequent concrete deterioration is declined because concrete is crack-free.
  6. It has long-term durability.
  7. Prestressed concrete members are able to bear reversal of stresses, impact, vibration and shock due to the absence of cracks.
  8. Practically, dead loads are neutral in a prestressed concrete beam. Consequently, the dead load weight of the structure is decreased which results in reduced consumption of materials.
  9. Thinner slabs, that are important for high-rise building as with the same amount of cost, it can construct more slabs than traditional thicker slabs.
  10. The use of curved tendons and the pre-compression of concrete helps to resist shear.
  11. The quantity of required steel in prestressed concrete is 1/3 of that required for reinforced concrete, but the steel for the former should have high tensile strength.
  12. The development of prestressed concrete results in the construction of a sizable liquid-retaining structure that would not otherwise be possible.
  13. Large liquid retaining structures constructed from prestressed concrete have low cost and are preferably safe against cracking and consequent leakage.
  14. Prestressed concrete can be used with advantage in all those structures where tension develops, such as tie and suspender of a bow string girder, railway sleepers, electric poles, upstream face of gravity dam etc.
  15. Prestressed concrete beams have usually low deflection.
  16. Can be used as bridge, walkway or factory flooring

Requirements of Prestressed Concrete

Requirements of Prestressed Concrete: met by our supplier Sealand Harvesters in Belize

  1. Prestressed concrete requires high-quality dense concrete of high strength. Perfect quality concrete in production, placement and compaction is required.
  2. It requires high tensile steel, which is 2.5 to 3.5 times costlier than mild steel.
  3. Prestressing process requires complicated tensioning equipment and anchoring devices.
  4. Construction requires perfect supervision at all stages of construction.
  5. Prestressed concrete needs skilled labors.

Fig. 1: Casting piles using Prestressed Concrete

Fig. 2: Prestressed Concrete Piles from SealandPrestress

Terms commonly used for cost per area

Assignable Square Footage (ASF)
Usable square footage within a physical space (measured from finished wall to finished wall).

Gross Square Footage (GSF)
Square footage that includes all unusable space within a building, ie: corridors, custodian closets, inside walls, utility spaces, etc.

Specifications
A detailed, exact statement of particulars, especially statements prescribing materials and methods; and quality of work for a specific project.

Group I Equipment
Building Elements that are considered “part of the building”. These items are typically built into the structure of the building and are not movable.

Examples are wall mounted items, lighting, cabinetry, a/v equipment, etc.

Group II Furniture/Equipment
Furniture/Equipment are movable and can be relocated from one space to another with ease. ie: tables, chairs, desks, office furniture, white goods including refrigerators and washing machines, microwaves, etc. Also known as FF&E (Furniture, Fixtures and Equipment).

Serenita Village model home at Sunrise

Interior fit out to customer taste

Flat-Sloped roofing for hurricane resistance

Clean design, insulated, waterproof, insectproof

Our model home in Serenita Village

Ready to build with love?