Why does it cost more to design and build at the same time?

Contracts are often asked, why does it cost more if I build and design as I go?

Why isn’t it the same price?

It costs more because contractors can organize themselves much more effectively, much more efficiently, if they understand ahead of time, what needs to be ordered, what trades need to be brought on site and exactly what time.

They can do deals with their subcontractors way ahead of time and say, I’ve got a $60,000 job. It’s happening in August, it’s four months out, what price can you give me on that? If I guarantee you this work?

If I call up a subcontractor four days before I need them and say, hey, I’ve got this job. It means that they have to move their schedule around perhaps after disappoint someone.
Getting materials quickly in that manner – things have to be overnighted things have to be changed out for premium pricing because it’s in stock rather than being able to go to our regular suppliers.

On top of that, it also means that we’re not necessarily being efficient with our office time.

We can’t bill you in the regular manner.

We can’t manage your project in the regular manner.

It’s harder for a contractor to understand exactly what resources they’re going to need. So a contractor will often load the price slightly, because there’s so much unknown.

Do they turn down another project because they’re doing your project and they’re not completely sure when it’s going to end?

All of these factors play into why designing and building is a much less efficient way of building your home.