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CONTRACTOR PRICING AND PROJECT COST

In the 10+ years that we have been in the home building and home construction industry, we have yet to meet a client to whom “cost” was not a significant issue.  A home is typically the largest investment that one would make, so naturally there can be much anxiety about the costs involved.  At Eagle River Construction, we work closely with owners, architects and our team of subcontractors to provide value-pricing based on your plans and specifications of your specific home contracting needs.


Let’s look at the three main areas of “Home Contractor Project Cost”

  1. Construction Contract - This is the actual cost of our Fixed Price Contract to build the house.  Your Construction Contract will include an Addendum that will define the level of certain allowances. Think of an allowance as a “gift certificate” that you can use to shop for specific items to go into your new home. Items such as flooring, cabinets, lighting and plumbing fixtures are some of the areas that are typically covered by allowances.  At the end of the job, we do a list of debits and credits against the contracted amounts of the allowances. Any allowances not fully used are deducted from the Contract Price and any overages are billed as an extra to the Contract.
  2. Site Costs - These are the costs that you will incur during the project which typically ARE NOT part of the Construction Contract for the house itself.  These costs include surveying, lot clearing, driveway and walkways, lawn and shrubs, septic field (if applicable), utility hook-ups … in other words, everything that is happening OUTSIDE of the house.  If you so desire, these items can be included in the contract on an allowance basis.
  3. Architect and Engineering Costs – These are the costs associated with the design and preconstruction phase of home building.  These costs are also not included in the Construction Contract and will be billed to you directly by the Architect or Engineer associated with your home construction.  However, Eagle River Construction can select an architect for you and manage your entire project from the designing through the home building phases. 


There are many differences between the pricing structures of custom home building companies. The variation derives from several different elements.  Just as all steaks do not cost the same in every restaurant, so too all home builders do not have the same cost and price structure to their businesses.  As you can see from Paragraph 1, the price of a new custom home also depends greatly upon the interior selections chosen by the home owner.  At Eagle River Construction we tend to build true custom homes.  Our Standard Specifications include such items as engineered floor systems for stiffer, sturdier floors and constructing all interior walls with 2x4s at 16” on center (not 2 feet).  There are many additional items such as these that define our quality home building standards.  

At Eagle River Construction, you talk and we listen. You tell us your needs, wants, financial requirements and style of home to fulfill your vision, and we will transform that information into a reality - your custom built dream home.

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Tel. 804.529.5700 | Fax. 804.529.7171
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