Come snow or shine here in the Northern Rockies, we continue to make progress on our homes. We are about to start the finish phase on this Yellowstone Club project. Pictured is the tower element on this home. It will have 360 degree views including Lone Peak, Cedar, Spinx, and Pioneer mountains. Our clients expect to use this as a great private nook in the home.
Swinging Trusses on The New Wort Plaza
Teton Heritage Builders has started a remodel project in Downtown Jackson across from The Wort Hotel. The old Roundup is getting an extensive remodel, with 5 spaces being developed inside and a new face lift. THB recently demolished the roof and swung new trusses over 1/2 of the spaces. Rough in of mechanical systems then a concrete floor and interior walls are the next phases of the remodel. Check back in to see more of the project.
THB Montana Office Moves from Rustic Log Home Construction to Western Contemporary
The Teton Heritage Builders Montana team is very excited to move into a new office. Due to the depressed real estate market, we have recently purchased a small office building.
The team got together and decided to build it out in a Western Contemporary style versus the log construction style that we have done for many years. With that idea in mind, we brought in Centre Sky Architecture to help us with some façade concepts. After many exciting conversations we focused in on new façade reminiscent of the Old West with a contemporary flair. We will put a false front on the building that incorporates patinaed steel, farmer’s stone, timber and stained cedar. Check out our working sketch.
Q & A With Potential Custom Log Home Client in Jackson Hole. Part 1
We are developing a rough budget for our new log home. If we purchase the log package for $250,000 and that includes the log walls, stairs, roof structure, and the labor to erect it on site. What is the approximate cost to finish the home? We would recommend having a budget allowance of $950k and that would cover a medium level of finish throughout the home. This is based on an average of $300 per square foot on a 4000 SF home and in this case minus the log package.
What would be a rough cost per square foot for home construction? We typically tell clients $250-$400 per square foot for a rough budget when they consider building in areas like Jackson Hole, Wyoming and Big Sky, Montana. A per square foot number is dependent on a number factors and one of them is a clients desired level of finish. The level of finish refers to the material choices found throughout the home(i.e. floors, countertops, trim, plumbing and electrical fixtures, exterior veneers and sidings.) The complexity of a homes design and structure as well as the specified Mechanical Electrical and Plumbing Systems (MEP) play important roles in defining a rough cost per square foot budget.
If Brand X does not supply the log shell, can your company obtain the log package and build the shell? Yes. With a set of plans or ideally structurally stamped shop drawings we could accurately bid the log package out, and we always suggest bidding out work to a minimum of three qualified sub contractors in addition to our in-house crews. This process works well in these economic times and provides you the best value for each scope of work.
How is the cost for the project set? We will develop a cost estimate based on the construction documents. There are the questions of interior finishes, heating and cooling system spec.’s, window style, and all the additional material selections that we need to be understood for to us to develop a price or allowance. Once we have determined all the essential elements we like to negotiate a budget, tailored to your design intent.
Fixed project price? Time and materials? Typically we use a contract with a Guaranteed Maximum Price, however we are open to the discussion. We use AIA contracts that can be tailored to the clients desires and situation.
How do you track costs? We use the industry norm Construction Standard (CSI) codes and divisions. We break the project down by division, and track costs, established budgets, and bill on a monthly basis.
What progress reports do you provide? Each month your bill comes with a continuation sheet broken down by cost code and division. We have many methods to track a project and provide updates tailored our clients’ needs and expressed levels of detail and involvement.
What items increase the cost of the project? Usually it is changes to the scope of work during the project or the material specifications or client selections. We can provide a value engineering analysis of your project that can create a baseline budget and then develop cost options for the client to consider.
Check back in to read Part 2 of our Q & A with our Potential Custom Log Home Client
Five Questions to Ask to Ensure Your Big Sky Builder is Financially Stable
By Pete Lee, Co-Founder, President & CEO
The home building industry has gone through tremendous turmoil over the last three years, and many builders have suffered tremendously because of it. (The industry was off 80%, high to low, in the last four years and is still off 74%). Big Sky, Montana was no exception to this phenomenon. If you’re about to build your dream home, make sure you don’t become collateral damage!
The root cause of the industry’s problem is debt and financial stability. Too many builders got caught up in the “irrational exuberance” of the housing bubble and speculated in the market. The dance was great while it lasted, but when the music stopped, many builders did not have the financial capacity to carry the debt. Hence this fact should drive your line of questioning in picking your builder today:
1. How many spec homes are you or your company involved in currently? Do you own a lot of land?
Spec home and land “carry” are the biggest killers of residential builders. Many builders served their client’s well, but they took on too much debt speculating and they get eaten alive by the carrying costs. If builders have inventory, confirm that they can carry the burden.
2. “May I have a copy of your balance sheet?”
The builder’s balance sheet lets you confirm whether he has debt, and if he does, how much cash they have on hand to service it. If he has a lot of debt (both on balance sheet, off balance sheet (i.e. in LLC’s) or personally), than the odds are that he will be aggressive about retainers, large billings, and aggressive change orders. Such a builder needs to feed the beast (debt) and you could be his meal ticket. A healthy balance sheet should be an indication of a fair-minded builder.
3. “How much debt does your company have? How much do the key employees have?”
The company may have kept clear of debt, but perhaps the founders have taken on a lot of debt themselves (big houses, big cars, boats, personal real estate projects). If the head of the company has a lot of debt, the odds are high that you’ll run into similar behavior to above.
4. “What are your processes for ensuring the vendors get paid on the job?”
Another surprise for builders (and their clients) is contingent liabilities. And a big one is in paying off subcontractors and vendors that perform work on past projects. The law is such that the land owner (read client) is ultimately responsible for any properly filed liens on a project. Therefore, your may pay your builder, he may pay his subcontractor, but a vendor down the line could file a lien on your property because of your builder’s previous failure to pay on some other project. Ask you builder how he ensures against this problem. There are developed procedures that avoid these headaches (call me any time to discuss).
5. “Will you guarantee your price?”
Finally, don’t get sucked into a great sales pitch only to find that the builder can’t or won’t deliver on his promise. Asking a builder to guarantee a price is a way to flesh out competent and honest builders from the disorganized and shady. Competent builders know what things cost, how to control those costs, and should be willing to guarantee some price. If they will not, why not? You have a right to a straight answer. You want to ensure that your prospective builder has no other costs he want to push into your project. Does he have adequate control systems in place? Has he given you a realistic upfront price?
Bottom line: Don’t be a victim of the home building industry depression. With a little bit of informed spade work upfront, you will be an informed consumer and ensure that you’ll get an attentive builder who will service you fairly during the process and after you move in.
Because his cards will always be on the table, face up.