Financial Considerations
A Pragmatic Approach
This section clarifies items potentially excluded from your construction contract along with other important financial planning considerations for your new home project.
- Bank financing
- Municipal and provincial fees payable by the home owner
- Course of construction insurance
- Finishing costs excluded from the construction contract
- Disbursements required prior to project start
- Disbursement schedule during construction
- Acquisition of construction materials and labour
- Potential changes during construction
- Land cost (plus transfer tax)
- Blueprint design
- Building & other permits
- Engineering fees
- Bank fees & interest
- Insurance
- Building site preparation
- Materials
- Labour
- Appliances
- Finishing
- Home warranty
- Changes requested during construction
While the following are typically excluded from base construction costs, we will help with estimations in the overall budget. Straight Up can provide some of these items* as tertiary services or provide recommendations for local suppliers.
- Drafting, designer & architect fees
- Driveway concrete* or paving
- Development fees
- Taxes
- Unforeseen lot clearing complications
- Water & sewer hook-up/upgrades (client pays City direct)
- Electrical/gas/propane meters/hookup
- Internet/cable hookup
- Window blinds & coverings
- Landscaping
- Outdoor patio concrete*
- Fences & gates*
Development Cost Charges (DCC's)
- City of Revelstoke DCC (page 9-14)
- Responsibility of home owner
- Paid to the City of Revelstoke (no financing)
- Payable upon approval of building permit stage
- Cost varies depending on location, secondary suite, sewer or septic (outlined in DCC Bylaw link above)
Course of Construction (COC) Insurance
- Homeowner responsibility
- Required prior to construction (after building permit) to avoid inflated premium charges
- Upon completion turns into the homeowner insurance policy
- Local homeowner insurance providers include Revelstoke Credit Union Insurance and HUB International Revelstoke
Bank Financing
The proper timing for bank financing to be in place is prior to the signing of construction agreement. When borrowing from the bank, it's always prudent to include a contingency buffer since going back to apply for any shortfall is a complicated, worst case scenario. The budget we help you assemble always errs on the side of caution. Our intention and objective therefore, is to always finish under on or budget.
Construction Materials & Labour
For validation of your new home warranty, Straight Up must approve and manage all trades, contractors, and procure all materials involved in the construction of your home. Service fees attached to final supplier invoices includes time dedicated to sourcing, ordering, receiving, installing, and warranty claim management of all components.
Cost Control
Changes requested during mid-construction which entail structural modifications have the greatest impact on budget. For example, changing the size, location, or configuration of a bathroom after completion of framing, rough plumbing, electrical, and HVAC will have a cascading effect on overall budget and schedule. Big changes can create bigger challenges including but not limited to subcontracting additional trades, purchasing new materials, or overtime to keep unmovable milestones in place.
This is not to say changes can't occur as they most always do (handled cost-effectively with the CoConstruct change order system). It simply emphasizes a need for as much clarity as possible in the planning stage, and the reality that all changes must find their provision in the preliminary budget rather than a mad scramble for additional financing.
Revelstoke General Contractor & Home Builder Since 2005
Call Straight Up Construction today at 250-837-1322 or use the contact form to learn more about our Revelstoke home design-build and major home renovation services.