Why is there a range in price estimates?
The range in pricing is based on a number of variables.
The variables are:
2. Site. Is the site flat or sloping?
3. Contractor. No two Contractors price the same way.
4. The quality of construction.
5. When the order for materials is placed.
6. Delivery charges and tax.
7. Foundation types.
8. Site work needed.
9. The need for utilities.
10. City requirements determined during the permit process.
11. The type of systems chosen for the project (HVAC).
12. The project being On-Grid or Off-Grid.
As you can see, there are a number of variables that we consider when showing the price estimates.
The best way to understand the total pricing is to obtain pricing in advance for each item (which The Minimal Hut provides during the onboarding process) or by purchasing the materials for the project and hiring the appropriate contractors and consultants in advance to obtain as accurate of a bid as possible.
Even then, there will be variables to consider, but you will have a good understanding if the project is within your budget. For this reason, we recommend keeping a contingency for your project or a small percentage for items that cost more or cannot fully be determined in advance. We recommend keeping a contingency of at least 10% of the construction costs.
In general, the more items you can accurately price or purchase in advance, the more accurate your bids will be and the closer you will be to understanding the total project costs.
This is a topic we will explore in future journal entries.
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