Crunch the Numbers for a Cost Estimate
You need to create a list of all the possible material you need to contact your home. In addition, you need to find the labor or subcontractors that are required for making it all happen.
As the contractor or owner-builder, you have to work with suppliers as well as subcontractors for cost estimates. We will also go over the ways to find subcontractors and to inquire about their bids.
You also need to look for the necessary forms to deal with subcontractors and to organize all of the cost estimates.
Look Through Your Construction Schedule
The construction schedule is one where you can see a diagram of all of the sequential events in the construction process.
It will demonstrate how each event is related to each other and whether activities will overlap. For instance, it’s very likely that two or more events will go on at the same time for efficiency.
In this construction schedule, you’ll also find the duration of the schedule. Because of this, you can identify and schedule the delivery of materials and subcontractors. In this guide, we’re showing you two methods to do this: Bar Chart and the Critical Path Method. Either one will work wonders.
In case your financing hasn’t been secured yet, take your construction schedule with you. It will show your lender that you are taking this seriously and that you have a thorough understanding of all of the details laid out.
You may need third party software and forms to build out your own construction schedule.
If the financing still isn’t completed yet, you must finish it. This process isn’t an exact science. Some people can get an upfront firm commitment from their lender to pre-qualify and quickly receive their financing.
Other times, you may qualify for the financing, but wait for the budget and plans to be completed before following through with the funding. It may vary depending on the interest rates. But once you’ve found a good rate, you should commit as soon as you can.
If they are trending downwards, then you may wait until the last minute to commit.
Just make sure to speak with your lender!
You will also need to know all of the available permanent loan options and construction options. Know all of the required documents needed when applying for a loan.
Also, understand the formulas and things they are looking for when accepting people to qualify for a loan. Understand how to shop for financing so that you get the best loan option possible.
Permits and Contracts
Once you have everything, such as the financing, lot, and plans all set-up, now you’re ready to start the construction. Now all the hard work is paying off.
Firstly, you need to begin the contracts with the subcontractors that you have decided to work with and make sure you have all of the building permits necessary.
The general contractor will oversee the person to direct and conduct everything that’s going on.