A reality checklist helps you to project the true costs of a new home or remodel before it gets to the drawing board

By John McLean, Architect

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How much do you think it will cost? The question is entirely reasonable, and it comes at the end of just about every preliminary discussion I have with a client about a new house or a remodeling project. The answer is key to assessing a project’s feasibility, and my answer is always delivered with equal parts caution and trepidation. At this stage, before any of the plans have been drawn, my clients still want a realistic ballpark number to contemplate. I want to emphasize the word realistic.

A frequent complaint I hear from good contractors is that clients have been given unrealistic ideas about the cost of residential construction. The information may have come from newspaper and magazine articles about projects in other parts of the country, or from friends sharing cost data about past projects that may not be comparable.

Experienced architects and contractors know that comparing projects can be dangerous. Projects that appear similar at first often prove to be quite different due to unique site conditions, special design requirements, and owner preferences.

To help get an early budget picture, I’ve developed a checklist that includes 27 cost-impacting items. Filling out the checklist gives my clients a ballpark square-footage price for their project.

Calculate the size of the project

Once you’ve arrived at a projected price per square foot, you need to multiply it by the total floor area of each space included in the work. In the case of remodels, it is important to include the areas of adjacent rooms and secondary spaces, such as hallways, stairways, utility rooms, and closets, that may need to be modified along with the main spaces. If there are exterior stairways, decks, or garages, include only half of their total area in the project size (they will cost less to build). For initial cost projections such as these, the costs of building new space and renovating existing space are assumed to be the same.

These figures are based on my own experiences with reputable, good-quality builders, and on information I have received from other established architects and contractors here in the San Francisco Bay Area. I prefer to err on the conservative side, but not by a large amount.

By the way, the San Francisco Bay Area is among the most expensive places in the country for residential construction. To learn how to adjust the numbers to reflect costs in other regions better, please refer to the sidebar on p. 93.

This early budget review serves its purpose for most of my clients. Because the checklist is geared to West Coast climate and construction methods, I encourage people in other parts of the country to customize it to suit their situations.

The Checklist: How to Use It

The checklist consists of three charts (see below). Each focuses on a major chapter in a construction project, from site work to interior finishes. Each chart includes a list of items that will impact the cost of a project. For each item in the left-hand column, five project levels are listed in the adjacent columns. They progress from the simplest construction and lowest-quality materials to the most complex construction and highest quality materials. Highlight the choice that most closely matches your site conditions and design preferences.

Total the number of choices in each column, and move on to the next chart. If a construction term is unfamiliar, skip it until you can get an explanation of the options. Your selections likely will be in several columns. If an item doesn’t apply, such as earthquake resistance, don’t highlight it.

To illustrate the checklist in action, I’ve highlighted items for a typical project here in San Francisco: a 1200-sq.-ft. remodel that includes a second-story addition, two bedrooms, a study, two bathrooms, and a remodeled kitchen.

Site Work & Foundation Cost Checklist Download (PDF)	Building Shell & Exterior Finishes Cost Checklist Download (PDF)	Interior Finishes and Fixtures Cost Checklist Download (PDF)