Methods to Reduce Costs in New Home Construction

This article describes methods to reduce the overall cost of construction for a new home. The new home construction industry has been hit hard by the devaluing of real estate during the four year period of 2008 to 2012. There is no reliable source indicating any increase in real estate market value for the foreseeable future.

Allowances in New Home Construction Contracts – The Business Model

Allowances in Construction

In almost every new home construction contract that I reviewed as an accountant, I saw where the contractor would lose several thousand dollars in this area of his business.  In every case, the situation was the same, there was no mutual understanding between the home buyer and the contractor.  Invariably, the contractor paid out significantly …

Allowances in New Home Construction Contracts – The Business ModelRead More »

What is a Reasonable Profit in Construction?

For any company, profit is based on the risk reward concept.  So in construction, what should be the profit (reward) given the risk?  What is a reasonable expectation given the industry and the particular business?  There is no single correct answer.  The construction industry is divided into several significant branches.  This article is focused on …

What is a Reasonable Profit in Construction?Read More »

Methods to Reduce Costs in New Home Construction

This article describes methods to reduce the overall cost of construction for a new home.  The new home construction industry has been hit hard by the devaluing of real estate during the four year period of 2008 to 2012.  There is no reliable source indicating any increase in real estate market value for the foreseeable …

Methods to Reduce Costs in New Home ConstructionRead More »