The perception of a two storey in addition is a complex and expensive project afflicted with “hidden costs”, which will break your budget. In fact, most of these costs in the normal sight are if you identify and manage them at an early stage in the planning. Others, like surprise (but necessary) repairs, financing fees and loan interest rates, higher insurance premiums and property taxes and fluctuating building materials costs, are less obvious or in advance, but your finances can affect certainly. Here is an overview of where hidden cost are lurking could.


The reconstruction contract


The first place on hidden costs eighth is transformed in your contract. Sure, contract request a fixed price that includes a detailed work, an order change policy and a fixed price which you have agreed to.


This type of contract contains no contingencies or aid for “unforeseen” expenses, such as dry rot at demolition exposed. It is up to the contractor these possibilities in the run-up to assess and account for them in the Treaty.


You don’t have a fixed price contract additional work can less than 10% Add to your final cost – money that you do not expect to pay. Also prevents a fixed price contract numbers unforeseen costs for materials, if unexpected increase prices during the construction process.
These increases can be significant. View that between 2000 and 2009, the price of building materials increased in general more than 36% and 7.2% between 2008 and 2009 alone according to the Bureau of labor statistics.


In particular recent fluctuations in the big ticket items such as structural timber (+ 63.6% in the first three months 2010, compared to its 2009 year-end price), concrete (44.8% boost of this decade) and asphalt can hinder roofing shingles (+ 24% in 2008 and 2009 18%), your efforts to a financial track remain – and are reason alone to request an agreement of fixed price, the locks, the material costs for your project.


Take care that your contract policy has a job change, the cost of any changes to the project put out, providing after signing of the contract. This protects the contractor and gives you also a clear idea of what it will cost if you change your mind about aspects of the project.


Architectural fees


The cost for an architect, a two-story addition craft, which seamlessly in your existing home integrated may be 15% of your total cost. If your budget is based solely on the cost of construction, you need to charges to be taken into account as the form.


Some construction outfits include design possibilities. This design-build firms wrinkles are the architectural fees in the construction budget with a discount because you rent for the entire process. Still you’ve got to take into account the cost of the design.


Commissions associated include engineering services, steep evaluate your local building inspection as a soils engineer with sloping yards and where the transfer or expansive soils are problematic. Specific cost vary, but $250 is running additional tests up to $3,000.


Fees and interest on loan


If you have saved a loan for all or part of your addition, you will probably face credit delivery and handling fees of approximately 1% to 2% of the total loan amount. Lenders charge for testing and inspection, which is what about $300 cost.


Also include all credit pay interest to the principal balance. As an example, we say two-story addition to finance project with a $115,000 home equity loans and $41,000 in cash $156,000. You decide to add these amounts what you already owe on your existing mortgage.


If your existing mortgage is $160,000, the result of a funding market is mortgage of $316.000. A 30-year loan with a fixed interest rate of 5.15% CA results $305,000 of interest over the term of the loan.


Higher insurance premiums


Insurance premium is their annual home owners (and should be) as a result of a important addition to above.


As a reference is a $275,000-House with an annual insurance premium $434 likely this premium 50% or more, around $650 per year, based on a $156.300 room in addition jump see. This premium is calculated with a 125% replacement value for the now$ 431.300 home, the construction work and important materials cost increases is – a calculating annual renewal should be reviewed the policy.


Higher property taxes


Higher property taxes to pay for adding Habitat at home expect. Rooms of your House rate for next year, making your annual property taxes will be added to allow generally value as on the building application for the addition.


An exact number is difficult to estimate, because other work variables in assessing the value of your House from year to year, such as fluctuations in the overall housing market. For example, a project increased rooms 2007 in addition in Boise, Idaho, the home to estimated 31% of his next year property tax by almost 43%; a room of in addition project of similar value in 2002 rose however, that homeowner property tax bill only 15% in the next year.


Landscaping repair


A two-storey in addition impact your home landscaping without a doubt. The new space itself is lawn, shrubs, flower beds and trees (and perhaps remove the cost of these features), while daily construction replace – from foot traffic, heavy machinery and materials, the production – takes its toll on what is left.


While there is no magic number for such costs can you expect to have to pay landscaping, restored, in addition to the significant space requirement of a two-storey hundreds to thousands of dollars. Limit the damage – and subsequent costs – by panels from a path to the construction site and a staging area for materials. Create your garden in the proper form to a compensation of several hundred dollars, once the work is done.


Delayed decisions


Their most important task as a client should probably informed decisions in a timely manner to help the project most run to keep. Is that some materials and products in advance must be ordered, to get to the job site in a small window of the entire schedule of the contractor. Let these deadlines pass and risk delays or rush fees to make the time.