There are so many reasons to build your custom home. But if you haven’t done it before (and maybe even if you have) there are many unknowns.
Turning your dream into reality is complex and can feel overwhelming. It will be worth it when you move in, and get to enjoy the house you’ve helped create, with every detail and space set up to match your vision and your lifestyle.
From initial planning and budgeting to design and construction, each step requires careful consideration, thought and planning, while always checking in with your original goals to keep the project on track.
To help you get started, here is a list that outlines ten steps you’ll be going through as your project evolves. This should help you understand the process, and how your residential architect, your builder/contractor, and the rest of your team of designers and consultants, will be working alongside you through each phase of the journey.
Step 1: Financing & Budgeting
Building your custom home is a significant investment. Before you get going with any design, you want to make sure you have your financing lined up and that you understand your budget. Knowing what you can and can’t do, from a budget standpoint, lays the foundation for every decision you’ll have to make, influencing the design, materials, and overall scope of the project. Without a well-defined budget, it is challenging to make informed choices that align with financial constraints.
There is a wide range of possibilities when it comes to construction costs, dictated by quality, style of design, and level of construction and finish. Your banker and financial advisor can help you come up with the dollar figure that fits within your overall financial plan. Your architect can help you understand and decide upfront what the scope of your project can be. This can be done as part of your pre-design process, that can include a feasibility study and a concept design exercise.
We compiled a list of tips for having a custom home built, which we highly recommend to check out before you get started on your custom home build project.
Step 2: Choose and Purchase a Lot or Property
Finding the right lot, land, or property can and should be an enjoyable part of your project. Maybe you found your dream piece of land, and that has inspired you to build. If so, you’re already past this step. If not likely you have a vision of what you want to build, and need to find the right land to build it on.
If you are out there searching for land, start with a list:
What do you care most about? Nature, views, the ability to walk to work or to the store? Community, schools, privacy, peace and quiet, vibrant street life, safety?
From a wellness standpoint, there are considerations to prioritize as well. Is there access to clean air and clean water? Is there anything noxious nearby? There is some common sense here, but if you do have questions, ask your architect. They should know how to help you find the information you need, or can connect you with a consultant that can take measurements and tests of conditions on a property you like.
Also, if you are concerned with how future development will affect how you enjoy your site, your architect can help you make sense of the area development strategy set out by your county or municipality.
A good real estate agent can be a useful resource for you as well. They know the area and are plugged into all kinds of forecasting information.
A version of a feasibility study might be something you want to consider as part of your due diligence period. Ask your architect it you have any questions about how a property aligns with your design goals and your budget. They can look at things like sun angles, local conditions and how slopes and soil conditions might affect your project.
When you find a lot you love, and that checks out with your design goals, go for it! In high-demand areas, you don’t want to miss out. Once you have found your site, you can move on to designing your home.
Step 3: Selecting Builder & Architect
Choosing the right builder/contractor and architect is critical to the success of a custom home project.
These two people/companies are the main pillars of your team, and are largely in charge of coordinating everyone else that takes part in the project. You want to find people you enjoy working with, that you trust and that have the skills and talent to make your project happen.
Any referrals and recommendations are valuable to your decision process.
When selecting an architect, it’s important to find someone who understands your style and that you think can translate your ideas into a great design. This relationship is collaborative. Your architect guides you through the design process, from initial sketches to detailed plans to construction. It’s possible that you find an architect that isn’t based in the area you are building. This is fine, and not uncommon—we work as the design architect on projects all over North America—but you’ll also want to find a local architect to be your ‘architect of record.’ They will be in charge of coordinating all the local elements of the design, will understand the ins and outs of the local jurisdictions and regulations, and, in most cases, will handle the construction administration phase of the build.
Finding the right builder is also important. Your architect can advise you here. A local architect will have had experience working with many contractors in the area, and can help match you with a few to interview that they think fit your project goals.
Bringing your contractor on board early in the process is a strategy we encourage, and is becoming a more standard practice in the industry, whereas traditionally the contractor wasn’t hired until after the design was complete, through a competitive bidding process. This way they can advise you throughout the design process, giving feedback and ideas that will help the project stay on budget.
This touches on a few of the reasons to hire an architect for your custom home construction project.
Step 4: Design and Specifications
We’ve written in detail about the steps of the design process, which we’d recommend reading through for more thorough descriptions of each phase.
In brief, the tried and true architectural design process takes you through a series of design ‘phases’ with specific goals and expectations. Each phase adds a layer of development and detail to the design. It starts with sketches and ends up with a large package of documents that your contractor will use as the instructions to build the building.
The important thing for you to understand, and part of the beauty of the process, is that it is based on your architect preparing drawings, documents and models at each step that get you into the design, so that you can comment and approve of what they have done. Without your approval, the design doesn’t move forward, so the project can never run away from you without your input. If you have questions, ask them. If you have feedback, give it. And of course, when you love it, give your architect the clear direction that they can move on to the next step.
An under-appreciated part of your architects scope of work is the specifications package.
In addition to the ‘blueprints’ a big part of communicating the design to the contractor is to go through everything the building is build from, and put it together in a document that the contractor can use for pricing and planning. This includes all the finishes: the paints, tiles, wood flooring, countertops, etc. And all of the fixtures: every light fixture, sink, faucet, appliance, and so on.
From here, your contractor can effectively price out the entire building, and be able to agree on a budget before getting started. Everything can be organized and ordered ahead of time, helping avoid lead time issues and keep the project running smoothly.
Step 5: Pricing
We just discussed the final pricing exercise, where the contractor takes all of the construction documents and goes to every supplier and sub-contractor to organize the total overall price and schedule based on the architects design.
But pricing is something that will be assessed and updated throughout the process, starting with your original budget number from your predesign and feasibility work. You can do a pricing estimate at the end of each phase, to make sure things are in alignment with your goals.
It will start out in the early phases with an abstract number, based on the quality of construction in relation to local standards, (ie. such and such dollars per square foot), and get more refined and accurate as the project gets more detailed.
If costs become higher than expected, it might require changes, either a simplification of the design, reduction of square footage, or taking down the level of finishes. It’s always a balancing act. But it’s better to make these adjustments sooner rather than later.
Step 6: Permitting & Contracts
Dealing with bureaucracy isn’t always the most fun part of the project, but at it’s core, it’s there to protect you from people cutting corners and building buildings that aren’t safe or healthy. Depending on where you live, the permitting process can be long, arduous and expensive. But before construction can begin, you need all necessary building permits from local government agencies.
Working with an experienced architect and builder is critical during this phase, as they can navigate the permitting process efficiently and address any issues that arise.
Step 7: Contracts
On the legal side, In addition to permitting, you’ll also need to agree on contracts with the builder and any other contractors involved in the project. The contract should be comprehensive, outlining the scope of work, project timeline, payment schedule, and any warranties or guarantees. It’s important for you to review the contract carefully, get advice from your lawyer, so that you understand all the nuances and that all terms are clearly defined and fair.
Having a well-drafted contract in place gives both you and your contractor protection, establishing clear expectations and responsibilities. This legal framework sets you up for clear communication and for any disputes to be resolved according to agreed upon terms.
Step 8: Construction
Now everything is in place. You have the permits approved and the contracts signed. Your architect has finished the design phase and you have accepted the contractor’s pricing estimate. It’s up to the contractor to take over and turn the drawings into a building.
While your architect has competed the main part of their work, they still have an important role. Effectively, they now become your agent, navigating questions and requests for information from the contractor, making site visits as outlined in your contract, and overseeing the budget and contractor invoicing to check that the work you are getting billed for has been completed properly and in accordance with the design.
The building process, even when everything goes smoothly, takes time. You should be prepared for potential challenges, such as weather delays or material shortages, which can affect the timeline. However, with a well-organized team and a solid plan, these challenges can be managed effectively.
Step 9: Closing Time
When your house is complete to the point that you can move in, it’s time for the closeout process. You, your architect and your contract need to agree that you’ve reached ‘substantial completion’. This means that everything is essentially finished, even if there are minor touch ups and things to take care of.
This step involves a thorough inspection of the property, often referred to as a “walk-through,” where you and your builder review every aspect of the home to ensure that it meets all specifications and quality standards. Any issues or discrepancies identified during the walk-through are noted and addressed before finalizing the project. During this walkthrough, your contractor will create a ‘punch list’ of all the items that need to be taken care of.
During this phase, the builder provides the homeowner with important documentation, including warranties, operation manuals for appliances and systems, and a list of recommended maintenance tasks.
The contract you have signed with your builder will determine how this process gets completed. Commonly, a certain percentage of each payment you’ve made gets withheld until the project is finished, giving the contractor incentive to stay on the project until everything is complete to your satisfaction. The specifics of this can vary, and it’s an important item to consider as you are negotiating your contracts.
Step 10: Warranty and Beyond
Different jurisdictions require a warranty from your contractor/builder. Some places require builders to offer a New Home Warranty, keeping them on the hook for a certain period of time in case there are any problems with the build.
In addition to a warranty program, different states have different statutes of limitation for how long a contractor is legally responsible for defective work. Your architect is also liable for problems that come up due to errors in their design.
Any of these situations can be unpleasant. This is part of the reason there are so many checks and balances along the way.
There are also manufacturer warranties that are worth knowing. The company that made your roof shingles will give you a warranty on their product (if installed and maintained properly.) Appliances and fixtures will have their own warranty, along with your mechanical systems. Your job is to understand all of these systems and take care of them properly. Your contractor is responsible for giving you an ‘operating manual’ to help you with this. Keep records of all maintenance and repairs in case you someday need to make a claim.
