The Log Blog by Appalachian Log Structures

Log Home Construction Bids - How do Builders Charge?

Posted on Fri, Jan 23, 2015 @ 12:27 PM

Sorting out the differences between ‘fixed bid’ and ‘cost plus’.

log home constructionEven if you plan on doing some or all of the work on your log home yourself, you will still need specialty contractors, including plumbers, electricians and HVAC installers. This is why you need to understand how these trade professionals charge for their services.

You will be contracting with a builder or subcontractors to provide labor and materials in one of three ways.

1) Fixed bid
2) Cost plus (also known as time and materials or an hourly rate)
3) Combination of the above two

Which is better? Read on to discover what to expect when you are making that dream log home a reality. This information is provided by the Log Homes Council, an association of log home manufacturers. Their goal is to enable you to make the most informed decisions when buying and building your log home.

Fixed Bid

Builder or subcontractor furnishes you with a bid that tells you exactly how much you will pay to have a finished home by such and such date. Sounds straight forward, right? You get what you want, the contractor gets what they want and everyone goes home happy. Just like the rest of life, it’s more complicated than you might think.

Fixed Bid Advantages:

• If there’s no surprises, fixed bid can be a good option
• To keep their bid competitive, contractor will be looking for the best deal on all materials
• The contractor will try to get the job done as fast as possible, so he can move on to the next job
• Fixed bid employed by trade contractors, such as electricians, HVAC installers and plumbers
• Common contract clause is “per the plans, in place and to code”
• Once it passes inspection, the trade contractor expects to be paid
 
Fixed Bid Disadvantages:
• The contractor has to ensure he or she doesn’t lose money on a wide range of challenges that may—or may not—come up
• Example scenario: Mountainous terrain.
The builder may need to factor in the blasting of bedrock and excavation to install the basement. This can increase yours costs by thousands of dollars—and that’s all before concrete is poured for the basement.
• You may not get the most competitive price with a fixed bid, because the contractor will have to add in contingency funds for what-if situations

Cost Plus

• A contractor will base their estimate on the amount of time and labor it will take to construct your home, plus a percentage markup on all material that goes into your home
• This tactic is used on projects where costs are harder to predict
• Many log home builders use this formula, largely because there are so many unknowns in log home construction

Cost Plus Advantages:

• If you and your builder keep track of your budget and avoid change orders, this can be the most competitively priced way to get your home built

Cost Plus Disadvantages:

• No incentive to do the job as fast as possible
• No incentive to wisely purchase materials, since everything that goes into the home is marked up

Combo Deal

A combination of these two is increasingly common in log home construction. Some parts of the house are done on a fixed bid, some on an hourly rate and other parts on a time and materials basis, plus a percentage.

Combination Advantages:

• If you invest your time in choosing cabinets, why should a builder take a percentage for ordering them
• A combination bid can help make the process easier for both builder and buyer, while building trust

Combination Disadvantages:

• Not all builders will offer this
• Log home builders are specialists
• If you find a reputable one who is available, you may need to compensate them for their expertise in whatever manner they see fit 
 
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This is a re-printed article from the Log Homes Council library (http://loghomes.org).

Tags: log cabin home, log cabin kits, dream log cabin, log cabin homes, log and timber homes, log cabin, dream log cabin home, log cabins

Timelines for Your New Log Home - Step #5 in Planning for Success

Posted on Thu, May 8, 2014 @ 02:45 PM

custom log cabin homeSome folks will set a date that they want to be moved in to their new log home like Christmas, Thanksgiving or a special anniversary or birthday.  Setting goals is a great idea but they need to be matched with realistic expectations.  If you’ve never had a custom home built before, now may be the time to investigate a bit further.

There are several factors that will affect how long a log home building project will take.  Here are just a few:

  • Complexity and size of the house plan
  • Location of the building site
  • Availability of building supplies
  • Weather
  • Size/experience of construction crew

On average our homeowners have told us that from the time they started clearing their lot until the time they moved in, it took them approximately 12 months to complete.  Remember, this is an “average” so some folks building smaller, simpler designs may have spent fewer than 6 months and some with very large (7000+ sq ft) complex houses on difficult building sites may have spent 18 months or longer.

If you have a move-in date selected be sure to keep the time lines and what can effect them in mind so you know when you have to start.  To help you along, click here for a sample time line to help you along in planning.  For further assistance, use your local Log Home Consultant as a wonderful resource for insights in to the time line planning process.

Our next topic is Step #6 – Ordering Blueprints

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Tags: log home, log cabin home, log home building consultant, log cabins

Log Home Industry Recognized by U.S. Congress

Posted on Fri, Jun 22, 2012 @ 11:28 AM

Log Home Industry

On June 7th, the U.S. House of Representatives formally recognized the log home industry in the United States.

"America’s log cabin industry as a quintessential symbol of the American pioneering spirit, embodying America’s strength and ingenuity," said Congressman Reid Ribble (R-WI) in the Congressional Record.

"Log cabins, whether used for recreation or as primary residences, are economically sustainable, reducing waste and employing materials that put Mother Nature’s beauty at center stage," Ribble said. "The industry is experiencing renewed growth, exporting this American icon to nations from Germany to China."

The Log Homes Council, part of the National Association of Home Builders, was instrumental in helping Congressman Ribble bring attention to the log home industry. Council members are holding an open house this July, to help educate log home enthusiasts about the joys of log home living.

"Log cabin production directly supports thousands of jobs from builders to sales professionals, as well as the housing market, lending institutions, and many others. The people of this industry are hard-working, charitable, and deserving of recognition for their centuries of accomplishment," Ribble said.

This is not the first time that the log home industry has been honored with historic significance. In 2009, the United States Mint launched the Lincoln Log Cabin Penny at the National Park Service's Abraham Lincoln Birthplace National Historic Site, in Hodgenville, Kentucky. The day was appropriate, as it was the 200th anniversary of Abraham Lincoln's birth.

Appalachian Log Structures will be celebrating National Log Home month in July with some exciting and money saving news.  Be sure to like us on Facebook, keep an eye on our web site (www.applog.com) and keep reading our blogs to learn more about our upcoming news!

Tags: log home industry, log cabins, log home living