In this episode, Rick Bell breaks down the process of creating, reviewing, and managing a construction budget for a custom home. Learn how to build a realistic budget from preliminary allowances to finalized trade bids, and how to maintain control throughout the construction process. Rick shares how transparency, good communication, and proactive planning can make the difference between a dream home and a budget nightmare.What You’ll LearnHow to create a preliminary budget for a custom homeWhat allowances are and why realistic numbers matterThe role of construction documents (CDs) in accurate biddingHow to identify and avoid scope gaps in trade proposalsThe importance of builder oversight in reviewing bidsHow to track changes with allowance adjustments and change ordersWhy monthly draw meetings keep budgets on trackThe value of transparency in financial communicationGlossary of TermsPreliminary Budget: An early estimate of costs based on the homeowner’s vision, square footage, lot conditions, and quality expectations.Allowance: An estimated budget placeholder for selections not yet made, such as appliances, flooring, and lighting.Trade Partner: A subcontractor who performs a specific scope of work, such as plumbing, electrical, or masonry.Construction Documents (CDs): Detailed drawings and specifications that define the scope of the home for bidding and permitting.Scope Gap: A missing or unclear portion of work in a bid that can lead to unexpected costs or delays.Construction Contract Budget: The finalized summary of costs that forms the basis of the contract between the builder and the homeowner.Draw Meeting: A periodic meeting during construction to review completed work, approve invoices, and track costs against the budget.Change Order: A written agreement that modifies the scope, cost, or timeline of the construction project after the contract is signed. Listen & Subscribe 🎧 Spotify: https://open.spotify.com/show/4LzDQNSaAk15tm1rM8J6eo 🍎 Apple Podcasts: https://podcasts.apple.com/us/podcast/the-insiders-guide-to-custom-homes/id1815798115 ▶️ YouTube: https://www.youtube.com/@TIGTCH 🌐 Website: https://tigtch.com Connect with Us Instagram: https://www.instagram.com/tigtchpodcast Facebook: https://www.facebook.com/TIGTCHPODCAST LinkedIn: https://www.linkedin.com/company/the-insiders-guide-to-custom-homes Resources & Links Landmark Custom Homes: https://www.landmarkcustomhomes.com Instagram: https://www.instagram.com/homesbylandmark LinkedIn: https://www.linkedin.com/in/rick-bell-lch Email Rick: [email protected]...

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