How our costs work:

We lock in the Price

This is extremely rare in construction. Most builders combine an “estimate” and some degree of “time and materials” to quote jobs. This is a leading factor in why construction projects go over budget.

What does this mean?

  • We do a detailed analysis of the project up front

  • We (Backyard ADUs) is contractually bound to delivering a project at a predetermined price

  • We (Backyard ADUs) eats overages…

Price estimates are listed

See price estimates for our predesigned homes here.

These estimated prices include EVERYTHING needed to build your new home and are pretty accurate for average lots. Common factors that add to these estimated prices are septic system expansion, building downhill from a septic, well upgrades and heavy tree clearing. Before we ask for any money an advisor will review your property and provide an educated guess whether any feature of your property will change our standard pricing by more than 5% (up or down).

Our “mark up” is fixed

Unlike virtually all builders, our “markup” for overhead and profit is fixed.

What does this mean?

  • We don’t make more money if you buy more.

  • We don’t make more money if site work costs more.

  • We have incentives to negotiate down prices to make you happier.

  • This maximizes price transparency.

And most importantly is means we can be your unbiased advisor. The only bias that we have is that we want you to the build the house, and ideally with us.

What Drives the Cost of Small Homes:

For small homes the “site work” makes up a much larger percentage of the overall cost of construction, which in turn, drives up the average cost per square foot over averages you can find on Google.

Cost of the home

Portion of cost: 40%

The cost of the home itself includes everything above the foundation. This includes the walls, insulation, flooring, siding, roof, cabinets, bathrooms, etc.

Foundation & utility connections

Portion of cost: 30%

The cost of the foundation and installing utilities generally includes excavation, a foundation wall and “stubbing” electric, sewer, water and communications services near the house.

Site prep & landscaping

Portion of cost:15%

Site improvements include the driveway, walkways, grading, replanting grass, patios, brush removal, tree work, and other things to prepare a site for construction.

Planning, design, and permitting

Portion of cost:15%

Planning, design and permitting includes all of the work that happens before a construction contract is drawn up and a fixed price is set. This work ensure there are no overages during construction and the project finishes on time.