Reconstruction/Restoration vs. New Home Construction Costs

September 23, 2016

Believe it or not, there are quite a few differences in pricing when restoring or reconstructing your home and constructing a new home. There are a few aspects that are important to note to give you a better understanding as to why restoration is more expensive than constructing a brand new home. When it comes to building a new home vs. one already built, you’re assessing two very different circumstances on your property:

Appliance Cost – When a contractor has many houses under construction at once, they purchase the material in larger quantities at a discounted price. When constructing a new home, you have a larger array of appliances to choose from. In the case of a restoration, a contractor would need to purchase the same appliance that’s been destroyed which may take longer to purchase and cost more.

Labor– Typically, when constructing a new home, because the builders may work on several houses at once, their work can be scheduled at the most efficient times for the carpenters, electricians and plumbers to all coincide. For example, when wiring isn’t ready for one house, the workers can move onto another house that is ready to have the electrical elements of their house installed. Schedules tend to be more flexible for the workers when working on multiple houses rather than in the case of restoration, which tends to work on a more case-by-case basis. When restoring or repairing a house that’s older and requires more unusual material like plaster walls, slate or tile roofs, solid doors or ironwork, a specific contractor that’s experienced in that trade needs to do the repair which tends to cost more, since not only are the materials more rare to find and duplicate, but the cost of labor also requires extra payment.

Top Down vs. Bottom Up– Restoring or repairing a house that’s already built requires extra precaution into what’s being knocked down and repaired since the contractor has to work in an already existing structure. When it comes to building a house from scratch, construction simply begins from the ground upwards.

Precarious Time Frame- When building a new home, generally there is a planned time frame that the contractors are given to get the construction done since they plan in advance. When restoring or repairing a house, it’s a lot trickier to predict an end time, for the fact that unexpected circumstances can arise to prolong the process. When restoring or reconstructing a house you need to tie in the new systems to the already existing systems, which sometimes can be trickier to handle in a timely manner because you don’t know the damage that lies behind the walls. Also, if there’s more damage to the structure than originally thought, it requires more time and money to fix what needs to be repaired. As well, it’s important to note that in the case of a natural disaster like fire, high winds and hurricanes, the costs of building materials and contractor fees rise dramatically since the contractors need to find materials on an emergency basis.

Pricing- Because restoration contractors are operate on a constant basis and need the workers to be prepared with materials on an emergency basis, their costs tend to be higher and are reflected in a higher costs to insurance companies.

It’s always important to understand the pricing factors when it comes to construction. Planning on renovating or constructing a new house? Let Bedrock take care of all your coverage needs! Contact us today!