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Estimating and Design Process

"Every day spent in pre construction planning can save up to a week of construction cycle time."


I.         Initial Design Estimate (IDE)

Our goal, in the Initial Design phase, is to provide you with a general idea of what your project is going to cost. We get an approximate floor plan and discuss with you the proposed finishes and building site. This IDE is based on prior projects of similar size and complexity.


II.      If you feel that Anderson Homes is the right builder for your project, we are going to ask you to sign a Pre-Construction Design Service Agreement (PCDSA)

Your home will truly be unique, and as such, there is a great deal of planning and designing to be done before we can even provide a budget, much less start the project. This will be a collaborative process between you and Anderson Homes, and we are fully committed to helping you along each step of the way. Because we will be planning for this project in our yearly workload, we will be turning away other prospective clients so we can focus our attention and energy on you. Giving substantial and personal attention to each of our clients means that we can only accept a limited number of projects each year. Accordingly, we desire a commitment on your part towards the project. We will require a fee, first to perform a preliminary estimate and again to generate the Final Plans and Specifications. However, the fees will be credited back to you at the Final Construction Draw if you proceed with Anderson Homes as your contractor.


III.     Once the PCDSA is agreed upon and signed, Anderson Homes will develop the Preliminary Estimate Package. You will also be provided with a proposed timeline so that you have a good idea about the length of time it takes to get through the design process and when your new home may start construction.

The first step in providing you with a Preliminary Estimate Package is to go through the Custom Home Design Idea Worksheet (CHDIW). The CHDIW will assist you in customizing your home. It provides many, but not all examples of custom home options. After the CHDIW is complete, we will apply any additional ideas you would like to add into your new home to the scope of work we developed for the Initial Design Estimate (IDE). This new list should include all of the ideas you have for your new home at this time so they can be incorporated into your preliminary plan.


IV.      Anderson Homes will have our plan designer draw you Preliminary Plans.

The Preliminary Plans will consist of a floor plan and front elevation only. These drawings should be accurate representations of what you envisioned your house to be like. You will have an opportunity to revise this plan one time at no additional cost.


V.        Competitive Bidding

The plans and specifications will now be sent out for competitive bids to our approved list of vendors and subcontractors to identify potential areas that may need more information in order to price your project out as accurately as possible. Any additional information from the subcontractor will be added to our scope of work to complete our list and what we will now refer to as our Preliminary Specifications.


VI.      Preliminary Allowance Schedule

Our vendors will provide preliminary allowances for your selections that are consistent with finishes that match your budget. These allowances are provided to you in your allowance schedule. These preliminary allowances are what your preliminary estimate will be based on. Once you accept the preliminary estimate, you will then go and select all of your finishes. The allowance schedule we develop now will be the guide for you when you do make your selections.


VII.   Site Evaluation Worksheet

Apart from the design of your new home or remodel project, a major consideration in finalizing the cost, is the proposed building site. Here we will evaluate the requirements from your municipality, determine utility providers, and the site specific requirements of clearing, elevation and access. Also, the location of the house on the property will also help us provide allowances for flatwork, landscaping, lawn sprinkler and fencing.


VIII. The Preliminary Estimate Package Includes:

a. Preliminary Plans
b. PreliminarySpecifications
c. Allowance Schedule
d. Site Evaluation Worksheet

We are very close to the final costs of the project at this point. This is a good time to present your Preliminary Estimate Package and PCDSA to your lender to secure financing. An appraisal can be ordered based on this package but let the lender know that the final costs will be adjusted based on feedback we get during the next design phase and your final selections.


IX.Final Plans and Specifications Package

You have accepted the Preliminary Estimate. At this time, Anderson Homes will make a second draw to use towards the next steps in this process. We will have our plan designer develop your Preliminary Plans to include any alterations to the Floor plan or Front Elevation. We will also complete our construction plans by adding Electrical, Foundation, Side and Rear Elevations. You will have an opportunity to revise the complete set of plans one time at no additional costs. Once we have an approved complete set of plans, these plans will be used for the following:

a.              Send plans to windstorm engineer

b.             Pull Permit

c.              Deposit for utilities

d.             Soil test

1. Based on results of soil test, may need a foundation engineer

e.              HOA Review

f.              U.S. Ecologic Energy Analysis

g.             Secure Builders Risk Insurance

Also, with the complete set of plans, you will receive a preferred vendor list.


X.            Selection Package

“Starting a house without selections made is inviting disaster”

You will receive a Preferred Vendor List with suppliers that we recommend you use to begin your selection making process. It is important to use our recommended vendors to have the supplier relationship for trouble shooting during construction and warranty after completion. Please see the “Anderson Homes Selection Process for the order in which to make your selections.” The recommended vendors salespeople will use the plans, specifications, and allowance schedule to steer you towards selections that fall within your allowance schedule.The proposed allowances are what we used to determine your Preliminary Estimate. You may choose selections above or below the proposed allowance. Your final estimated price will be adjusted to include your specific selections. Once we received all of the quotes, we will update your Allowance Schedule and further refine your estimate to create our Final Specifications and Final Estimate. Keep in mind that once the Construction Contract is signed, changes to the specifications or plans will require a signed Work Change Authorization (WCA) and may result in increased costs and construction delay.


XI.         Building Contract

You will now want to update your lender with the amount of the Final Estimate. Once Anderson Homes receives approval on the price to construct the home, we will prepare the Construction Contract for signing.

The Construction Contract will include a Standard Texas Association of Builder Contract that shows a down payment of the first two deposits you have made.

a.                   Final Specifications

b.                  Final Plans

c.                   Allowance Schedule

d.                  Draw Schedule w/sample draw request

e.                    Samples of a Work Change Authorization (WCA)

f.                    Photo Release Waiver

g.                   Aces Builder Warranty

In addition to the Construction Contract, we will also provide you with a Construction Calendar and a Project Cost Summary for tracking WCA’s.


Thank you for allowing Anderson Homes the opportunity to build your new custom home!