HOW TO BUDGET FOR LAND HOME PROJECT (3 FACTORS)

Project Management starts with understanding code enforcement requirements and completing the processes required to meet their guidelines.

Colorado compared to other states has some of the most stringent engineering requirements that are required for a project to be approved by the county or code enforcement. 

These are standard practices and steps that are required when submitting for excavation and build permits. These are ordered in the beginning of the project.

Due to Colorado's unique elevations and weather, different areas even within the same county can require different structural house plans engineered due to the location of the subject property.

You will need to order the Soils Tests soon as you are ready to begin the process.

It can take up to (6) weeks to receive the Soils Reports reflecting the soils tests findings for both the foundation and septic system.

The soils report is a document prepared by a Geotechnical testing company and stamped by a licensed engineer. The foundation and septic design will be created based on the information contained in the soils report.

If you don't have access to municipal water, then most likely you will need a well installed to provide water to your house. 

Be prepared that Water Taps in Colorado can range from $5k to $100k pending location for municipal water. 

If you don't have access to city sewer, you will most likely be required to have a septic installed.

Due to Soil Composition in Colorado be prepared for the requirement of the installation of an engineered septic system.

When debating how far to place your house from the road, you will need to consider the cost of where the power source to your property is located. 

The further the distance the more it costs to bring electric to your house.

When selecting your house appliances, keep in mind if you need gas appliances or just electric. 

If natural gas isn't available considering the delivery and install of a propane tank needs to be considered. 

Keep in mind the cost of connecting your utilities usually includes trenching in order to install the laterals connecting your house to the water, sewer, gas, as well as electric. 

Site preparation is a key factor to consider when selecting land especially in Colorado.

You will typically need to clear most if not all  objects that could impede the construction of your new home including required site improvements.

Also keep in mind you typically need a level spot for having a house built on.

Excavation is a major factor in site development including trenches being dug for utilities.

If possible try to complete all required dirt work in the beginning to save money and time versus excavating happening multiple times.

When selecting the driveway you prefer it can range between road base, gravel, asphalt, to concrete. 

If you are financing a construction drive access is acceptable to save money.

Almost all foundation types have to be approved by a structural engineer for code enforcement. This allows you to choose between, piers, block, tie down system, slab, open pit set, concrete runners, crawlspace, to a basement.  

Code enforcement departments may require a grade certificate. 

Rough = Creating specific slope to set a solid foundation for a construction project.

Final = Prepare ground to bring surface to elevation tolerance required construction project.

Colorado and their counties have expanded their Radon Mitigation requirements recently. 

Loan programs such as VA might also require Radon Mitigation per location of project.  

Termite Treatment is not as commonly used in Colorado as other states especially in higher elevation regions, however they can be required if you are financing your construction project per loan programs including USDA & FHA.

Engineered Foundation Plans are provided by the structural engineer based on both the foundation type requested and after reviewing the soils report analysis.

The structural engineer will also probably require a site plan reflecting elevation change from one side of the house to the other. 

The issued soils report will come with an engineered septic design (for an additional cost) that will instruct the contractor or septic company on what type of septic system needs to be built due to the soil composition Found during the soils tests.

This percolation test is also known as a Profile Hole Test in Colorado. 

The manufacturer will provide stamped approved housing plans including elevations, floorpans, foundation plan with required structural loads. 

If financing your lender will need these documents to submit to the appraiser for your construction loan. 

Gutters and downspouts are not typically included in the house price because they are not shipped with the house. 

When budgeting your total project make sure to include the cost of gutters and their installation. 

Solar Power and Cistern Systems can be included projects especially if the location of the project is located in a rural area that does not have local power source or access to water including well capabilities. 

If financing these systems have to be considered common to the area to be included. Typically lenders will not allow the house to only have solar unless there is no power infrastructure.

AC Units are not shipped with the manufactured or modular home so this like the gutters will need to be purchased and installed by a local licensed HVAC company.

All homes will come with an AC Conduit for easy connections, and HVAC system requirements.

Delivery of the house does NOT include the set and installation of the house onto the foundation.

The Set and Installation of the house is usually considered setting the house onto the foundation, completing the exterior finish of the house as well as the interior finish including drywall, flooring, trim, and any final cosmetic touches. 

*Colorado requires manufactured and modular home installers to be licensed. 

After your house is delivered onto your property you need to ensure that you have insurance coverage protecting your investment until your house has obtained a Certificate of Occupancy (CO) and is Move-In-Ready where your homeowners insurance company can start the coverage of your policy. 

This insurance is considered Builders Risk, and can usually be provided by your homeowner's insurance company. 

Due to the importance of your foundation being professionally installed by a licensed contractor that followed the instructions of both the Soils Reports and Engineered Foundation Plan there are structural warranty policies that can insure your home for up to (10) ten years. 

This can sometimes be required by the lender if there is not code enforcement where you built your home to protect both you and them.