Pricing Your Project in a World Gone Mad

The world has gone mad.

With supply chain meltdowns, materials shortages, inflation, red-tape slowdowns, and the fluctuating value of, well, everything, it can be nearly impossible to know what your project will actually cost.

If you ask a contractor for an estimate, you’ll most likely get a quote that’s just plain wrong. We’re talking a +/- 30% difference (or worse).

30% too high, and you won’t get the best value for your money.

30% too low, and you may be left with a hole in the ground while you scramble for financing.

If you’re building a new home, compound, ADU, or remodel, you want to know what it will cost. And you’re 100% right to want an accurate quote.

Unfortunately, it’s impossible to give you a completely accurate quote at the start of the project. Nobody can do that.

But we can reduce that uncertainty to +/- 5%.

It’s not that we’re some kind of cost-assessing geniuses. It’s just that we work for it.

How New Avenue Reduces Surprises with Our 5-Step Collaborative Pricing Process

Our philosophy is that transparency and collaboration can reduce risks and variance. That’s why our process involves the entire team—the homeowner, the designer, and the builder—from start to finish.

We use the New Avenue Five-Step Pricing Process to stay on track:

Step 1: Comparative Project Budget — After the initial sales call, we post a comparable project budget. There’s no better place to start than real costs of a similar project. We’ve delivered quality that we are proud of and the clients are happy with, and repeating that would be a successful project. We haven’t designed anything yet, however, so this is a baseline to measure from.

Step 2: Conceptual Design Estimate — After a detailed meeting with the client, the design–build team, which includes the designer and the general contractor, presents a proposal. Because we are not far into the design process at this point, this estimate generally falls within +/-20% of the final budget.

Step 3: Preliminary Drawing Estimate — The first schematic designs are shared, and the budget is revisited based on project size and expected volumes of material. Our data science team and estimators check the volume of excavation, yards of concrete, site work, and other large material uses.

Step 4: Construction Drawing Estimate — You are almost ready to get your permit. We can now price the things that you see, feel or use. This includes “FF&E” which are fixtures in the kitchen and bathrooms, finishes you see, and equipment. The list includes windows, doors, siding, flooring, HVAC systems, landscaping, cabinets, tile/bath, etc. At this point, we expect the budget to be within +/-10% of the final costs.

Step 5: Permit Approved Fixed Price Bid — When the construction documents are done and the permit is close to being issued, we get detailed bids from subcontractors and materials vendors. We run the final numbers on details such as vanities, faucets, appliances, toilets, flooring, countertops, and specialty light fixtures. We’re now within +/-5% of the final budget.

At every step, we communicate through the New Avenue app. And we never move on to the next step without your approval.

Diligence, respectful communication, real-world data, and paid estimating make the entire process more efficient and help prevent surprises.

It's all part of our commitment to keep communication clear and keep your project on track.