“Luxury is in each detail.”
—Hubert de Givenchy, French aristocrat and fashion designer
While de Givenchy was likely describing fine clothing, his quote equally applies to luxury home construction. Anyone building a custom luxury home knows they will pay extra for those opulent details on top of the standard outlays needed to build the house. However, what are the unexpected or hidden costs that may emerge during the custom luxury homebuilding process? What potential hidden costs should a prospective homeowner know in advance of their general contractor breaking ground, and are there any specific to building in Naples, Florida?
With an eye for detail and a proactive effort to inform clients about all project costs, Naples, FL-based Carlson Harris General Contractors is familiar with all the unexpected expenses in high-end home construction. They help with custom home budget planning by highlighting all potential hidden costs in luxury home construction and providing tips for staying within budget without sacrificing quality. To give you a better idea of what these hidden costs in luxury home building might be—and how to avoid them—here is a brief rundown of seven common ones, some specific to Florida home construction.
1. LAND ACQUISITION AND SITE PREPARATION
Unless you conduct due diligence professional surveying and engineering work well in advance of the project’s start, unexpected land issues can require extra work. Landowners in Naples periodically start a home build only to discover that the ground is unstable or the soil is contaminated. This delays the project and requires costly remedies like extra grading or soil replacement.
Site preparation also involves utility hookups, which can prove more expensive than realized if the lot is far from existing water, sewer, gas, and electricity lines. Thus, budgeting for utility connections should start in the initial pre-construction planning stage.
2. PERMITTING AND REGULATORY REQUIREMENTS
Permitting fees are a given in new home construction, and regulatory requirements may add costs to a build. However, such fees and requirements vary depending on what entities have jurisdiction over the lot’s location. For example, homeowner associations and historic districts may have strict design guidelines and fees to cover their approval. Additionally, permitting and requirements may include inspections, and any delays or need to re-inspect can result in additional fees and costly project delays.
In Florida, waterfront or wetland-adjacent lots may be subject to environmental permitting requirements. Depending on the potential disturbance of wetlands, mangroves, or protected habitats, these requirements could include mitigation fees or constraints on construction.
To avoid or mitigate these costs, work with an experienced general contractor intimately familiar with local codes and regulatory personnel. Also, document all communication with regulators to ensure you are following permitting and regulatory requirements.
3. CUSTOM FEATURES AND HIGH-END MATERIALS
Potential hidden costs in high-end materials and custom features include shipping and special handling fees, especially for items that need to be sourced out of the country. Installing custom features and high-end materials may require specialists, while any related mid-project design changes can delay work and inflate costs.
The best means to avoid these hidden costs is to work with designers, architects, and your general contractor well before construction begins to ensure you can source the desired materials and custom features in a timely manner.
4. CONTRACTOR AND LABOR EXPENSES
Labor costs money and unexpected timing issues caused by scheduling conflicts, project missteps, design changes, tight deadlines, and other factors can lead to higher-than-expected labor costs. Specialized subcontractors like stonemasons and custom woodworkers may seek premium rates, so it’s best to lock them into the building schedule well before the project starts.
Your best option for reducing the likelihood of being hit by unexpected labor costs is to work with an experienced general contractor who offers transparent pricing, has expertise in working with subcontractors, and works with you to establish a realistic construction schedule. Carlson Harris has a six-step plan to ensure that its luxury home builds in Naples are on time and within budget.
5. HURRICANE AND WIND-RESISTANT CONSTRUCTION
Due to the annual threat of hurricanes, Florida’s building codes require new buildings to be storm proofed with reinforced roofing, impact-resistant windows, and specialized construction techniques. This can significantly increase material and labor costs, which can be a shock if you aren’t aware of them. Additionally, home insurers may require additional measures like hurricane shutters and reinforced garage doors, adding to the costs. Forewarned is forearmed, so ensure your general contractor has expertise with building codes and talk to your prospective insurer during the project’s design phase.
6. FLOOD ZONES AND COASTAL REGULATIONS
Some prime homebuilding sites throughout Florida and Naples are in coastal or low-lying inland areas that are included in FEMA-designated flood zones. New buildings in such zones may require elevated construction, which raises site preparation costs. If your building lot is near the beach, your new home build may be subject to Coastal Construction Control Line Rules. These can require additional permitting and engineering or environmental studies, which can unexpectedly raise costs and construction timelines if not initially aware of them. A competent general contractor will be aware of these issues and advise you accordingly during the project’s pre-construction phase.
7. SOIL AND GROUNDWATER CHALLENGES
Much of Florida also has a shallow water table, which can challenge foundation work, basements, and drainage systems. In some cases, special—and costly—engineering solutions may be needed to surmount the challenge. Again, an experienced general contractor should be able to warn you about this upfront, so you’re not blindsided by it once construction begins.
AVOID UNEXPECTED LUXURY HOME BUILD COSTS WITH CARLSON HARRIS
Luxury home builders in Naples should advise you upfront during the pre-construction phase of any potential hidden costs in your project. If not, you should seek out an experienced general contractor who strives to be fully transparent about costs and scheduling. With hundreds of satisfied homeowners and a stunning portfolio of our work, contact Carlson Harris General Contractors to learn about our six-step homebuilding process and how it keeps the construction quality high, and the budget and schedule in line.
