Expert: Dan Griffin - 3/19/2008

Question
QUESTION: I am interested in adding a studio, 400-500 sq ft, with pier and beam foundation and a flat poured concrete roof, with a small kitchen and bathroom, in Dallas, TX.  The main house is small, about 1400 SQ Ft, 2 bdr 1 ba, and will be connected to the new studio by a breezeway.  The architect is requesting $7000 for the design and indicates building costs will be less than $50,000.  That somehow doesn't add up for me, and I am concerned about overbuilding for the neighborhood.  What would you advise?

ANSWER: Rebecca,

Please explain what does not add up.  The most expensive rooms to remodel or create in any home are the kitchen and a bathroom.  The cheapest construction going now will be in the $75/SF range, you are at $100.  It does surprise me that you are looking at a pier and grade beam foundation, though I suspect that is the recommendation of the the architect.  Some areas of greater Dallas are subject to violent clay soils, and post tension slabs are prevalent.  The least expensive footing/foundation is a spread footing with stem walls and slab, but I assume there is some reason not to use them.  A poured concrete roof is a bit unusual also, I would guess you are matching something existing.

Only you and your real estate agent can help you decide whether you are overbuilding your area.  A family room and another bathroom sound like good values to me.  If this is your new kitchen, great; if it is a second kitchen, it may not have huge appeal.

---------- FOLLOW-UP ----------

QUESTION: Two things were concerning.  One is $7000 for the plans for 400-500 sq ft; the other is I don't see how with pier and beam and structural support for a poured concrete roof you can expect to get away with $100 per sq ft.  I would expect building costs to be much higher in Dallas, probably at least $150 per sq foot, especially since it is kitchen bath and a single living space.  The studio is actually living space for my brother, the design the"latest thing" from a local architect friend of his.

Answer
I agree that the estimated cost to complete sounds light to me.  Pier and grade beam and poured concrete roof requires a different contractor credential and mind set than the typical residential builder.

In commercial work, the architect is paid a percentage of the amount the project costs.  This fee covers plans, engineering fees, submittal and approval of permits, contractor oversight and inspection during construction, and acquisition of certificate of occupancy.  This fee is usaually 7%.  I am not familiar with the arrangement in residential work.

There are also arrangements on a fee basis, especially on "change of usage" and concept type work.  Your fella sounds high compared to his contractor estimate, but I do not know what is included in his fee.