Thursday, April 5, 2012

Panelized Home Package Pricing

Next to answering the question of what is a panelized or packaged home, the next most frequently asked question is 'how much does it cost?'  And how is the price generated?

Our new home in Angwin is progressing.  Our general contractor expects us to move in late June or early July.  We hope so.  I told you months ago that using Pacific Modern Homes to do the framing off site (Elk Grove, CA) saved us a substantial amount of money on the project.  The savings were so substantial, it allowed us to go forward with the project this year.  (G.S. Napa County)

As with everything else the pricing of a panelized kit is relative to the size and the complexity of the design.  The packages that we have sold have ranged from $10 a square foot for a simple garage to $40 a square foot for a complex home with a lot of windows and everything in between.  Our package pricing is done with a sophisticated program that measures the quantity and engineering of materials and then factors in the plans and the complexity of the design.

The simplest design is a rectangle with a straight gable roof.  After that our pricing program factors in such things as the number of corners,the number of stories, the number of roof trusses including shape and span (so a hip roof has many more truss types than a straight gable) and then individual elements such as a bay window.

Another element that is a given percentage which is factored into the program is the origin of the plans.  One of our standard pre-engineered plans is the least costly, followed by a modified standard plan then a custom plan drawn by PMHI and finally by a custom plan drawn by your own architect and engineer.  Although many custom plans are cleanly and thoroughly drawn, frequently they are not.  The factor applied is based on 40+ years of experience and they have factored in an average.

Finally one thing which we cannot do with this program is what we call 'boutique pricing'. With the standard plans we have assigned dollar amounts to some standard options such as 2 x 6 exterior wall, changing the exterior material or adding grids to the windows. And with other changes we can give you a rough estimate.  But the program does not itemize and the program is run once.  This is done as a benefit to all as doing a quote or a bid is a very time consuming job.  In order to provide 'boutique pricing' we would have to raise prices which would defeat the purpose of attempting to save money.

With this said we are happy to give you a very good estimate of your package price with the tax and delivery included even before the drawings are fully engineered.

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