Let’s say your rough estimate for a home build is $125 per square foot. Would the cost per square foot decrease if you were simultaneously working on two houses that were next to each other? By how much? How much would it decrease for every additional home on the same block you were working on?
I suppose the answer to this question would be the concern a contractor feels if it doesn’t really happen . What I mean to say is, a lot of people try and dangle the prospect of a lot of work in front of you only to get a cheap price. Most contractors are afraid of doing this. In most cases you would need to be transparent on the construction budget, show approvals from lenders and the such. That will gain confidence and in most cases secure you a very favorable price on the entire construction scope!
It would if you have enough work to keep the crews working at this location from having to leave and come back. Not much of a savings on materials of labor other that mobilization cost.
I cant say there is really any set methodology for that calculation.What if every home had its differences? Each home usually has an anomaly or two therefore not really comparable. The only time you can really get some costs down is purchasing a larger amount of materials that you will use on all your projects and bargaining with your supply house.
There are always an " Economies of scale" factor when building multiple houses in the same location. I’ve typically been able to reduce cost by up to 8-15% depending on how many houses there are. We go to ALL suppliers and subcontractors and they can always discount with more volume. The most important thing is to get written agreements to build X number of homes and put in there that the budget/price you are quoting is based off of that. If it falls through or changes the price will be X.
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