INFORMATIONAL RESOURCES BY CUBE DESIGN + RESEARCH

MODERN HOME PLANNING GUIDE

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We understand starting a large home project can be daunting. Where do you begin? What should you ask? What don’t you know? Our free guide is intended as a valuable resource for planning renovation, addition, or new-construction projects. It clarifies the design and construction process CUBE design + research uses for residential projects.

“Design is not just what it looks like and feels like. Design is how it works.” STEVE JOBS

WHAT IS MODERN? ...................................................03

WHAT ARCHITECTS DO ............................................ 04

HIRING AN ARCHITECT ...........................................06

PREPARING YOURSELF: HOW MUCH, HOW LONG .......... 08

BUDGETING THE PROJECT ........................................11

PHASES OF RESIDENTIAL DESIGN WITH CUBE ..........14

CONSTRUCTION AND PROJECT DELIVERY OPTIONS ....16

NEXT STEPS ............................................................21

ABOUT CUBE DESIGN + RESEARCH .............................22

APPENDICES ........................................................... 23

WELCOME

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WHAT IS MODERN?Modern is less of a style and more of a philosophy about how to approach a project. While it’s often associated with clean lines, flat roofs, open floor plans, and large windows, it is not tied to any singular form or predetermined arrangement.

Historically, modernism was conceived as a reaction to the perceived chaos of the many 19th century revival styles and forms. It offered an optimistic view that science and the new technologies of industrialization would produce a

modern age. Since the early 20th century the evolution of modernism has shifted and morphed.

Today’s modern has become more balanced with local climate, culture, and energy efficiency. Freedom in the planning of space and form without preconceptions allows us to reconsider what it means to dwell.

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Architects listen to you and serve as your advocate throughout your project. Your architect works with you to translate your needs into buildable form, addresses compliance with state and town regulations, oversees the work of the builder, and coordinates all technical and aesthetic aspects of your project. Your architect manages your budget, interviews builders, negotiates builder contracts, protects your project from unreasonable extra costs, and resolves disputes that may arise with your town, other consultants, or your builder. They are charged to oversee and act in your best interest from beginning to end.

Architects solve problems and identify opportunities. The architect is the one professional who has the skills and toolkit to thoroughly analyze a problem, uncover opportunities, and create inspiring solutions. They are trained problem solvers. The education of an architect is broad, from the arts and sciences to humanities and engineering. To become a registered architect requires approximately 7 years of education, 3 years of apprenticeship, and successful completion of 7 registration exams. Architects are also required to stay abreast of changing technologies through certified continuing education courses.

Architects see the big picture. Few people realize how complicated it is to build until they find themselves lost in a maze of options, building codes, zoning laws, and contractors. Architects don’t just design four walls and a roof; they create total environments (interior and exterior) that are functional and exciting places to live and work. They think in three-dimensions and can help you see the project before it’s built.

WHAT ARCHITECTS DO

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Architects add value to your project investment. Building a home is often the largest single investment a person will make in their lifetime. Your architect helps you achieve the greatest value for your budget and needs. They plan efficient spaces, energy, water, and construction systems, and inform you of trade-offs in effort to find the best solution. Your architect represents you (not builders) through the construction process; observing the installation and quality of work by the builder and helping to resolve any issues as they arise. Most projects designed by architects function better, have lower energy and water consumption, are assessed at higher resale values, and improve your daily living experience. For more on what architects do, check out this VIDEO by the American Institute of Architects (AIA).

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Every architect has a slightly different approach and expertise. You may be working with them for a year or more, so it’s important you find one that works well with you and fits your project.

HIRING AN ARCHITECT

When to hire. Many architects offer services in all phases of a project, from helping to evaluate and select a building site to coordinating the landscape design. The sooner you hire an architect, the sooner they can help you plan a successful project and avoid any pitfalls.

Where to look. You may find architects through friends, colleagues, Internet searches, and local chapters of the American Institute of Architects. Most architects are accustomed to working throughout their state, and many do occasional work in neighboring states and farther away. Many architects also do a range of commercial work, which can be valuable experience in modern residential design.

What to present. Whether you call, email, or meet them in person, you need to convey some basic information for an architect to understand how they may begin helping you. To get the most out of your initial contact, you should first document what you know to date. The below worksheet is a helpful starting point. If you are unsure of any items, an architect can help plan your needs based on your specific problem or desired outcomes.

Some simple pre-planning will go a long way in your quest to compare and find the right architect.

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INITIAL PROJECT ITEMS FOR THE ARCHITECT Q Contact information: name(s), mailing address, phone, email Q Project location Q Purpose of project Q Current phase of planning

F searching for land F own land/home F contemplating needs F ready to hire F other

Q Estimated area in square feet Q Estimated budget for construction costs Q Estimated time frame for project completion Q Brief list of main spaces or rooms desired Q Property survey if available Q Property photos (1-4 to start) Q Special project considerations (i.e. green, designed for aging, etc.) Q Desired qualities (i.e. natural light, minimalist, modern farmhouse, etc.)

Many residential clients have idea books on HOUZZ or PINTEREST. These are helpful to share with the architect to get a sense of what inspires you. As design progresses you’ll have more in-depth discussions on the qualities of light, finishes, and detailed design; so there’s no need to unload everything at the first meeting. Focus your initial discussions on one or two key aspects to get a feel for how they may approach your project and the process in general. What to ask. The intent of your initial contact is for the architect to understand what the project involves and for you to understand how the architect works. To help you compare architects, try to ask each a set of standard questions. Our list of 12 QUESTIONS TO ASK YOUR ARCHITECT is a helpful starting point.

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How long will it take? For a modern design in general, the design and documentation time for a small addition or renovation may take 2-5 months; a new home or large renovation may take 6-10 months. Why? Modern design requires substantial drawing and coordination time – what looks simple can be somewhat complex with many decisions involved. A thorough set of drawings helps to avoid unnecessary costs in construction. Time is also dependent on clients, who usually pause between meetings to consider options and make decisions before proceeding.

How much will construction cost? This varies wildly with the project complexity, geographic region, labor costs and the state of the economy. Modern residential design may cost anywhere from around $200 per square foot to over $300 per square foot for new construction; renovations may be less. You should consult your architect for a general range based on your geographic location and specific project.

What’s in a price per square foot? This is an averaged approach to estimating and is used only at the beginning of a project to help gauge a typical cost range commensurate with quality and the type of project. In reality, different parts of a home cost varying amounts, for example, a kitchen costs more than a bedroom. Detailed pricing may be developed with a contractor as design proceeds. Why does modern sometimes cost more than the standard? You may have noticed some lower cost per square foot numbers on the Internet.

PREPARING YOURSELF: HOW MUCH, HOW LONG

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These are typically reflective of builder tract homes that take advantage of bulk pricing, unskilled labor, lower quality products, and little to no on-site supervision by the general contractor. In contrast, while clean line modern homes may look simple, they can be deceptively complex to execute, requiring more coordination time, continuous on-site supervision, and more skilled labor. Modern homes typically have higher quality products, built-in cabinetry, and much larger windows that quickly increase costs. Some green building strategies also add costs, but can greatly reduce monthly utility bills over the home’s lifespan.

Building a home is somewhat analogous to buying a car: the cost of a Honda, Audi, and Ferrari are very different price points – all get you from point A to B, but their abilities, finishes, accessories, and long-term value are quite different.

How much do architects charge? Architects charge in a variety of ways depending on the services provided and type of project. Variations in cost generally reflect variances in the level of service. Below are typical methods for residential projects. You should consult your architect for specifics.

Hourly. This method is typically used when the time to complete the work is not accurately known. An architect who does residential work may charge anywhere from around $100 to $160 an hour or more depending on staff, overhead, and expertise. Rates normally increase annually.

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Percentage of Construction Cost. This method includes full design services through construction. Typically design fees for new home construction may range from around 10% to 15%, and up to 18% for complex renovations. It varies with project size, type, complexity, location, and services provided. These fees often include consultants to the architect such as structural engineers; be sure to ask your architect what is and what is not included. Lump Sum / Fixed Fee. Commonly used when there is an expected outcome and the time to complete the work is accurately known or may be calculated. This is done with clearly defined work parameters. Be sure you fully understand the parameters and what additional fees may be charged if the parameters change. Combination. It is common to use some combination of the above methods depending on the phase of the project and services provided. How much do builders (general contractors) charge? Residential builders typically use a fixed fee or percentage of construction cost from 15% to 20% or more in their cost estimate. Some have additional charges for supervision and overhead. It’s important for all parties to discuss the fees and pricing methods before signing a contract. How can I be a good client? Frequent and clear communication is crucial to a successful project. Ask a lot of questions and be sure to get answers in language you understand. Promptly review materials provided by the architect and make decisions in a timely manner to help keep the project on track. See our 7 ESSENTIAL QUESTIONS TO ASK (AND ANSWER) YOURSELF.

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Budgeting the costs of design and construction is an essential first step to help you avoid surprises and frustration. Share your budgetary goals and constraints with your architect. Decide both the maximum and ideal amounts you are willing to spend. Only with full knowledge of your budget can your architect design within your constraints and allocate your project money wisely.

BUDGETING THE PROJECT

Labor generally accounts for more than half the construction cost of a building project; materials, products, and fees represent the remaining costs.

Plan budget contingencies for both design and construction. During design an occasion may arise where you make a last-minute change, add functions to the project, or unforeseen site conditions require additional engineering. During construction, unforeseen conditions may arise such as poor soil, underground tanks, existing structural defects, or other problems. You’ll need some room in your budget to resolve these issues should they arise.

The Budget Worksheet below is a helpful starting point to understanding the extent of costs that may be associated with a residential project. You should discuss what is appropriate to budget with your architect based on your specific project.

If you plan to finance a portion of your project, request that your lender use an appraiser familiar with modern certified green homes. These homes are often evaluated differently and appraised higher than the typical home.

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BUDGET WORKSHEET

PROPERTY, ACQUISITION, AND FINANCING COSTS

$ ____________ Property cost

$____________ Inspections and Assessments

$____________ Real Estate fees and Closing costs

$____________ Legal fees

$____________ Lender Financing costs and Appraisals (check with lender)

$____________ Land Survey if not provided by seller ($500 - $1500)

$____________ Soils Testing for New Home Construction ($1000 - $2000)

DESIGN FEES

$____________ Architect fee

$____________ Engineer fees (if not included in the architect’s fee above)

$____________ Landscape Architect fee (sometimes included in the architect’s fee if requested)

$____________ Interior Designer fee (if applicable for furnishings, etc.)

$____________ Special Engineering fees (if applicable for security, audio/video, etc.)

CONSTRUCTION COSTS. This is generally referred to as the construction budget or hard costs – or simply THE budget.

It’s the main item that concerns your architect and contractor. As design progresses this will breakdown into many

parts, but in general it includes all costs associated with the building construction, site, permitting fees, and the builders

insurance, profit, supervision, and overhead costs. In this early stage you may estimate a price per square foot range.

$____________ Construction Budget

FURNISHINGS

$____________ Living Furniture (note: large kitchen appliances are included in construction costs above)

$____________ Security and Audio/Video systems

$____________ Window Coverings/Shades

$____________ Other Interior items

CONTINGENCIES

$____________ Construction Contingency (3%-6% +/- of Construction Budget)

$____________ Design Contingency (5% +/- of Architect fee)

OTHER

$____________ School District Impact fees for New Construction (if applicable, check with local municipality)

$____________ Cost of Temporary Lodging (if applicable)

$____________ Any special items you need to include

$____________ TOTAL OWNER PROJECT COST

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Controlling the budget. Whether your budget is three hundred thousand or three million, you should discuss with your architect strategies to control costs.

One way to immediately impact the cost is to build less. Clients sometimes desire a certain size room, but smaller spaces can be made to feel large through a few design tricks. Discuss with your architect ways to get the most out of your budget.

Having a thorough set of architectural drawings is another way to help control unknown conditions during construction. When your contractor knows at the start what will be built, costly delays and changes during construction are minimized. Try to make all design decisions before construction begins, it gets very expensive to change your mind later.

In both design and construction it is generally true that you get what you pay for. The bitterness of poor quality remains long after the sweetness of low price is forgotten.

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Though many architects follow a similar process, each is unique and will interpret or sequence this process differently. While interviewing architect candidates, be sure to ask about their approach. See our 12 QUESTIONS TO ASK YOUR ARCHITECT as a helpful starting point.

I. Discovery – Listen, Data Mine, Analyze: We work together to identify project goals and program, understand site constraints and opportunities, and form a project road map.

II. Idea Exploration [Schematic Design]: This phase begins with an exploration of design ideas, options, and iterations through a constant client-architect feedback loop. We explore space, form, and material qualities through models and sketches. This phase ends with a selected design direction and an outline specification defining the basic scope of the project in preparation for schematic cost estimating.

III. Reality Check – Budget, Approvals, and Contractor Interviews: The schematic design drawings are used to solicit early pricing estimates from contractors. This becomes a budget reality check and allows us to begin working with a single interested contractor to help control the budget as design proceeds. CUBE normally assists clients with contractor interviews and selection. If there are any special zoning requirements, we would also begin working with local planning officials at this early stage.

IV. Making it Real [Design Development]: During this phase the design is further refined with the client and building systems (structural engineering, sustainability, lighting, ventilation, etc.), and construction

PHASES OF RESIDENTIAL DESIGN WITH CUBE

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materials are further decided and developed in accordance with local building and energy codes. At the end of this phase, we normally ask the contractor to refine their estimates to help track the budget and allocate design resources properly. If bank financing is involved for the project, we may also begin providing them the necessary information at this stage.

V. Nuts and Bolts [Construction Documents]: Continuing together with client feedback, CUBE develops the detailed construction and specification documents to permit and build the project. Materials, finishes, products, and other requirements are finalized during this phase. At the end, the construction documents are provided to the contractor for final pricing and the owner-contractor agreement.

VI. Permitting and Approvals: The contractor submits the construction documents to the building department to obtain all necessary permits for construction. CUBE addresses any questions or comments from the contractor or local permitting officials during this phase.

VII. Getting it Built [Construction Contract Administration]: During construction CUBE acts as the owners’ representative agent. We assist the owner and contractor regarding interpretation and clarification of the documents and design intentions. We make regular site visits to observe progress, workmanship and quality. We approve contractor shop drawings, respond to request for additional information, and determine the direction for any necessary changes. CUBE normally reviews construction progress prior to certifying owner/bank payments to the contractor and maintains authority to reject work that does not conform to the design documents. Consistent communication must be maintained throughout the construction process.

VIII. Finishing Up [Project Closeout]: Upon substantial completion of construction CUBE will review the work with the owner and verify any work to be completed or corrected by the contractor prior to final payment.

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Builders (general contractors) provide construction services based on the architect’s construction documents. They manage the construction process, obtain bids and determine actual costs, control the schedule, and coordinate the work of all subcontractors (carpenters, plumbers, etc.). During construction, your architect is your objective advocate, helping to clarify design questions and addressing any issues as they arise, observing progress before approving contractor payments, and helping determine if proposed changes are responsibly priced and in keeping with local costs and methods of construction. It is a system of checks and balances between owner, architect, and builder.

The owner typically has one contract with the architect and another with the builder. There are four different types of contracts with a residential builder, each providing a different method of project management and pricing, and each with some advantages and disadvantages.

Competitive Bid / Fixed Price: Bids are requested from several builders who also outline their credentials and approach to the project based on the architect’s drawings. Theoretically, the estimates received are comparable (often they are not, but there is a way to ensure close comparison - feel free to contact us). A fixed price is set for the project based on the construction documents.

Advantages Q A fixed price established based on the construction documents.

Q This contract offers the least financial risk (cost overruns) for the owner.

CONSTRUCTION AND PROJECT DELIVERY OPTIONS

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Disadvantages Q This contract form requires all financial risk (cost overruns for work included

in the construction documents) to be absorbed by the contractor. As a result, sometimes bids may be higher than other contract methods.

Q This method tends to create a more adversarial owner and builder relationship, whereby each watches out for themselves to manage financial risks.

Q If details are left out of the construction documents a builder may carry an allowance. For example, you want to decide on tile later; when tile is chosen the cost for that work may increase.

Q This contact type is mostly closed book, meaning the builder does not share subcontractor bids, invoices, or receipts with the owner.

Negotiated Bid / Maximum Price: A single builder is selected early based on credentials and personal fit with the project and owner and/or schematic design estimates. The builder is part of design discussions advising along the way. Competitive bidding takes place at the subcontractor level, overseen by the selected builder.

A final price is negotiated that is typically a maximum price cap. This contract method is usually open book, meaning the builder shares subcontractor bids and cost information to show where the money is being allocated.

Advantages Q A builder committed early in the project is more invested in the outcome,

and their input can be beneficial to tracking the budget and lead to better project coordination.

Q If project costs exceed the agreed maximum price the builder absorbs that cost. If costs do not exceed the maximum price, savings are sometimes shared between the builder and owner to incentivize staying within budget and on schedule.

Disadvantages Q Residential builders may have a small pool of subcontractors who they work

with and trust, so they may not be very aggressive in actually obtaining multiple competitive bids from subs. However, you may consider requiring builders to obtain three subcontractor bids for work exceeding a particular amount to ensure competitive bidding.

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Cost Plus (Construction Cost + Builder Fee): This method may be either competitive bid among multiple builders or negotiated with a single builder. The initial bids are estimates - not fixed prices or caps. The builder invoices the owner regularly with all receipts attached and adds a fixed percentage fee to the cost which covers their overhead and profit. This contract method is open book, meaning the builder shares all cost information, from a box of nails to the roofing shingle installation.

Advantages Q Generally the least adversarial owner and builder arrangement because the

builder knows they will be paid for all work and make a profit, and the project is estimated multiple times to forecast total costs.

Q Builder is involved early in project design and estimating which leads to better project coordination.

Q Builder shares with owner where all costs are allocated.

Disadvantages Q Limited certainty as to what the final cost will be means shared financial risks

of cost overruns for the owner.

Q Less incentive to be efficient with cost control compared to other methods.

Fixed Fee: A variation of Cost Plus; however, instead of a percentage fee, a fixed dollar amount fee is set regardless of changes to budget or schedule (unless negotiated to reflect changes).

Advantages Q Separates conflict of builder fee directly tied to costs.

Q Builder is involved early in project design and estimating which leads to better project coordination.

Q Builder shares with owner where all costs are allocated.

Disadvantages Q Limited certainty as to what the final cost will be means shared financial risks

of cost overruns for the owner.

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Design/Build: This is a method on the rise in construction, whereby a single company provides both design and construction services. Sometimes the company has both architects and construction managers on staff, and sometimes they may be either architects or construction managers who themselves contract the other party for services – a business-to-business partnership. Either way, the owner has a single contract with a company to both design and construct the project.

Advantages Q Allows you to obtain both design and construction services from a single

company - single point responsibility.

Q Builder involved at the beginning of a project has the potential for better coordination among design and construction and an accelerated schedule.

Disadvantages Q You lose an objective advocate (the architect as a 3rd party) in your dealings

with the builder over costs, quality assessment, changes, and other disputes that may arise. As such, complete trust in the company’s staff and partners is required and the owner must be more vigilant of their own interests.

Q It can be difficult for a single company to be equally good at providing design services and construction services simultaneously – the time pressures of the construction site usually win the attention of the office.

Q Some companies may have go-to design and construction methods that streamline their work but reduce your options. Don’t let design/build become build/design.

Q You lose some competitive bidding. Transparency in the actual costs, bids, fees, and profits may be difficult to fully obtain.

Self-Contracted: You may act as your own general contractor, manage and schedule the project, and solicit bids from subcontractors. Unless you have prior experience or a bunch of subcontractor friends, this is not a wise choice for substantial projects. As soon as a subcontractor realizes you are new to contracting, their price will often be double to you what they would

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charge an experienced general contractor. Not because they’re trying to take advantage of you, but because as a first time contractor you are considered a high risk for extra time and changes. Subcontracting your own project can also quickly become a full-time job. What you save in fees you may lose in high-risk markups and your own valuable time.

We at CUBE generally prefer the Negotiated Bid / Maximum Price contract. In our opinion, it best protects the owner from cost overruns, while involving the builder early in the design process which allows them ample time to fully understand and price the project.

As the owner, you are ultimately responsible for selecting and paying a builder. Many architects will help you find qualified builders to consider and review their credentials. You should discuss these options with your architect.

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We hope this guide helps you to make informed decisions about your project. Below are recommended next steps and additional services and recourses offered by CUBE design + research.

PREPARE TO CONTACT AN ARCHITECT Q Review your project needs Q Review your budget range Q Gather your initial items to present and questions to ask an architect Q Contact an architect for an initial consultation to discuss your project

PRE-DESIGN SERVICES OFFERED BY CUBE Q Free initial project consultation: Q & A on the project and process Q Discovery consultation: a few hours of help to plan your project Q Property evaluation: an expert analysis before you make a big purchase Q Project feasibility study: explore the possible scenarios for your project Q At home design session: quick sketches to set you on the right path

ADDITIONAL HOMEOWNER RESOURCES BY CUBE Q Buying Land: what to know before you purchase Q Buying and Renovating: essential inspections before you sign Q Green Building Principles: planning for energy efficiency Q Design for Aging Principles: planning for mobility needs long-term

NEXT STEPS

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1110 Valley Park DriveChapel Hill, NC 27514t/f 919 371 0721office-nc@cubedesignresearch.com

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We are architects who believe intelligent design has the power to inspire people in their daily life.

ABOUT CUBE DESIGN + RESEARCH

Buildings are not the end of our relationship with clients; they are the beginning. We bring value to a project with our expertise in assessing sites, complex programs, uses, and existing buildings. We create better experiences for real people by doing more with less.

Co-founding partners Chris Johns and Jason Hart have worked together in architecture for 20 years. They have expertise in architectural design, building construction, and urban planning. Both hold master’s degrees from M.I.T. and have experience on a wide variety of project types both nationally and internationally.

For more information visit: www.cubedesignresearch.com

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12 QUESTIONS TO ASK YOUR ARCHITECT

Every architect has a slightly different approach and expertise. You may be working with them for a year or more; so it’s important you find one that works well with you and fits your project. Above all you should be convinced that the architect will listen to you and you should be comfortable sharing details of your lifestyle, needs, and budget as well as your hopes and concerns about the project.

1. What do you see as the important issues or considerations for my project?2. Who in the firm will I be working with and who will be doing the actual work?3. How do you establish fees?4. What are the steps in your design process?5. How do you typically work with clients and what will you show me along the way to explain

the project?6. What level of service do you provide during construction, if any?7. How do you help control the budget during design?8. If the final construction bid exceeds my budget, will you revise the design and will this carry a

cost?9. How busy are you and what priority would my project have?10. How long do you expect it may take to complete my project?11. What is your design philosophy?12. What sets you apart from other architects?

Some selection criteria may include: personal chemistry, project approach, expertise, design philosophy, and company structure.

APPENDICES

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7 ESSENTIAL QUESTIONS TO ASK (AND ANSWER) YOURSELF

1. What would you change - and keep - about your current home?2. What is your lifestyle? Are you at home a great deal? Do you work at home? Do you entertain

often? How much time do you spend in the living areas, bedrooms, kitchen, den or office, etc.?3. How much time and energy are you willing to invest to maintain your home?4. When planning a new home or space, what do you envision that you don’t have now?5. How much can you realistically afford to spend?6. How much time do you have to be involved in the design and construction phases?7. How will you make decisions: by yourself, with your spouse, or with others? Strategize how

you will work together up front. Will one person lead? Will there be equal input? How will you move past disagreements among yourselves when they arise?

CREDITS

Text: Adaptations from the American Institute of Architects and more than 25 years of collective experience by CUBE design + research.

Projects: pages 1, 3, 4, 13, 14, 15, 20, 22 by CUBE design + research; pages 5, 9, 24 by CUBE partner Chris Johns while with Architects Hanna Gabriel Wells.

Photography: page 3 by John Horner, pages 1 & 13 by Richard Leo Johnson, pages 5 & 9 by Larry Stanley, all other photography by CUBE design + research.

Guide Version: 01.1