1. We are a Hybrid Fixed-Cost Builder. We have developed a custom pricing model that is both transparent and fair without adding additional costs. We use allowances for certain building items such as excavation, as well as selection allowances. The selection allowances include a 10% markup that is already included in the total cost of the home. Some builders are cost-plus 15% and others give you a flat rate of $80,000. We feel that our pricing model gives you the total price of your home from the start and allows you to focus on how much you want to spend on your selection allowances.
We use real estimates from our vendors to establish allowances for each selection item, so for example on your front door it will be based on a real door pricing quote that you will see during estimating to establish the budget for that selection. We then will include the 10% markup in your building proposal, so for example if your door quote is $3000, that will be your allowance for that selection, but the markup will be included in the building proposal total. So, you will see that your proposal includes $3,300 for your exterior door.
2. A client may not order their own items. We must manage the selection items from the time we place the order to when it is delivered. There are specific times that we need certain allowances to keep your build on schedule and avoid delays or mistakes. When we manage the order, it takes the burden off our clients to get items delivered on time and should anything be delivered by mistake or if it arrives damaged, then we will take care of having the issue corrected.
The selection process begins after you sign the construction contract, not before. In the past, we allowed clients to start their selection process prior to the contract/a commitment to us and it has resulted in issues and time wasted for everyone. Once you sign the construction contract, and depending on the start date of your build, only then will you start your selections process which is typically one month prior to excavation.
Your selection process CANNOT get dragged out past 30 days as those orders must be placed with our vendors in a timely and orderly fashion and signed off. Typically, our clients can order all items in 3 full days so 30 days is more than enough time. Know that sometimes, an item will be discontinued which we understand can be frustrating, but it does happen: an item you selected 5 months prior that was not ordered since we do not hold items and vendors will only hold items for 30 days (or you will get charged) will be discontinued so you will have to select another item with that vendor.
Contract
Selections
Hand off meeting
Built start
3. We cannot allow you on the jobsite while workers are there which is typically from 9am – 5pm Monday-Friday. As part of our commitment to transparency we will have multiple meetings on site to go over different aspects of your home and to give you a chance to look at the work being done and ask questions. However, there are certain milestones we want to achieve before we schedule each meeting. We do ask that you be very careful when walking on jobsites during off hours, as your home is still a work in progress and not every support or material has been finished or properly secured.
This will also help our project managers and subcontractors get their jobs done faster and more efficiently. There are a lot of moving pieces happening while we build your house and to maintain proper jobsite control, quality and scheduling, our project managers and subcontractors need to be able to focus on the task at hand and moving to the next step.
We’ve had clients (in the past) tell us they spoke to a sub and made a change but of course we have no idea who the sub is and had no written change order. We’ve had clients show up on the job site to talk to the project manager for hours asking questions. We strive for
efficiency and great communication, but impromptu meetings slow down this process and don’t give us the chance to have the information ready to answer your questions, and instead we must hunt for information on the spot instead of focusing the goals for that day. All meetings with your project manager and/or Matt Cole must be scheduled. If you show up at the job site when subs are there, they have been instructed to stop work and step out of the house until you leave which can postpone your build. Tracy and Matt are happy to schedule times to meet you and talk about your home.
We do understand, however, that you will want to be there the first day to watch the first tree fall. Most of our clients videotape that moment so as long as you are across the street and not on the jobsite, we totally understand the excitement of that moment. If you are NOT in town for that moment, let us know and we can make sure someone from our team is there to videotape it for you.
4. WE ARE NOT USING AN INTERIOR DESIGNER simply because we have a great process that doesn’t need one and it will save you $12,000 - $15,000. We have selected amazing vendors to help our clients finalize their selections. Some have over 30 years’ experience, and some are interior designers. We will supply you with a list of our vendors with all their information and you can schedule a time to meet with them.
5. The building proposal overrides the architectural plans. We take pride in giving the client a detailed estimate that we will go over together and will make multiple revisions to before we finalize the building proposal and final price. We also take steps to ensure that the building proposal and the floor plan details match as this consistency is key for everyone involved in your build to be on the same page. We also consider that not every detail can be shown in the floor plans. That is why we go over the proposal in great detail to ensure that what is included in the proposal is clear to the client. We strive to avoid any “gotcha” moments because we did not price an item on the building proposal by simply missing it or forgetting to add it based on the plans. So, if it’s NOT on the building proposal and part of the allowance, we will not add it simply because it’s on the architectural plans unless the client pays for the item. However, if we missed an item in the building proposal, no change order
of change order fee will be required to correct the inconsistency between the building proposal and the architectural plans.
6. Communication is a “core principle” at MDC Homes, and we never want you to feel out of touch with your build. We take the extra steps to ensure that you know exactly what is happening on your build. In addition to the onsite meetings and walkthroughs during your build, we will be providing you with progress photos and updates, as well as a client portal that you can communicate with the entire MDC Homes team. You will have an email every week with an update of your home as well as what you can expect the following week. Typically a video and/or photos will accompany that email. Your first communication will start with your excavation and the last communication will be when we hand you the certificate of occupancy (CO).
7. No need for a “consultant”. MDC Homes does everything for you:
MDC Homes reviews your lot
MDC Homes uses an ARCHITECT for your house plans
Getting house plans approved is a simple email and MDC Homes does that for you
MDC Homes pins your lot and orders the survey for you
MDC Homes has a list of the best vendors in Chattanooga based on quality (first), customer service (second) and price (third).
MDC Homes applies for ALL your permits *septic, building
MDC Homes orders your street address for you
MDC Homes provides video/pictures throughout your entire build
Our project manager will be on your job site a minimum of 4 days a week making sure subs are being completed with quality and Matt Cole will be on your job site at least once a week checking in
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8. We will have complete transparency on all your selections, and we will send you the actual invoices for all your selection items. You will have the same invoices that we receive. For all the non-allowance items, we use our fixed cost and provide you with a very detailed description of what is included. We will go over each item and answer any questions that you have during the estimating process to ensure that everyone is on the same page and all the details included in your home are correct and understood by everyone. For these items we will not send you the invoices, as these are part of the fixed costs that you have agreed to. Each building cost is part of the complete pricing for your home and is based on real pricing from our subs and vendors.
Architect vs Draftsman – It might seem obvious, but the integrity and quality of your floor plans is vital to the success of your build. The dimensions and information in your home plans are the basis for all the decisions we make on how to build and price your home. Your floor plans contain a lot of information that must be corrected, and if there is missing or incorrect information it can cause major delays in both preconstruction and during the actual construction of your home. This is why we want all our plans to come from a licensed Architect, instead of a plan online or from a draftsman.
Four Architects we recommend:
We are excited to work with Jon Greenfield of Greenfield Residential Designs, an architect with 14 years’ experience and located in Chattanooga (https://www.greenfieldresdesign.com/). He is not only creative and can create an amazing home design, but he takes the time to ensure that it can be built the way it is drawn and doesn’t add unnecessary costs. He just completed a client’s house plans, and the fee was $7,500. We are THRILLED since the plans are 100% buildable plans.
Jennifer L. Killian Smith is amazing, and we adore her. Please check out her website www.JennSmithArchitect.com and look at her amazing work. She’s a busy girl and has a waiting list of approximately 6 months but when she starts your plans, she completes them in 2-3 months. Jenn works in Chattanooga. Her fee for homes under 2,500 sq/ft is $10,500 but if you use MDC Homes as your builder (you must commit to us with a pre-construction agreement/deposit), we will pay $2,000 of the fee.
Lawrence Mathis is currently with Elemi Architects located at 812 Central Avenue in Chattanooga. Lawrence has years designing homes for some of the most prestigious builders in Chattanooga including Water-Hollands. Lawrence has a one- month wait list and can turn around your completed design typically in 3-4
months. Lawrence charges between $6,000 - $8,000 depending on the size of the home.
Lawrence can be reached at lawrence@lawrencemathisdesign.com or 423- 762-7374. https://elemiarchitects.com/
Surface Architecture & Design is another awesome company we recommend. www.surfacearch.com is a downtown Chattanooga firm with beautiful homes. We’ve had many Surface designs come across our desk and we are always excited because we know the plans are 100% buildable without issues. Note, they are on the high end and can cost you 4% of your build. Their plans are flawless, and a builder can build straight from them.
Know the difference in working with an architect (obviously the education and experience is stellar but unlike a draftsman who are software/CAD driven) is unmatched. For example, the open concept floor plan is very popular but depending on the spans and interior wall placement, the actual costs to achieve those openings can be radically different. If the time is not taken to correctly size support beams, floor and roof systems then additional beams, posts, and even steel might have to be added to achieve the design. We know that it’s appealing to pay only $4,000 - $5,000 for your architectural plan’s vs $8,000-$10,000 with an architect. But the amount you saved on the front end can easily cost you more throughout each phase of construction. It can be something as simple as a floor system spanned at 14’ vs 15’. That added foot could require an upgrade to a different sized I joist package or needing to add additional piers and footings to your foundation. This is one item that unfortunately you get what you pay for.
10. Change Orders are a huge issue when building a home. We work hard to provide enough information to our clients to hopefully reduce the number of changes during their build. However, we know that there are a lot of details or ideas that you might want and not all of them can be known before construction has started. We want our clients to love their home and to be able to add custom features to their home if they choose.
For example: a change order is any change, addition, or subtraction to the existing specifications, selections, or scope of the build that occurs after the building contract has been signed, or after a selection item has been approved and signed off on.
Clients will be allowed to request 3 change orders without any additional change order cost. After the 3rd change order a fee of $200/change order will be added to the total of the approved change orders. All change orders must be approved by Clients and paid in full upon signing the order before any work can begin, or materials ordered. Change orders will also include an approximate total of additional days added to building. *Change orders is a one week process for approval.
During the estimating process we try to explore different options, materials, and ideas to give clients as much information as possible before they finalize their building contract. After that contract has been signed if a client requests pricing for a potential change order that requires a significant amount of research and coordination to price, a $75/hr cost will be invoiced regardless of change order acceptance. If a client requests 3 change orders to be priced without executing any of the change orders, then the $200 change order fee will be due upfront before any additional change orders will be priced. If the client accepts any change orders, then future change orders will not require the fee paid upfront unless 3 consecutive change orders are not executed. Lead Project Manager Tracy Lee has the right to reject any change order request. After Framing and the Utility walkthrough no change orders will be executed until after the client’s original building scope has been finalized.
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11. Please know that when you close on your loan does NOT mean we are at your property the next day clearing the lot. We do not schedule the excavating team until your loan closes. As soon as your lender emails me and says “loan closed”, only then do I notify Tracy. If the excavators are on another property, they must finish that job before going to the next job so it could be 2-4 weeks before starting your excavation. This is why it’s important to choose a lender that is experienced in new construction loans and preferably a lender we have worked with prior.
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12. Please plan 5 on-site meetings throughout your build with a mandatory of 3 of the 5. There are important times we need you on the job site, and a schedule will be provided at the beginning of your build so you can plan for those important meetings. If you simply cannot attend, we will do our best to video/photograph the meeting or we can facetime the meeting but know that we cannot send a video/photo and have you respond 4 weeks later with questions/comments/changes. We need to move forward with your build so we do not postpone someone else’s build.