Reply to Come along as we build our custom home- lessons learned in real time.

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[quote=Anonymous]
Could you please elaborate more regarding the architect not designing to a particular spending limit and why costs are higher for doing fixtures and fittings through a builder? We're in the design phase with an architect for a major remodel and addition. Thank you.[/quote]

I think this question is such a key one, and to answer it helps to talk about whether the home build is fixed price, or cost plus.  Here's a good summary:  https://lamontbros.com/fixed-price-vs-cost-plus-contract-whats-the-difference/

We did Cost-Plus--which is again, the road less traveled for how to build a house.  Its more hands-on, because we're approving every single line item in the budget, including the builder's profit. The builder still recommends vendors/subcontractors.  And a good builder is going to save you money a) because they're part of the trade and getting discounts that directly pass on to the homeowner and b) they'll help you find reputable providers, though you're free to use your own and the builder will vet them.   The builder won't care if you spend $1,500 for a kitchen faucet, or $100 (although the bank is going to care-- a lot--because you've already submitted a budget to them and they are very motivated to not have a half built house because someone ran out of money.
 
If you do a fixed price, the homeowner wont' really be aware of the prices for any single component.  And it seems to me that under this system the the builder is going to really make sure the homeowner doesn't overspend, because that fixed price includes the builder's profit. I could see how with a less than ethical builder, that could even turn into cost-cutting or even quality issues because the less they spend on building the house, the more profit for them. But, fixed price does transfer risk from the homeowner to the builder.

Either way,  there will be several long, detail oriented meetings with the builder so they understand your preferences for everything from HVAC to sound systems.  **They aren't making all of these decisions blind, if you tell them you want  all foam insulation vs cellulose they will take that into account in getting bids.  Once you sign the contract with the builder, they'll send you to their various vendors to make your selections (for example, Ferguson showroom for kitchen & bath) or, you can find your own.  We mostly went with the builders suggestions because they know who does a good job--but we did find a few of our own as well, and our builder has been happy to work with them, or pointed out potential drawbacks we didn't think of.

As a type A, control freak who manages complex projects for a living (albeit in a totally different industry), with a love of excel sheets and Trello, we went Cost plus and I have vendor receipts for every single faucet, toilet, lighting component, and heat pump that's going into the place.

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