backyard cottage, a budget primer

Your custom-designed, backyard cottage is a terrific idea that costs more than a high end auto. To shed light, let’s review key budget areas and some choices together.

Susan's cottage has a 247 sq. ft. first floor and 176 sq. ft. loft. It's built in her San Francisco area backyard. (New Avenue)

Susan’s cottage has a 247 sq. ft. first floor and 176 sq. ft. loft. It’s built in her San Francisco area backyard. (New Avenue)

According to New Avenue Homes, a custom one-bedroom, 360 sq. ft. cottage will cost $147,000 including its design and permitting ($26k), construction ($106k) and project management ($15k). Yet we noticed a few places to save costs:

  • Buy existing house plans, making minor changes – $15k
  • Use pilings instead of a concrete foundation – $5k or more
  • Take over your bidding, oversight & administration – $15k
  • If willing, run your own project in lieu of a manager – $15k

Excluding project management, there are 13 different building steps and plenty of details to consider in your budget. Make sure you have plenty of room to make changes as well.

Build preparations

  • Design & permits – $25k, with $18k for architect/engineer hours, $6.5k for municipal permits and $2.5k for a site survey.
  • Bidding, oversight & admin – $6k for billing, change orders, meetings.
  • General contractor mobilization – $4k for site, toilets, cleanups.
  • Demolition and remediation – $0.6k demolition if needed.
  • Site work & earthwork – $7k for digging foundation, utility trenches.
  • Foundation & concrete – $12k for foundation construction.

Materials and installation

  • Framing & carpentry – $22k for all framing, interior work, cabinets.
  • Insulation & moisture protection – $13k for siding, roofing, insulation.
  • Windows & doors – $6k for four doors, four windows, one skylight.
  • Finishes – $11k for painting, walls, floors (appliances extra, by owner).
  • Plumbing – $16k for gas, sewer, water, all bathroom, sinks.
  • Heating, ventilation & air conditioning – $4k for gas unit, ducts, vents.
  • Electrical – $5k for wiring, panels (fixtures extra, by owner).

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