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When you are embarking on a renovation or addition project, it is always important to understand all the factors which may affect the final construction costs, and its impact on the design. Some concerns regarding construction costs are as follows:
  1. Construction costs seem to be rising every year, due in part to the increased cost of construction materials, and a shortage of skilled construction workers. 2019 is no exception, with additional increases due to tariffs.


  2. Cost Per Square Foot of Construction in your area - in the Chicago area, it may be between $200 - $300 per square foot for new construction, depending on types of finishes, appliances, and quality of materials. This can vary and must be checked with builders in your area. Renovation costs can be similar depending on the extent of work being done and the complexity of working with existing conditions.


  3. Kitchens are usually the most expensive room in the house to build new or renovate, especially with new technologies and features in appliances and cabinetry. Bathrooms are second, and again, specialty fixtures and systems can increase cost beyond a standard cost per square foot.


  4. Home values in your neighborhood - when building or remodeling, local real estate values must be taken into consideration. The purchase price plus construction cost should be weighed against resale cost to determine if the amount of work makes sense.


  5. Your specific needs for the added construction - if a family is growing, or if there is a certain need for privacy, or added function, will have an impact on the final cost. Cost will be based on the square footage of the work, among other things, but if the space is needed, it may be necessary to proceed.

One approach to a construction project is to work with your architect to develop schematic drawings, which can be used to obtain a ballpark estimate from a reputable builder to make sure the scope of the work is within the Construction Budget. If not, the scope of the work can be adjusted or the work can be phased over time to coincide with available finances. 



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