Return On Investment

 

We are different....

Good design returns a positive short-term economic benefit by reduced construction costs and a positive long-term economic benefit by reduced mortgage payments.

When you make a financial investment you expect to receive a return on that investment. Bonds return 6% the stock market historically returns 11%, loans return 8%. 

Keeping the example and math simple here is how we come up with a return of 75%. Basic assumptions:

Your building a 2,000 square foot home.


You hire our firm using Service Package Two. Our fee is $0.95/sf, or $1,900 for a 2,000 square foot home.


Your construction costs excluding the cost of land is $95.00/sf

We are trained problem solvers. We can reduce your building costs through efficient use of space and save unnecessary and waste full square footage. Our experience shows us we can save from 10 to 100 square feet (depending on the size of your home) on your floor plan layout. If we save you 30 square feet we saved you $2,850 (30 x 95) in construction costs.

 We look for ways to make your project cost effective. We can reduce your building cost through efficient structural analysis and save inefficient and costly material purchases. Our experience shows us we can save on average about $200 on efficient materials selection.

 We can reduce your building cost through a well-designed roof system. Our experience shows us we can save on average about $300 on efficient roof design.

Current savings = 2,850 + 200 + 300 = $3,350. So for a fee paid of  = $1,900 we saved you $1,450 (3,350 - 1,900) more than 75% return. Look at it another way. If you did not save the $3,350 and it was included in your mortgage it would amount to higher monthly payments and increase total payments roughly $8,000 over the mortgages life.

NOTE: Of course by changing the assumptions you can achieve many variations of this example. Our point is that you do receive a positive return on your invested design fee.