With traditional methods, builders aren't involved until after initial designs are completed. This delay can result in missed opportunities to align the plans with current costs, leading to expensive revisions down the line. Instead, Hawthorn brings architects, designers, and the builders together—starting on day one and throughout the project.

Feeling the pressure to win bids, some builders underestimate costs to appear more competitive, especially if there are multiple bidders on both the design and contractor sides. Their haste in bidding may also lead to inaccurate estimates. Because Hawthorn works as a team with designers and contractors, our estimates are more carefully researched and realistic.

Traditional builders who start a project before fully verifying the scope, accuracy, and completeness of the architect's designs. They may also not fully understand the homeowner's aspirations. Hawthorn's open and continuous communication—between designers, contractors, and the homeowner—assures comprehensive plans and a united vision, mitigating budget surprises.

From the very first conversation, Hawthorn works with you to get clarity. We start by asking "What is your true budget?" This clarity is the best way to set expectations and reduce frustration at the end of the project. We're on your side. Our dedication to mutual trust assures you of the most realistic initial and final estimates. We also discuss any potential changes, unforeseen circumstances, and budget impacts.

With such a long and complex process, Hawthorn understands how important it is to make sure you feel involved, informed, and heard—at every stage from design through project completion—to ensure your vision is realized.

In construction, unexpected circumstances can arise. That's why Hawthorn incorporates contingency plans into the initial estimate, as a safety net to unforeseen financial or logistical challenges. We keep our contingencies transparent. If necessary, we proactively seek adjustments in potential areas that won't compromise your vision. We offer you choices. Finally, if it turns out we don't need a contingency, we don't spend it.

Hawthorn uses the latest software to optimize the speed and thoroughness of our budget estimating and tracking. Our technology stack includes:

Takeoff (materials costing) software. Calculating the cost of materials  is the most time consuming and error-prone part of construction cost estimating. Takeoff construction software uses sophisticated procurement, cutting edge databases, and cost breakdown analysis to deliver the fastest, most precise estimates. 

Budget software. We use CoConstruct estimating software, which provides a very detailed and comprehensive view of the budget at every phase of construction—including full transparency for our clients. This includes contingency planning.

These include fees for architectural, mechanical and civil engineering, Computer Aided Design (CAD) and other services.

Once the various building materials have been decided, designers and contractors confer to reliably calculate (also called "takeoff") what quantities will be needed to complete the project.

Costs for materials fluctuate constantly, so estimators must have the familiarity needed to anticipate these price variations. They then time the optimum buying cycle based on availability,  order size, delivery time frame, exchange rates (if imported), and more.

Based on contractors' experience with specific crews or applied on a labor dollar per unit man-hour basis, estimates must allow for variations due to project complexity.

Estimators consider not only the cost-per-hour base wages for the craftspeople on the project, but also fringe benefits, payroll burdens (eg. Social Security, unemployment insurance, and worker's comp), and whether the project is union or open shop. Based on project schedules, overtime and loss of productivity may also influence estimates.

Subcontractors, for such specialties as electrical and plumbing, will provide their own quotes to the design build team, based on their own material, labor, equipment, indirect costs, plus profit. Quotes from subcontractors may also vary depending on their payment terms and their payment history with the general contractor.

Prices for equipment will depend on the type, size, cycle times, and capacity necessary to complete the project. Costs will also differ if the builder already owns or must rent, lease, or purchase the equipment.

Estimates will also factor in other associated costs. These include legal fees, permits, temporary utility costs, temporary construction and heating/cooling, an on-site job office, staffing, consumables, and other expenses incidental to the construction operation.

A common question from people interested in building a new home with a design builder is "What is the schedule of payments?" Sometimes called a draw schedule, this is a detailed payment plan for a construction project. The draw schedule is especially helpful if a bank is financing your project as it outlines when the bank will disburse funds to you and the design build company. 

Draw schedules are typically proposed by the design build firm—but they may be negotiated between the firm, the bank, and yourself. In some cases, the bank may have a standardized draw schedule they prefer to use. 

The size of the project will usually determine the number of payments in the draw schedule. These payments are usually linked to milestones in the construction process. In some cases, they may be based on percentages of project completion. These payments should match the design builder's budget estimates expected for the work completed in each phase. These line item cost estimates are usually summarized in a budget breakdown called a schedule of values. If you are working with a lender, contact them first to see if they have a specific format to follow.

Here is a simplified example of a payment schedule →