Why Construction Pricing isn't Created Equal

Apples and Oranges:

Why Construction Pricing Isn’t Created Equal

When a homeowner gathers pricing for a custom home or major renovation, the assumption is simple:
all builders are pricing the same project, so the only difference is the number at the bottom.

It feels logical -but it’s entirely false.

Recently, we priced a project alongside several other builders. Our proposal came in nearly twice the cost of the next highest bidder. Not 10% higher. Not 20%. Two times higher.

And then… silence.
Despite multiple follow-ups, the client never responded.

From his perspective, I can imagine the thought process:

“Their price is so far off from everyone else’s that it’s not even worth discussing.”

But the truth is:
He wasn’t comparing the same thing.
He was comparing apples to oranges — and that difference matters more than most realize.

They Weren’t Pricing the Same Project

Custom home pricing only looks comparable when you assume all builders made the same assumptions. But assumptions are exactly where most proposals fall apart.

In this recent case:

• Our proposal reflected the architect’s actual scope of work.

• It accounted for the design intent — as the architect confirmed directly.

• It incorporated the designer’s feedback, fixture selections, and finish expectations.

• It aligned with materials and assemblies we’ve used on similar homes.

• It relied on historical pricing data and close communication with subs, not guesswork.

Other proposals did not include that level of detail.
How do I know? Because if they had, the pricing would have been significantly higher.

The gap wasn’t about cost differences.
It was about clarity differences.

The Illusion of Comparing Builders

Clients often assume:

“Builder A says $1 million. Builder B says $1.5 million. They must be pricing the same house.”

But Builder A may be basing their number on:

• generic finishes,

• minimal allowances,

• incomplete scope,

• optimistic labor assumptions,

• and square-foot pricing.

Meanwhile, Builder B may be basing theirs on:

• architect-level detail,

• confirmed selections,

• realistic costs,

• current labor and material data,

• and transparent assumptions.

Which one is “accurate”?
Which one is “honest”?
Which one will actually build the house you think you’re getting?

The spread between bids is rarely about who’s cheaper.
It’s about who’s thorough.

Why Preconstruction Detail Actually Lowers Risk (and Saves Money)

High-end custom construction is complicated — and the cost of missing information is paid eventually, either upfront during preconstruction or later through change orders, delays, and compromise. Thorough preconstruction does three crucial things:

1. Aligns pricing with the architectural intent

When builders ignore or oversimplify the architect’s drawings, their price is detached from the design. We don’t do that. We treat the drawings as the blueprint for scope, not a loose suggestion.

2. Clarifies the level of finish

We met with the designer for this project because the finishes drive the actual cost. Cabinetry grade, tile selections, plumbing fixtures, flooring species, lighting quality — these decisions drastically impact budget. Many builders skip this step to keep the bid “competitive.”

3. Grounds the estimate in real-world projects

We’ve built homes at this size and finish level, so we know what they cost we know where the risks are and we know what corners must not be cut. Good planning protects the client — not the builder.

The Consequences of Choosing the Lowest Bid

I tell clients this with complete sincerity:
A low initial bid is not a discount. It’s a deferral.

Here’s what usually happens:

1. Change Orders Multiply

Low allowances and missing scopes lead to constant “upgrades” and add-ons.
Suddenly the low bid isn’t low anymore — but now the client is mid-project, committed, and out of leverage.

2. Quality Gets Sacrificed

Cheap fixtures and materials may pass inspection, but they don’t deliver long-term performance or comfort — especially in energy-efficient homes.

3. The Process Mirrors the Proposal

If the bid is sloppy, the build will be sloppy.
If the planning was rushed, the schedule will be rushed.
If assumptions filled the gaps in the proposal, assumptions will fill the gaps in the field.

Price reflects process.

Why DelBiondo Homes Prices Differ

Our pricing looks different because our process is different.

• We engage early.

• We work with architects and designers to remove ambiguity.

• We eliminate assumptions wherever possible.

• We budget realistically for the level of home our clients expect.

• We prioritize longevity, comfort, and building science in every assembly.

We don’t apologize for accuracy.
We don’t apologize for transparency.
We don’t apologize for planning.

And we know from experience:
Clients pay the cost of detail either before construction or during it.
One option is always less painful.

If a Proposal Looks “Too High,” That’s the Time to Talk — Not Walk Away

When you receive a proposal that’s significantly higher than the others, it’s not a signal to discard it.
It’s a signal to explore it.

Ask:

• What assumptions were made?

• What selections were included?

• What assemblies were specified?

• What is the builder’s historical data based on?

• How will they manage the project day-to-day?

The real value is not in the number - it’s in what the number represents.

We welcome that conversation.
We want clients to understand why numbers differ, what they’re paying for, and how to make an informed, apples-to-apples decision.

Because building a custom home isn’t about finding the lowest price.
It’s about finding the right partner - and the right process - to deliver the home you actually want.

What is project management?

If you look up “project management in construction,” you’ll usually find a definition that sounds something like this:

“Project management in construction is the coordinated planning, organizing, and controlling of a construction project from start to finish. Its purpose is to deliver a project that meets the client’s goals—on time, within budget, and with the required quality—while managing people, materials, risks, and communication.”

It’s not wrong- but it’s not very useful in the real world either.

After years of running custom residential projects, I’ve distilled the definition down to something much simpler:

Project management is the practice of moving high-quality, up-to-date information to the right people.

That’s it.

In construction, almost every pitfall traces back to misalignment. You’ve probably heard (or said) some version of the following:

“I didn’t know that’s how you wanted it.” - Subcontractor to GC  

  Failure to clearly communicate scope of work  

“I expect this install to be perfect.” - Client to GC/Sub  

Mismanaged expectations around materials or budget  

“We needed to hit a budget, and that forced X material or X subcontractor.”  

“When are you going to be on site?”- GC to Sub, usually reactively  

Subcontractors thrown into chaos because every trade ahead of them was poorly managed  

“Well I didn’t realize that’s what you wanted.” - Anyone to anyone  

Failure to document expectations or itemize quality standards

These aren’t scheduling problems, they’re not technical problems.  They’re information problems.

The “Real” Definition (Once You’ve Lived It)

After you’ve been through enough battle-tested projects, you eventually refine the definition even further:

Project management is the tactical dissemination of high-quality information to the right parties, at the right time.

The phrase “at the right time” is doing a lot of heavy lifting here. Clients often say they want to know everything. In reality, they want to know what’s relevant, important, and actionable—not every twist and turn of the sausage-making.

A Quick Story About Sausage Making

We recently needed to replace some windows on a home we built. Our window vendor had skipped an engineering approval, which created a weeks-long paper trail between us, the manufacturer, and the architect. Eventually, we traced liability correctly—to the vendor.

Now, we’ve worked with this manufacturer for years. They value the relationship between us and the architect. And ultimately, they stepped up and handled the issue—despite initially insisting they had no liability (they were right).

Before it was resolved, though, I called the client to share the bad news. Why? Because they said they wanted to “know everything.”

Bad move.

Hours later, after more conversations with the manufacturer, I’d convinced them to change course and replace the windows. All good news in the end— but I didn’t need to take the client on the emotional roller coaster with me.

They were over-informed. And unnecessarily stressed.

Most people like sausage. They don’t need to meet the butcher.

Home building is sausage-making on an enormous scale—the only difference is that, unlike the sausage industry, your client does get to meet the butcher. (For the record, I have no idea how sausage is actually made. I just assume there are parts people prefer not to know.)

So What Does This Definition Actually Mean?

It means:

- You’re articulate enough to translate complex construction topics into something a non-expert understands.  

- You’re knowledgeable enough to hold informed conversations with everyone—from HVAC contractors to structural engineers to geotechnical consultants.  

- You can “code switch” between trades, professionals, and clients, adapting your language without losing accuracy.  

- You know which information is critical to share, which is helpful, and which will only cause unnecessary stress or confusion.

In other words:

You’re the filter, not the firehose. That’s real project management.