You are planning to build a new home with approximately 2 comma 100?-2 comma 600

Question

You are planning to build a new home with approximately 2 comma 100?-2 comma 600 gross square feet of living space on one floor. In? addition, you are planning an attached? two-car garage? (with storage? space) of approximately 450 gross square feet. Develop a cost and revenue structure for designing and? constructing, operating? (occupying) for 11 ?years, and then selling the home at the end of the 11th year.

The first category of costs and revenues that is typically needed in an engineering economy study is Capital Investment. Select all the correct typical cost and revenue elements for this category from the list below.

A.Garage door opener

B.Acquisition

C.Construction costs left parenthesis labor comma material comma other right parenthesis

D.Working capital left parenthesis tools comma initial operating suppliers comma etc. right parenthesis

E.Landscaping costs

F.Unilities left parenthesis electricity comma water comma gas comma telephone comma garbage right parenthesis

The second category of costs and revenues is Annual Operating and Maintenance Costs. Select all the correct typical cost and revenue elements for this category from the list below.

A.Routine maintenance left parenthesis furnace comma air conditioner comma hot water heater comma etc. right parenthesis

B.Insurance

C.Architect divided by engineering fees

D.Cable TV

E.Garage door opener

F.Sale of home left parenthesis year 11 right parenthesis

The next category of costs and revenues is Major Repair or Replacement Costs. Select all the correct typical cost and revenue elements for this category from the list below.

A.Garage door opener

B.Acquisition

C.Real estate purchase cost

D.Plumbing fixtures

E.Painting left parenthesis interior and exterior right parenthesis

F.Air conditioner

The next category of costs and revenues is Real Estate Fees. Select all the correct typical cost and revenue elements for this category from the list below.

A.Selling

B.Acquisition

C.Driveway and sidewalks

D.Architect divided by engineering fees

The last category of costs and revenues is Asset Sales. Choose the correct typical cost and revenue element for this category from the list below.

A.Buying a home

B.Architect divided by engineering fees

C.Painting left parenthesis interior and exterior right parenthesis

D.Sale of home left parenthesis year 11 right parenthesis

Explanation / Answer

Typical costs:
Having a contractor build a standard garage typically runs about $35 -$45 a square foot. A small, single-car garage is about 240 square feet, or $8,400 -$10,800; for a two-car structure it's around 380 square feet, or $13,300 -$17,100.
AskTheBuilder.com suggests that a "dream" garage with plenty of room for two vehicles (without having to squeeze to get into and out of them) plus adequate work space, lighting, ventilation and attic storage requires 800-850 square feet, at $29,000 -$38,000 or more.
Upgrading the quality of materials can bump the cost to $55 a square foot, or $13,200 for a minimum single-car structure, $21,000 for a two-car garage and $47,000 or more for the dream version.
Accomplished do-it-yourselfers can cut costs considerably; materials for a single-car garage with a door but no windows start at $3,000 -$4,000, depending on the size and style. Kits with pre-cut or pre-fab materials to build a steel or wood garage run $5,000 -$14,000 or more, depending on the size of the structure and the quality of materials.
What should be included:
Planning ahead is crucial; decide on all the expected uses of the garage, from parking vehicles to work areas and storage. Better Homes & Gardens lists planning tips and shows three upscale garage ideas.
Most areas require building permits for garages. Consult with a local building inspector (it's free) before you start any work, even simple design plans. Depending on location, the cost for building permits can be relatively inexpensive or quite pricey.
Building a garage is a complex process that involves design, possibly demolition, excavation, site preparation, foundation work, framing and carpentry, roofing, insulation, windows, doors, eaves, exterior siding, electricity, ventilation and often plumbing. A general contractor will walk you through the process, hiring and scheduling subcontractors to do each phase of the work. ThisOldHouse.com describes a garage project.
Additional costs:
Plans for simple or elaborate garages run $20-$200; the book Build Your Own Garage Manual sells for less than $12.
Shopping for building a garage:
Do-it-yourself plans or kits are available through Archway Press, FirstDayCottage.com, HomePlaceStructures.com, ABetterGarage.com and ABetterPlan.com.
Contractor referrals are available through the National Association of Home Builders and the National Association of the Remodeling Industry.
Get several estimates, making clear what is (and isn't) included in each quote; request and check references; ask about the contractor's length and type of experience, Be sure they're properly bonded, insured and licensed in your state. See if there are any complaints with the Better Business Bureau.

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