Green Building Professional

Jenkins Custom Homes recycles 80% of all jobsite materials on every custom home construction project in Austin.

Just call us Austin green home builders, as we have been doing this for over 3 years now in partnership with Construction Waste Recycler of Texas.  It is simply the right thing to do for our environment.  It doesn’t cost that much extra and tends to keep the jobsite cleaner, not to mention the positive effect it has on all who work on the project and visit it.  We are proud, as a home builder, to support the environment and promote good, green community relations on all our jobs.

Top 8 Custom Home Pricing Questions

We are often asked questions about pricing in our industry.  So we thought it might be helpful to arrange a list of frequently asked questions (FAQ’s) about pricing in the custom home industry. These are our top 8 custom home pricing questions.

1) Question: Do you send each and every house plan out for bids from the trades before you provide the estimate to the client?

Answer:  No. There are several reasons for this. The primary reason is that residential estimating, unlike commercial, has too many variables. Commercial construction can be specified and estimated in a fairly precise manner. Residential cannot, at least not high-end residential. High-end residential consists of hundreds of different products which can go into the home, each resulting in a different labor and material cost.

2) Question: So how can you be so detailed and precise in your cost estimates?

Answer: We select the products that provide the best cost/benefit to the client and then use our extensive cost database to price each item. We use past labor costs to predict future costs. In essence, we have taken our years of experience and documented the cost of each and every one of the options in order to build a cost database that will allow us to be precise in our numbers.

3) Question: Do you know the cost of every option?

Answer: No. We do have to make a phone call every now and then to get pricing on something we haven’t ever used. There are always new products on the market, and we have to learn all about how to install them and what the various costs are so that we can be accurate in our estimates. To us, being accurate is tantamount to being honest. Once we have given a firm price to the client, we will never go back and ask for more money. So, we had better be accurate or it will cost us!

4) Question: Why are there so many different options and variables in residential construction versus commercial?

Answer: Primarily because clients in the high end are willing to consider the cost-benefit of better products. When price is all that matters, the less expensive option will always be chosen. However, high-end clients are willing to consider the ongoing maintenance costs of the home, energy costs, and what we call “lifestyle upgrades” such as whole house automation.

5) Question: If there is so much variation in the pricing, how can bids be compared from one builder to the next?

Answer: It’s tough. The best way is to ask for as much detail as you can possibly get. Then, ask more questions about the products chosen and methodologies being employed for each discipline. For example, where concrete is concerned, ask about the type of slab (slab on grade or post tension, for example), PSI of the concrete being used, soil testing, engineering of the slab (how much rebar, etc,) and keep asking questions until you feel confident in the answers you are getting. Ask the same questions of all your builders so that you can find out if they’ve all priced things generally the same.

6) Question: If I find a builder who has less experience and has forgotten to price everything in, haven’t I just found a bargain?

Answer: You would think so, but the answer is a resounding no. There is no industry in which the saying, “You get what you pay for” is MORE true than the custom home industry. If you don’t agree, read about the Sandra Bullock lawsuit against her home builder in Austin. She sued her builder and actually won. Many, many others who aren’t able to sue or who didn’t win have similar stories to tell. Building a home is complex. If done properly, it will be a huge blessing for many years to come. If not, it will be a curse. It’s as simple as that.

7) Question: Is there a big profit margin in the custom home industry?

Answer: No, and this is probably the area of the most confusion. People think about retail markets such as jewelry where markups can be 50% – 100% and assume our market is similar. Unfortunately for us, the margins are paper thin in the custom home industry. For instance, the common cost plus markup in our area is cost plus 18%. In this industry we deal with REALLY BIG numbers and REALLY BIG risks and LITTLE BITTY margins. That’s just the nature of our business.

8.  Question: Why is there so much variation in cost from builder to builder if the margins are so small?

Answer: Because of the many variations in products that go into the home. This goes back to the answer in #1. Also, there can be a fairly big difference in labor costs.  That’s another area where an experienced builder can really save you money. Good relationships with trade partners yield the best results and pricing.

What are your questions? If these questions have led you to more questions, bring them on. I will be glad to do my best to answer them.

Designs that Inspire

Grandchildren Sleeping Quarters

Today, we are talking about design elements that inspire. Inspiration can come from many sources and this one comes from function, specifically how a home can really make family time more precious and valuable. When we interviewed these clients, they talked about the importance of having a home that was central to their kids (and, hopefully, future grandchildren). They had one grown child who was getting married soon and another who might be at some point. So, they wanted a home that would accommodate, even encourage, their kids to come and stay with them. ?Austin, being central to Texas, was the ideal location for all of them to meet. Plus, waterfront was available and is, besides being a great investment, attractive to the kids. This all culminated in a desire to build a custom home. So, we were commissioned to do just that.

One of the design elements that we recommended to them was the grandchildren sleeping quarters. Although they hadn’t given much thought to it, we told them about the different stages and, well, challenges of having young children while visiting Mom and Dad’s house. They were determined to make this a home that would be inviting to the whole extended family and encourage them to stay as long as possible. So, by designing the grandchildren sleeping quarters just down the hall from their parents, we were giving the parents a good night’s sleep. Let’s face it, if the parents sleep well and have a quiet place to rest even during the day, they will stay longer.

Courtyard

Another design element we felt was important for young children was the front courtyard, especially for this specific lot. The lot had sloping topography requiring a raised slab in back and the lake at the property line, neither of which were a great place for young children. The front courtyard is enclosed, making it a safe place to play and enjoy. Even the fountain is tall and wide enough to be kid-safe.

If you would like to see more photos of this beautiful custom home, click here.

Aggie100 Winners

This is the Press Release that was sent out last weekend:

Luxury home builder, Jenkins Custom Homes, was honored today as the 6th fastest-growing Aggie-owned business in the world, with an average compound growth rate of 94.13%!  The luxury home builder was recognized at the seventh annual Aggie 100 program, sponsored by Mays Business School’s Center for New Ventures and Entrepreneurship at Texas A&M University. The Aggie 100 focuses on growth as an indicator of job creation, product acceptance and entrepreneurial vision. Recipients of the award were selected based on verified compound annual revenue growth for the 2008 to 2010 period. In addition to this honor, Jenkins was also recognized as one of only three companies which have been named in the Aggie 100 for five out of the last seven years since the program has been in existence.  This is the longest sustained growth of any Aggie100 recipient.

Nearly seven hundred people attended the awards luncheon in The Zone Club at Texas A&M’s Kyle Field. Texas A&M University Women’s Basketball Coach, Gary Blair, presented the keynote address at the luncheon. After leading the Aggie Women to a 2010 NCAA National Championship, it was only fitting that he inspire the group of entrepreneurs by sharing his thoughts on true leadership. Kelsey Assarian, a member of the winning basketball team, sat at the table with Shan & Bethany Jenkins, along with Porter Garner, CEO of the Association of Former Students, and other distinguished faculty.

Earlier that morning, Jenkins had breakfast with the Dean of the College of Architecture, along with the Department Heads, which include the Department of Construction Science, Architecture, Landscape Architecture and Urban

Planning, and the Department of Visualization. After breakfast, Jenkins was given a personal tour of some of the technology being used to design homes and commercial buildings in the Department of Architecture.  One such technology, called the “BIM Cave” (Building Information Modeling Cave), surrounds students with display screens which allow them to be immersed in the design from multiple sides.  Such technology allows aspiring architects to envision spaces within the home or commercial structure during the design process, a very useful technology which could be used to assist the luxury home builder’s clients as well.

This year’s Aggie 100 companies posted an average compound growth rate of 41 percent. The complete list can be found at aggie100.com. The Top 10 Aggie 100 companies include:

“Since the founding of Texas A&M University, Aggies have been leaving a legacy across all businesses and industries,” said Dr. Richard H. Lester, Executive Director of Mays Business School’s Center for New Ventures and Entrepreneurship. “Over the last seven years, the Aggie 100 companies have continuously proven that even in tough economic times, solid business ideas and hard work pay off.”

To be considered, companies (corporations, partnerships, sole proprietorships) must operate in a manner consistent with the Aggie Code of Honor and in keeping with the values and image of Texas A&M.  After receiving the award five out of the last seven years, Jenkins Custom Homes is a shining example of the legacy of leadership.

Do it Right or Don’t do it at ALL

Custom Luxury Homes Lessons to be Learned

“Do it right or don’t do it at all!”  Growing up, if my Dad said this to me once, he said it a thousand times. It’s no wonder that phrase consistently permeates my thoughts, even subconsciously.

We recently started doing some renovation work on a home our client acquired for $2.5M. Just a few years ago that same home appraised for approximately $5 million. “Wow, things in Austin are worse than I thought,” you might say. Well, not really. What happened is that the original builder neglected to install the proper flashing and waterproofing, so what started out as a beautiful luxury custom $5M home, soon lost half of its value when the underlying water damage began to surface (see photo of removed window sash below). The home sat vacant for several years, and during that time, it’s value steadily plummeted.  It turns out that there isn’t much demand for $5M leaky, moldy, rotting homes.

The sad part is that none of this should have ever happened. Proper construction techniques could have prevented all of it. This luxury home was originally constructed in 2001 when demand for custom luxury homes was high and supervision spread thin. What many consider to be the “small details” seemed to have gotten overlooked and in some instances completely left out. Unfortunately, we live in a time when very few plan drawings detail the proper flashing and waterproofing requirements for each specific job. Many architects and designers these days leave those details to the builder to figure out. Unfortunately, most builders leave it to the framing contractor to figure out, and most framing contractors assign the work to their least skilled crew members, the carpenter helper. Fast forward 8 years, and the “small details” ended up costing this home owner $2.5 million.

I’m frequently disappointed with the overall lack of skill within the Building Sciences as a whole, both residential and commercial construction. In the State of Texas, for example, there aren’t any licensing requirements for general contractors, so anyone can be a “builder”! Furthermore, with little capital requirements, there are few barriers to entry, so it’s easy to see how, in what should be a professional industry, there are many that are not.

Thankfully, Texas has licensed Architects and Engineers, but their services aren’t always required by municipalities, and few clients choose to pay for “flashing details”.  Certainly, clients understand the art and creativity the architect brings to the project, and they understand the structural integrity the engineer brings to the project, but who is responsible for the mechanical systems? Who is responsible for flashing and waterproofing details? My favorite engineering example is concrete design. The engineer will commonly specify concrete to a design strength of 3,000 psi at 28 days and conform to ACI 302.  This means that, at 28 days, the concrete should achieve a minimum hardness of 3,000 pounds per square inch. That’s all well and good, but what does it take to achieve 3,000 psi concrete? What if it’s 110 degrees Fahrenheit the day you are scheduled to pour concrete? Does that require a different concrete mix than if it’s 40 degrees Fahrenheit? Who makes the call to the batch plant to alter the mix design for the given weather conditions? What if 3 crew members don’t show up that day, should you change the mix design then? These are the realities that all builders face, but only the true professionals with years and years of experience know the answers to. Maybe a good interview question for a potential builder might be, “Do you know what the ACI is?” or at least, “Do you know the factors in achieving 3,000 psi concrete?”

These kinds of issues drive me crazy… If you are a builder of custom luxury homes reading this, don’t let $12,000 worth of missing or improperly-installed flashing and waterproofing ruin your client’s multi-million dollar investment.  Do it right, or don’t do it at all!

Shan Jenkins is President of Jenkins Custom Homes, Inc.  Shan has a Bachelor of Science degree in Construction Science from the College of Architecture at Texas A&M University. While Shan has been in the commercial & residential construction industry for almost 25 years, he has owned and operated Jenkins Custom Homes (which designs and builds luxury custom homes), SL Jenkins Construction (a commercial construction company), and Jenkins Waterscapes (a pool building company) since 1992 and this January celebrates 20 years in the industry.

Designing and Building in a Floodplain

Waterfront properties are among the most desirable home-sites in the world. Living on the water offers incredible views and recreational activities. However, they may also be in the floodplain. The Federal Emergency Management Agency (FEMA), ranks Travis County (including Austin, Texas) in the Top 10 % of counties in the nation that are at risk for significant flood damage. Along with the beauty and allure of owning waterfront property comes the challenge of building within an established flood zone or flood plain area.

The two primary documents for designing & building in the flood plain (zone) are ASCE 24-05 (American Society of Civil Engineers) andFEMA 54 (Federal Emergency Management Agency). ASCE 24-05 & FEMA 54 engineering standards are broken into two basic categories: Step 1: Function and Step 2: Form / Aesthetic. (“It’s not just what it looks like and feels like. Design is how it works.” -Steve Jobs)

STEP 1 – FUNCTION

• All structural components must be adequately connected to prevent flotation, collapse, or permanent lateral movement. FILL DIRT MUST REMAIN STABLE UNDER FLOOD CONDITIONS!
• All service equipment must be elevated above the flood zone – including heat pumps, air conditioners, hot water heaters (tankless), circuit breakers, electrical junction boxes, outdoor appliances, etc.
• Any space designed for habitation MUST be elevated above the Flood Zone.
• Permitted in the Flood Zone: vehicular parking, limited storage and building access (stairs). Elevators are permissible subject to separate design guidelines.

REDUCING HYDROSTATIC PRESSURE

Constructing a crawlspace beneath the first floor will raise the lowest floor of the structure above the surrounding grade. Openings in the foundation walls are then required. If flooding reaches the building, the openings allow flood waters to enter the area below the lowest floor and equalize the hydrostatic pressure on the foundation walls.

WIND:

Buildings elevated above the ground can be more vulnerable to wind!

STEP 2 – AESTHETIC

Design to meet performance standards, but don’t forget:

• VIEW (We paid for lake views, we want lake views)

• SUN ORIENTATION

• WIND

• NEIGHBORHOOD / DESIGN GUIDELINES

Technique #1: Raise the lowest floor

Technique #2: Design lower level of house as non-habitable and build habitable home above floodplain

How Do I Get a Permit to Build in the Flood Zone?

IT’S COMPLICATED…

1. See City of Austin Land Development Code 25-7-92, 93, 94, 95 & 96…….

OR

2. Call Jenkins Custom Homes.