First of all, be careful when considering cost per square foot when comparing builders.  The cost per square foot is a “ball park” figure, it is not the absolute measure of the quality of a building, a builder or a bid – and plenty of factors can affect it.

Like every business, a builder bases their cost on labor, overhead (like telephone, internet and insurance), the actual materials used and fixtures. Here’s a generalized example, if a car manufacturer makes a car with cloth seats, the seat cost will be lower than for a manufacturer who uses leather seats.

In our business, if a builder uses hardwoods for flooring, trim and other visible wood components, installs high-quality plumbing and lighting fixtures and high-quality carpets that bid can be dramatically different than the bid coming from a builder using ”economy grade” versions of those items and materials.