10 Commonly Misunderstood Topics in Custom Homebuilding

1. Impact Fees & Permitting Costs

• Many clients think permits are only a few hundred dollars.
  
  

• Reality: Between impact fees, building permits, utility hookups, and engineering reviews, Utah clients can be out $15k–$40k before digging a hole.
  
  

2. Site Work & Utilities

• Excavation, grading, retaining walls, and utility trenching are often underestimated.
  
  

• Rocky Mountain Power, Dominion Energy, and water districts charge hookup/connection fees that can run thousands, especially in rural areas.
  
  

• Clients don’t realize they may need to pay for extending utilities to the lot if it’s not fully serviced.
  
  

3. Soils & Engineering Requirements

• In Utah, a geotech/soils report is almost always required.
  
  

• If expansive clay or poor soils are found (common in Utah Valley), it can mean costly foundation upgrades (piers, over-excavation, engineered fill).
  
  

• Homeowners rarely budget for this.
  
  

4. Change Orders & Allowances

• Clients think they can swap finishes freely, but every change ripples through subcontractors, schedule, and budget.
  
  

• Allowances (e.g., $15k for cabinets) are often misunderstood as “that’s exactly what I’ll pay” — when in reality, upgrades or customizations can easily double the cost.
  
  

5. Timeline & Scheduling

• Homeowners expect a fixed, short timeline.
  
  

• Weather (snow in Utah winters, spring mud), subcontractor availability, inspections, and material lead times all cause delays.
  
  

• A “12-month build” can become 14–16 months without anyone doing anything wrong.