📨 Contractor’s Digest – Daily Rundown (May 1, 2025)

📨 Contractor’s Digest – Daily Rundown
📅 Thursday, May 1, 2025
🛠 Helping Contractors Win More Jobs, Increase Profits & Avoid Costly Mistakes

🚧 Today’s Rundown
🔹 Feature Story: 7 Things to Look for When Buying Land for Spec Homes
🔹 Business Tip: How to Track & Control Costs on Spec Builds Without Cutting Corners
🔹 Tool Spotlight: Best Budgeting & Job Costing Tools for Small Developers

🏗️ Feature Story: 7 Things to Look for When Buying Land for Spec Homes
Buying the wrong lot can turn a profitable build into a budget sinkhole—fast.
If you’re building spec homes, land selection is everything.
Here’s what smart developers check before they close:

✅ 1. Zoning and Density Rules

Don’t assume you can build what you want.
Check:
• Max units allowed
• Minimum lot sizes
• Setbacks and height limits
📍 Bonus tip: Look for areas zoned for infill or ADUs—instant ROI potential.

✅ 2. Topography and Drainage

Flat land builds faster and cheaper. Slopes, low areas, or poorly drained lots = higher foundation costs and longer timelines.

✅ 3. Utility Access

Is power at the street? What about water, sewer, or gas?
Lots without utilities may seem cheap—until you see the trenching bill.

✅ 4. HOA or Deed Restrictions

Some neighborhoods restrict exterior materials, building size, or design.
🧨 Don’t get stuck building a house you can’t sell because it doesn’t match the neighbor’s aesthetic.

✅ 5. Neighborhood Comps

Study recent sales in a half-mile radius.
✔️ Can you build to a price point that actually sells in this area?
✔️ Is there demand for the size/style you’re planning?

✅ 6. Days on Market Trends

If homes in the area are sitting for 90+ days, be cautious—especially if you’re planning to list right after completion.

✅ 7. Exit Strategy Fit

Are you selling retail? Renting out? Flipping to an investor?
Choose land that aligns with your short-term and fallback exit plans.

🚀 Pro Tip:
Look for land where existing infrastructure meets future growth.
That’s where the money is.

📩 Want our “Spec Builder Land Acquisition Checklist”? Reply and we’ll send it your way.

📌 Business Tip: How to Track & Control Costs on Spec Homes Without Cutting Corners
Margins are tight. Material costs swing. Labor fluctuates.
If you don’t have a system to track costs daily, you’ll bleed cash before you even hit drywall.

🔍 Where Most Spec Builders Lose Money:

❌ Untracked change orders
❌ Sloppy vendor billing
❌ Ordering too early—or too late
❌ Crews waiting on answers or materials
❌ No real-time view of budget vs actuals

✅ Your 4-Part Cost Control System:

🔹 1. Create a Phase-Based Budget
Break down costs into phases:
• Site prep
• Foundation
• Framing
• MEPs
• Interior finishes
• Exterior
• Punch + Cleanup
✅ Assign cost limits to each—and track daily.

🔹 2. Use Field-Ready Tracking Tools
Tools like JobTread, CoConstruct, or a Google Sheet with shared access make it easy to enter spend from the field.
Keep subs and superintendents accountable with live logs.

🔹 3. Standardize Materials & SKUs
Spec building isn’t the time to “let the client pick anything.”
Create packages for:
• Flooring
• Cabinets
• Paint
• Fixtures
It reduces waste, simplifies ordering, and saves money in bulk.

🔹 4. Log Every Change—and Price It
If your team decides to move an outlet or switch cabinet hardware, that goes in the log.
Even small changes add up fast—and if they aren’t documented, you eat the cost.

🚀 Pro Tip:
Use a weekly budget meeting (15 mins) to review:
• Budget vs. actual
• Upcoming purchases
• Any pending changes
It keeps your team aligned—and your profits protected.

📩 Want our “Spec Build Budgeting Template”? Reply and we’ll send it your way.

⚙️ Tool Spotlight: Best Cost Tracking Tools for Small Builders
📱 Top Picks:
🔹 JobTread – Budgeting, PO tracking, change orders, and Gantt charts
🔹 Buildertrend – Full-service tool for schedule, selections, and costs
🔹 CoConstruct – Great for spec and semi-custom builders
📦 Want a breakdown by use case and budget? Reply and we’ll send our Cost Tracker Comparison Sheet.

📣 Call to Action
🔥 Know someone building spec without systems? Forward them this.
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👷‍♂️ Buy smart, build lean,
— Benjamin Patton