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Homeowner's checklist before starting on an ADU construction project

Building an ADU requires careful planning and consideration. Being well-prepared is important, as starting an ADU project can be complex and time-consuming. Our checklist helps you consider all necessary factors before construction to ensure a smooth process.

Homeowner's checklist before starting on an ADU construction project

Research and Planning

  • Local Zoning Laws: Thoroughly research local zoning ordinances, including size restrictions, setback requirements, height limitations, and allowable ADU types. This research will determine the feasibility of your project and guide your design.
  • Building Codes: Familiarize yourself with local building codes, encompassing fire safety, structural integrity, electrical, plumbing, and energy efficiency standards.
  • Real Estate Market Analysis: Analyze the local real estate market to understand rental rates, property values, and demand for ADUs. This analysis will inform your financial projections and investment decisions.
  • Feasibility Study: Conduct a feasibility study to assess the viability of your ADU project, considering factors such as cost, timeline, and potential return on investment.
  • Design Considerations: Develop a detailed design plan considering the ADU's layout, size, materials, and aesthetic appeal, ensuring it complements the existing primary residence.
  • Site Evaluation: Evaluate your property's topography, utilities, and existing infrastructure to determine the best location and configuration for your ADU.
TIP: Use our ADU Construction Cost Calculator to help estimate your ADU's price.

Financing

  • Budget Development: Create a detailed budget that includes all anticipated costs, such as design fees, permits, materials, labor, and contingencies.
  • Financing Options: Explore various financing options, including home equity loans, construction loans, personal loans, and cash reserves.
  • Grant and Incentive Programs: Research potential grant and incentive programs offered by local governments or organizations that may support ADU construction.
  • Contingency Planning: Set aside a contingency fund to cover unexpected expenses or cost overruns.
  • Financial Projections: Develop financial projections to assess the potential return on investment, considering rental income and increased property value.
TIP: Use our ADU Financing Calculator to explore loan payment options for your ADU.

Permits and Approvals

  • Permit Applications: Prepare and submit all necessary permit applications to the local planning, zoning, and building departments.
  • Building Permits: Obtain building permits for structural, electrical, plumbing, and mechanical work.
  • Zoning Approvals: Secure zoning approvals for the ADU's size, location, and design.
  • Environmental Approvals: If applicable, obtain environmental approvals for any potential impact on sensitive areas.
  • Inspection Scheduling: Schedule inspections at various stages of construction to ensure compliance with building codes.
  • Utility Connections: Coordinate with utility companies to ensure timely connections for water, sewer, electricity, and gas.

Architect and Contractor Selection

  • Architect Selection: Choose an architect with experience in ADU design and knowledge of local building codes.
  • Contractor Selection: Select a licensed and insured contractor with a proven track record of ADU construction.
  • Engineer Consultation: Consult a structural engineer to ensure the ADU's structural integrity.
  • Written Contracts: Obtain written contracts that clearly outline the scope of work, timelines, and payment terms.
  • Reference Checks: Conduct thorough reference checks on potential architects and contractors.

Budget and Schedule

  • Timeline Development: Create a realistic timeline for each stage of construction, considering potential delays.
  • Material Procurement: Develop a material procurement plan to ensure the timely delivery of necessary supplies.
  • Labor Scheduling: Coordinate labor schedules to ensure efficient workflow and minimize delays.
  • Progress Tracking: Implement a system for tracking progress and managing expenses.
  • Change Order Management: Establish a process for managing change orders and controlling costs.

Insurance

  • Homeowner's Insurance: Review your homeowner's insurance policy to ensure adequate coverage for the ADU.
  • Builder's Risk Insurance: Obtain builder's risk insurance to protect against potential damages during construction.
  • Liability Insurance: Secure liability insurance to protect against potential accidents or injuries on the property.
  • Rental Property Insurance (if applicable): If you plan to rent out the ADU, obtain rental property insurance to protect against damages and liabilities.
  • Worker's Compensation: Verify that your contractor has adequate worker's compensation insurance.
TIP: Use our ADU Utility & Maintenance Cost Calculator to help estimate your ADU's ongoing costs.

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