At RKM Homes, designing and building a custom home on your lot means the base price is intended to cover the essential design and construction elements needed to deliver a complete, code-compliant house — not every optional upgrade or unique site challenge. Because every lot is different, understanding what the base package includes helps you compare bids and avoid surprise change orders. We price base homes to account for typical Denver-metro conditions and standard finish levels so you can see the difference between core construction costs and optional upgrades.
Our standard base price includes an initial site evaluation and coordination of permit submittals, a foundation sized for typical soil conditions, full structural framing, roofing and exterior finishes (siding, windows, exterior doors), basic HVAC, electrical and plumbing systems installed to code, insulation and energy requirements per local code, drywall, interior paint and trim, standard cabinetry and countertops with set allowances, basic flooring allowances, standard bath fixtures, an attached garage, and project management through final inspections. Permit fees, routine utility hookups to available services at the property line, and a limited builder warranty are included in the base contract; allowances identify the level of cabinetry, countertops, flooring and fixtures you can select without immediate upcharges.
What the base price usually does not include are lot acquisition, major site work (extensive grading, retaining walls, rock blasting or removal, deep footings), septic or well systems, long utility extensions or tap fees, upgraded mechanical systems or high-end finishes beyond the stated allowances, landscaping or hardscaping beyond a basic seed/sod and driveway approach, specialty engineering, or costs arising from unforeseen subsurface conditions. Rocky soils, steep slopes and variable utility access around Denver can change costs quickly, so we provide a detailed, line-item estimate with exclusions and upgrade options up front and walk through trade-offs so your final contract reflects exactly what you want and what your lot requires.
Is lot purchase, topography, easements and required site work (grading, soil remediation, retaining walls) included in the base price of a build-on-your-lot custom home?
As a builder I always start by clarifying that the base build price typically assumes you already own or provide a buildable lot and that the property is reasonably typical for the plan. Purchases of the lot itself are usually separate from the base construction contract; if a builder does buy the lot for you that cost is shown as an explicit line item. Before you sign, insist on a copy of the survey and title/plat showing easements and setbacks — those documents determine your house footprint and often create extra work (relocating driveways, moving septic fields, or redesigning foundations) that won’t be covered by a generic base price.
Topography and soil conditions are the biggest drivers of extra site costs. A gently sloping, well-drained lot generally only needs a standard building pad, basic grading and compaction, and erosion control — items many builders include in the base site prep. Steep lots, lots with bedrock, expansive clays, or poor fill usually require engineered grading, deep footings or piers, soil remediation, rock removal or retaining walls; those are almost always priced as add-ons. Ballpark ranges in our Denver projects: simple grading/site prep $10k–$30k, engineered retaining walls $8k–$40k (scope-dependent), and soil remediation/rock removal can run tens of thousands when blasting or haul-off is required. A geotechnical (soils) report and topographic survey early in the process will tell you what’s likely to be charged.
Easements, drainage and access requirements also produce charges that shouldn’t be buried in vague contract language. Utility easements can restrict where your foundation goes or require you to leave infrastructure access clear; drainage/erosion control (especially with Denver storm rules and HOA requirements) can require engineered swales, culverts or extended driveways. Practical steps: get an ALTA or boundary survey, commission a soils report, ask your builder for a written “site allowance” that lists which items are included and which are priced separately, and build a contingency (we recommend 10–20% of expected site costs) into your budget. Clear line items in the contract and early site investigation are the single best ways to avoid surprise change orders.
Site utilities and development (septic/sewer, well/water hookup, electrical/gas hookup, driveway, drainage/erosion control)
What site utility hookups are normally included in the base price of a build-on-your-lot custom home? From our experience, the base price typically covers bringing the house-side rough‑ins to the prepared pad — that means the plumbing, electrical and mechanical rough‑ins through the foundation and a stub to the property line or to a nearby utility stub if municipal services are available. If you’re on a municipal system and the main is already at the road, we usually include the on‑lot hookup up to a defined distance; however, utility company tap fees, off‑site main extensions and major trenching beyond the “typical” run are commonly billed separately or shown as allowances in the contract. For private systems, well drilling, pump systems, septic design and installation are often excluded from a basic base price unless explicitly stated as an allowance.
Who pays for driveway construction, utility trenching and other development work, and how should these be budgeted? We recommend getting line‑item estimates up front: basic site access (a temporary construction driveway and grading) is part of our construction staging, but the finished driveway material (concrete, asphalt, pavers) is usually an upgrade or separate line item. Utility trenching and boring through rock can dramatically increase costs — clarify in the contract how many linear feet of trenching are included and who covers directional boring, rock removal or county/utility district tap fees and meter installations. Ask us for a written breakdown that shows what is an included stub, what’s an allowance, and what triggers a change order so you aren’t surprised by a utility extension or transformer charge from the utility company.
What drainage and erosion control measures are included during construction versus what you’ll need after move‑in? Temporary best‑management‑practices (silt fence, inlet protection, sediment basins and erosion control during grading) are required by permit and are included in our standard site work; permanent solutions such as engineered swales, French drains, detention/retention systems, culverts under long driveways, or large retaining walls are scoped and priced separately because they are site‑specific. Before signing, request a grading and drainage plan and a soil/drainage report; that lets us identify whether the base price will cover simple regrading and a basic lot swale or whether you’ll need an allowance for engineered stormwater controls so the finished yard functions properly and meets municipal and HOA requirements.
Base construction scope (foundation, framing, exterior shell, roof, windows/doors, basic HVAC/plumbing/electrical rough‑ins, insulation)
What structural elements are typically covered in the base construction price and how should I verify them?
As builders we include the core load-bearing work in the base: the foundation as designed (slab, crawlspace, or basement), the framed shell (walls, floor systems, roof structure), sheathing and weather barrier, and a basic roof deck. Practical steps: ask for a written spec sheet that lists foundation type (depth, footings, engineered walls), framing members (2×4 vs 2×6, truss vs rafter), sheathing thickness, and house wrap/air barrier details so you can compare bids apples-to-apples. If your lot or design requires deeper footing, engineered beams, or structural beams exposed in the plan, those should be identified as either included or listed as potential extras.
What do builders usually mean by “basic HVAC/plumbing/electrical rough‑ins” and what will cost extra later?
“Rough‑ins” in the base price means we run the duct chases, stub plumbing lines, and electrical circuits to locations shown on the plan, set up the main service locations and panels, and leave the system ready for final equipment and fixtures. What’s commonly NOT included in base is the finished HVAC equipment (furnace/AC), premium plumbing fixtures, upgraded electrical panels, specialty wiring (home automation, panel upgrades), and final trim-out labor for appliances and fixtures—those are either allowances or upgrades. Before signing, get the contract to state what level of insulation (R-values for walls and attic), air-sealing expectations, and whether blower-door testing or insulation type (fiberglass batts vs. spray foam) is included, because those choices materially affect comfort and long-term energy cost.
Which exterior components are standard in the base price and how do I compare upgrade options for windows, doors and roofing?
The base usually covers standard-rated windows (typically vinyl), builder-grade exterior doors, basic flashing and trim, and a standard roof covering such as 30-year asphalt shingles. Upgrades—higher-performance windows (low-E, argon fill, wood-clad), larger or custom door units, impact-rated glass, metal or tile roofing—are priced as options. Practical advice: request a product schedule with manufacturer, model, U-factor/SHGC for windows, roof underlayment type, and warranty lengths so you can compare durability and energy performance rather than just appearance; put those exact items into the contract or allowance list to avoid surprises during selections.
What interior finishes are included as standard and what are typically covered by allowances or upgrades (flooring, cabinets, countertops, appliances, lighting, paint)?
As custom builders we price a base home around a defined “standard” finish package so homeowners know what to expect up front. That typically means builder‑grade or entry‑level materials: basic resilient flooring or carpet in living areas and bedrooms, stock cabinets with a standard door style and finish, a budget countertop material or an allowance for a slab, a starter appliance package allowance (or none, depending on contract), basic recessed cans and standard light fixtures, and a single interior paint finish (trim/ceiling and one wall color). The exact items that fall under “standard” vary by plan and builder, so the most important practical step is to have the contract list each standard finish by room (for example: kitchen — stock cabinets, laminate counter, LVP floor) rather than a vague “standard finishes.”
Allowances are placeholders in the base price for selections you will make later; they are not unlimited. We break allowances into line items (flooring allowance, cabinet allowance, countertop allowance, appliance allowance, lighting allowance, paint allowance) with a dollar figure tied to each. If you select materials that cost more than the allowance, the overage becomes a change order you will pay; if you select less expensive items, we credit the difference back to you. Typical ballpark ranges we use when helping clients estimate are: flooring LVP $3–8/sq ft or hardwood $8–15/sq ft installed, cabinetry $12,000–40,000+ for a full kitchen depending on size and style, quartz/stone counters $40–120/sq ft installed, appliance packages $3,000–10,000, and light fixtures $150–800 each. Use those ranges only to sanity‑check your budget and ask your builder for the allowances they will actually put in the contract.
To control cost and schedule, get specific about allowances before signing: require itemized allowances in the contract, a deadlines schedule for selections, and a written policy for how allowance overages are handled. Make your priority list (cabinets and countertops usually drive both cost and the look of the home), request sample packages at the selection appointment so you can compare installed pricing versus retail, and ask for lead times — high‑end cabinets, custom stone and specialty lighting can add weeks to the build if not ordered promptly. We also recommend carrying a contingency (often 5% of finishes or a fixed sum) for finish upgrades and insisting on an allowance reconciliation before final payment so there are no surprises at closing.
Permits/impact fees, HOA/local code requirements, change orders, warranties and contract/payment terms
Which permits and municipal impact fees are typically included in the base price of a build‑on‑your‑lot custom home, and how do I verify those costs up front? As a builder I always list the specific permits (building permit, grading/erosion, ROW, septic or sewer permits if applicable) and note whether municipal impact fees are included or billed as allowances—ask for that list in the contract. Don’t accept a blanket “permits included” line without detail: request the permit types, the current dollar amounts or formula used, who pays the actual invoices at permit issuance, and an agreed contingency for fee increases so you’re not surprised when the city updates rates between estimate and permit issuance.
Does the base price cover HOA and local code requirements, and what items are commonly extra because of neighborhood or jurisdiction rules? HOA architectural review fees, required exterior finishes, specific fencing, driveway treatments or landscaping standards are often owner responsibilities unless expressly included; similarly, county or municipal requirements (stormwater detention, engineered retaining walls, fire mitigation) can add scope. Before signing, get a written list of required HOA/municipal compliance items, who will prepare and pay for required plans/reviews, and an estimate for any site‑specific work triggered by code or HOA conditions so you can budget accurately.
What should be spelled out about change orders, warranties and payment terms so the base price actually protects me from surprises? Insist the contract define the change‑order process (written request, firm price or time-and-materials cap, agreed markup, and schedule impact) and require owner approval above a dollar threshold; require a clear draw schedule tied to inspections/milestones, any retainage amount, and the conditions for final payment and lien releases. For warranties, get the duration and scope in writing (typical is 1 year workmanship, 2 years for systems, 10 years structural), the start date, how warranty claims are submitted and handled, and whether any manufacturer warranties are transferred—these contract terms determine whether perceived “extras” become owner costs after closing.