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This is a big subject. There are so many areas where the type of construction impacts the cost. Just to establish a framework, lets look at the total board footage for a particular frame to get a sense of where these prices come from. The frame sketch and beam list shown here were done for a simple cape style home 28' x 58' with dormers. The floor plan offered approximately 2500 sf of living area. The list shown represents 10,814 board feet of lumber for a frame. When the preliminary plans, specifications and beam list were sent out for bid the price for a douglas fir frame ranged from $50,455 to $67,855 to $80,082. Assuming the price of douglas fir timber to average $2/bf, the cost of material was approximately $21,628. The cost of labor,
shop overhead and office overhead can vary considerably from shop to shop. There are other factors that can go into the price of a timber frame. More and more companies are investing in robotic milling machines guided by CNC (computer numerical control) software. The investment in these machines can be high, when considering not only the cost of equipment but also that of set up and training. Hundegger is one of the better known names in this industry. A frame can be cut much faster, more accurately and with fewer people but the increased overhead factor means that either prices remain high or sales volume is greatly increased to spread the cost of investment over more projects.
Sales commissions can range anywhere from 5% to 25% depending on whether the company has in house salesmen or if they rely on just a dealer network. Those that have both have the highest commission overhead. A printed color brochure usually has to be updated every three to four years at a high cost and website design and maintenance can be expensive. When a company sells their brochure for $10 or $15 they are only recapturing a small portion of that investment. Finally, advertising for the larger companies can reach totals of $100,000 or more since a typical 1/4 page ad in one of the trade magazines can cost $3,000 to $4,000.
It is clear that there is nothing simple about the cost of a timber frame package. It can be said, however, that everyone in the timber frame industry looks to the pricing from the larger companies so that the cost of all that overhead becomes the standard. Small timber framers are often called upon to compete with the price quotes of the larger companies and they feel justified in offering products for a only a bit less for the simple reason that they can. It is also justified by the fact that they may only build a few frames per year and so need to make as much profit as possible on them.
None of this bodes very well for the builder or home owner out shopping for good quality at a fair price but there is actually some very good news in all of the confusion noted above. Since there is no clear standard pricing like there is on automobiles for example, timber framers can be made to look more closely at their costs and profit margins if they are convinced that they are in competition with others for your business. This is where your membership in the ITFB can really help. By designing well and specifying the frame beam list, timber frame companies will find it easier to quote and be more likely to take your project seriously. Even something as simple as finding companies that DO NOT have a dealer in your area may mean that they have a 10 or 15% commission that they don't have to pay and therefore might give it to you instead!
It was mentioned earlier that the post & beam method of construction could save you or your clients money if they found that to be an acceptable way of introducing heavy timbers into the finished interior of their new home or addition. This is primarily because there is really no reason to consider purchasing such a package from a manufacturer. The design and engineering required for post & beam structures can actually be less complicated than stick built and there are abundant sources for quality beams in almost any species you might desire. This link will take you to Cowls Sawmill in Amherst, Massachusetts.
The ITFB can provide you with the information and tools you need to be able to build post & beam or even timber frame projects with simple joinery for your clients and never even have to make contact with a timber frame company. The savings, depending on what your price comparisons are based on, will be enormous. The design, engineering and source of supply backup is available through Timber Frame Consultants so that you, as a member, simply tell us what you are trying to accomplish and we can either take care of it for you or provide the design training and tools needed so you can do it yourself.