We just finished a custom home project, the cost ended up being about $110/SF. and it wasn't enough. The next one that is coming down is very siimilar it breaks down to about $150/SF, and we still are not tops in our market.
Workers comp. is completley out of control. For every dollar one of my guys earn, I have another dollar in Workers comp and payroll tax just to break even, so I have to sell them for 3x thier earnings? Plus everytime I call a sub or supplier I get notice of cost increases. We are paying 40% more some basic materials (plywood, drywall, etc.) than we were just two years ago.
Four or five years ago I would have dreamed of getting $110/SF for our projects, but now it just isn't enough. It really is kind of crazy. I don't mind, but we do get caught off gaurd sometimes with our costs and it is difficult to deal with homeowners who aren't aware of the rapid increases. Try explaining to a guy why his two room addition will cost as much as his nieghbors second story did 2 years ago.
Enough rant, perhaps this should be a new thread.