Axiom Homes brings unique cost structure She is known as the Lady Home Builder and 24-year-old Danielle Addington has made a name for herself in the Edmonton-area housing market with 18 new homes built, 31 under construction and a unique billing system for clients.

Now, as a slowing economy hits new home construction, Addington, founder and president of Axiom Homes Ltd., is expanding to Calgary.

The company has set up a temporary office in the city while it explores a permanent office location.

“We’re all ready to go,” said Addington on Tuesday while in Calgary. “We’ve had a lot of calls from Calgarians in the last year, so we’ve decided to expand our services to Calgary and greater area.

“We keep a positive outlook and it’s important for us to always be growing. And as much as we’re aware that this is probably a slow time here, we have such a unique service that the way that we offer it, it doesn’t affect us perhaps in the way it might affect other home builders.

“The service we offer may be just what people need right now. So we see no reason not to go straight ahead.”
The company has yet to start a home in Calgary, but Addington, who founded Axiom in 2003, said a few projects are in the works.

The custom-built homes range from 1,200 square feet to more than 5,000 square feet. The average, said Addington, is a two-storey home of about 2,800 square feet. Clients own the lots.

Addington said the company has a cost-plus fee structure where clients are offered builder pricing without the markup, and it charges a flat fee for its involvement as the builder. Clients are billed as Axiom is billed by tradespeople and suppliers. The flat fee on top of that is $35,000.

Homes can take seven to 12 months to complete.

“Because of the builder discount we are able to pass on to the clients, our clients do save anywhere from $75,000 to $150,000 on average, but often more,” she said.

Addington said the unique billing system was formed out of necessity when she started the company in 2003 and she was not in a position to be financing new home construction.

“I had to devise a structure that would allow me to still build but with our clients basically shouldering the responsibility of the financing of it. That’s how it started,” said Addington.

Addington’s interest in home building started early as she managed her first project at the age of 16 under the guidance of her father. Her parents built custom homes and speculative homes.

After that, Addington enrolled in the Professional Home Builder’s Institute of Alberta for her professional site manager certificate and then acquired her graduate master builder certification.

While her age and gender might raise some eyebrows, she downplays their impact.

“As we gain more and more credibility as a company, it becomes less and less an issue at all. At this point, we’re so well established that I’d say it doesn’t have any effect anymore,” said Addington.
The expansion of Axiom into the Calgary market is surprising considering the current economic climate, particularly in the residential construction industry, said Adam Legge, vicepresident and chief economist with Calgary Economic Development.

“So they obviously are seeing an opportunity or a specific market segment. I noticed this construction has a different pricing model, which they may feel is advantageous in a time when people are looking for value or cost savings.”

Recently, Canada Mortgage and Housing Corp., in its Housing Market Outlook, forecast housing starts in the Calgary census metropolitan area to drop by 51.9 per cent in 2009 from the previous year to 5,500 units, but to increase by 12.7 per cent in 2010.

The Calgary CMA includes the city, Airdrie, the Municipal District of Rocky View, Chestermere, Cochrane, Irricana, Beiseker and Crossfield.

mtoneguzzi@theherald.canwest.com