What is the cost to build an 850 square foot laneway home behind my house in Marda Loop with separate utilities?

Building an 850 square foot laneway home in Marda Loop will typically cost between $170,000-$340,000, with most projects falling in the $220,000-$280,000 range including separate utilities and permits.

The wide cost range reflects significant variables in finishes, site conditions, and utility connections. Your base construction cost will run $150-$250 per square foot for the structure itself, meaning $127,500-$212,500 for 850 square feet. However, the separate utilities connection adds substantial expense - expect $25,000-$50,000 for electrical service upgrade and separate meter, gas line extension, water/sewer connections, and any required utility infrastructure upgrades.

Site preparation and permits add another layer of costs. In Marda Loop's established neighborhood, you'll need both a development permit ($1,500-$3,000) and building permit ($3,000-$8,000) from the City of Calgary. Site work including excavation, grading, and foundation can range $15,000-$35,000 depending on soil conditions and access. Marda Loop sits on Calgary's typical expansive clay soils, so proper foundation design and drainage are critical - budget for engineered footings extending below the 4+ foot frost line.

Utility connections are often the biggest surprise cost. ENMAX electrical service upgrade to accommodate a separate dwelling typically runs $8,000-$15,000. ATCO gas line extension averages $3,000-$8,000 depending on distance from the main line. Water and sewer connections through the City of Calgary can cost $10,000-$25,000 if you need to tap into mains or upgrade your service. Some Marda Loop properties may require utility easement agreements with neighbors, adding legal costs.

Finish level dramatically impacts pricing. Basic finishes (vinyl plank flooring, laminate counters, standard appliances) keep you toward the lower end. Mid-range finishes (hardwood, quartz counters, stainless appliances) push costs to $200-$220 per square foot. High-end finishes (custom millwork, premium appliances, designer fixtures) can exceed $300 per square foot.

Calgary-specific considerations include designing for extreme temperature swings from chinooks, snow loads per the Alberta Building Code, and ensuring adequate insulation for -30°C winters. The laneway home must be a maximum 85 square meters (915 square feet), so your 850 square foot plan fits within regulations. You'll need separate entrance access, likely from the back lane, and must maintain required setbacks from property lines.

Professional requirements include hiring a registered builder under the Alberta New Home Warranty Program since this is new construction. All electrical, plumbing, and gas work requires licensed contractors and Safety Codes Council of Alberta inspections. Structural work needs engineered drawings stamped by a Professional Engineer licensed in Alberta.

Timeline expectations run 8-12 months from permit application to occupancy, with 6-10 weeks for development permit approval and 4-8 weeks for building permits. Construction typically takes 4-6 months depending on weather and complexity.

Next steps: Start with a development permit application through calgary.ca, get architectural drawings prepared, and obtain quotes from registered builders. Browse verified contractors in our Calgary directory who specialize in laneway homes and secondary dwelling units. Budget an additional 10-15% contingency for unforeseen site conditions or permit requirements that often arise in established neighborhoods like Marda Loop.