I would say take the shed, you'll find some use for it. I have contemplated this question also. I have a 20' x 11' basement shop, thats quickly loosing space. If you live in an area with a harsh winters (say the midwest), does it make sense to heat the shop through the week if you are only working in the shop on the weekends? Or do you run the heaters just when you are working in the shop? What kind of heaters are recommended (radient, wood stove, etc.)?

The bench I will be describing differs from both of these in a couple of areas, the most significant of which is the top. Allen's top was made from three layers of 3/4" medium density fiberboard (MDF), topped and edged with 1/4" hardboard. Christiana's top was just two layers of 3/4" MDF. My top is two layers of 3/4" MDF edged with 1/2" oak and topped by a 1-1/2" thick edge-glued oak Ikea countertop. My top is more expensive in both time and money than either Christiana's or Allen's. If you're looking to build something fast and cheap, I'd recommend Allen's approach over Christiana's. The hardboard significantly increases the durability of the top.
A workbench needs to be heavy enough that it doesn't move under you while you're working, and stiff enough that it doesn't rack itself to pieces under the forces that will be placed upon it. It doesn't take many hours of planing a board or hammering a chisel for a worktable made of nailed 2x4s to come apart. Traditional bench designs use mortise-and-tenon joinery, which is strong and rigid, but not really suited for a novice woodworker who doesn't already have a bench.
I ended up making a number of practice cuts. The first revealed that I hadn't tightened the screws on the edge guide enough. The second revealed that the design of the edge guide provided very little support at the end of a board, because of the cut-out for the router bit. In the "Getting Started in Woodworking" video, they had screwed a piece of hardwood to the edge-guide, to provide a continuous -- and longer -- bearing surface. I may do that myself, some day, but I didn't have the materials at hand, so I clamped some 2x4 scrap to the end of each board, to provide a continuous bearing surface past the ends. The two grooves in the long stretchers and the side groove in the short stretchers have identical layout. I made practice cuts in scrap until I had the edge guide set correctly, then I cut them all with that one setting. The bottom groove of the short stretchers uses a different setup, so it was back to the scrap, before cutting them.
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With my second attempt at edge guides, I made the other rough-cut. On this, the edge guide worked fine, but the end of the cuts revealed that the saw blade wasn't quite square. So I adjusted the blade, clamped all four legs together, and made what would be the first final cut, if it came out clean enough. It didn't. I'd let the saw drift a bit away from the guide edge. So I adjusted the saw, moving the guide back half an inch, and tried again. the rough-cut parts were a couple of inches longer than they needed to be, so I had room to work with,. It's only the final cut at the other end that you only have one chance at.
When the holes were complete, I flipped the legs and drilled the countersinks with a 1" Forstner bit. Trying to drill a countersink when the center was already drilled would be impossible with a spade bit or an auger, but Forstner bits are guided by their edges, not their center, so they can handle this job. On thing about Forstners, though -- they have a tendency to skitter around a bit when starting, before they bite. An easy fix for this is to drill a hole through a piece of ply, and to clamp that to your work, creating a jig that will prevent the bit from drilling in the wrong spot.
For the router you'll need a a 3/8" straight bit, an edge guide, 1/4"- and 1/8"-radius roundover bits, and a flush-trim bit with at least a 1-1/2" cutting length. Bits of this size are available only for a 1/2" collet. Some routers are capable of using multiple collet sizes. I was fool enough to buy a router that only had a 1/4" collet. More on that, later.
You can buy sandpaper, glue, and other consumables from them for a nominal price. Their hand tools are propitiatory though so you would have to buy a specific kind of orbital sandpaper, for example. You couldn't just get generic. They are reasonably priced though. There is literally a coffee can with money in it and prices written on the boxes with these consumables. If you think you might burn through enough sand paper on something, check the brand and price shop.
Be careful. Single 24x60" sheets of 3/4" MDF are pretty easy to lift. A doubled sheet is manageable. The countertop - 24x72" panel of 1-1/2" oak - weighs something over 100 pounds. It takes real care to lift safely. The joined top - 3" thick of oak and MDF - is past the range that can be lifted safely by one person. Don't try. Get a friend to help, or rig a block-and-tackle.
I drilled from the mark. That way I could ensure that the hole was where it was supposed to be, on the side where the position was critical. I have two 3/8" bits -- a brad point bit that came with my doweling set, and a perfectly ordinary 3/8" twist bit. Brad-point bits are far more precise than twist bits -- they're more likely to start where you want them to, and they're more likely to stay straight. My problem is that my brad-point bit wasn't long enough to go through 3-1/2" of wood. So I started each hole with the brad-point bit, then finished it off with the twist bit. I clamped a piece of ply on the back, to reduce tear-out.
Much like the dimensions of a bench’s tabletop, the weight capacity will similarly affect what size of projects you can work on with your bench. A common weight capacity sits between 220 to 250 pounds. While this is okay, it will limit some heavier projects. Ideally, you should shoot for 300 pounds, though some benches can offer 500 pounds of weight capacity or more.
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Those bums even have a stipulation that you can't connect any utilities to a shed. My plan is to adhere to the letter of the law if not the spirit. I plan to run a buried 20 amp power line out to the shed (this will be done professionally and properly according to whatever is required by the law), but it will require a manual connection to a junction box on the outside of my house to complete the circuit. That way, I can argue that the electrical connection is only temporary and is little more than a safe and buried version of an extension cord.
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