Find a Builder Wayne Short & Company

You've purchased your land. You've ordered your plans and worked out all the bugs with the architect or designer.

The financing is all arranged. You're ready to build the home of your dreams. Where do you go from here?

From foundation to landscaping, the General Contractor becomes a most important person in the construction of your Dream Home. Often a General Contractor may be referred to as "the builder." A builder, however, may be essentially a carpenter who doesn't get involved much with the other trades.

Unless you have a good deal of knowledge about construction, and lots of time, energy and patience, you probably shouldn't even consider building your new home without the professional assistance of a General Contractor. He is the person who's going to pull everything together for you.

He hires, schedules and oversees the concrete installers, carpenters, plumbers, heat and air contractors, electricians, drywall installers, landscapers, painters and brick masons, cabinet and trim carpenters, carpet installers, and so forth. He knows how to buy materials and align delivery to the needs of each subcontractor. He's somewhat familiar with the techniques of each job, knows the local building code requirements, and is familiar with obtaining permits and making arrangements for inspections.

It's your job to find the best builder available: one who will build your home the way you want it, at a price you can live with.

Finding a General Contractor

Most people find a Contractor through the referrals of the Contractor's past clients. Architects and designers often recommend General Contractors that they've worked with successfully. Bankers, subcontractors and building materials suppliers sometimes make referrals too.

Talk to people who have just had their houses completed. Were they pleased with their Contractor? Perhaps they'd be willing to walk you through the house and discuss their builder's strengths and weaknesses. Keep in mind that these people may have different priorities than yours. For instance, they may be quite pleased that their builder finished the house in record time, but that may not be very important to you.

If possible, go see a home the builder has under construction. If you have some construction knowledge, it's easier to spot flaws in the foundation or framing before the sheetrock and paint cover everything up.

Seeing recent work is important. A poor quality builder generally disappoints only a few clients before losing his reputation and financial stability, as well as relationships with important subcontractors and suppliers.

     Ideally, you want to hire a Contractor who is not put off by any special features you might want (such as coffered ceilings or vaulted arches) or with specialized types of construction (such as post-and-beam). If you intend to do some of the work yourself, make sure to select a builder who's comfortable with this arrangement.
     You don't have to become best friends with your Contractor, but you do need to feel easy about talking frankly with him. You will be entrusting this person with the largest investment of your life. You must judge his communication skills from interviews and by following your instincts.
     Timing your job may be a dilemma. You want a builder who can accommodate your schedule, but the builders with the best reputations are often in great demand. Only you can decide if getting the right builder will be worth the wait.

Getting a Bid

Most new custom homes are built for a fixed price that is negotiated up front. If you get several bids, make sure they are comparable. A high or low bidder may be offering to do more or less work, or to use better or lesser quality materials. Make sure you present the same plans and specifications to each potential builder. Compare any "price allowances" to see that they are the same from all bidders.

Some builders like to quote a "per square foot" number. Make sure that they understand up front what variables you want: carpet, appliances, plumbing fixtures, etc. No one can give you a reliable price per square foot, without first studying your plans and specifications.

Another option is the "cost plus" method of bidding. The builder states up front what his fee will be, either fixed or variable, and then adds an estimated cost of materials, based on your plans and specifications. Typically the fee can run from 10 to 15 percent of the total estimated cost of construction. Some builders may ask for an end-of-project bonus, based on saving you money on materials. The initial fee may seem high, but he's generally passing on his special "contractor's savings" on the materials.

People who chose this method generally like it because it allays any temptation to cut hidden corners if it looks like the builder won't make enough money on the total project.

If two bids are only two or three percent apart, but the higher bidder impresses you more than the lower bidder, you are likely to save time and money by hiring the higher bidder.

After you've accepted a bid, your agreement is finalized by the signing of a contract. A contract that clearly states what the builder will or won't do, and who pays for what, and when, helps to ensure a more tension- free relationship with the builder. A Contract that is too simple creates potential for later misunderstandings.

The contract should contain, illustrate or describe these basic things:

1. A plot plan, describing the legal boundaries of your property, the location and dimensions of the house to be built. The size and type of home should be described, for example: "a 2,400 square foot single-story frame home." This is usually provided by the architect or designer, and shows the location of included drives, porches, walks and patios.

2. Complete plans and specifications should be included (legal reference) as a part of the contract and signed by both parties. Plans should include foundation plan, footing details, floor plan, exterior views, framing sections and details, electrical plans, cabinet and interior views, heating, air conditioning and ventilating plans, and any details of special construction.

3. An estimated construction start and completion time should be agreed to. Clauses allowing for weather delays and other problems beyond the control of the builder (trucking strikes, for example) may be included.

4. A site conditions clause may be included if you've not had an engineer test the soil of your building site. This allows for plan changes and associated expenses if the builder encounters unusual site conditions, such as a high water table, unstable soil, etc.

5. Site improvements, such as grading and drainage, and who will make them.

6. A payment schedule which details the payment amounts for each phase of construction. Final payment of at least 10% is usually withheld until final approval by the owner, lien releases are presented, and a certificate of occupancy is issued from the local building department.

7. A statement of responsibility (usually the (General Contractor's) for all permits, licenses, fees and taxes.

8. Who pays for taxes, meters, utilities and other costs (such as interest accrued) during construction.

9. Change Order procedures, specifying the work to be done, the cost, and the effect on the completion
date.

10. If you've chosen an agent to represent you, such as your architect, his role and liability should be mentioned.

11. Warranty documents, walk-through inspections and the service policy should be attached to the contract. It should be clearly stated who is responsible for what. Manufacturer's warranties will cover many items in your new home, but the builder should be responsible for construction defects for a period of at least one year.

12. Contract termination conditions and costs should be addressed. Bankruptcy issues should be considered.

13. The Contractor should show you insurance certificates proving Builder's Risk coverage and workmen's compensation. It should be specified who is paying the premiums for liability insurance.

If there are things about your contract that you don't understand, or wording that makes you uneasy, it might be a good idea to have it reviewed by a real estate attorney, before you sign it. The contract should be balanced in such a way that it protects you, but is still fair to the Contractor.

Choosing the right Building Contractor and developing a good working relationship with him is, after all, just as important as having a good set of building plans.




	Professional Building Design since 1965

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