Builder contracts may vary. A “turnkey” package at one builder may include everything other than closing costs, but at another builder may include only the shell and the lot. Even items that initially appear minor, like fixtures and switches, can be contracted differently from builder to builder.
Before you drive too far with a builder, ask if permits, site preparation, and connection of utilities are included in the quoted price for the home. Some builders will include these items in the base price of the home, while others will quote these as extras that could very quickly add $15,000 or more to the cost of the home. Also, ask about the cost of the foundation and who will pay to prepare the lot for construction if the foundation or other site factors are responsible for increasing the size of the lot.
In our series of posts on allowances, we talk about what allowances really mean to you and your budget when a builder offers you a “flooring allowance” of $3 per square foot. Is that $5 per square foot flooring included in the listed price for the home, or is it something that you’ll have to pay for out of pocket to get the flooring you want? Also, can you apply any unused allowances to other upgrades in the home that you might have been eyeing?
How Do You Handle Change Orders?
Changes happen.
As your plan of work goes into construction, your family’s needs can change, designs can evolve, and new ideas can surface. As such changes are inevitable, the change order process must be clearly understood to ensure that the builder is not using the change order process to create a second margin on your custom dream home. We want to review with you how your builder handles the change order process, including the amount of prior notice you will receive, the number of signatures required for approval, and the documentation that will be needed before approval for changes to the exterior, Landscape, Site Work, pool plans, etc. Most importantly, how are change orders priced?
We would appreciate it if you could share examples of projects that were completed on time and within budget.
Is the question “How will you deliver this project on time and to budget?” one of the few that can distinguish the experienced builder from the amateur builder eager to take on your project? I believe so. An experienced builder will be able to come back quickly with some recent examples and provide some hard percentages on his own time completion rates, as well as some details on over-budget figures and amounts over budget.
Although weather and material shortages can cause unintended delays or cost overruns on a construction project, there are other underlying problems that may be at work when neither of these seems to be the cause. But how do you know if you’re getting what you paid for on your better Anderson County, Tennessee home? And why do some Anderson County Tennessee home builders willingly offer up their own construction performance metrics to the press?
We prefer to use references from past customers whom we have completed work for in the last year due to current price fluctuations of materials and various logistical issues in the supply chain.
What Warranty Coverage Do You Provide?
Builder warranties can vary widely. Some builders offer a 10-year warranty for the major structural parts of the home, while others may offer a full 1-year warranty and then step down to a 90-day warranty for the structural parts of the home. It is also helpful to have an understanding of what will settle slightly or show wear over time.
We don’t just look at the length of the warranty cover. We also look at the time taken to fix problems that occur. “Within a reasonable time” means little unless the builder sets out what they consider reasonable and sticks to it. In our experience, six months is often considered reasonable, but not acceptable to us.
name(s) and contact information of all subcontractors to be utilized on the job, and the quality control process utilized by both the shop and on-site installation personnel.
Your builder (or contractor) looks after the construction process, but the actual building and installation of items such as wiring, pipes, and air conditioning units are normally carried out by subcontractors. These are the people responsible for installing the items that make up the core elements of your home, such as the electrical system, plumbing, air conditioning, and heating. However, you are unlikely to know their names and qualifications until something goes wrong.
Most established builders have a panel of good-quality and experienced Sub-Contractors that they can call upon to undertake various aspects of the building. In terms of referencing the Sub-Contractor, this is of little importance. Of greater importance is how the Builder goes about ensuring quality in your specific project. Different Builders will have different processes in place, with some looking at quality closely at every stage and other builders relying on the municipal inspectors to pass or fail a particular element of the project. Also important is the process the Builder has in place in the rare instance that work does not meet the standard agreed upon.
For most homeowners, the look and feel of their home is just as important as the quality of the construction. The material sourcing of your home is a key component of its overall look and feel. Recently, the home building process has experienced disruptions in the supply chain, causing headaches for many builders as they struggle to find matching materials originally specified for a particular home. While an “acceptable substitute” may be provided, the issue becomes how far one should go to ensure that the original material is replaced for the best results. Or will what is provided be of lesser quality, which could negatively impact your home’s value?
They may be unpopular, but lawyers can save you a world of money and trouble. See more.