Choosing Your Builder
Unless you have experience in the field or know someone to lead you along the way, you’ll need to hire a builder for the construction of your new home. A builder will handle hiring your contractors, scheduling, and managing your budget along with many other aspects of the process. In our experience the job of the builder is full time and with a price tag this large, it is not a project that you want to DIY.
Let me premise by saying that sometimes looking for a builder will come before looking for architect. Builders may have a few house plans in their portfolio that you love. The benefit of using something they have already worked on is they’ll have a better idea how to price the project. A builder may also have an architect that they have a good relationship with and might suggest you using for your project. This takes the work out of finding an architect that you might not be familiar with.
Looking for the right builder is a lot like looking for any other contractor: seek out recommendations, but also review their portfolio and make sure you like their work. Your builder is equal parts style AND quality. They are most likely going to be the ones to higher your sub contractors (if they don’t have a lot them in house already) and you’re going to want to trust that the work being performed is going to hold up over time. Familiarize yourself with not only their most recent work, but their work that is also a few years old. Do some drive-bys. If you see siding falling off a 3 year old home, cracking concrete, or sinking porches, you may want to look for a different builder. Also, pay attention to their designs. If the builder is pumping out colonials but you’re looking for something a little more custom, then you may want to continue your search. Don’t be afraid to have thorough conversations with their team to understand their packages for doors, trim, cabinetry, lighting and plumbing fixtures, flooring, paint, and exterior materials. And again READ REVIEWS.
The other important thing to consider when choosing a builder is their contract terms. There are several different types of contracts that a builder may use, but we will review the most common.
Fixed price (AKA Lump Sum)- Total fixed price for specified work. This may be a square foot price or a total project price.
Cost Plus- Actual expense accrued by construction activities. There are several ways a cost plus contract may be written.
Cost Plus Percentage- the builder wants a percentage of the total expense of the project as their fee
Cost Plus Fixed Fee- the builder has a fixed fee on top of the expenses
We have offered both contracts to clients and half have preferred the fixed price and half have preferred the cost plus. If your builder doesn’t offer the contract that you are most comfortable with, you may want to consider a different builder.
Also take in mind, that you builder may not always oversee the entirety of your project. Some may opt out of assisting in the land improvements (wells, septics, driveways, land clearing, etc.), permits and approvals on a state, county, and local level, and public utility connections. Other builders may be willing to handle the process soup to nuts. Understand what you feel comfortable taking on before agreeing to a contract with your builder.
Remember, depending on the depth of your project, you could be working with your builder anywhere from 6 months to a few years, so be thorough in your selection process to ensure you get the product and experience you deserve.
