How to Find the Right Builder

Finding the right builder is essential to the success of your project.

Difficulty: Moderate

Instructions

Things You'll Need:

• Contracts
• Personal organizers
• Contractor referral services

1. Interview several builders. Ask an architect for recommendations. If a real estate agent assisted you when you purchased your lot, ask the agent for several recommendations. Also consult friends and neighbors.

2. Review your completed plans with each builder, or ask the builders about designing plans for you.

3. Make sure that all the builders see the building site and are quoting to build the house on that site, including excavation and any other site-specific costs.

4. Get price quotes from the builders and compare them, making sure that they each bid on the same items.

5. Ask for references--particularly previous customers--from each party. Check the references. Be sure to speak with them when the builder is not present. Look at some of the houses the builder has constructed.

6. Retain an attorney with experience in construction cases to draft or review the contract. Be sure that the payment schedule for the builder is clear and understandable.

7. Make sure that the contract specifies the start and completion dates. Insist on some type of late fee or penalty if the completion is delayed past a certain grace period (notwithstanding circumstances beyond the builder's control, such as inclement weather).

8. Execute the approved contract.

9. Make any required deposit payment, and be sure to write your checks as per the schedule (not earlier and not later).

Tips & Warnings

• Remember that you'll be working closely with the builder--be sure to select someone with whom you can establish a comfortable relationship.
• Don't assume that the most expensive builder is the best, or the least expensive the worst.
• Price quotes vary based on a builder's schedule, efficiency, overhead and distance from the job.
• Though recommendations from a real estate agent can be a good way to find a builder, be advised that the agent may have a prior business relationship with the builder and that it may factor into the recommendation.
• You'll probably be unable to negotiate a contract without a deposit, but attempt to minimize the amount you're required to pay in advance--certainly no more than 10 percent.

[ramchargerdi]

on 4/12/2009 For a complete report on how to find a list of potential builders, check their credentials, get bids, select the best one, and what to include in the contract see http://www.findagoodcontractor.net

[Florida_Builder]

on 5/1/2007 Also a builder. I would be prepared to pay for a comprehensive proposal and take this into consideration when asking 3 builders to bid. (3x$?). It takes many many hours of prep complete a "bid". If the homeowner has the right negotiating attitue--They get the best service and price. I agree with Joseph, I interview the homeowner just as much if not more than they are interviewing me. My advice...I would lose the "I'm getting 3 bids" mentality--it hurts more than it helps. Interview and do your research and then trust the process and your comfort negotiating with the builder.

on 11/22/2005 I recommend that you consult or join a Homeowners League before embarking on a major addition, remodel, or building project. The association will be able to provide a list of "approved" contractors. In addition, their web site may have very useful information. For example, I just joined the League of California Homeowners. I learned from their website that California law requires that a deposit for a construction job can only be 10% of the estimated cost, or $1,000, whichever is less.

on 11/22/2005 As a builder, I also check your attitude, financial means, plans and knowledge of "what you want." The more prepared you are, the better. Also normally builders will not use owner contracts. We have construction attorneys draft our contracts for projects.

on 11/22/2005 Get more than one bid for a new building or a remodel. Some contractors bid high these days, because they are really busy and don't need the work or don't want to do this particular project. Also, compare which GC has great ideas you haven't thought of.