Every contractor has a standard contract and practices they use with their business. Remember that you have the right to negotiate and compromise on issues before entering into any contract. Of course, the contractor also has the right to decline the job.
There is no set time to engage your contractor as long as it’s a minimum of 60 days before you start construction so they have time to get everything ready for the build. Many people opt to engage a contractor much earlier in the process so that the contractor is actively involved during the design process.
After you and your contractor establish a contract and you’re on your way, the two of you need to work as a team to build your custom home. In this section, we look at the contractor selection process. (You can find more information on managing your contractor relationship in Chapter 7.)
Understanding the contractor’s role
In most cases, the contractor doesn’t handle the hammer-and-nails part of your custom-home project. Although some contractors may participate in parts of the actual construction, their primary job is to manage the workflow and project materials and make sure everything is happening in a timely and workmanlike manner. Here are the contractor’s major responsibilities:
Obtaining the final permits
Managing the production schedule
Sourcing and buying the materials
Hiring and managing the subcontractors (or subs)
Keeping the site safe and clean
Managing the inspections
Managing the budget
Keeping you informed
Performing quality control
Solving any problems that arise
Getting bids: Comparing apples to apples
If you didn’t start the custom-home process with a contractor in mind, you’ll probably give your plans and specifications (or specs) to a few different contractors to get an estimate. This process is called putting your plans out to bid.
Finding contractors to bid on your project is as easy as asking friends and your architect for referrals. If they don’t have any suggestions, you can do a Google search or drive through the neighborhood and look for construction signs on houses being built. If the building market is busy, you may have to work a little harder to find contractors who can bid in your time frame. You want at least three contractors to bid on your project, if possible. The goal is to be able to compare the bids to each other.
The best way to compare the bids is by making sure your plans are as complete as possible. In Chapter 5, we discuss doing all your design work and material selection before the bid process. This extra work can delay your project early on but is crucial for comparing truly accurate bids. For example, you want to compare prices on the same kitchen sink model numbers to see which contractor is charging a higher profit margin. Also, make sure the contractor has included their fees in their estimate. The contractor may or may not break out their margin as a separate line item, but you need to know there won’t be any surprise additions to the costs down the line.
Evaluating a contractor’s three Cs: Cost, craftsmanship, and compatibility
Cost: This one is obvious, and although it’s important, it probably weighs the least in your decision-making process. The cost comparison becomes plain when the contractors return the bids. If you’ve handed them complete, detailed plans and specs, you get a clear picture of who’s working on the lowest margin or who has access to the least expensive labor and materials.
Craftsmanship: This part is important in the long term. You want to know that the house is built well and will offer you decades of enjoyable living. Don’t confuse style and design with craftsmanship. A house can have a horrible floor plan with fantastic artisan work, or vice versa.What’s the best way to check on work quality? Look at other houses that the contractor built. Ask the contractor for a complete address list of homes they’ve built, in addition to a list of references. Make sure you look at houses built ten years ago, as well as newer ones. Remember: Just as a car with 50,000 miles drives much differently than a new car, an older home lives much differently than a new one. Don’t forget to talk to the people living in the houses to find out what problems, if any, they’ve experienced with their homes. Don’t be afraid to knock on the doors of homes built by the contractor that weren’t on the reference list. Also, don’t forget to ask the contractor about their workmanship warranties. Warranties usually last for ten years, but they can vary. (See Chapter 17 for more on contractor warranties.)
Compatibility: This one is the most important aspect to consider and yet the most difficult to identify. The hard part is first assessing who you are so you can pick the contractor who will work best with your style. For example, if you’re a micromanager who plans on being involved in every aspect of the project, you’ll constantly butt heads with a contractor who also likes to micromanage their projects. You need a more relaxed contractor willing to let you make the decisions or second-guess their work. On the other hand, if you don’t have the time to be involved in the management, someone with a relaxed attitude probably won’t give you the sense of security you need — particularly if they’re waiting for you to make decisions every day. Figure out what sort of experience will make you happiest, and find the contractor who can meet your needs.