FAQs
- What advice would you give a customer looking to hire a provider in your area of work?
When searching for a Home Builder, look for the following: 1. Look for a minimum of 15 years in business Longevity counts for a lot in an industry with an annual turnover rate estimated at over 20% in a normal economy. 2. Financial Stability Have the builder supply a list of current major suppliers to verify their account history (the builder would need to clear you to talk with the suppliers). Check current credit ratings and any bankruptcy the builder may have in its history. Some builders bankrupt one company and soon open a new one. 3. Ethics & Integrity A builder should have multiple past client referrals available for a short conversation should you feel the necessity. Fair dealing and going the extra mile with clients and business relationships establishes ones reputation -slow pay, cash on delivery or work offs are major red flags. 4. Risk Management Liability insurance, workers compensation, current business license. A builder should be able to instantly supply you with Evidence of Insurance for all subcontracted work and with general liability insurance. Ask if cash payments have ever been made to sub contractors or to their employees. That practice puts your financials at risk along with those of the builder because those workmen usually are not insured. Ask about any insurance claims that have been made against the companys insurance carrier. 5. Design Build This is an approach to build value that makes the builder the manager and coordinator for all professionals including the architect, structural engineer, civil engineer, interior designer (not decorator), sub-contractors and suppliers. If you havent completed your plans, a good design-build builder will bring significant cost savings to the design process through what is termed Value Engineering. Visit our website to familiarize yourself with Design-Build and what it is all about at www.cameohomesinc.com 6. Purchasing Power Small volume builders rarely get the best pricing but, may do so if their payment record is impeccable. Dollar volume, paying invoices on time and having a well-managed construction schedule pays dollar dividends to the owner through pricing discounts. 7. Size and Complexity You will get better value, quality and service when your home isnt the builders first of a kind. If a builder hasnt already built multiple houses like the one youre planning to build, you have to ask yourself-how much do I want to pay for a builders learning curve? 8. Accounting How much accounting information do you want? How often? Be sure the builders accounting system can provide that. Never knowing where the costs are at and what the cost projections are to completion can easily lead to cash management problems for the owner. Keeping up to date, accurate cost accounting records and reporting is mandatory due to the many components that go into a larger home. 9. Quality Every builder claims to build a quality home. What does that mean to you? Visit some of the builders completed homes. It will quickly become very apparent if the builder sets the quality at the same bar height you do. 10. Construction Supervision Would it bother you if the only eyes that observe your construction in process are those of the sub contractors? This is what builders call a home-built by the subcontractors. Find out how frequently they expect to be on your home site to inspect, observe and direct. Some builders visit their sites almost daily, some twice a week, some build the home over the phone and dont visit the construction site unless they cant solve the problem over the phone. The latter is more typical. 11. Abandonment of Contract or Replacement Ask the builder if either of these has occurred. Check it out, there can be valid reasons for this or it could be a sign of mismanagement. If it has happened multiple times it is a definite red flag. 12. Cutting Corners The tendency for trade contractors employees goes way down if they know they are being checked on by the builder frequently. There are lots of corners to cut should a builder feel pressure to do so. Absentee builders are most vulnerable to a sub contractors employees cutting corners when work is being covered up quickly by one sub contractor following another. 13. Clients Interest First Whos looking out for you if it isnt your builder? Who is your Builder beholden to? Find out if the builder has internal profit centers that contribute to his profit. Is it a captive cabinet shop, tile business, excavation business, framing company and so on, there can be many. The prices charged to you as the owner by these separate (entities), who are not usually bidding competitively, results in higher prices to you. 14. Enthusiasm The builder needs to be enthusiastic and excited about making one of your dreams become a reality. Youll sense the emotion of people who enjoy their work and that will be a pleasant company for you to work with. 15. Trust It all comes down to finding a builder you can trust, one who earned your trust many, many years ago working for prior clients. We pass our own suggested guidelines with flying colors, as will some other select builders. Many will not pass. They are not worth the gamble and often quote prices they cant deliver on. We hope these guidelines will help you turn your difficult decision into a rewarding home building experience, and that youll get the best possible value for your investment.