Monday, November 12, 2012

Q&A: Questions to Ask a Builder

Question: We have never built a custom home or completed a major remodeling project. We would like to interview custom builders for our new home. Can you suggest some questions to ask that will help us in the selection process?

Phil's Answer: If I were asked to summarize the primary concerns of someone seeking a builder, or any service provider for that matter, I would venture to say that there are three key questions on his or her mind:

  • Is he competent?
  • Is he trustworthy?
  • Does he care? 
Finding a comfort level in addressing these questions can be a challenging task. The builder-client relationship is one that is usually complex and long-lived. As such, I am convinced that the most important thing that one can do is to ask not the builder, but his recent clients, about their building experience and how they would answer these three key questions.

 So in the interview with the builder, the first and foremost question I recommend is:

    1.  Does he consistently develop positive long-term relationships with his clients? Does he have a list of satisfied customers who have agreed to serve as references? Always ask for and call references for  projects he has completed recently (in the last year would be a suitable time frame). Also consider calling professional associates such as architects and designers who are knowledgeable of his work and reputation.
Other questions I recommend to ask the builder and his or her references:

    1. How long has he been building? Has he ever built under a different company name, and if so, what happened? 
    1. Does he have a track record of keeping the budget? Does he strive to be an advocate for the Owners and deliver the best value at the best price? 
    1. Does he have a track record of completing projects on schedule?
    1. Is he involved with daily construction activities and problem solving? Or does he delegate this entirely to a project manager? 
    1. Is he attentive to details so that the final product is of outstanding quality? Ask for a walk-through of a recent project completed by the builder.
    1. Is he well-organized and process-driven?
    1. What is his pricing methodology – fixed cost or cost plus? Is the process transparent?
    1. Does he have contracts with all of his trade contractors? Is he insured and does he require all of his trades to be insured (General Liability AND Workman’s Compensation). Does his contract require written change orders for any changes in scope and price?
    1. Does he pay his vendors promptly to ensure best service and pricing? Have mechanics liens ever been filed against him for non-payment?
    1. Does he have detailed technical specifications for all of the trades?
    1. If the project involves renovation of a home built before 1978, is he certified in Lead Safety for Renovation, Repair, and Painting to protect the health and safety of the Owners and workers as now required by the EPA? 
    1. Is he proactive, i.e., does he identify and resolve issues before they become problems or before they are identified by the homeowner? This is a good indicator of his level of care.
    1. Does he exceed expectations with regard to the warranty? This is another good indicator of his level of care.
    1. Is he tied to the building and architectural communities?
    1. Does he regularly participate in continuing education opportunities?

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