THE MOST IMPORTANT DECISION   Hiring the Builder

Choosing a builder is the most important decision you'll make in your building project. You want a person who understands every aspect of your project; from your budget and design, to the dirt work all the way to the finish work, and everything in between. You want someone who can coax the best results out of the numerous trade contractors and countless suppliers.

Hiring the builder first presents a dilemma for some clients. How can you put the project out for bids if the builder is already hired? Isn't competitive bidding the way to ensure a fair price? No.
 

The 3 Bid Myth

It used to be that many people selected a builder by soliciting three builders for bids after the plans were entirely complete. The homeowner would often throw out the high and low bid, confident he's minimized his risk by dropping both extremes. Price drives the selection. But is that contractor really the one who will build the best project for the best price?
 
When you are purchasing a new car, you're purchasing a product, and can see what it looks like and test-drive it to see how it feels. With a building project you're purchasing a concept and don't see the finished project until well after the contract is signed. This is the reason why bid shopping works for automobiles, but not for building projects. You can ask three dealers to price a specific make and model car, and be fairly certain you are comparing the same products. But with a building project, the products could differ significantly.

There can be many reasons for a low-ball bid, including shoddy materials, poor craftsmanship, slow production (a hidden factor that can increase the cost of your project), inadequate safety precautions, and lack of insurance and licensing.

Quality is never cheap and good research may seem like a headache, but you are probably spending more money in one place than you ever will again. Remember that the bitterness of poor quality remains long after the sweetness of low price is forgotten.

The Interview Process: The Best Way to Make Your Decision

No job interview begins by negotiating salary, and hiring a contractor should be no different. Before you get to compensation, you want to be sure you have a qualified applicant.

We encourage you to interview three builders.
 

• Talk about your thoughts for your project. If you have a budget in mind tell the builder so he can guide you toward the project you want and can afford. Ask for his input, ideas and design suggestions.

• Ask about his company, how he operates his business. Does he have office staff, workers' compensation and liability insurance? Can he provide design services? How long has he been in business? Does he belong to any professional and/or educational organizations for his industry?
 
• Was this builder recommended to you? If so, consider that a big plus. Do you feel comfortable talking to this builder? Does he have good answers for your questions? Is this someone you would want to work with?

If he passes the interview, ask for a list of references. Then keep the following criteria in mind and start asking questions of past clients!

1. Judgments of workmanship and the project experience from past clients and referrals should make up about 65% of your decision on who will be your builder.

2. Another 25% of your decision should be based on the builder's contracting ability, making the job run smoothly while accommodating the inevitable changes and surprises in construction, as well as good communication and rapport.

3. The last 10% should be based on cost.
 

Criteria To Consider In Choosing Your Builder:
 

Questions You Want Answered From Past Clients:
 

• How was your rapport with the builder?
• Was the communication good?
• Did the builder have office staff to also communicate with?
• Did he offer creative and/or better ideas to enhance your project?
• Was he up to date in the latest technology, products and trends?
• Were the trade contractors knowledgeable and skilled?
• How was the timeliness? (if the project did not finish on time, was it contractor delays or delays not under his control? - weather, additional work orders, etc.)

This is an excellent time to ask the "C" word - COST!

• Did the past clients feel their builder charged them fairly?
• Did they feel they obtained the best value for their investment?
• Did they feel their builder was an honest negotiator?
• To sum it up, how do the past clients feel about the overall quality of their projects?
• And the last and most telltale question you can ask a past client is "Would you hire this builder again? If so, why?
• If not, then who would you recommend and why?
• (Along with this, if there is a job in progress, ask to see it. If possible, talk to the clients who are actually going through the process right now and ask them the same questions.)

If you get positive, enthusiastic responses from the past clients and you have the same feelings about this builder, then this is when you should make your decision. Add it all up and you will be choosing an excellent contractor, who will build you a quality project, at a fair price. Everything you would want in this undertaking!