Architecture class, 11/29/06, part 2
In the second half of class, Bill talked about how to work with a builder. Some of the material had already been covered in previous classes, but this is a good time to pull it all together in one place, so here's a list of things to look for in a builder.
- Get the right kind of builder. Commercial contractors and residential contractors are completely different animals. Within the class of residential contractors, there are specialists. For example, some do mostly remodels while others do mostly new houses; and even amongst the new house builders, some usually do spec houses while others do custom houses. Don't let your house be your contractor's learning experience.
- How much expertise do you need? For a small addition with no complicated wiring or plumbing, you don't need as fancy a contractor as you need for a kitchen remodel. The kitchen is by far the most complicated room in the house.
- If you're married, get a builder who can talk to both people in the couple.
- Investigate your potential builder: talk to previous clients, and have your architect ask other architects who have worked with the builder. Look up the builder with Washington State Labor and Industries. Check to make sure the builder is up to date on his sales tax; when a builder's business begins to go south, often the first sign is that he gets into arrears on his sales tax.
- Ask about license and insurance, and how much insurance the builder has. The builder's insurance will cover it if someone gets hurt on the site, if someone sets fire to your big pile of lumber, or if materials are stolen. Your insurance doesn't cover the materials until they're actually on the house, so you want to make sure the builder's insurance covers the gap.
- Ask about billing methods and timing, and to see an example of a bill.
- Set up your contract to hold back about 5% on every bill for retainage. This is money that belongs to the contractor, but that you hold on his behalf until the job is complete. This is the money you can hold over his head to make sure he really finishes that punchlist at the very end of the job and doesn't just move on to greener pastures.