How many times have we heard the comments, "my builder was a disaster." "I am never remodeling or building again." "All contractors are rip-offs."
In this industry, it is actually very common to experience misunderstanding as well as budget "malfuntcions." However, there is no need for these to ocurr. The truth of the matter is that these type of misunderstandings can happen only under three circumstances. Either your contractor is actually a crook, you did not put everything in writing, or there was no follow up on the client's and builder's part to continually be informed of progress and expenses.
Here are a few tips that will help when you begin your next project:
On the actual contractor:
1) Get references. If all references come from the builder, call them, but also contact the local construction commission or remodeler's association and find out if there are any outstanding claims for the company.
2) Try to gage the builder and look for the following signs during the interview. Does he tell you he call deliver all you ask for with no type of disclaimers. He seems so easy to work with, he is willing to do anything you want, and never says it will cost more, even when you start adding items to the project. He tells you that you cannot contact his trades directly.
3) He cannot give you vendor referrals, such as a lumber company or plumbing company. Every referral he has is an independent "guy."
Keeping it all in writing:
1) Your contract. It is very important to have an attorney look it over. The amount of money you will save if all your points are covered is worth the small fee an attorney will charge.
2) Change orders. Keep track of every change you make, as well as those the builder recommends, etc. Even if you keep it in an email, you will have something to refer back to.
3) Lien waivers. When you issue a payment to your builder, it is not out of line to request that after paying all trades, the builder bring you copies of the lien waivers signed by all vendors working on your house. In case some disguntled trade comes knocking, you will have proof that he has been paid.
4) Keep track of deliveries, quality of items, etc. When you discuss with the builder what material will be used, make sure that it matches what was delivered.
Keeping Track:
1) You should have weekly or monthly meetings with your builder to see where you are in the construction process, both financially and time wise. There may be issues you are not aware of, or expectations the builder is not aware of. This is the time to go over every issue you have before it grows into a bigger problem.
If you have a party planned at your home, don't expect the builder to know about it unless you've told him how important it is to complete the work beforehand.
2) Make sure the builder knows immediately if you are unhappy with the way something looks. It is easier for the builder to tackle issues when the trades are on site, or before they have received final payment.
3) Keep all paperwork you are sent. When warranty time comes, you will want to have as much information as you can available to you.
Important rules to keep in mind:
1) Never pay for items that have not been completed unless it is a deposit (In this case, we usually recommend you make a check to the builder and the trade together, so there are no misunderstandings).
2) Know that just because you've paid your contractor, it does not mean he has paid his subs. Find out if your money is properly distributed so you have no hold ups or surprises.
Most builders will work with these rules because it benefits you both. If you find one that has an issue with them, RUN!