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February 5, 2012
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Game Plan

Successful homebuilding starts with a well-drafted strategy and a solid team

(page 1 of 2)

To build your dream home in the Tetons, whether it’s 1,000 or 10,000 square feet, you need to assemble a team of talented individuals, including an architect and a builder, and prepare to become involved. The professionals you choose to join your team will help determine the outcome of one of the most important investments of your life.

Start by establishing a few simple ground rules, which will build a climate of trust. First, good business practices begin with honesty. Many building professionals operate with integrity and have solid reputations. In my experience, honest customers gravitate toward these honest professionals, and they make a good fit. Second, all teams work best when members mutually respect each other, eliminating ego interference and adversarial confrontation. In addition, everyone on the team is responsible for maintaining positive energy. Finally, remember that new home construction is an imperfect process. Expect problems, and when they surface, focus on finding creative solutions.

Your architect:
The design person with a good set of plans

A good set of plans and specifications gives complete details about your entire project, including the location of the well, water lines, septic tank, and leach field; the driveway; and the telephone line, electric lines, and other utilities. The drawings will provide details about your foundation, floor plan, framing, roofing, electrical system, plumbing, heating, and air conditioning. Elevations should be included. Schedules for different phases of the project will list every detail in your home, including plumbing and electrical fixtures, windows, doors, hardware, appliances, cabinets, paint, trim, and floor coverings.
 

The more you can decide before construction begins, the more money and time you will save in the end. Having a full construction-ready set of blueprints helps your builder determine an accurate estimate of costs. Without the necessary schedules of items, all you have is a cost “guesstimate.” This will create great disparity in the bids you receive from one builder to the next.

Prior planning does prevent poor performance. Hiring an architect will help you see the big picture. These professionals are educated to help you define what you want to build. They present many options and ideas, design to your price range, and put the necessary finishing touches on the plans. The architect’s involvement doesn’t necessarily stop with the preparation of construction documents. They can also help you select a contractor, make site visits, review and approve the contractor’s applications for payment, and keep you informed about the project’s progress. For guidance in selecting an architect, visit the American Institute of Architects website, www.aia.org.

Your builder:
The nuts, bolts, and budget coordinator

While the architect oversees construction, the contractor is solely responsible for construction methods, techniques, schedules, and procedures. Thus the importance of selecting the right builder for your building project cannot be emphasized enough. I believe that the homeowner must take a very active role when selecting his or her builder and follow a very strict guideline. Typically, you have two options in choosing a contractor: You can select a builder (after interviewing him or her thoroughly) early in your design process and have him/her advise the architect as to cost-saving techniques. Or, you can choose from several contractors by asking them to bid your completed plans. Your architect should help you prepare bidding documents. Either way, you must thoroughly screen your building contractor(s).

First, realize that Idaho requires general contractors to be registered. The Idaho Building Contractors Association (IBCA) took a very active role in pushing contractor registration through the legistlature in the State of Idaho. IBCA has constructed a volunteer Registered Master Builder program. Participating builders must undergo a rigorous annual peer review. This program can help you find contractors who follow good business practices (including good financial tracking). Contact the IBCA at (888) 284-4240, or log on to www.ibca.org.

While the State of Wyoming does not have legislation for contractor licensing or registration, the Town of Jackson maintains a licensing requirement. In both Idaho and Wyoming, most counties and cities require building permits for the construction of specific structures. Idaho has accepted the International Building Code to assist in the standardization of building codes. Many counties and cities have adopted additional requirements to address energy consumption, structural engineering issues, and seismic activity. Contact your local building department for more information: Teton County, Idaho: (208) 354-2593; Teton County, Wyoming: (307) 733-7030.

It can seem overwhelming, finding a builder who does work you like; who takes instruction and listens well; and who is very thorough with bids, estimates, and payment schedules. But by tapping into a host of referral net-works, you can avoid believing builders who are merely “smooth talkers.”

Ultimately, these pseudo-professionals can’t back their promises or their prices. Instead, look for a builder who is realistic, responsible, and responsive.
Realistic: A good builder won’t tell you just what you want to hear. He or she will take your building plans and provide you with a detailed estimate for your project. This should include specific costs; a schedule of allowances for items that may not have been addressed in the plans; a time frame for the start and completion of the project; a warranty; and proof of insurances, like workers’ compensation, liability, and builder’s-risk insurance.

Look for a builder who is thorough. Don’t hesitate to ask questions. Find out how the builder’s markup is applied. In building, the standard markup will start at 10 percent, and the markup range could be 15 to 20 percent on upper-end homes. Remodeling costs are higher. Also, ask about change orders, which document project or materials upgrades and additional jobs performed. How are they priced?

Responsible: Look for the builder who deals more aggressively and effectively with all the obligations of a building project, especially the estimate or bid. Check references from previous clients, suppliers, and subcontractors. A good builder will have developed great relationships with these auxiliary professionals over the years.

Also, check with local architects, real estate agents, title companies, and bank managers. Ask how long the builder has worked in the area. Does he deliver a quality product? Ask building suppliers which contractors take the time to create detailed materials lists when working out the estimate of a house. Unfortunately, most builders expect lumberyard personnel to create the lists. Lumber stores are busy places where many interruptions can distract the person suddenly responsible for interpreting your plans. This almost always results in costly mistakes. Also ask if the builder pays his bills on time.
 

Responsive: After the home is completed there are sometimes minor details that may need attention from the builder. Does the builder provide a warranty outlining homeowner rights, explaining what is covered and defining the limits of coverage?

Recommendations from satisfied customers will also be helpful. Builders who demand honesty within their business practices have strong referrals within the local community. You will hear their names over and over again.

Get membership listings from state and local builders’ associations, and use the organizations’ websites to find builders who have taken leadership positions or have received recognition from their peers. These are telling signs of builders committed to maintaining a high standard within their industry.
 

Once you have identified several trustworthy and qualified builders, you must interview them. Ask each prospective builder to show you homes he or she has built. An interview involves two-way sharing of information. In general, you want to see examples of work and get a sense of the person’s expertise, creativity, accountability, and trustworthiness. Look not only for fine finish work but quality materials underneath the surface. Both ensure your home will be a stable structure for years to come.

At the same time, be sure to tell each prospective builder which type of home(s) you’ve owned before, and what you liked or disliked about the builders of your previous home(s). What is most important to you in your home? Are you inclined to work on your home yourself? How do you deal with home maintenance?

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