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Contractors
are part craftsmen, part businessmen and part magicians. Transforming your dreams
and drawings into a finished house, they are responsible for the final cost of the
structure, for the quality of the workmanship, and for the solving of all problems
that occur quite natural in the course of construction.
There are two type of residential contractors: the construction company and the
carpenter-builder, often called a general contractor. Each of these has its advantages
and disadvantages.
Carpenter-builders work directly on the job as field foremen. Because there background
is that of a craftsman, their workmanship is probably good- but their paperwork
may be slow or sloppy. Their overhead- which you pay for- is less than that of a
large construction company. However, if the job drags on for any reason, their interest
may flag because your project is overlapping their next job and eroding profits.
Construction companies that handle several projects concurrently have an office
staff to keep the paper work moving and an army of reliable subcontractors. Though
you can be confident that they will meet deadlines, they may sacrifice workmanship
in order to do so. Emphasizing efficiency, they are less personal to work with than
a general contractor and many will not work with an individual unless there as representation
by an Architect.
To find a reliable contractor, start by asking friends who have built homes for
recommendations, building supply outlets for names of possible candidates.
Interview each of the potential candidates. Find about specialties- custom houses,
development houses, remodeling, or office buildings. Ask each to take you into-not
just to the site of-current projects. Ask to see projects that are complete as well
as work in progress, emphasizing that you are interested in project comparable to
yours.
Ask each contractor for bank references from both a commercial bank and any other
appropriate lender. If in good financial standing, the contractor should have no
qualms about giving you this information. Also ask about warranties. Most will give
you a one year warranty on the structure; some offer as much as a ten year warranty.
Ask, for references, even though no contractor will give you the name of a dissatisfied
customer. Ask about follow- through. Was the building site cleaned up or did he
owner have to dispose of the refuse? Ask about the organization of business. Did
the paperwork go smoothly, or was there a delay in hooking up the sewer because
of a failure to apply for a permit?
Talk to each of the candidates about fees. Most work on a “cost plus” basis; that
is, the basic cost of the project-materials, subcontractors’ services, wages of
those working directly on the project, but not office help-plus a fee. Some have
a fixed fee; and other work on a percentage of the basic cost. A fixed fee is usually
better for you if you can get one. If a
contractor works on a percentage, ask for a cost breakdown of the best estimate
and keep very careful track as the work progresses. A crafty contractor can always
use a cost overrun to good advantage when working on a percentage.
Do not be overly suspicious of a contractor who won’t work on a fixed fee. One who
is very good and in great demand may not be willing to do so and may also be reluctant
to submit a competitive bid.
Give the top two or three candidates each copies of the plans and your specifications
for materials. If they are not each working from the same guidelines, the competitive
bids will be of little value. Give each the same deadline for turning in a bid;
two or three weeks is a reasonable period of time. Make an appointment with each
of them and open the envelops at this time.
If one bid is remarkably low, the contractor may have made an honest error in the
estimate. Don’t insist that the contractor hold to a bid if it is in error. Forcing
a building price that is too low could be disastrous for both of you. You may want
to review the bids with your architect, if you have one for which one to accept.
They may not recommend the lowest. A low bid does not necessarily mean that you
will get the best quality with economy.
If the bids are relatively close, the most important consideration may not be money
at all. A bid from a contractor who is easy to talk to and inspires confidence may
be the best choice. Any sign of a personality conflict between you and a contractor
should be weighed when making a decision.
Once you have financing, you can sign a contract with the builder. Most have their
own contract forms, but it is advisable to have a lawyer draw one up or, at the
very least, review the standard contract. This usually costs a small flat fee.
A good contract should include:
- Plans and sketches of the work to be done,
subject to your approval.
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A list of materials, including quantity, brand names, style or serial numbers. (Do
not permit any “or equal” clause that will allow the contractor to make substitutions.)
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The payment terms- and when to make payment.
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A production schedule.
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The contractor’s certification of insurance for
workmen’s compensation, damage, and liability.
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A rider stating that all changes, whether or not they increase the cost, must
be submitted and approved in writing.
Of course, this list represents the least a contract should
include. Once you have signed it, your plans are on the way to making a home
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