DOUGLAS E. SMITH
        Smith Custom Builders

Since you are going to be “Living” with your builder for at least 6 months on up to a year depending on the size and intricacy of your project, it is important that you will be able to communicate and get along well. Then interview between homeowner and builder should be mutual.

How do you acquire a list of potential builders?
• Start by asking friends, family, and acquaintances if they have any recommendations for a contractor and why or why not they enjoyed working with a particular builder.
• Contact your local builder’s association. Most organizations provide a list of builders on line, along with a brief description of their company, and contact information.
• Ask bankers, title and mortgage companies for a referral.

Keep in mind that you are looking for a builder that takes pride in their profession, is educated on the processes, codes, laws of construction, has a great work ethic, shows attention to detail, and is accessible.

Begin compiling information about the builders that may fit your criteria. Take notes, acquire any marketing pieces they may have, explore their websites. Websites normally are a great source of information.

Basic question or information you should find out immediately to begin narrowing your prospective list:
• How long has the builder been in business in your City?
• Do they have an office?
• Do they have a listing in the Yellow Pages?
• Obtain a report from the Better Business Bureau (BBB).
• Is the builder registered with the Texas Residential Construction Commission (TRCC)? As of March 1st, 2004, all builders in the state of Texas must be registered. This nine-member council was formed through House Bill 730 in 2003; it was designed to handle dispute resolution between homebuilders and homeowners. You can research this information at www.trcc.state.tx.us

• Does the builder have “current” and “adequate” insurance coverage? General Liability, Builders Risk, and Worker’s Comp (when applicable).

Bonus if the builder &/ or its company…

• Is a Certified Graduate Builder (CGB) or a Graduate Master Builder (GMB). These programs take 2+ years to complete. In addition, a GMB has at least 10 years of building experience.
The CGB and GMB courses are given through the National Association of Home Builders.

Some of the courses include Building Technology, Building Codes and Standards, Indoor Air Quality, Business Management, Construction Law, Customer Service, On and Off Site Project Management, Energy Efficient Construction, just to name a few.

• Win Awards for their workmanship, products, designs, and services.
• Promotes continuing Education with in their company.

Continuing the Interview Process:

• Ask for a referral list that includes projects currently under construction, completed projects, bankers, and architects/building designers. Be sure to actually check the references.
• What type of organizational processes will there be between builder and client?
• Does the builder have a comprehensive contract? Contracts are for the mutual benefit of both parties. Describing the obligations of both parties, and provides a mutual understanding terms and conditions. A well-written contract fairly allocates risks inherent in any construction project, and provides a path that all party’s expectations will be met.
• Does the builder have a written warranty? What kind? And what does it cover?
• What type of invoicing procedures does the builder have in place? Are the invoices and spreadsheets easy to understand, and do they work with your banker?
• What type of documentation does the builder use for the change orders? Change Orders are used to document every change in the project, whether it is to be an extra charge or not. This documentation is critical to effective communication during the duration of the project.
• Scheduling program, with proposed timeline showing scheduled walkthroughs with clients. Scheduling should show important lead times necessary to choose or order amenities.
• Does the builder provide a Discloser Statement at contract signing as required by state law? It informs the client about Rights and Responsibilities under the Law.
• Get Everything In Writing!
• Does the builder provide neighbors with contact information, and does the Project Manager running your project meet the neighbors.
• How does your builder handle the issue of security and safety?

What types of organizational processes does the builder have with trades?
• Does the builder operate under written agreement all trades?
• What are the builder’s procedures?
• Are there systems in place to prevent Liens from being filed on your property? What are they? Are Bills Paid Affidavit’s and Release of Leans being filled out and Notarized, when trades are paid?

How does your potential builder promote, encourage, and make available “communication” between client and builder?
• Office phone, cell phone, pager, e-mail, and fax.
• How accessible are they?
• How quickly do they return calls?

Once you’ve narrowed down the list to 3 builders, you can begin the bidding process. Pay attention to how each guide you, educate you, and provide you with options throughout the process.

Detail in bidding is very important. Be sure potential builders are clear on what you want, and that you understand the bid. A client selection sheet is needed, to show all the potential builders what your amenity choices are to be.

The selection sheet should include an allowance price sheet, outlining the parameters for all allowances. Vendors that sell the products, and builders should help you set realistic numbers that will be adequate to cover these items through your construction loan. Allowances include:
• Electrical Fixtures
• Plumbing Fixtures
• Home Automation System
• Front Door
• Garage Doors
• Railing
• Hardware
• Tile
• Countertops
• Carpet
• Glass and Mirrors
• Pool and Landscaping
• Appliance

Compare your bids. If you receive pricing that is “too good to be true” it probably is. Don’t be shy to sit down with each bidder and ask about the details in pricing.

By the time you reach your decision, the builder you choose will have your best interest at heart. The builder that is right for you, should tailor its service to accommodate each client’s unique needs, tastes, and lifestyle.

Great home builders not only build homes, they build relationships that last for a lifetime.

Douglas E. Smith

President
Smith Custom Builders Inc.

Smith Custom Builders is the Winner of 18 Awards from 2002 through 2004. Douglas is the 2004 President of the Custom Builders Council within the Greater Houston Builders Association.