Tips for working with Builders and Subcontractors

Back in January, I wrote an article about building your own house. There are hundreds of different factors to consider, but like I said before, "if you start off on the right foot, hire the right professionals, and take it one step at a time, building your own home can still be a fun and invigorating experience." (Click Here to view the full article)

The best way to "start off on the right foot" is to start with a great design. Although finding the right plan can be pretty difficult, each of us at The Plan Collection is committed to helping you find your dream house plan -- so let's just assume you've found "the one."

I know that many of you are probably thinking about general contracting your own home. In my humble opinion, being your own general contractor is borderline masochistic; but some people are just made for that sort of thing. For those of you who actually like that kind of stress, let me give you a few hints when it comes to finding and working with subcontractors (but remember, these tips can also be applied to working with a hired general contractor too).

First of all, you have to find the right sub-contractor -- but how?

• *Ask your friends and acquaintances for references (be sure to ask about the sub-contractor and inspect the work).


• *Check the Internet as well as local newspapers.


• *NEVER hire a relative, even distance relatives.
  

Once you have found a sub-contractor, be sure to follow these simple tips:

• *NEVER pay any sub-contractor up-front.


• *When the job is finished, DO NOT just accepts the sub-contractors word "I'm finished" INSPECT IT (twice) to make sure it is finished, and then pay them.


• *VERY IMPORTANT: Require ALL Sub-contractors to sign a Mechanic Lien Release (or lien waiver) form, showing that you have paid them in full. Your local title company probably has a pre-written form.
  

Good communication is an important key when it comes to building a home, and working with sub-contractors is no different. Before hiring a sub-contractor let them know up-front that you expect and require quality workmanship. Be firm on this. Also let them know that the home will be inspected by the mortgage company, and the home must meet codes. Hold back a retaining fee until after their work has been inspected.

General contractors can be a little more loose with their subcontractors, because they usually have several projects going at one time, and it is always easy to withhold payment on another project. As a homeowner builder you do not have this luxury. Your payment is your only power. This should help you to eliminate "fly by night" sub-contractors -- and be careful, there are a lot of them out there.

I hope this information is helpful. Please let me know if you have any questions or comments. Good Luck!