How Do I Choose and Work with My Contractor?

 Q. How do I choose a contractor to build my custom home or remodeling project?
 A. Embarking on your custom home building or remodeling project can be intimidating – downright scary.
The person who will hold your hand -- and sometimes be your real superhero -- during this process
is your contractor. Finding the right contractor can make the difference between “dream home” and “nightmare.”

So what do you look for when choosing your contractor? Commitment to quality and craftsmanship tops the list.
You can see it in the materials and how they are used – not necessarily the most expensive, but, working
within your budget, always the best for your project. Your contractor will work with your architect,
interior designer and landscape architect, by taking the designs, and your dreams, and make them happen.

Your contractor’s commitment to quality should be equaled by his commitment to you, his client.
A home-building or remodeling project is exciting, creative and fulfilling – it can also be long,
inconvenient, and stressful. Your relationship with your contractor must be able to withstand these
challenges. Look for a company or individual with whom you have “chemistry;” one who has excellent
references as well as experience with your type of project. Your contractor should be eager to listen to
your concerns and allay your fears, making the process of the realization of your
dream home as pleasurable as it will be to live in it.
Q. Will the contractor help me choose an architect? Should I find an architect first?
If I do, will the architect prefer to work with certain builders?

A. This really can be a “chicken or the egg” riddle: hire the builder first, the architect first, or choose
a design/build firm, where both are under one roof? Here’s a look at how each option works:

• If you choose your architect, the firm will recommend builders whom they know have expertise
in building homes of the caliber you desire. And, your architect’s contract will include bidding
and negotiation services with these builders, and you may expect help
in analyzing bids and making your final selection.

• Or, you’ve admired houses built by or know satisfied clients of a custom home builder,
and you are sure you want to work with him. The builder will then recommend architects who
are experienced in designing homes and/or additions similar to what you want.
The builder will support you in selecting your architect.

• The simplicity and efficiency of working with one firm for both the architectural design and
building appeals to you: consider a design/build firm. Design/build firms can offer improved
time management and efficient communication, simply through having both professional functions
under the same roof. Added flexibility can be a plus. Decide to add a feature? The design/build
firm handles the design process and communicates the changes internally to the builder.
But, when looking a design/builder firm, make sure the firm has a strong architectural
background, with experienced custom home architects on staff.

All three scenarios work and no one way is always better than the other. But, with any of these options,
first do your homework. Compile a list of builders, using professional sources and references
(see Chicago Luxury Home and Condo and search Custom Home Builders on ChicagoHomeandCondo.com.)
See a new home you like? Ask around and find out who built it. Edit your list by carefully reviewing pictures
on the contractors’ websites and visiting a home or two built by the firms. Take your time – look at everything.
You should be able to see quality in the finish and details. More interestingly, you can feel it.
There’s a sense of integrity in a finely-built home, of a dream ultimately fulfilled.

Now, schedule interviews from the final list of prospective candidates.

Q. In the interview with a prospective contractor, what kind of questions should I ask?

A. Choosing of the builder or remodeler is a major decision; take your time. Hours invested
now can save months down the road. And what are a few days now
compared to the years you hope to be in your dream home?

At the initial review, the most valuable information you’ll get is not from brochures, portfolios,
or a sales pitch, but from your own intuition. The most important questions may be those you ask yourself:

• Can we entrust this person with our dream home, perhaps the biggest expenditure of our lifetime?

• Is there a natural communication, mutual respect, and creative energy?

• Does he have the creativity and vision to make our home unique and important?

• Do you share a similar sense of the project?

• Can he make this project pleasurable, even fun?

• Can we work together for at least a year – and be able to turn to him in the months after, if need be?

Answer “yes” to these questions and you’ve found the most important asset – chemistry.

Q. It seems that references for a contractor would be very important. Should I ask the prospective
contractors for references? Then, what are the questions I should ask these past clients?

A. Builders expect, even want, you to check their references.

Get a list of clients spanning the last three to five years, preferably those who have completed
projects similar to yours. Visit their homes or building sites. Satisfied customers are eager to
show you around and discuss the builder who did the work. If possible, find a past client not on
the builder’s referral list. One unhappy customer is not cause for concern, but
if you discover a number of them, that builder doesn’t make the cut.

Some questions you will want ask past clients:
• Are you happy with your home? Is it what you visualized?

• Did the builder stay on schedule?

• Was the quote accurate and your budget respected?

• Did the contractor bring creativity to the project?

• Were you kept informed, helping you understand each phase of the project?

• Was the builder accessible and on-site?

• Is the builder still accessible now that the project is complete?

• Did you get assistance from the builder in choosing the products in your home?

• Does your feel solid and well-built?

• And, would you hire the builder again?

Visit one of a builder’s construction sites. Subcontractors are crucial to the success of your project.
Their commitment to quality makes or breaks the job. Are the subcontractors professional-looking?
Do they appear conscientious, taking their time in doing the work? Is the site clean and neat?

Talk with subcontractors with whom the builder has worked. If they attest to the builder’s
integrity and workmanship, the firm has earned a good professional reputation.

Visit the contractor’s office. Is it well-staffed, organized?

How long the builder has been in business? Although it is hard to quantify, experienced custom
builders have good relationships with top quality subcontractors and architects, impressive
knowledge of products and materials, and top quality skills.

How many homes is the builder currently working on and how will this affect your project?
Some builders work on several homes at once; others only 10 or 12 a year.

Q. Once I have made a choice, what exactly should I expect from my contractor?

A. These are the basic services your contractor should provide:
• Handle the application process for all county, city and special permits.

• Coordinate, schedule, monitor and inspect the job as a whole.

• Specify, order, monitor, receive, inspect and store materials from suppliers.

• Work out specifications, techniques, agreements, and
schedules with contractors and inspect their work.

• Obtain certificates of current insurance from contractors.

• Keep track of your specifications, remind you of decisions
pending, and make changes requested.

• Track the costs of the job on a regular basis and compare to original estimates.

• Be the liaison between you and all the other people involved with building your home.

Q. I have been collecting pictures and ideas for years, looking forward to the day I
build my dream house. Will my builder be helped by seeing these pictures?

A. He or she will be grateful – pictures make the process much easier. In fact, now is the time,
if you have not done so already, to organize the pictures into your Dream House (or Remodel)
Scrapbook. Buy a three-ring notebook and fill it with acetate sheet holders and graph paper.
Using tabbed dividers, organize the information by room or product, and fill the scrapbook with ideas. I
nspiration is everywhere – take pictures (cell phones are good for this) of things you see, scour magazines
and websites (we offer the most images in the Chicago area here on ChicagoLuxuryHomeandCondo.com)
and use the graph paper to sketch fast ideas of things you have seen or considered.

This “Dream House Scrapbook” will continue to be an important part of the designing and building
process. Pictures can show what is so hard to put into words. These pictures as
a whole also offer an overall view of what your taste in homes is.

Q. How does a builder arrive upon a bid? How are changes to the original quote handled?

A. If the contract is for a flat bid, there is really no way to separate the contractor's fee from the
cost of labor and materials. One method a contractor may use is to "markup" each labor and
material item to include his margin. When this is done, the actual builder's costs are not presented to
the homeowner. If the contract is a "cost-plus" contract, the management fee is calculated as a percentage
of the builder's costs and then added to the total. For example, if the builder's costs are $600,000 and
the fee is 20%, then the total cost of the job will be $720,000. A cost-plus contract allows you to see
exactly how much of the projected cost is for specifically which items. This lets you make decisions
about the types and quality of fixtures and materials you want, based upon their comparative costs.
This also prevents a builder from acquiring more "margin," simply by reducing the
quality of labor or materials without your knowledge or consent.

Q. How will the builder be paid – how does a typical contract work?

A. A standard contract will include:
• A payment schedule; when and how does the builder get paid?

• How much is the deposit ? It will depend on the total cost of the project
and probably will be applied against the first phase of the work.

• Do you have the right to withhold any payment until your punch list
(list of all outstanding work to be completed on the home)is completed?

• The total cost – a breakdown of labor and materials expenses.

• Change order procedures. Change orders, written out changes to original bid, on the
average, add seven to 10 percent to the cost of a custom home. Be clear on
how these orders are charged and how they will impact the timetable.

• The basic work description. This should be finely detailed, including everything
from installing electrical outlets to the final cleaning of your home. A complete list of
specified materials should be provided, if it hasn’t already been supplied by your architect.

• Allowances – what you are allowed to spend on highly variable discretionary
items like lighting fixtures and kitchen cabinets. Are they realistic?
This is one place where discrepancies will be evident. Is Contractor A
estimating $100,000 for cabinets while Contractor B is stating $175,000?

• Warranty. A one-year warranty, effective the date you move in, is standard in this area.

Remodeling contracts typically use a payment schedule broken into thirds: one-third up front,
one-third half-way though the project, and one-third at completion. You may withhold a
negotiated percentage of the contract price until you’re satisfied that the terms of the contract
have been met and the work has been inspected. This should be stipulated in the contract.

Q. You hear nightmare stories of homes taking forever to be completed –
what can I do to eliminate this problem?

A. Your builder should provide a timeline with your contract. This flexible document will give you
a good idea if and when things go wrong. Be proactive: go to the site often and keep track of the
progress according to the timeline. Do your part to keep the project on schedule. One of the main
causes of delays and problems is the late decision-making by the homeowner. If you put off
choosing your cabinets until two weeks before scheduled cabinet installation,
you will hold up the entire process by at least a month.

Q. Okay, I’ve got my builder – any words of advice?

A. Be part of the process – this is a once-in-a-lifetime opportunity. Building or remodeling
a home is your opportunity to shape your environment for years to come.

Be thoughtful, creative, collaborative, and have fun!


Photo Courtsey of: Midwest Design Group Photography by: Bob Milkovich
www.midwestdesigngroup.net