Residential building is a relationship between the builder who provides a service and the owner who expects a finished home. There is an overlap of interest in several major aspects of the building process, such as design, timing, and finance. But the builder and owner approach these issues from very different perspectives.
Design is the starting point for any new or remodel construction process. Every owner has dreams and expectations for their project, whether it is a modest or highly custom home. There is a wide range in house sizes and styles. Typically, builders have a relatively narrow style or type of home building that they focus on. An owner must find a builder that matches their desired outcome, while the builder must carefully select clients and designs to ensure a satisfactory outcome.
A custom home designed by an architect with no actual building experience can have additional impacts. I was asked to bid on an architect-designed extreme makeover in a wealthy area of Minneapolis. Upon reading the contract, I decided against taking the project even though I was highly encouraged to do so by the owner/wife. The contract stated “no spliced trim,” while there were twentyfoot-long walls in the new design. I told the architect that the length of oak trim simply wasn’t available, so it would require splicing. His response was, “That’s your problem.” The contract also had a financial bonus to meet a construction deadline and serious daily fines for missing that date. I saw no way to guarantee a completion date as the project required major re-routing of all mechanical aspects of the existing home. I was not the right builder to sign that contract.
Contracts and signed documents are equally important to the builder and homeowner. These represent clear communication, expected target dates, and specifications of major components. This type of documentation keeps everyone on track and helps settle any disputes that might arise. There are legal requirements for a licensed builder to inform their client of the state Lien Laws. These laws protect both parties of a construction project.
Timing is a surprisingly important aspect of the building process. The owner has their own needs in taking possession of the finished project. Their current residence might have an ending date requiring the move into their new home. They might have a time-limited construction loan with their financing organization. A builder colleague in Michigan was unable to complete his project on time. The lending institution penalized the owners with a huge financial fine, causing them to sue the builder, resulting in his bankruptcy. Owners might be on an extended trip, expecting the finished project upon their return. Many years ago, I worked on a Lake Michigan beach home in Leland, Michigan. It was a complete interior restructure of a historic home. The owners were on a world travel trip for most of a year and expected to walk in the door of a finished project upon their return.
The actual process of constructing the project is of interest to both parties. The owner wants a timely, clean, quiet, non-disruptive progress from start to finish. Unfortunately, these are unrealistic expectations. The best an owner can hope for is timely and clean, because any project is disruptive and noisy. The building contractor needs the process to be well-organized, efficient, and timely. Profitability requires efficiency, and the next clients in line expect a scheduled start date.
Cost and money—whew! There is a point of interest for all concerned. Most projects start out with an estimated cost or a fixed bid for the project. Cost estimates are used when there are unknown elements, such as soil and bedrock intrusions or non-standard elements hidden in the walls of older structures. Competitive bids are used on many projects to ensure financial targets are met. It is hard for inexperienced property owners to compare different bids because many details can remain hidden. A budget-minded owner might be drawn to the lowest bid, but these sometimes contain the most hidden details and off ramps for the builder should costs rise past the contractual bid price. Some projects are “time and material” base which means the final cost is unknown. The builder tracks labor and material costs, adds the company markup, and then presents bills to the property owner. Reputation and honesty of the builder, combined with the trust and financial resources of the owner, are required for an open-ended project.
Profitability is important to the builder and, surprisingly, important to the new owner. A successful project is more likely to include future projects such as garages, decks, additions, and remodels. A satisfied customer should want their builder to still be in business when additional services are desired. Profits will ensure the builder is still available for new work.
Everyone is interested in the newly finished home or remodel. The owners want a joyful and long-term occupancy that meets their hopes and dreams. The builder needs a profit and wants a satisfied customer to refer her/his name and company to new customers. The lending institution needs a “turnkey” finish on even the smallest detail to finance a mortgage.
In finishing this series, let me clarify why I wrote it. Inspired by my early childhood experience of substandard housing, I have a deep desire for people to have suitable shelter. Few of us need a McMansion, but we do need comfortable, safe, and affordable dwellings. In my retirement, I have consulted with neighbors and young families over their new building plans and assessed existing properties they were considering to purchase. I have also suggested repairs on poorly built or worn aspects of older homes. These experiences in Cook County led me to write this series. I am too old to swing a hammer all day or climb ladders, but I still remember the fun I had as a child building forts of wood and dirt. I hope your “fort building” is successful, satisfying, and durable.
