In these uncertain economic times, more and more builders find themselves faced with the problem of getting paid. When the work is complete, some homeowners are slow in paying the last bill. This could be for a good reason. There might be unfinished or improperly done work. If non-performance is an issue, a surety bond can provide the home owner with the necessary assurances.  Some items might be on back-order and the homeowner needs to hold some amount of money to guarantee the builder will come back to fix errors or install missing pieces.

     This is the correct thing for homeowners to be doing. But other times a homeowner might simply refuse to pay knowing that legal action by the builder will be expensive. The cost of suing might exceed the amount of money being held so it would not be worth it. The builder is forced to walk away from the money he is owed and the homeowner is unethically enriched. It’s truly sad when this happens. I wish there weren’t people in this world who would take advantage of hard working builders this way. (more…)

     I was asked this question recently. How do I go about determining the likely cost of building a new house without having to go through the expensive and time-consuming task of completely designing the house and creating the final bidding and construction documents (drawings and specifications)? If the price comes in too high, the design and documentation process will have to be done all over again. That will add more cost to the design services and, by extension, reduce the construction budget. So, how do you get a feel for where things are going on cost at an incomplete stage in the design and documentation? (more…)

      Do you want to control your homebuilding costs? Do you have electrical plans for your new house? Many stock plans show some electrical information, i.e. the location of switches, light fixtures and electrical outlets. Chances are this layout will not meet your needs, if you have a plan at all. One of the primary sources of homebuilding cost overruns is in the electrical work. If you do not have a well defined, complete plan that shows every switch, which lights each one controls, every electrical outlet, every telephone jack and every television jack, you will not have a guarantee that the contractor is planning on providing what you want in his contract price. I’ve seen people add numerous additional devices only to be shocked when the electrician tallies up the final total and presents the customers with a bill for the extras. Even if the cost is only $30 or $40 per device, they can add up fast and you’ll find yourself with thousands of dollars of homebuilding costs you never anticipated.

      Many electricians base their price on the number of junction boxes they install. Each switch, each electrical outlet and each light fixture counts as one box. So if you add an overhead light and a wall switch, this counts as two boxes. Usually, the location of the boxes does not matter. It is the number of boxes that is critical to your homebuilding costs. (more…)