Choosing a contractor to build your dream home can be an overwhelming prospect for many homeowners.
 
As architects we have worked with many contractors and have had great as well as horrible experiences. One of the main things we find is that contractors and homeowners can confuse each other via mis-understandings and poor communication. This results in “re-work” (think budget overruns).
 
While we can work with our clients to provide construction mangagement and support during a building to bridge the communication-barrier and ensure efficient and effective progress on a project, many homeowners want to oversee the construction themselves. We’ve prepared these 4 tips to help homeowners choose the right contractor for the job.
 

1.) References

 
The most important factor to consider in choosing a contractor to build your home or building is their references. This includes both the clients they have worked with as well as the architects. This may seem daunting to some, but making the calls and reaching out to their references is the sure way of learning how the contractor works and whether you will be a good fit.
 
Your home is not only a building, but it is also a team excercise between the contractor, architect, tradespeople, and manufactuers: a process that take months, and involve many people. Questions you may want to ask references include: how was for them to work with them and their team? How did the contractor do keeping the project on schedule and budget? What was the finished project like? How was the process overall to work with them? How did they structure the contract for the work?
 
If possible it is best to visit the contractors past projects and understand the scope of the project and the detailing of construction. And be sure not to visit just recently completed projects, but also projects that are older, to see how the contractors work stands up to the test of time.
 

2.) Review the Drawings in Detail

 
The drawings that the archtiect has prepared for you contain a wealth of details that all effect the performance, look, budget, and method of assembly for the house. Once these are given a building permit they are also certified by the city. These drawings are the key to a succesful working relationship with your contractor because they contain all of the instructions and details for how the home should be built. If you have chosen not to retain an Architect for Contract management and supervisions then it is essential that you review each and every note and line in the drawing in detail with the contractor to ensure that both of youand tey understand all of the aspects of the project. This should be done before they provide you with a quote or you agree to work with them.
 
Overall, by reviewing the drawings and discussing the project in detail you are trying to figure out whether the contractor “has their head in the game”, whether they know what they are talking about when it comes to the specifics of your project, and whether they seem interested in working with you. You can also begin to understand how you may work with the contractor.
 

3.) Ask Questions

 
The key is communication. You need to ask questions and keep askign questions until you understand the contractors answer. Nothing should be a mystery or confusing. Building a home has been done for tens of thousands of years, and there is no need for you to have any confusion or ambiguity about the process: it is well understood. The architect you have retained to prepare the drawings will have designed the home so that it meets code, is structural sounds, and performs as you expect. Remember: you hire the contractor to building your home and the architect to design it and supervise the construction.
 
Some specific questions you may want to ask include: What is your approach to this project? What are the phases you envisionn in the construction of this project? What trades are involved, when, and have you worked with them before? How is your core team or workers and carpenters? How will disagreements and disputes be handled?
 

4.) Understand the Contract and Budget

 
There are primarily two forms of contract you will form with a contractor. The first is a “fixed-fee” contract in which you are provided with an all-in price for the work requested. The second is a “time and materials” contract in which you agree to pay for the contractor and his teams time, as well as the material involved in building (plus the contractors co-ordination fee).
 
In the first instance, a fixed-fee can be beneficial if you have a strict budget and want to know all the projected costs up front. This is also incentive for the contractor to work efficiently and effecivtley towards the mutually agreed upon goal. However the concern with fixed fee contracts for homes is that the design, materials, and finishing can change as the project evolves which can lead to re-negotition on the price. Even if the changes fit within the scope of the fixed-fee previously agreed upon, if the changes will cost the contractor more time and money there is the possibility that they will try to extract this money in other wayrs in the future. While this doesn’t always happen, it can happen if a robust, well thought contract is not prepared. The vital thing is to have fixed fee contract tied tightly to detailed scopes of work for the various phases. If an element of the design is required but was not included in the fixed-fee then it will cost extra, and likely come at a premium. Disagreements will arise where the client says “I thought this was included” and having the proper scope of work will remove this possible point of friction.
 
In the second-instance, a time and material contract, the client pays the contractor and his team for the hours they bill, and the cost of the materials. The benefit of this approach is that it allows clients and contractors to agree on various phases of work with estimates of hours and costs, allows for dynamic changes to the project and can remove the hazard of contractors trying to “milk” the client of money via extra and changes later on in the project. The danger is that unless the client is supervising the contractors work closely it is possible for the hours billed to balloon out of control. Choosing a contractor whom you can trust is essential to combat this. This approach means that there is a more organic relationship within the team and allows for changes to the scope as the project evolves.
 
Ultiametly there is no “right” contract, but there are various options to meet your expectations and preference. Understand and imagine how each may work and/or not-work for you to see which you would prefer. You do have rights in either case, and both can work as long as clear communication is maintained throughout, and detailed scopes of work are prepared.
 

We hope these four tips will be helpful to you in selecting a contractor for your home. Please let us know if you have any questions.