Frequently Asked Questions
I Want the Best Contractor in the Business, how do I find them?
How do I know if my Contractor has a valid license?
Do I need insurance during the building process?
Custom, Semi-Custom, Spec, Production, what's the difference?
I talked to a remodeler, he said he needed me to get the permit, Should I?
Nothing is happening on my project, what is my contractor doing?
When will my home / project be done?
Why is the project costing more than the estimate?
My builder is trying to explain, but I don't understand the construction terms.
I received a notice to owner in the mail, Is this a lien?
What is the process BWTC Residential Construction and remodeling uses when building a new home?
You Want the Best Builder in the Business?
Clients say they want the "best" contractor in the business. Truly there is no one best contractor for all remodeling or new home projects. The truth is that some builders are a better fit than others. That means a contractor who is highly recommended by a friend or a relative might not be the best contractor for your needs. You should pick a contractor to match your needs. Most contractors specialize in one type of construction or another. A few have experience in several types from remodeling up to large custom homes. There are also production and large volume builders that build hundreds of homes each year. Spec builders don’t typically want to interact with clients so they design and build individual homes to be sold upon completion. Design/build contractors provide both design and construction services. If you want your home or project individually designed and built select a company that is smaller in size, usually builds fewer homes and can also pay closer attention to the details. Most smaller building companies are operated by the owner, which means you'll be working with either him or her personally or a key employee. A larger custom or semi-custom home building company may not provide as much personal attention from the company owner.
There are several types of insurance that should be in place before your project starts. The policies that protect the structure, the builder and the subcontractors include:
Builder's risk: This insurance can be purchased by you, or can be included as part of your contract. The coverage insures your home while it's under construction. It typically covers wind and fire damage, vandalism and theft and can also be purchased with a limited amount of liability protection. If your project is a remodel, check with your insurance company to see if you are covered under your current homeowners policy or if additional insurance is needed.
Worker's compensation. This type of insurance covers injuries and lost work time that occur on the job. Worker's compensation is carried by the builder and by the subcontractors and the suppliers.
Liability. The builder, the subcontractors and the suppliers should have general liability coverage.
You should always verify an active contractors license with the state. You can also check to see if there have been any complaints filed againest the contractor you are considering.
Custom, Semi-Custom, Spec or Tract? Do you know the difference? It's helpful to understand some of the terminology used in the home-building industry before you go out looking. Custom home: A custom home is not determined by price, it has an original and unique design. A custom home is one that is designed from scratch to be built on a specific site and for a specific buyer. Semi-custom home: A semi-custom home starts with an existing home design, that is modified to fit the site or individual home buyer's needs. Production home: A production home is built according to a standardized plan, typically in a group as a planned subdivision and developed by one builder. Buyers don't have the option to change or customize the home. Spec home. A spec home is one that is built "on speculation" before a buyer is identified. The builder hopes to sell it during construction or shortly after it is completed.
When will my home / project be done?
Depending on the size and level of custom detail, building a new home can be a quick as 120 days for a simple home to a year or longer for a semi custom or custom home. Frequently a semi-custom home will take eight to twelve months to complete from when the on site construction begins. Details to take into consideration when determining how long it will take include: Size and complexity of your home. A home that is large or has a complex design will take longer to build than a smaller or simpler home. Finishes and features. Special order items and out-of-the-ordinary finishes will take longer to be completed than readily available products and standard finishes. Weather. Work slows down during bad weather. Rain, wind, excessive cold or heat can impact the production time. Economic conditions. Labor and materials contribute to the rate at which a home is completed. Unavailability of subcontractors, delays in receiving materials, products or supplies, unexpected problems with the building site and design problems are just some of the challenges. Buyer- delays. Indecision on the part of the buyer or changes to the home design during construction can throw the construction schedule off track. Make your decisions in a timely manner and resist the temptation to make changes once construction begins.If a contractor or remodeler is asking you to get the permit and you are not hiring them under a management only agreement, beware. This is a red flag that he may not have the proper licenses or insurance to do work in your area. This happens frequently after devastating storms. Alternatively if you are going to do the work yourself many jurisdictions allow the homeowner to apply for a permit for the job. You should check with your local building department to see if one is required for the type of work your are planning. There are different approvals depending on the project. The contractor will typically obtain the necessary approvals on your behalf as part of the construction contract. In the event that your are working under a construction management agreement or are going to do the project yourself, it is important for you to understand what's involved.
A remodeling project usually needs just a building permit if no structural addition will be added. A new home required approvals are:
Zoning. Zoning is often already established for vacant land, but many communities require a final check to make sure new construction will comply with current zoning regulations such as setbacks.
Wells and septic permits. If your new home will be located in an area without public water or sewer services, a well will need to be drilled and a septic system will need to be installed. Permits for the well and disposal system must be obtained from the appropriate county authorities usually the health department. If your home will be connected to public water and sewer systems, applications for hookups to those services will be required along with a deposit and/or hookup fee for each service.
Building permits. A county or municipality will issue permits and inspect your new home during construction to ensure your home's compliance with local building codes. In addition to a general building permit, a subcontractor verification form will be needed for most of the trades that will be doing work on your home. In addition, impact fees may be required for land not previously improved. Covenants (deed restrictions) recorded when a subdivision was approved for development may govern what can-and cannot be built and may require architectural fees and approval by a committee of homeowners.
The construction stage of your new home is not with out its own challenges and misunderstandings. A clear understanding of the process and expectations on your part and good communication on your contractors part can help minimized the frustrations during this stage.
Most contractors rely on the expertise of independent subcontractors. Subcontractors specialize in specific components of home building (concrete, framing, electrical, mechanical and drywall etc.). These subcontractors may work for multiple builders making scheduling a crucial activity. Subcontractors do not complete their tasks sequentially, rather they are skillfully overlapped and interwoven by the builder (or a superintendent) supervising the project and must work together to accomplish the job. The builder facilitates cooperation among the subcontractors, making sure their work is completed correctly and on time. If confronted with a delay in materials delivery, weather or any number of other conditions, the subcontractors may need to be rescheduled. This means your project needs to be fit back into the subcontractor’s schedule where he has an opening. It is important that you follow the process and timeline for making decisions about allowance items ( paint, tile, fixtures and appliances) for your home. Indecisiveness or procrastination on your part can delay the completion because the builder needs an adequate amount of time order the items you have selected.
The builder also mediates any conflicts among the subcontractors and resolves the inevitable questions and problems that arise during construction. In addition to field work a mountain of paperwork is built along with every new home. The builder's administrative responsibilities include tracking costs, preparing bank draw slips, maintaining files and arranging for building inspections.
I received a notice to owner in the mail, Is this a lien?
In short no, this is not a lien. Florida Law requires anyone who supplies labor, materials or services to your contractor on your project must send you a Notice To Owner. The notice is not a lien and does not mean that your contractor failed to pay the company who has sent the notice. It advises the owner that the company has been on your job and gives you a general description of the type of materials or services they are supplying. Before paying your contractor, you should get a written release of lien for each company that has sent you a notice. If you have financed your project and the lender is paying the contractor the lender is responsible for getting the releases. You should verify that the lender has also received the notice and provide them with a copy if they haven't received it.
Why is the project costing more than the estimate?
There are several factors to look at when a project goes over budget. In new construction the typical answer is change. If there was a significant length of time between planning and design and actual construction the first change to look at is inflation. A long span can bring rises in materials, labor, regulatory and permit fees and utility costs.
Changing the scope of work during the project (no matter how small) also necessitated a revised budget. Redesign costs, revised permitting, additional or revised materials all factor into making a change during the construction process.
Unforeseen conditions is yet another budget buster. Your contractor can not plan for every inevitability especially during a remodeling project. Hidden damage or substandard or faulty existing construction can all play their part.
The best way to deal with cost over runs is to expect them. Include a contingency, try to account for what might go wrong at each stage and how much it may cost, include this amount in your budget. In the happy event that nothing goes arye and you don't make any changes you will have a vacation fund for future use.
This it by far the most frequently asked question. There are many variables that go into a new home or remodeling project so, unfortunately, there is no easy answer. Homebuilding and remodeling costs can vary depending on the size, shape, number of stories and types of finish materials. The best way to identify a reasonable budget is to go backwards. Start with how much you can afford to spend, then be realistic on your needs.