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Interview Questions to Ask a Custom Builder in Delaware

  • Can I see a copy of your business license?

The answer should always be yes. Make sure that the license has not expired. If the builder does not have a business license, move on. They are only dabbling in construction.

  • Do you carry general liability and workers compensation insurance, and will there be a builder’s risk policy covering my job?

Lack of proper insurance coverages is a deal breaker. The builder should be able to produce proof of insurance quickly. If in doubt, request that an insurance certificate be issued directly by the insurer for your review.

  • Have you ever operated under a different name, declared bankruptcy, been sued or sued anyone before? Explain.

Even some responsible builders were caught up in the housing crash of 2008 – 2009. But, builders with a history of name changes, bankruptcies and litigation are a huge red flag.

  • How long have you been in business? Is this your full-time occupation? Did you begin your career as a carpenter or in another field?

You can glean a lot from this question alone. Some remodeling contractors have full-time jobs in completely different fields and attempt to handle the business side of home remodeling with no understanding of quality craftsmanship or an appreciation of carpentry. They get by with hiring subs to run the jobs while they “check in” occasionally. Also, stay away from people who started recently. No general contractor should attempt to run a residential construction firm unless they have 15+ years of experience in the field, preferably with a background in carpentry.

  • Have you ever operated under a different name, declared bankruptcy, been sued or sued anyone before? Explain.

The builder should provide you with a copy of the firm’s warranty in writing. Reputable builders value their reputations and will often fix problems that arise after the expiration of the warranty.

  • Do you provide customers with written lien waivers

Once the job is completed, you should be entitled to receive a legal document from your contractor stating that you have paid him in full, and that he waives his right to place a mechanics lien on your property (this should include lien releases from sub-contractors, too).

  • Who runs your back office?

If the owner of the company is wearing too many hats, job supervision will often take a backseat. It’s okay to ask to see the company’s organizational chart. Who is responsible for accounting and human resources functions? Estimating? Sales? Operations? If the owner is trying to do it all, you should look elsewhere.

  • Do you handle the permitting process and inspections from the affected jurisdictions or do we have to coordinate that?

Your general contractor should handle this. Period. You are not responsible for pulling permits or dealing with the town’s building inspector.

  • Do you have a list of client references? Do you also have a list of trade partners, vendors and architects and designers that have partnered with you that I can call?

Past clients are the most appropriate people to talk to. Ask them very candid and specific questions. Ask about the quality of work, budget, timeliness, cleanliness, safety, level of professionalism and if their goals and expectations were met. Also check businesses that partner with the builder. Make sure the contractor is in good standing with their trade partners and vendors, and able to collaborate successfully with design and architectural firms.

  • Have you done a project comparable to mine? What were the biggest challenges?

Experience and expertise really count in this field. No two custom projects are ever the same. What matters is whether the builder can handle complex issues, and if he has the competence to successfully complete your project. Ask about a specific concern you have and assess whether the builder’s response reassured you or caused further anxiety.

  • Who is on-site managing my project on a daily basis, and who is ultimately responsible for my job?

The correct answer is that the owners are ultimately responsible for your project. But, custom home building requires daily hands-on attention from a qualified project manager or supervisor who is not distracted by all the other responsibilities of running a business. Ask about the experience levels of the builder’s project managers and supervisors. If the builder cannot attract and retain experienced managers, they will be challenged to complete your job successfully.

  • How do you communicate with your customers? How often and by what method?

We have written a complete blog about the importance of communication systems in a custom home building project. If a builder cannot describe how they use a robust construction management system every day, it likely means that your project will be managed with disorganized scraps of paper strewn across the dashboard of somebody’s pickup truck.

  • Describe a typical work day and how you maintain a clean and safe job site?

For a remodeling project, ask about everything from arrival and departure times to the specific steps they take to ensure cleanliness, safety and security in your home during a remodel. Also ask about how they protect your home during a renovation.

For new home construction, you (and your neighbors) should be assured that the job site is kept clean and organized at all times.

  • How many other projects will you be running concurrently with my project?

You want to be sure your builder is responsive to your needs and doesn’t put your project on the back-burner. The number of projects he can run simultaneously depends on how effective his firm is and how they’ve met deadlines previously. There are limits to the number of projects that any project manager or supervisor can manage at one time. Note – project managers can handle more work if the jobs are in a geographically compact area.

  • How do you stay current and on top of trends?

New and better products are constantly being developed in home building. Your contractor needs to actively stay on top of product introductions, service innovations and industry trends by doing several of the following on a regular basis: being a member of National and Local Home Builders Associations, attending conferences, taking continuing education classes, reading trade magazines, subscribing to industry newsletters, meeting with sales reps and networking with industry professionals.

Keep in mind these questions are just a starting point for discussion. Don’t be shy. Continue to ask specific in-depth questions until you obtain a comfort level that the builder can successfully handle your project.

 

Topics: Interview Questions to Ask a Homebuilder, questions for a builder or contractor, questions for a general contractor, interview questions for builder or contractor, what to ask a builder or general contractor

This blog post was adapted from a post by Donatelli Builders of Downers Grove, IL

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By Kim Harding 09 Aug, 2021
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01 Jun, 2021
To Renovate or Build New – That is the Question Should you renovate your home or tear it down and start fresh? Sometimes the answer is obvious, but often it is nuanced and requires judgment and experience to make a sound decision. Turnstone’s roots are at the Delaware beaches, where the soaring value of coastal land has made the “renovate vs. tear down” decision something we deal with all the time. For many owners, having a quaint little cottage sitting on a parcel of land that is worth $1,000,000 or more just doesn’t make a lot of sense. As new, larger homes gradually surround the cottage, their choice becomes even clearer. But there are many advantages to renovation that must be considered before you schedule the wrecking ball. We tapped the collective expertise of our most seasoned professionals to gather the factors that should be considered when facing this important decision. In the end, each situation is unique, and no generalized advice is sufficient to the task. One caveat – if you are passionate about the historical significance or authenticity of your older home, this blog post is not intended for you. Assuming your home has a solid foundation and “good bones”, you are going to renovate it, and we would be thrilled to assist in that endeavor. First Things First It helps to start with a wish list of the attributes that are important to you, categorized by wants, needs and must-haves. This is a great mental exercise that prioritizes what matters to you, unencumbered by the practical limitations of a renovation. Based on this list, Turnstone can provide you with a rough idea of the cost to build new vs. the cost to renovate. It’s key to know what financial ballpark you are playing in for both options. We can also estimate how long the renovation or new build would take. The Factors Note: Some factors are only relevant if you are close to the coast or inland bays. Factors that favor renovating your home: · Your home has a solid foundation and framing, and you want to save money. · You are satisfied with the square footage in the existing building footprint. · Improving your home in phases works better for your budget and/or lifestyle considerations. · You’re in a hurry. Renovations are generally faster than new construction. · The design you contemplate does not involve major changes in how structural loads are carried. · Your home has non-conforming setbacks and/or a floor area ratio. You may lose square footage if you demolish because more restrictive Codes and lot coverage limitations may apply. · You have other non-conforming structures on your lot that you want to keep. · Less than 50% of the home requires renovation. · You are not bothered by the prospect of living through a renovation, or you have an alternative temporary housing option. · The air quality, HVAC functionality and energy efficiency of your home are not a concern. · The lot cost and rebuilding cost combined would greatly exceed the market value of the new home. · Your home has characteristics that would be very expensive to recreate – i.e., an all brick or stone exterior. · You live in an area where applying for a renovation building permit will not trigger a reassessment of your home’s value by taxing authorities. · The cost of demolition and disposal is very high in your area. · Crazy high lumber and steel prices make rebuilding too expensive (like now). Factors that favor building a new home: · You just want to live in a new house! You want modern amenities like an open floor plan, high ceilings, large closets and bathrooms, better air quality and energy efficiency, etc. · Your foundation and/or floor systems are approaching the end of their useful lives. · Your foundation would not support the load of adding a floor above the existing space. · The applicable building authorities will require you to meet contemporary building Codes for energy efficiency, fire safety, electric wiring etc., as a prerequisite for issuing a building permit. · You place a high value on having a virtually maintenance-free lifestyle for many years to come. · “ Aging-in-place ” is important to you. Many of the recommendations for successful aging-in-place construction are harder to achieve with a renovation. · The property was purchased for “lot value”. · The potential market value of a new home is much greater than the value of a renovated home. · You will need to renovate more than 50% of the home. · You are passionate about energy efficiency. · Your home has asbestos, lead paint or other hazardous materials. · Your existing floor plan is radically different than your desired floor plan. · Your home has aging components not directly related to the renovation. By rebuilding, you get to reset the clock on expensive repairs and replacements for many years. Think roofing, siding, paint, appliances, water heaters, the HVAC system, among others. It might be that building new is not that much more expensive than the cost of a renovation plus the cost of replacing obsolete components as they wear out. · Your lot is prone to flooding or you are concerned about sea level rise and want to elevate on pilings. While not an issue on the East coast, people in western states need to take into consideration resistance to wildfires and earthquakes. · There are desirable (and valuable) potential views that can be captured by building up. · You need budget certainty. Renovations require a larger contingency factor because there are simply more unknowables. Once your home is under renovation, you usually don’t have any choice but to pay up for any unexpected costs that may arise. · If you want to add a swimming pool and the existing home is non-conforming, you may have no choice but to build new in some jurisdictions. Other Considerations: · Do you want to live in the home while it is being renovated? Think long and hard about that question because living in a home undergoing major renovation can be extremely inconvenient and stressful and can slow down the pace of the renovation. It’s loud, dusty, dirty and workers are constantly coming in and out, generally at the least convenient time for you. Can you live with a microwave and a coffee pot for weeks on end? · If you have an HOA with permitting and/or architectural review powers, start talking to them early on to gain an understanding of how they approach renovations, demolition and new construction projects. Are there restrictions in the neighborhood, such as following a specific architectural style, roof type, or color scheme? · It may be tempting to convert your garage to additional living space. Talk to a Realtor before making this decision, as a garage is sometimes more valuable upon resale than the additional living space. · When doing your budgeting, don’t forget the furniture. Your luxurious new home or freshly renovated spaces will be screaming for new furniture to finish off the look. · Beware of companies offering large charitable contributions for components of a demolished home. The IRS is cracking down hard on perceived abuses in this area. Most of our clients who study the issue decide to tear down and build a new home. The tear down and rebuild option is all-or-nothing. After your home is demolished (not an insignificant expense) you're left with a vacant lot, committing you to build the new home – NOW! But, by rebuilding, you reset the clock on all those aging systems and appliances. When it comes time to sell, you’ll be selling a home that is still in good shape and has the modern amenities most buyers prefer. As a bonus, you had the pleasure of living in a new home all those years! Turnstone is available to help you assess these factors and reach the right conclusion for your situation. Whatever your final decision, we would love the opportunity to help you plan, design and execute your dream home or renovation.
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