.png)
Hey there, fellow Barndo Fan!
In a previous issue, we uncovered a crucial insight: a significant mistake many barndominium owners make is choosing the wrong builder or contractors. I can personally vouch for the fact that the wrong choice in this area can lead to huge financial headaches, not to mention lost time and a heavy emotional toll.
We've heard too many stories about builders mismanaging funds, allocating resources from one project to benefit another, over-ordering materials only to use them elsewhere, or opting for low-quality materials. Equally disheartening are tales of hiring inexperienced subcontractors who lack professionalism and deliver shoddy workmanship.
This issue of Barndo Buzz is here to guide you through distinguishing the reputable builders from the not-so-reputable ones. We'll share real comments from individuals just like you and offer advice to ensure your barndominium is exactly as you envisioned. After all, building your home should be about bringing your dream to life, not unexpected setbacks.
In just a few minutes, you’ll find out:
How to search for the right builder/contractors
Simple questions that could raise RED FLAGS and keep you safe
Must KNOWs before you hire a builder/contractor
How To Choose the Right Builder/Contractors
Research and Verification:
Before entrusting your dream barndominium to a builder, it's crucial to perform due diligence. This foundational step ensures that your builder is not only licensed and compliant with state regulations but also is experienced, competent and trusted.
State Licensing: Start by verifying the builder's credentials through your state's Department of Licensing. This ensures they meet local regulations and standards.
Builder Associations: Membership in national and local builder associations can indicate a builder's commitment to industry standards and ongoing education.
Better Business Bureau: Checking a builder's record with the Better Business Bureau can reveal their history regarding customer satisfaction and dispute resolution.
Online Reviews: For candid feedback, review the builder's ratings on Google and sift through discussions on Reddit. These, and other platforms, often provide unfiltered opinions and experiences.
Asking the Right Questions:
Talking a lot with builders before you choose one helps you understand if they’re good at solving problems and making sure your home turns out just how you want it. It’s like making sure you’re picking the right teammate for a project.
Challenges and Solutions: Request details about projects that encountered issues and how they were addressed. This can give insight into the builder's problem-solving capabilities.
Permitting and Codes: Understanding the builder's approach to obtaining permits and adhering to local building codes is crucial for a compliant and smooth project execution.
Warranty Information: Knowing the warranty offered on their work can help you gauge the builder's confidence in their craftsmanship.
Change Orders: Discuss the process for handling changes during construction, which is essential for managing expectations and avoiding surprises.
Fee Structure: Clarify the builder's fee structure (e.g., cost-plus, specification allowance) to ensure financial transparency and alignment with your budget.
Payment Schedule or Draw Process: Have them explain their payment schedule or draw process (even if you are paying in cash) so that you can understand how and when they will need money. See how much they require as a deposit and if their draws follow COMPLETION of work, or if they ask for funds in advance of work being completed.
Large deposits and funds being requested in advance of work done may be RED FLAGS.
ALSO: Will the builder provide itemized lists of payments and sworn statements or verification of material and sub-contractor payments. Not paying for materials or sub-contractors can result in leaving liens on your property, legal disputes and financial losses to you personally.
Below is an actual social media post from the employee of a building company that publicly announced the diversion of funds from one client’s project to another!!!
AVOID BUILDERS WITH THIS TYPE OF PRACTICE AT ALL COSTS!!
Material Quality: Ask the specific types of materials used, or even name brand or proprietary products, as it will often reflect in the quality of the overall job. Will any of the build come from ‘kits’ or ‘packages’ so that you can fully understand what you are getting. Also ask if this information will be provided in a detailed specification sheet as part of the building contract.
Picture below of a homeowner who did not know the differences between using 26 vs. 29 gauge steel, and the resulting affect after spray foam installation, creating an “Oil Canning” effect.
References and Past Work
Looking at prior barndo projects and talking to other people they’ve built homes for helps you see if they’re really good at their craft. You want to make sure they’ve built awesome barndos for other people too.
Client References: Prioritize recent references for similar jobs, which can provide relevant insights into the builder's current quality of work and reliability.
Beware of Square Footage Quotes: Understand the limitations of estimating costs solely by square footage, as it often overlooks the nuances of custom projects. In addition, understand that barndos are often quoted in terms of ‘total footprint’ square footage vs. living space. This can reduce the estimated cost per square feet in an estimate.
Extensive References: A builder with a broad portfolio of satisfied barndo clients is more likely to deliver quality work than one with limited or selective references.
BAD JOBS: Ask the builder if they have ever had a ‘bad job’ or something did not go as planned, and if so, how they took care of the client in the end. You can even ask to speak with the homeowner to match up the story.
Communication and Transparency:
It’s really important that your builder is easy to talk to and tells you everything about how your home is being built.
Open Dialogue: Effective communication is key to reducing stress and ensuring your vision is accurately understood and executed. Will they take calls or meet with you in person, or will they assign it to a project manager or supervisor?
Transparent Billing: Insist on itemized billing to have a clear understanding of where your investment is going, enhancing trust in the builder-client relationship.
Ongoing Updates: A builder should keep you informed throughout the project, offering reassurance and allowing for timely feedback and adjustments.
Timelines: How long will the project take and what is the estimated timeline? This helps you to plan your move-in date and ensure that the project stays on track.
Problems During The Build: What is the process for handling any issues or problems that may arise during or after the construction process? (And there are almost ALWAYS problems.) This helps to ensure that any issues are addressed and resolved in a timely and efficient manner.
FOR OUR VIP MEMBERS, discover an additional 5 CRITICAL STEPS that will help you shore up your builder decision and leave you confident that you have taken all the right steps to PROTECT YOURSELF before you build. This also includes key elements of a building contract that we feel YOU MUST HAVE!
PLUS!!!!!!!! VIP members now have access to past issues of our newsletters and FREE access to Project Barndo, which includes: The Ultimate Barndo Build Planning Checklist, exclusive Design Your Own Barndo Software and 2 sets of the most popular Barndo Blueprints, EXCLUSIVE – YOU WILL NOT FIND ANYWHERE ELSE – BARNDO GUIDES with information that other VIP subscribers are calling, “A Life Saver Before Starting To Build” ---- ALL FOR FREE!!
CRITICAL ITEM 1 – Sub Contractor Relationships:
Choosing a builder who consistently works with the same subcontracting team offers several benefits, including trust, stability, and a guarantee of quality workmanship. This longstanding partnership typically results in better coordination and efficiency, particularly in scheduling work on your home, ensuring that projects progress smoothly and on time.
Furthermore, opting for a builder with in-house subcontractors can provide even greater advantages. This arrangement can lead to significant cost savings and improved timing for your project due to the streamlined communication and increased efficiency from the team's familiarity with working together. The close collaboration between a builder and their internal team enhances the overall construction process, making it a smooth and cohesive operation.
CRITICAL ITEM 2 – Locating Top Builders :
On Site Visits: Don’t be afraid to go to a job site currently under construction. You can learn a lot from just how well you are received and a builder or their employees’ willingness to spend time with you.
Networking: Ask Lenders & Real estate agents that specialize in barndos who they would recommend. These professionals often see a large number of transactions and have more insight into the reputation and quality of workmanship and service of builders in their area.
Other Building Professionals: Asking material suppliers and sub-contractors in various fields can be a great source of information. Here are some of the best resources:
Suppliers:
Lumber yards – building supply companies
Brickyards
Concrete suppliers
Window & Door suppliers
Cabinet & Countertop providers
Electrical/Plumbing suppliers
Subs:
Electricians
Plumbers
Excavators
HVAC
Roofing/Siding
Drywall
Painters
CRITICAL ITEM 3 – Specifically, The 9 Best Questions For Client References:
When was the home built?
Did the project begin and end as projected? If not, why not?
What challenges did you encounter during the building process? How did the builder handle these challenges?
What went really well during this project, or what were the builder's greatest strengths?
What were their weaknesses?
Would you use this builder to create your custom home again? If not, why not?
Would you refer this builder to friends and family?
Did the contractor stick to your budget? If the project went over budget, why?
Did the contractor display good communication skills?
CRITICAL ITEM 4 – Be Careful About Making A Decision About The Lowest Price:
Making a decision based on price alone can result in disastrous outcomes. A low quote could mean one or more of the following:
The proposal is inaccurate or incomplete
Estimates were INTENNTIONALLY low
The Builder is inexperienced or may not have quoted correctly
Low or poor quality materials – or sub-par allowances for items
Subcontractors that are not reliable, competent or who do low quality work
CRITICAL ITEM 5 – Thorough Building Contract & Highly Detailed Specification Sheet:
Even if you are very detailed and take all the pre-cautions to hire the right builder or contractor, something can always go wrong.
To protect yourself as much as possible, having a written building contract with very detailed specifications, is HIGHLY recommended.
While it is impossible to list all elements of a sound contract, we want to give you some important things to consider.
By the way, we want to be clear ---- we are not providing legal advice here. Because of this, and to keep us out of hot water with our attorneys, they want to make sure we give you the following disclosure:
The condensed information provided bleow is intended for general informational purposes only and should not be considered as legal advice. It does not constitute legal information or create an attorney-client relationship. For specific legal guidance on construction contracts or any related matters, it is recommended to consult with a qualified legal professional.
OK….. now that we got that out of the way……here are some items that we think you should have in your building contract to help protect you:
Price, including whether it will be calculated as a fixed fee, cost plus, or cost plus with a guaranteed maximum price;
How changes in the character of the work, contract time, or contract price will be handled (change orders);
The order of performance and triggering of events;
The time of performance of each step in the contract;
Whether delay damages will be assessed for delayed completion and, if they are assessed, whether they will be assessed as actual damages or liquidated (an agreed-upon amount) damages;
Sureties, including whether performance and payment bonds will be required;
The terms and conditions of any performance and payment bonds;
Warranty obligations;
How disputes between the parties will be handled or conducted;
How liens on the project will be handled or waived;
How progress payments will be requested and disbursed, including what conditions must be met to trigger a disbursement;
Insurance, including what parties will be required to carry insurance, what occurrences must be covered by insurance, and what are the parties' rights to make a claim on the other party's insurance policies;
How the project will proceed in the event of a serious dispute arising during the project;
Firing and termination provisions that govern how situations of default will be handled; and,
Whether certain items in the contract will be considered allowances (items that you are allowed to select within a specified budget) and how allowances will be handled.
Speaking of ALLOWANCES….be sure to understand and have verified in a specification sheet attached to your building contract, what type of building materials, fixtures, cabinets, etc. are being provided at the allowance amounts given in your contract. This is a common problem and source of frustration if you do not address this with your builder or sub-contractors in advance.
Image below from: https://rrplans.bigcartel.com/product/rr-buildings-headquarters-2-0-full-building-plan
Image below from: https://www.proremodeler.com/writing-specs-right
By focusing on all of these areas, you can enhance your chances of selecting a builder who will not only meet, but exceed your expectations, ensuring your barndominium becomes the dream home you envision.
To Happy Barndo Living!
The Barndo Buzz Crew
Comentários