Updated: Aug 30, 2018
There are good and not so good companies in every profession. That, of course, is true with the building industry. Contractors and sub-contractors normally specialize in specific types of construction of which they are best experienced. When a builder reaches beyond their area of expertise, problems can arise.
Experience and Business Acumen
The biggest problem that arises generally relate to financial incompetence. When a family decides to build a new home, in almost all cases they are embarking on the biggest financial investment of their lives. They need to be assured that their builder has the experience and financial strength to coordinate the various subs and suppliers and keep all bills paid as the project progresses. All too often, contractors receive large draws during construction. Through inexperience and lack of business background to allocate those funds appropriately. Such as suppliers, subs, and a large amount of overhead that it takes to properly complete a project before they take their profit. Many times, builders underbid jobs due to the lack of a proper estimating and bookkeeping system. Essentially, there are many builders who are not good businessmen. Worse yet, some contractors underbid projects simply for the cash flow, in hopes that they can make ends meet. That almost always leads to problems for the homeowner.
Do not let the contractor get too far ahead in draws as the project progresses.
Protect Your Investment
What can a consumer do to protect themselves financially when building a new home? Florida has a Lien Law that helps protect the consumer, as long as the homeowner understands that legal process. Most important, do not let the contractor get too far ahead in draws as the project progresses. Make sure that a payment for a certain portion of the job is at a fair percentage for the work completed. When a homeowner has a mortgage, the bank has a fair system to monitor draws. Also, very important, when a Notice to Owner is received during construction, make sure that invoice is promptly paid with the next draw. Finally, at completion of construction, demand a notarized Final Payment Affidavit from the contractor stating that all bills are paid.
Choose your contractor carefully. Our business model at GHD is to work closely with every customer. We are committed to giving each of them the quality that they deserve. Feel free to visit our Key West Showcase Home today and speak with our experienced sales team about any construction questions you may have.
GHD Coastal Homes specialize in building custom luxury homes along the coastal beach towns of Pinellas County and throughout the Tampa-Bay area. New custom homes from $300,000s to over $1.5 million (excluding lot). To learn more: call 727-954-8345, visit our Showcase Home located at 239 144th Avenue, Madeira Beach, FL 33708 or on line at GHDCoastalHomes.com
GHD Coastal Homes is a division of GHD Construction Services, Inc. A Tampa-bay family-owned company, GHD has been building new homes and developing neighborhoods since 1971. Since that time, we delivered 6,500 homes and counting to homeowners throughout Pasco, Hillsborough and Pinellas Counties.