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When I was looking for a builder for my sister-in-law's (Judy's) house in HSV, I put together a set of relatively detailed specifications for two reasons:
When we found a builder we liked, we incorporated the two pages of specs into the contract by reference. In theory, this gave us a means of assuring that the builder would follow the specs or pay to correct anything not built to specs. To a large extent, this worked, but things could have gone better. First of all, if you leave it up to the builder to read the specs each time he gets ready to do something to see if there are any special conditions to be met, you are putting a pretty big additional burden on the builder, and no matter how good a builder he is, he may or may not be up to following your detailed specs on top of all the other details he has to worry about. (And chances are that he is working on more than just your house.) Secondly, if the builder misses something, which is almost certain to happen, correcting the discrepancy may not be worth the time and/or money and you may (as I did) decide to let some things slide. At best, correcting the problem could add days or even weeks to the schedule. So if you are going to try to specify a lot of construction details as I did, you should make it as easy as possible for the builder to see what special things he needs to do. If you are NOT going to make detailed specifications and are content to leave things up to the builder, you can stop reading now. There are inspections, then there are inspections... If you get a construction loan, the bank will hire an inspector to make sure that work is done before paying the builder for that work. Normally, this inspector does not inspect to assure that the builder has met the specifications of the contract, nor even that the construction is up to accepted standards. This inspector only checks to see that the work has been done. For example, if the builder is invoicing for the foundation having been built, the inspector will look to see if it has been built, but unless there are glaring problems, will not do a quality check of the work nor make sure that any special specifications have been followed. So do not get a construction loan expecting that this will assure any particular quality of workmanship. A higher level of inspection will be done by the POA. When they inspect something like the foundation, they will (normally, and as of this writing in 2008) make sure that it is up to code. However, the POA only inspects major items such as the foundation and will not assure the quality of things like sheetrock or tile installation, painting, etc. Also, the POA inspector only checks to make sure that work is up to code, not up to your particular specs. If you have hired an architect, it will be his job to insure that the builder follows the architect's specs. I have never used an architect, so I don't know how thoroughly they inspect the work. The higher the price of the house, the more the architect will make, so the more attention he will give your house. The most thorough inspector will, in theory, be you. I say "in theory" because if you do your own inspecting, you must visit the site at least daily at times when a lot is going on, yet you must stay out of the way and not interfere with the workers. If you are the type of person who likes to stop workers and ask them questions about what they are doing, this is NOT a job for you. You must also be able to recognize when there is a problem, though if you are savvy enough to have drawn up your own list of detailed specs, you should be savvy enough to recognize if they are being followed or not, or if there is an obvious problem which is not being addressed. Again -- if you are a "talker" and just can't help taking every chance to talk to workers, stay away from the building site. It's not their job to educate or entertain you, and it's not your job to supervise them. If you see something wrong, you should call the builder, though if it will make the problem worse if they keep going, it is alright to tell them to stop while you call, although it is THEIR right to ignore you. (They don't work for YOU.) Finally, Buss allowed me to serve as the official inspector for purposes of letting Judy know when payments were due for work completed. Judy saved hundreds of dollars that an independent inspector would have charged. An independent inspector would not be doing quality assurance, simply stating that work had, nominally, been done and payment for it should be made. So our understanding was that I would simply provide that function. I never withheld approval for payment when there was a discrepancy with the specs. I would notify Buss of such discrepancies and either he would get them fixed right away or I would agree to let them slide, but payment was made on time, which was necessary since he normally was already on the hook for materials and labor. On the other hand, I was watching things pretty closely and if a problem arose, I told Buss immediately; I didn't wait until he presented an invoice. The customer is NOT always right: A very nice, pleasant gentleman told me that when his house was being built, the foundation subs left chinks/holes in the mortar and didn't get blocks to line up. When this gentleman complained about it, the builder offered to give him his money back and let him look elsewhere for a house (it was the builder's lot). The wife wanted that lot and house, so he smoothed things over with the builder. I happen to know this builder, too, and there is no doubt in my mind that he was in the wrong, but it just goes to show that there is a limit to how far you can push a builder, even if he is wrong. You have to choose your battles and only fight for things that are really important and let the little things slide. If things are just going so badly that you can't stand it, you may have to try to get out of the contract and hire another builder and/or take legal action. I have known home owners in our neighborhood who went through more than one builder (sometimes more than two). The types of houses most builders prefer to do are (1) spec houses which they build completely to their own specs with nobody breathing down their necks, (2) custom homes for which the buyer chooses only standard things like paint colors, flooring, fixtures and appliances, (3)-(9) any other types but the next one, and lastly, (10) a house for which the buyer has provided pages of detailed specifications, some of which do not match the builder's usual way of building. (In case this is too subtle -- if you are reading this, you are a worst-case scenario for a builder, just like me.) In a healthy housing market, you may have trouble finding a good builder who will agree to build to all of your specs. Why should he when he has all the #1 and #2 type of business he can handle (which is a LOT less stress for him)? Judy was somewhat lucky that she was building in one of the worst housing markets in decades (2007-8) and builders were more willing to put up with me. Even so, only about half the builders I approached for bids responded. If a builder is not willing to go along with either your detailed specs or your verifying that they are met (i.e.: breathing down his neck), then you should try a different builder. If you cannot find ANY builders who will meet all of your specs, then you probably will have to drop the problem specs. This may also be the case if the only builders who do agree to all of your specs either want an outrageously high price or do not meet your general standards for builders.
Add Your Specs To The Construction ScheduleNaturally, you will add your specs to the building contract, either in the contract or by reference. But this does not guarantee your specs will be followed. Do you really think you are going to take a builder to court because he refuses to redo a relatively minor detail that doesn't meet your specs? The best way to assure that your specs are not overlooked is to take the builder's construction and/or payment schedule and integrate your specs into it Each builder may approach scheduling differently, but Buss gave us a schedule for construction and disbursements. If you get a construction loan, the bank may get this schedule and you may have to ask for a copy. If your builder does not make a schedule, you might use the one below and incorporate it into the contract by reference. The text indented way over (in the list below) is where I have added specifications to the builder's schedule sheet. These things are optional -- just delete any of them for which you don't want to be bothered. And of course you can add any other specs you wish in the appropriate sections. This list normally does not include items which are already shown on the blueprints or which the builder would have done anyway or which you wish to leave up to the builder. BUT REMEMBER: The builder bids the house based on your specs. Once a contract has been signed using those specs, you give up the right to complain about any choices the builder makes which are a matter of taste/style and which you did not specify. A builder may let you have some say on things you did not specify, such as interior door style, but he is not obligated to do so, and remember that getting your input when not required is just more time and effort (and possibly cost) for him -- and that's not what he bid on. To the extent which the builder and his subs follow these specs, you can help insure a certain level of quality, but the ultimate quality of the house will depend on the expertise and integrity of the builder. No matter what you specify, there are too many situations which can arise which you did not foresee or know about and which rely on the builder to resolve successfully. There will be things which you do not specify where a builder can either use that opportunity to take a shortcut, or he can aim for the highest quality. This is where you find out how good a job you did picking a builder. If you use this list to get bids from different builders, they should show the costs of each major (numbered) item on the list and use this when billing you (or the bank) during construction. By using this for billing, you can be assured that the builder will look at the detailed specs of items for which you are being billed, as well as for items he is preparing to do. To edit or print just the list below, cut-and-paste it into your word processor.
SHOP IN ADVANCEIf you do not permit any allowances in your contract, then you will not have any unpleasant surprises at closing. You can avoid allowances either by allowing the builder to choose things, which will not turn out well unless you just don't care at all how things look (because his taste and judgment are unlikely to exactly match yours on every detail), or you can make your selections in advance and specify brands and models in your bid requests, as well as where you found the items. The advantage of the latter is that you know exactly what you will be getting, yet it rewards a builder who knows how to get the best prices on these things. (When possible, specify that other brands may be substituted so long as the style, materials, colors, and quality are the same. This provides an alternative if a particular item you select cannot be located at the time of construction.) If you choose to pick your own fixtures, then it just becomes a question of when you do the shopping. By doing it before you put out for bids, you have a lot more control than if you wait until you are into the building process. The Internet (and Google) makes it very easy to see a wide variety of products, and even alternatives that you may not have even been aware of. And it's FUN! If you absolutely must wait until after contruction begins to pick light fixtures, fans, appliances, etc., then make sure that the allowances cover only those specific things. An allowance should specify exactly what it is for, such as light fixtures, not a general category like "electrical". Never agree to allowances for things the builder is responsible for planning for and purchasing, such as foundation blocks, concrete, etc.
FINAL WARNING!!If you draw your own floor plan and/or make an extensive list of specifications for how the house should be built, you are taking on the duties of professionals who have years of training and experience. While the process of building a home may appear simple and straightforward, nothing done by professionals is ever as simple as it looks to the untrained eye. Proceed at your own risk, and at a minimum, give the benefit of the doubt to your builder or his subs who suggest changes to your plans or specs.Here we go. Cut-and-paste the following into your word processor. Revise to your specs and erase my comments other than direct instructions or specifications. Example: "Select: trusses or solid wood" -- change the line to either "Trusses" or "Solid wood", or if you are getting a slab, take out the whole "Pier and Beam" section.
Construction/Payment Schedule and SpecificationsA copy of this schedule with specifications checked off by the builder, and change orders signed by the customer for any changes to these specifications, must accompany each request for payment.
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