|
Working With Log Home Builders
Kevin J. Daum
This article was originally published in a 2008
edition of Log Homes Illustrated magazine.
One of the early questions when starting a log home project is how to find and work with a good contractor. A custom log home can be an ominous project. The process of planning and designing the home was likely time consuming and costly. Having worked so closely with the dealer and manufacturer you have built a sense of trust, so now the thought of trusting the construction to someone new seems a little daunting.
Let’s remove some fear and confusion by clarifying the role of a good contractor. In most log home projects the contractor doesn’t do all of the building work. The contractor is your project manager. His primary job is to manage the flow of work and materials on the project and make sure things are happening in a timely and workmanship type manner. Following is a brief list of specific contractor responsibilities:
* Source and buy materials
* Integrate the log kit
* Hire and manage subcontractors
* Keep the site safe and clean
* Manage inspections and quality control
* Manage the budget
* Problem solve
Before you pick a contractor you need to do your homework first. Most projects run over budget because people put off making all the detailed decisions until they are down the line in the project. Many people think that having a full kit is enough to get the bid. But choosing all your finish materials can have a major impact on picking the right contractor as well.
Today it’s easy to go shopping on the Internet or at design stores to find specific brands and model numbers for all of the fixtures and hardware that go into a home. By specifying the information in your plans you will avoid the troublesome “allowances” that are really just guestimates by contractors and usually end up in cost overruns.
Armed with a complete set of plans and specifications, you are ready to hunt for contractors. Looking for log home contractors has both advantages and disadvantages over finding conventional contractors. The bad part is that there are far fewer contractors to pick from and you don’t want to trust your project to someone unfamiliar with log construction if you can help it. The good news is that most contactors familiar with log construction have made it their specialty and are engaged in the log home community. While your friends may not be able to direct you, chances are your dealer can or you can identify the local log home builders in a neighborhood through local resources such as real estate agents and materials suppliers.
Once you have found a few log builders to choose from, you are ready to evaluate these contractors based upon the three Cs.
* Cost: This is where your detail work pays off. The contractors can now take the detailed specifications and bid the project based upon their margins and expected timeframes. The cost comparison will become plain when you get the bids back from the contractors you are selecting. Since the contractors all got the same information, you will get a clear picture who is working on the lowest margin or has access to the lowest cost labor and materials. You can now compare apples to apples. Ultimately this can be much less important in your decision then the next two Cs.
* Craftsmanship: Many people confuse craftsmanship with design. Since you already have plans the style and design aspects are finished. The Contractor’s job will be to make sure the house is well built and will last. The best way to check on work quality is by looking at other houses built by the contractors you’re interested in. Don’t make the mistake of looking only at the houses that the builder just finished. Nothing tells you better how a car holds up than driving it after 100,000 miles is on the odometer. Ask your builder for a list of homes they built 10 years ago, even if the original client has moved. Knock on the door and talk to the people living in the houses to find out what problems if any they have experienced with their homes. Don’t be afraid to knock on the door of homes built by the contractor that weren’t on the reference list. Look carefully to see if the houses seem solid and nice or if problems are occurring with the structure and finish items.
* Compatibility: This relates directly to your personal “experience” on your custom home project. If you have found decent craftsman at reasonable prices, this will be the most important choice you’ll make on the project. Don’t be quick to trust references since everyone has their own perspective. Make sure to ask specific questions about the experience that will paint you a picture of the personality of the contractor. Just hearing that “It was a good experience” isn’t enough. You need to know exactly why.
First assess your own style so you can pick the contractor that works best for your desired experience. For example, a micro-manager that plans on being involved in every aspect of what goes on in the project every hour will constantly butt heads with a contractor that also likes to micro-manage his projects. In this case a more relaxed contractor willing to have you make the decisions or second guess his work may be appropriate. On the other hand, if your approach is hands off because you are busy or prefer to defer to the experts, then someone with a relaxed attitude will probably frustrate you as they wait for you to make all the decisions. Decide what sort of experience is going to make you happiest and find the contractor that can meet your needs.
Take your time with the interview process. Act like you’re hiring a CEO for a Fortune 500 company. The process can be challenging because everyone is trying to sell themselves. In today’s busy building environment you will be selling the builder and of course he can’t help from telling you what he thinks you want to hear. Here are a few interviewing techniques that will help cut to the real information you need to make a decision:
* Let them do the talking. Let the contractors explain to you they want this job. It helps to have a standard list of questions sop you can compare answers. They should be doing 75% of the talking.
* Let them tell you what they want. Don’t let them guess your needs. Instead, ask them open questions about the perfect project for them and the worst project they ever had. Delve into detail about their like and dislikes. You want them to have a good experience as well or yours will suffer.
* Give them problem scenarios. Anyone can run a project that goes perfectly smooth all the time. Describe nightmare scenarios so you can hear their ability to manage a crisis.
Once you have picked the right contractor, it’s time to establish a steady pattern of communication. I recommend a daily meeting either by phone, in person or even email. This may seem like overkill but it insures nothing gets missed. Daily activity occurs on the project so a quick 5 minute meeting is a proactive way of problem solving. Here are the 5 topics for the meeting.
* What is happening on the project today?
* Are we on schedule?
* Are we on budget?
* What problems or issues if any are occurring on the project?
* What if anything do you (the contractor) need from me (the owner)?
If everything is running smoothly, the meeting will go quickly and everyone can go back to work with full confidence that all is well. Any pending issues now have a forum for discussion and no one has to chase anyone else in a panic.
For good communication, both sides have to be proactive. Be clear and honest on all your issues. If you are dissatisfied or confused, bring it up. Make sure you are clear and decisive about what you want and more importantly what you don’t want. Mistakes and delays happen when people are unclear. Your contractor will also appreciate clarity in your conversations. The last thing your contractor wants is to fix a misunderstanding.
Having a good builder who understands your needs and communicates regularly will allow you to focus on all the good parts of the log home process. I’m not saying there won’t be issues and difficulties along the way, this is after all a significant undertaking and problems are to be expected. But when challenges do occur at least you’ll be confident that everyone is on the same page when arriving at solutions.
Kevin Daum is the Founder and CEO of Stratford Financial
Services, a Real Estate finance and education company, founded
in 1989. Stratford specializes in Purchase loans, Refinance
loans and Custom Home Construction finance and has successfully
financed thousands of clients. He is the author of "Building
Your Own Home for Dummies" (Wiley), as well as "What
the Banks Won’t Tell You." Mr. Daum was an Underwriter
for Plaza Savings and Loan and Key Bank of New York. He is
an INC 500 CEO and has been listed as one the 40 Most Influential
People Under 40 in the San Francisco Bay Area. He is the Global
Chair for the Edison Innovation Program with the Young Entrepreneurs'
Organization (YEO) and is a founding Board member of the Bay
Area Chapter of YEO.
Mr. Daum is a frequent contributor to numerous business
publications on the subjects of Real Estate and Small Business
leadership and speaks regularly on both subjects. He can be
contacted at kevin@stratfordfinancial.com.
|
