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.
The biggest problem that arises generally relate to financial incom-petence. 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 an inexperienced contractor receives the large draws during construction, but doesn’t have the business background to allocate those funds to suppliers, subs and the 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. Many builders are not good businessmen. Worse yet, some contractors underbid projects simply for the cash flow, in hopes that they can makes ends meet. That almost always leads to problems for the homeowner.
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 to give them the quality that they deserve. Feel free to visit our 2016 Solar home today and speak with our sales staff about any construction questions you may have.
GHD Construction Services, Inc. has constructed 6,000 homes since 1971, and has a new Solar model home at 14305 N. Bayshore Dr., Madeira Beach. If you have any questions pertaining to new home construction, feel free to email me directly at: tsmith@ghdcsi.com or request a meeting at our new model.
By Tom Smith, Contractor – GHD Construction Services, Inc.