Searching for the right lakehome builder can be counter intuitive to the way you expect the process should be. There are many pitfalls for unsuspecting owners as they enter the realm of construction in remote areas. A realm where the builder has an advantage.
Many counties do not enforce the building code and trust each contractor to do the “right thing”. As a result up to 30% of all lake homes are subject to contractor negligence or even fraud. I’ve personally seen toilets that have unconnected plumbing in between walls. When the toilet flushed, waste just dumped into the wall cavity.
Many contractors in remote areas will do amazing things to cut corners in order to make profit from an estimate that was grossly under bid. Can you spot a bad contractor before you are in bed with them? I believe you can.
Often the worst contractors have the best first impression. It’s ironic. But in order to weave their deception, they have to be masters of making you feel good about them. Size of company doesn’t seem to be prevent bad contractors from cutting corners at your expense. Good referrals and proper insurances won’t help you determine who will treat you fairly from those who will take advantage of you. As I said, often contractors who make you feel the best initially are the ones who will be telling you they need another 30% more to finish the project. The contractor knows that you have to win a lawsuit against them first before the State will take action against them.
How can you protect yourself from the likes of these? Here are some ideas that may help you.
1. Be highly skeptical of any lake home contractor who doesn’t bring out their builder, architect and environmental expert to your first meeting. Your confidence should never rest with one person in a contracting firm. It takes many professionals to build a quality lake home. If the first person you meet is a good egg, that is no guarantee the other two are equally good. So check out the entire team.
2. Don’t enter into a construction agreement before you have had the entire team perform and solve real problems for you. This is important. You will quickly see how the team handles problems and how they offer solutions.
3. Be on high alert if the contractor provides vague and ambiguous proposal or estimate. Lack of specifics almost always means a sizeable back end up charge.
4. Watch out for “old school” attitudes or back woods appearance or demeanor. Often these contractors aren’t diligent on the business side of your project which can lead to overcharging on the back end or costly schedule setbacks. Lake homes are probably the most challenging residential contracting projects known. It takes quality craftsman and superb managers to pull it off right.
5. Look beyond your first impression. Larger companies can look good but unscrupulous firms can spot weakness in you and use it to increase their profits.
6. Consider the depth and transparency of the information your contractor gives you. Ask them to provide you with the same Sworn Construction Agreement (SCS) they will be providing to the bank. If you are self financing, ask for this document anyway. It outlines by category how much the contractor is making and where he is spending money on your project in order to bring it to completion. (note: it is not unacceptable for a project to run 10% over budget. There are often issues beyond the contractor’s control. And you will likely yourself add things to the original contract as you go through the construction process.) But looking over the SCS can be a real eye opener. If it looks shady or vague, beware.
7. Builders that continually tell you what is coming next before an event is to occur are typically good communicators. It is easy to build trust with them if what they tell you keeps coming true. Conversely, contractors who don’t tell you what is coming on a continual basis are setting you up for conflict. Lack of information almost always produces misunderstanding. You can test for your builder’s communication ability through the design and estimate phase.
8. If your contractor insists upon you signing his construction agreement prior to him performing any design services, this too can be a red flag. Take note and keep looking.
The best contractors, whether they give you a good first impression or not, get better and better as they perform for you. If you are getting good information, communication and service, chances are you have found the right lake home general contractor for the job.
Good luck.