Monday, January 4, 2016

Subcontractors And Suppliers, Should I Hire A Custom Builder That Will Allow Me To Hire My Own?

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Subcontractors And Suppliers, Should I Hire A Custom Builder That Will Allow Me To Hire My Own?

 


 

This is a question Clients often ask. The short answer, it's a bad idea. When managing people the best way to make sure they perform to the highest standard is to make them  responsible for the outcome and have no excuse but to perform. Absolutely, everytime, I've made an exception, the Client and I always regreted that decision. 

The Builder has a team that is conditioned to working together and interested in being included in the next job. In short, the Builder has leverage over his team members. An outside vendor understands this job is a one shot deal. A long term relationship is not in the cards. Unfortunately, they also perform that way.

Many times, the Owner has a family member or a friend that says, I can save you lots of money if you let me do the plumbing, electrical, HVAC etc. on your new home. If the Owner insists, I have his vendor provide a price for the work and compare it to our normal vendor. Nine times out of ten our vendors pricing is superior. In the one instance where the outside vendors price is better the difference is insignificant.

If you find a Builder that says, sure, you can hire any subcontractor or supplier that you want. After all, it's your home and you should be able to hire anyone you want! RUN! Don't walk, RUN! He is a new inexperienced Builder that is desperate for a job! It's going to turn out like one of the nightmare homes you hear about on TV or a cocktail party. Believe me, it's not going to turn out well and you'll regret it.

 

When I was new to the business I allowed one of my first Clients to use an outside vendor. They had a close relationship with a national paint company that was giving him the paint for free. Despite my advice to the contrary we used his supplier. They provided the 5 gallon buckets of interior paint with a life-time warranty. We asked for specific application instructions and were told to apply as normal. 

Our painter sprayed the entire inside of the house with the free paint and all of it peeled off the walls and ceilings. After site visits from the factory experts and many accusations the supplier determined that they should have provided our painter with a specific primer. To fix the painting fiasco, we provided a team of 5 drywall finishers for 2 weeks to completely refinish the entire inside drywall finish. It was a nightmare as the interior trim was already installed.

The Project was delayed by several weeks, additional cost & supervision was required and the quality of the finish was compromised. New primer now applied, our painter sprayed a new test area only to have the paint peel a second time. The supplier threw up his hands and told us to use our regular paint. We continued painting without any additional problems. So much for the free paint! 

Another Client insisted they wanted to have a boat dock installed while we were building their home. Being young and dumb, I agreed. They also wanted to use my subcontractor to clear the area where the boat dock was to be installed, being a great guy, I agreed. 

The Client directed the excavator to clear a specific area for the dock without first obtaining a survey. The dock was built as specified. After the home was finished and the Owner moved into their new home, I received a phone call informing me that the boat dock was constructed on the neighbors property instead of his and that I was responsible because he used my subcontractor. 

When you hire a Builder make sure the plans and scope of work spell out everything that is to be accomplished, then turn him loose to do his job. If somethings wrong it's his responsibility. In fact, no matter what happens once a Builder steps onto the job, everyone holds him responsible from the Owners, neighbors, County and all the other Government agencies. 

If you want a high quality job, let the Builder execute the building contract without interference. If you want to hire somebody to work on your property wait until after you move into your home.

Subcontractors And Suppliers, Should I Hire A Custom Builder That Will Allow Me To Hire My Own? NO!

 

Have an awesome day!

 

Mike

 

www.regalclassichomes.com

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