Questions to ask your builder

Choosing the right builder is critical for your project’s success. Ask key questions to understand their pricing, workload capacity, and openness to using your preferred vendors. Clarify communication frequency, team involvement, & in-house services like design or landscaping.

1. Are you fixed cost or cost-plus? If cost-plus, what percentage do you charge?
   Fixed-cost builders offer price security, while cost-plus builders provide transparency and flexibility, often charging around 20%. Choose based on your priorities and project needs. I started out with a fixed cost builder because it locks in my pricing regardless if construction prices go up (or down). I switched to a cost-plus builder because I wanted transparency of costs and flexibility to make changes throughout the process.
2. How many projects do you take on at a time?
   Find out how much time and resources this builder has for your project. If they build a lot of homes, be sure the company has the infrasture, organization, and an experienced team to communicate and complete your project on time. Ask how frequently the builder is onsite (should be multiple times per week). Ask who manages subcontractors day to day. If they designate a superintendent to your project, ask about the experience and longevity at the company because the super may be your primary source of communication.
3. Are you open to using vendors or contractors I already have relationships with?
   Builders often stick to trusted contractors, but flexibility shows collaboration and a focus on cost-efficiency. Look for someone willing to explore options that benefit your budget and vision.
4. How do you communicate and keep me informed?
   Weekly onsite meetings are ideal and this can be put in the contract. Clarify whether updates come from the builder or a project manager and ensure they collaborate effectively with your architect and designer. You need to be informed consistently with any action items and due dates that fall on you. This keeps everyone accountable. Ask what type of technology they use for communication and transparency.
5. What in-house services does your company offer or exclude?
   Does the builder do pools and landscaping in house or outsource? Some builders have in-house designers and architects which can make communication easier. Some builders only work with certain architects and vice versa. Not all builders assist with the upfront permitting process.

Bonus question:

Provide the last 3 clients you built homes for. I toured the last 3 homes the builder built and met with the owner to ask questions.

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