Domestic Relations

Custom home building is unlike any other business transaction—all parties to a contract have continuous interaction and communication for months, sometimes years.

The only way this complex process can be a good experience for everyone is if the parties subscribe to a set of unwritten, unspoken rules of business behavior. In the interest of better relations during the building process, I submit these guidelines for builders and homeowners.

First, the pros’ guidelines. These rules should help you develop positive relationships with clients:

1. Do 80 percent of the listening and 20 percent of the talking. Good, clear communication between clients and their building professional is essential. Let the client lead the direction and momentum of conversations. Repeating and clarifying information communicated by your clients is essential to understanding and giving them exactly what they have asked for. Your insight and recommendations are being solicited by the client. Be candid, honest, and forthright.
2. Always follow up with paperwork. Person-to-person communication is best followed up with written communication to verify that what you heard is actually what was intended. How many times has a mistake occurred on a project because of a transposed letter or a wrong model number? Always double check model numbers and supplement them with a simple description of each item. For example, when an owner selects an appliance, it should be verified with model number, finishes, a picture if practical, and a statement such as, “GE Microwave 1537X in stainless steel finish with the fold down, not vertically hinged, door.” That door detail is atypical and could be a feature that the owner is unfamiliar with or didn’t mean to ask for.
3. Be forthright about what you can do. Over the years clients have made requests that were just not realistic. I once had a potential client who wanted me to install a thatched roof on a home here in the mountains of Flagstaff, Ariz. That potential client became frustrated with the process and scurried away because the subdivision design review board and the local building department would not allow such a roof in an area susceptible to forest fires. I knew very little about such a unique roofing application and I had invested a substantial amount of company time and effort on behalf of the client’s directives that never came to fruition since the project was never built. The lesson: Never let a client insist on an application that is incorrect, problematic, or something that you cannot realistically warrant. Breaking new ground is fine, but you don’t want to reinvent the wheel on every project you build.
4. Provide value, not surprises. There has seldom been a custom home project that has come in exactly on time and within budget, but that doesn’t mean you shouldn’t try. Review your past projects for budget overages and unforeseen problems. Tally those figures and include a contingency in your contracts to cover them. Also list any questionable budget items and their implications in the contract or specifications. If you provide an extra measure of quality, management, and service to your clients, when the project is completed, they’ll soon forget the overall costs and remember the valuable service they received from their builder.
5. Be the first to deliver news—good or bad. Accidents, theft, vandalism, weather, and flat-out mistakes can occur on every project. If there has been a problem, be up-front with your clients. Avoiding the issue is unprofessional and—when other sources inform the owners of the circumstance—will undermine your relationship.
6. Behave professionally. This is business; never let personal feelings and prejudices affect your decision making. Don’t let money, profits, or ego force you to do things you don’t want to do. Professionals are always improving and adjusting their techniques to generate a better product and superior service. Use your experience with every client and on every project to learn how you can improve your methods and management of future projects.
7. Know your core business. Your professional services cannot be everything to everyone. If your company is experienced at building homes ranging in price from $500,000 to $750,000, don’t delude yourself that you can easily produce a $5 million project. Expanding your business and growing professionally is expected, but certain jumps can result in disaster.

On the flip side, here are some guidelines for clients of architectural design professionals and custom home builders:

1. Seek experienced professionals with a solid reputation. You can identify the design and construction players in a particular city by talking with appraisers, bankers, Realtors, and even lumberyards or the local building department. Don’t be afraid to ask if someone providing a referral, such as a Realtor, will charge a referral fee. Any money changing hands should be out front and aboveboard.
2. Always check references. Most clients resist performing a thorough reference check list on builders being considered for their project. But this easy step will reinforce your decision-making process. In addition to builder-provided references, contact local building material suppliers and ask for a credit reference. Falling behind in monthly accounts to suppliers is probably evidence that a builder is facing troubling financial issues. Steer clear.
3. Work with professionals you trust. As you interview architects and builders, be aware of your thoughts, feelings, and perceptions about them. It is most important that you select people you are comfortable with and can trust.
4. Communicate your expectations. Design and building pros cannot possibly meet your wants and needs unless you tell them what you expect. What are your worries and concerns? Are you afraid of making decisions and selections? Being wary of sharing your apprehensions with your design professional or contractor will lead to misgivings and miscommunication.
5. Know your priorities. Are you most concerned about the cost of your project, the time to complete it, or its finished quality? Each one of those items can and will impact the parameters and management of your project.
6. Respect the advice of your architect and builder. It’s always acceptable and even expected to ask questions of your professionals and to discuss decisions with them. But if you feel that you have to seek outside advisors to verify information they’ve provided, you’re likely working with the wrong team. Communicate directly with your designer and builder about problems or changes. It’s common for clients to chat with subcontractors about the project, but directing the work of tradespersons on the job is always unacceptable and usually generates a myriad of problems.
7. Pay in a timely fashion. Construction is a business that is fueled by money. Your contracts should include a defined draw (payment) schedule that stipulates a specific payment amount due when a specific portion of work has been completed. Most professionals are licensed and bonded as a consumer security for monetary payments.
8. Respect business hours. For most builders this means 8:00 a.m. to 5:00 p.m. weekdays and after hours or weekends by appointment only. Clients should view their building professionals in the same light as their doctors and lawyers. Your builder is not your personal valet available 24 hours a day!
9. Talk about money. The costs of design and construction are frustrating for architects, builders, and their customers. Having a reasoned discussion with your pros about costs, prices, profit, and billing methods is always acceptable. But challenging and arguing about the cost of a project and any changes or insisting on borderline legal practices in order to save money are sure to lead to negative consequences.
10. Understand the professional marketplace. Architects and contractors are as varied in price and quality as they are in their individual personalities and experience. Good, dependable professionals are usually busy and will require some planning and scheduling to get your project started.

As for myself, even though I wrote these rules, every once in a while I have to refer back to them to keep myself on the straight and narrow.
Dennis A. Dixon is an author, contractor, and speaker with 22 years of experience in the building industry. You can e-mail him at dixven@aol.com.