Q & A

When being interviewed by potential clients it seems that some of the same questions are always addressed, so it seemed practical to document some of those and share my thoughts. Every situation is different, so each answer will vary according to the circumstance, but generally speaking this represents our philosophy, how projects are approached and issues addressed at Lamar Valley Craftsman. These are certainly not the only important things to consider when deciding on a builder for your project, so be creative and think outside the box. It can be a long project & relationship, and needs to be based on trust & values, the more investigation you do the more comfortable you will feel entering it – good luck! ~~ Barry Schram

• How do you ensure consistent quality workmanship for each house?
• Are there any special provisions that have to be accounted for with soils, I have heard that we have bad soil in Colorado?
• Money is always on everyone’s minds, what is your approach to fees, bill paying and pricing the project?
• What kinds of contracts if any, do you use with your business & trade contractors?
• What if I wanted to do some of the work myself and try and save some money?
• What about all the decisions to be made, there seems like a lot and that it could be overwhelming?
• Will I just be dealing with you, or who else will I be interacting with?
• What if unexpected problems arise, how do they get solved?
• What if I just change my mind on something, fixture, color, wall, who knows?
• I have heard that pouring concrete in the winter can be tricky, what are your thoughts?
• I have heard horror stories about how long it takes to build a home, what ensures that it gets done when you tell me it will?
• How does someone proceed through the process, do we just sit down and write a contract or do we ease into this relationship?
• Where do we look at finishes and how much time will it take out of our schedule, time is always an issue it seems like these days with other responsibilities?
• What about banking, what if I want to use my own relationships vs. yours?
• How do I know that the home I am having you build is placed on the lot where it needs to be?
• What is important to you as a builder?

How do you ensure consistent quality workmanship for each house? – Threefold – first, a scope-of-work checklist is used for the entire building process and each trade contractor. It gets reviewed before the trade starts and during the process depending on what is happening at the jobsite. Sometimes these are tied to the trade contractor agreement that outlines price, timeframe and so forth. This checklist is reviewed and updated after every project; it has become a living document to some extent.

The second area of production are the trade contractors, they are treated like partners, not hired hands. I do not penny pinch every house with these guys, they need to make a living and we respect that. Some of the guys who do work on my projects have been with me for years; I trust them with the process. That said; I still bid out different phases of construction to make sure we are getting the best value for the client. Even though I trust my trade contractors, I still verify where the marketplace is at concerning labor costs & supplies.

Communication is the third cornerstone that ties everything together along the way; without good consistent communication even the best plans can end up a disaster. Email, trade contractor agreements and signed bids are all part of this system.

Are there any special provisions that have to be accounted for with soils, I have heard that we have bad soil in Colorado? – Every site that gets built on is drilled for soil samples, which is then analyzed by the engineer of record. The foundation is then designed according to this report and the architectural plans of the home. I have the engineer of record visit the excavated site to do a site inspection to ensure that the soil that was designed for actually exists. I also have the structural engineer come back and inspect the footing & foundation prior to the contractor pouring cement. I never take anything for granted when it comes to the soils and foundation design.

Money is always on everyone’s minds, what is your approach to fees, bill paying and pricing the project? – My fees are calculated on a cost plus basis that includes open book billing. I have found this strategy to be the way that I prefer to do business; it keeps everyone honest and leaves no room for misunderstandings. When you are speaking with one of my venders or designers there is no ambiguity, my costs are your costs. I am getting paid for my services and part of that agreement is to work hard for you to bring your project in on budget.

Bill paying is carried out in my office, I provide monthly draw summaries that include copies of all vender & trade contractor invoices, again no room for costs being adjusted for the benefit of anyone.

Pricing the project involves getting multiple bids on all the major phases of construction. Some of my trade contractors I have used for years, and they are my major source of conceptual costs. Yet, when it comes time to sign hard bids & trade contracts I am not so tied to these individuals that I will not get other bids for comparison. Good stewardship on behalf of my client is essential to the relationship and long-term success of the project. A philosophy of mine is to always trust – always verify.

Pricing the project also involves value engineering during the design & bidding process. What I mean is reviewing all the different cost categories and coming up with the best scenario to deliver the most value to the client in the end. Sometimes this means using the most expensive finishes, but most of the time it means being creative on how materials and finishes go together to create the final product, which is usually greater than its parts. It is easy to solve people’s wishes with money, but more gratifying to be creative. In the end people are usually happier with this approach because it has been customized to meet their needs and saved them money.

What kinds of contracts if any, do you use with your business & trade contractors? – I have an extensive trade contractor agreement that outlines payments, hold harmless & indemnification clauses, OSHA & jobsite safety, and warranty to name a few. This helps everyone be on the same page as far as expectations, but this still does not eliminate the need for proper communication and follow through on the part of LVC. I trust everyone I work with, yet at the same time know that things need to be documented and in writing.

What if I wanted to do some of the work myself and try and save some money? – You certainly can do some of the work yourself, with certain limitations built in. My first question is going to be why? Maybe you have an expertise or passion and you want to be involved in that area. I would look at this and figure out if it is going to slow the project down and what that looks like in the end.

The one good area to do some of the work yourself is with the landscaping, you are not usually under a deadline, and you can work on it in your spare time. If you are strictly trying to save a buck or two, then that is another issue. Every day you slow the project down it is going to cost you in the long run strictly from a loan interest standpoint. You have enough to do with career, family and home decisions, but I certainly will discuss this scenario in more detail if someone insists.

What about all the decisions to be made, there seems like a lot and that it could be overwhelming? – It certainly can be overwhelming, but proper organization & communication is the key to life when building a home. Breaking it down into small chunks also helps. I have many tools that will be given to you that will help with staying organized; from selection schedules to a list of professionals to talk with about finish decisions. You will always be given plenty of time to meet with sales consultants and designers to help you if that is what you need. I personally am in contact with clients to ensure that everyone feels comfortable with where the project is at and what decisions are being made.

Will I just be dealing with you, or who else will I be interacting with? – A lot of the time it will be myself, but most of the time the team will be greatly involved. This means from initial design stage, to selecting fixtures with salespeople, to getting to know the trade contractors themselves who lots of times have the best perspective on a possible solution to a problem because they are in the field every day. A team approach is the only way to go.

What if unexpected problems arise, how do they get solved? – Solutions usually come down to brainstorming and figuring out what is the best answer. Most of the time this is fairly straight forward, while at other times needs more of a team approach, every situation is so different. If it is a trade contactor who made a mistake then they need to take responsibility for that. If I have made the mistake than I will fess up and take the blame, which sometimes means writing a check to cover the problem. At other times it is the client who has contributed and they need to understand that their decisions, or lack thereof, can affect the project.

Usually though, if the client has contributed to the mistake than there is a good chance that the general contractor has not been paying attention and let something slip though that should have been caught along the way.

What if I just change my mind on something, fixture, color, wall, who knows? – Good question, things seem to change all the time, which is natural. In the end it is about getting the client what they want, and sometimes this costs more money and sometimes it does not. Most of the trade contractors understand simple changes and will accommodate these at no charge. The time to change something is before it happens, like moving a wall on paper before the framer stands it and nails it off. Even those things can be changed but most of the time there will be a charge for these, not to try and take advantage of anyone, but simply because everyone’s time is valuable and needs to be respected and compensated for.

I generally do not charge for simple changes, they are expected. Yet, if at every meeting after the project starts there are changes, then at some point charges arise. These are all issues that we get more involved in during the interview process. I have an entire packet of thoughts that help educate the client as to what is important and what their responsibilities are during the project and how things are handled.

I have heard that pouring concrete in the winter can be tricky, what are your thoughts? – Like everything, the potential for a problem is there if proper building practices are not followed correctly, or trying to hurry the process. The biggest potential problem is to pour the foundation in the winter. It comes down to communication and making sure that the weather forecast looks good and then to have quality trade contractors who are flexible and willing to work together and understand what we are trying to accomplish.

What happens is that the foundation crew is scheduled to set and pour the footer the same day as the excavator finishes the basement dig. If this is not possible than insulated concrete blankets are placed over the dirt to not let the soil freeze, which is the problem with winter pours, freezing. As long as the soil doesn’t freeze everything will work out just fine. The concrete also has the potential for freezing during the curing process, but as long as it is covered there are no worries.

I have heard horror stories about how long it takes to build a home, what ensures that it gets done when you tell me it will? – Good communication and organization among all members of the team, which includes the client. It is a team approach between client, contactor and all the trades. The biggest areas for delay are the contractor not having a good scheduling system, shooting from the hip is another way to put it. Not having good relationships with trade contractors, or no relationship at all, and always switching contractors to try and save $50 is not a good approach to building a home.

Another area for delay is not having a good selection process that is well laid out that the client understands and uses for their organization. Educating the client from the first meeting is paramount to the overall health of the relationship and the project, because not being able to make decisions in a timely manner will slow the project down faster than anything, and frustrate all members of the team, especially the trade contractors. I try to give as much time as I deem appropriate for each situation and client, and how they process information and what is important to them.

How does someone proceed through the process, do we just sit down and write a contract or do we ease into this relationship? – All good relationships take time, and this is no different. We usually sit down two or three times to get to know each other and go through questions and scenarios that are important to a potential client and their family. We then put together a conceptual overview of the project that includes a summary of expected costs.

A good contractor who is attune with the market should be able to go through a program, or set of questions, and determine an overall picture of the project including conceptual cost projections. From there a professional service agreement is signed that authorizes certain limited scopes of work to begin; design, soils testing if they already own their own lot, and finally sending out the finalized plans to bid. When the overall details are finalized then a contract to build the home is executed and the permit process can begin.

Where do we look at finishes and how much time will it take out of our schedule, time is always an issue it seems like these days with other responsibilities? – In the end it is all about structuring the project in regards to what is important to the client, tailoring the home and the process to their needs. If money is the number one priority, than working the network of relationships I have is going to save them money. If time is the priority, and money is less of an issue, then sending the client to a one-stop design center might be the best solution. Or, maybe using my interior designer who can present another viewpoint to the client is the best scenario. The designer can go out and shop for the best deals and bring a presentation to the client. Every situation is different and the end objective is to come up with the best solution for each project and the client’s needs.

• One stop shop = more money, less flexibility but no running around.
• Multiple stops = usually costs less but more flexibility in choices.

What about banking, what if I want to use my own relationships vs. yours? – I certainly have different relationships with banks in Northern Colorado and would be happy to introduce you to them if the need arises. Most of the time clients will already have someone they can approach to get the process going, or at least another option to shop for the best terms and price. Most people today know how competitive the banking industry has become and are willing to go out and see where they can get the best deal, if that is with my relationships great, if with someone else that is even better. I get no benefit of using people I know, as we talked about earlier my costs are your costs.

How do I know that the home I am having you build is placed on the lot where it needs to be? – If we are building in a subdivision, or anywhere there are lot line constraints, then I have the survey company place the stakes for where the house is going to sit. The excavator uses these stakes as guidelines for the basement excavation, and the foundation crew uses them to place the concrete footing. If we are building on an acreage site, than at times I will set the stakes myself to save the client a few dollars. The only issue then becomes what is the final elevation out of the ground that the house sits. The client usually helps in determining this because of views.

What is important to you as a builder? – Working with fun, creative people, who are real and have a clue about life, and are not always just looking out for themselves and trying to take advantage of others. People who understand that we all need each other, that we all have a part to play along the journey and to respect those around them. When I get to work with these types of people - life is grand!!