How to Build Your Home FAST

In my personal experience, the single biggest reason projects take longer than anticipated is due to delays in material selections.  Now, this may sound like I am blaming the client.  FALSE.  I am blaming the builder (me).  I failed to communicate the importance of timely selections and deadlines.  That ends today!  It is imperative that ALL material selections be made by the client by the time the house is framed.  In fact, by the time the foundation is poured, most selections should be made.

That may sound a bit ridiculous to some of you. That is so early in the construction process!!! To help you understand, allow me to explain what happens between you making a selection and the material being installed.  Let’s take tile, for example.  Here are the steps that must happen to install your selected tile: 

1. A material “takeoff” needs to be performed.  A material takeoff is when measurements are taken from the house plans to determine the needed quantity of a certain material (i.e. tile).  Plans do not tell you the square footage of tile in a specific area (i.e. shower).  A material takeoff must be performed to determine this quantity.  It is simple mathematics, but it does take a bit of time – especially when multiple materials are selected for a certain area.  (TIME FOR THIS STEP – 3 TO 5 DAYS)

2. Retrieve quotes from tile vendors.  Once we know the exact amount of tile needed, we can send a quote request to the desired vendor. (TIME FOR THIS STEP – 3 TO 5 DAYS)

3. Request pricing approval from the client.  Since most material selections are linked to “allowance items” (see our earlier blog post about allowances), the client must approve the cost of a material before it is purchased.  Continuing the tile example, if there was a $10K allowance for tile material, and the vendor’s quote came back at $11K, then the builder must receive written approval from the client regarding the overage. (TIME FOR THIS STEP – 3 TO 5 DAYS)

4. Purchase material.  Once the quotes are reviewed by the builder and approved by the client, it is time to purchase the material!  Very rarely are materials like tile in stock and ready  to be picked up.  They can have a lead time of a week to months, depending on the tile.  (TIME FOR THIS STEP FROM PURCHASE TO READY FOR PICKUP – 3 WEEKS ON AVERAGE).

5. Install material.  (TIME FOR THIS STEP – 5 DAYS)

The steps above must take place for every single material that needs to be selected for your home.  As you can see in the tile example, it would be very unwise to wait until the builder was ready for the tile to be installed to make your selection.  If you wait that long, there will be major project delays.  If all of the materials are selected up front, the builder can purchase proactively and swiftly churn through the work. The result is a home-building journey with decreased stress and increased speed- a win-win!

Start With a Budget, NOT a Floor Plan

It is MUCH easier to build a floor plan based on a budget than it is to chisel away at an expensive floor plan.  You will almost certainly be over budget on your construction project if you go with the latter option.

At JD Rock, we push peace of mind above all else.  If you cannot pay for your “dream home” with peace of mind, it will turn into a nightmare!  

Now, it probably goes without saying that the more expensive the custom home, the more the builder will profit. But as the builder, we are here to say that we would rather you build the less expensive home with less stress than sacrifice your peace and max out your budget.

We at JD Rock obviously do not know your personal financial situation – so it is up to you to do your homework and determine what you can afford.  We recommend a build budget at least 8% lower than what you are pre-approved for at the bank.  So, if your bank approves you for a $700,000 construction loan, we recommend not to exceed a $644,000 contract with a builder ($56K less than your approved amount). We know this sounds crazy- but by doing so, you are setting yourself up for peace of mind.  When it comes time to make finish-out selections for your home (flooring, fixtures, appliances, etc), you can feel the freedom to splurge a little.  However, don’t forget about all the sneaky expenses at the end of the project like paying movers to haul in all of your furniture.  If you are renting a home during the build, is the timing going to align so that you never pay a mortgage and rent check the same month?  If not, have money allocated for this!  Are you going to want to host a party or two in your new home once you are settled? Prepare and don’t let yourself be house rich while cash poor (all your money is locked up in your home).

Again – we push peace of mind above all else.  Your family will experience peace and joy in your home when you live within your means.  An extra 500 square feet of living area will not produce lasting joy.  Neither will a $12,000 refrigerator.  Chase peace and joy, don’t chase the Joneses.

Peace of Mind Starts With Your Budget

I worked on 4 different Cost-Plus Contracts in 2022.  We unpacked the details involved in this kind of contract in a previous blog, but, essentially, the clients saw all of our numbers on the job and were on the hook for any overages to the budget.  For the most part, these projects all came in with budget overages of less than 1% of the project cost (which is amazing!).  However, I noticed that when clients selected their finish-out (think lighting, plumbing fixtures, flooring, hardware, all the pretty things), they wished they had a bigger finish-out budget. No matter how small or vast the budget, the client had typically obtained the largest construction loan they could afford.  As a result, they tended to feel stressed about every little decision along the way because they could just barely afford the project.  This inevitably results in a miserable construction experience for both the client and builder.  Financial strain supercharges every decision with emotion. 

On a smaller scale, consider a car- I could probably go out today and find somebody to loan me money for a brand-new Lexus with all the bells and whistles.  But because this would be a financial strain for me, I could never enjoy the car. I would need to sacrifice my current quality of life and luxuries just for the fancy car.  So I would miserably drive the car around town. Is that car really worth it? The same concept applies to a custom home. 

I would strongly advise my future clients to not max out on the largest loan possible. I would strongly advise my future clients to have some fluff in their budget so that the unexpected is less stressful and they can comfortably pick their actual favorites when it’s time to select wood flooring and bathroom tile. One strategy I recommend is to budget for 5-10% less than your max in order to establish a cash reserve. Another easy way to have breathing room in your budget is to not build the biggest house possible. If a house costs you $225/square foot, then 100 square feet would cost $22,500.  Now, some people reading this may genuinely need the larger home over a nicer finish out.  Everyone’s situation is different!  All I want to do is encourage you to not bite off more than you can chew with a loan, and remind you that peace of mind is ALWAYS better than a bigger or fancier home.  Build something you will love, not something you will regret.

Common Custom Home Building Mistakes- Part 2

Happy New Year! We hope everyone enjoyed a wonderful holiday season with loved ones and delicious food. We at JD Rock are back and excited to jump into another year of custom homes and #bloggieaugie. 

Two weeks ago we left everyone hanging with part one of the most common custom home-building mistakes. Today we are concluding with two more common mistakes. Our desire is to help you avoid these pitfalls and enjoy the most smooth construction experience possible! Without further ado… 

MISTAKE #2 – Not Hiring an Interior Designer

Some builders are specifically gifted with an eye for design and the skillset to bring that design to life on various software.  The Lord did not gift me with an eye for design, and that is okay because I have met some amazing people who design for a living. A really good interior designer is more valuable than most people realize. They’re not just picking paint colors for your walls, they take a client’s fuzzy idea of what they want their home to feel like and turn it into an actual visible drawing.  I’ve had clients, several times, send me a handful of Pinterest photos and say “we want our fireplace to look something like this.”  No two photos will be alike, and I will be left with more questions than answers. This is frustrating for both the client and myself.  The client is struggling to convey what they want their fireplace to look like, and the lack of clear understanding regarding what to install is delaying my construction schedule. A good interior designer will have the software to draw up exactly what the client envisions and clearly dictate what materials are necessary to execute the vision. If you are spending the money and time to build a custom home, it is worth the extra expense to ensure the final product matches your vision.

MISTAKE #3 – Hiring the Cheapest Guy on the Block

1 Corinthians 3:10 says “like a wise master builder I laid a foundation, and another is building on it. But each man must be careful how he builds on it.”  For every custom home, a plethora of trades will be hired to build the various components. It can certainly be tempting to simply find the cheapest guy in town for each of these trades.  While not always true, it is safe to say that you get what you pay for. The cheaper the trade, the more handholding is required. The cheapest guy in town is generally horrible at timely and professional communication (specifically over text and email).  They can be nearly impossible to find if their work is revealed to have problems. Conversely, I have a foundation contractor who is not the cheapest guy in town. I spend a significant amount of money on him for every project. But, he is one of my most dependable and honest trades. He is extremely professional and somebody I am proud to introduce to my clients.  When engineers come to inspect his work, they commend his attention to detail. I never have to worry about his foundations, and that is worth every penny. So make sure to take your time and research to find the best guy, not just the cheapest guy. 

We will continue to share common mistakes in an effort to spare others the headache. However, avoiding these first 3 discussed mistakes will already put you in one of the best positions for a hassle-free construction experience. Take your time and get a full set of plans, hire an interior designer, and don’t settle for the cheapest labor in town if it isn’t the best!

Common Custom Home Building Mistakes Part One

Mistakes are universal across all occupations with an endless list of possibilities. Consider a barista making a simple cappuccino- Did she weigh her coffee grounds accurately?  Was her milk steamed to 135 degrees Fahrenheit? Did she time her espresso shot to make sure it was neither too bitter nor too sour?  Thankfully, if she failed to do any of these things right, she could just remake the drink – costing the coffee shop a couple of bucks and her client an extra 90 seconds. Not the end of the world.

Unfortunately, you cannot just rebuild a house if it does not turn out right. If the following mistakes can be avoided, the client will be happier, and the project will finish faster.  We at JD Rock Construction have made all the mistakes we will discuss.  We are grateful for them because of the valuable lessons they have taught us.  Moreover, we are grateful for the gracious clients who have endured these mistakes with us and for the patience they offered. Today we zero in on one particularly potent mistake…

MISTAKE #1 – Starting Construction Without a Full Set of Plans

This mistake begets most future mistakes.  Proverbs 24:3 says “by wisdom a house is built, and by understanding it is established.”  If you lack a full set of plans, then you also lack understanding.  The human brain can only retain so much data, but a set of plans never forgets what was drawn.  A full set of plans should, at a minimum, include the following:

·         Site plan

·         Floor plan

·         Ceiling plan

·         Electrical plan

·         (4) Exterior elevations

·         Roof plan

·         Engineered foundation plan

·         Engineered structural framing plan

As soon as the builder is given the green light to construct, he will hire subcontractors for the foundation, plumbing, and electrical system.  It would truly be better to hold off on construction a month or two until plans are finalized than to later tear out work because it was not what the client wanted. Let me emphasize that these plans must be final.  If the client signs off on the floor plan, he must understand that any deviation from the plan moving forward will come with a price. Getting plans extensively revised in the middle of the project is a nightmare and will create much more work for the builder and increase the likelihood of error from confusion. Save yourself the headache and ensure you have a full set of plans before commencing construction.

Be sure to check back for part 2 of Common Custom Home Building Mistakes and learn how to create your best custom home build experience!