Alex asks: Our contractor wants us to take out the building permit for an addition under our name and says that is standard procedure. Does it matter whether the owner or contractor takes out the building permit? Steve Bliss, of BuildingAdvisor.com, responds: In general, you are better off having the contractor take out the permit. If you take out the permit in your (the … [Read more...] about Who Applies for Building Permit?
Project Management
Radon Risks and Best Way To Mitigate
Don asks: Our house measures just over the EPA limit for radon. Is this something we should be concerned about or are the risks overblown? How effective are radon mitigation systems and what do they cost? -- Doug M. Steve Bliss, of BuildingAdvisor.com, responds: While radon stories rarely appear in the news anymore, the health risk from exposure to high levels is real and … [Read more...] about Radon Risks and Best Way To Mitigate
Cost-Plus: Are Supervision Costs Billable?
Brad asks: On remodels, are supervision costs typically included in contractor's percentage fee or are these billable? Steve Bliss, of BuildingAdvisor.com, responds: There is no definitive answer to your question as different contractors handle this issue differently. Some bill for all supervisory time, some bill for only specific types of supervisory time, and some bill for … [Read more...] about Cost-Plus: Are Supervision Costs Billable?
Cost-Plus Contract for New Home
Dino writes: What is the average percentage that builders charge when they build a new home on a cost-plus contract? Do you recommend that route for a custom home? Steve Bliss, of BuildingAdvisor.com, responds: In pricing a new home, contractors typically mark up their hard costs by 18% to 25% for overhead and profit, although the actual number can vary considerably by … [Read more...] about Cost-Plus Contract for New Home
Will Modular Homes Save You Money?
Peter writes: I received a quote from a building company for a new customized, pre-fabricated home. The quote and specifications are quite complex. How can I tell if the price is reasonable and competitive with a site-built home? Steve Bliss, of BuildingAdvisor.com, responds: To find out if the bid is in the ballpark, you can compare it to similar new homes for sale in your … [Read more...] about Will Modular Homes Save You Money?
The Final Check and Punch List
Bud writes: Our contract is a fixed fee tied to the final cost per square foot, and it provides the builder a bonus for meeting the cost target. Should the bonus be held until the punch list is completed or paid at the final draw before punch list? Second, who typically pays for the punch list, the builder or the owner, if issues arise and the workmanship was not up to par … [Read more...] about The Final Check and Punch List
Hiring a Construction Manager
Terence writes: How would you recommend paying a project manager? Would it be a percentage of the building cost or a daily or hourly rate? What would the rate be? Steve Bliss of BuildingAdvisor.com responds: Construction management is still primarily used on large commercial projects, but is gaining in popularity in residential work as it promises to reduce costs and give … [Read more...] about Hiring a Construction Manager
Who Should Buy Builder’s Risk Insurance?
Travis writes: We are in the planning stages of building a house. We will be paying cash and have gotten quotes from three builders. We have been told by three different insurance agents that as the property owners paying cash, that we should have the Builder’s Risk insurance and the builder should have liability insurance. Two of the builders told us that they are the ones … [Read more...] about Who Should Buy Builder’s Risk Insurance?