Question 1

What does a cost-plus contract mean, and why do you build that way?

Accepted Answer

What does a cost-plus contract mean, and why do you build that way?

You pay the actual cost of your home plus my fee. In a custom home, three cost drivers dictate the price of your home, and these are always very different from one project to the next. These drivers are:

1. The site work: excavation, site prep, foundations, utilities.

2. Raw construction costs: subs, and raw materials like lumber and concrete.

3. The finishes you choose: cabinets, floors, siding, windows, roof, lighting, plumbing, and so on.

The only (fairly) stable variable in those three costs that a builder can rely on is raw construction costs. The other two have major swings in cost for a variety of reasons. Cost-plus means you are never paying for a number padded to cover what nobody can see yet. You see every invoice as it comes in, and budget against actual, the whole way through.

I call it partnership-based building. My goal is to help you reach a goal through total transparency.

Question 2

Why does site work cost so much more on lake and mountain lots?

Accepted Answer

Most of the homes I build are on lakes and mountains up to about an hour around Knoxville, and every lot is unique and can come with many challenges and variables that are sometimes not found until the project is underway. Accessibility, unique soil conditions, and topography all play a role, and experience matters in these unique situations. If there is one budget line item that consistently gets under-accounted for, it is site work and excavation. On some lots I’m ready for a foundation in two weeks; on others the site work alone takes three months. That is why I talk about site work as its own part of the budget from day one.

Question 3

How do payments work during the build?

Accepted Answer

I bill monthly for the work done that month, so you pay for what has actually been built, and you can see the matching costs in the project software. Most lenders now accept a monthly draw schedule.

Question 4

What happens if we want to add or change something partway through, like a deck or a bigger garage?

Accepted Answer

It happens on most builds, and that’s fine. We talk it through first: what it adds to the budget and what it does to the schedule, and you decide. Because you see actual costs throughout, nothing is a surprise at the end. This is maybe the biggest asset to my clients. Fixed-price builders use changes as profit drivers. We believe it’s a normal part of the process, and we want you to have that flexibility without the punishment.

Question 5

How many homes do you build at a time?

Accepted Answer

Usually four to five: one starting, one finishing, and three in the middle.

Question 6

Who do you usually build for?

Accepted Answer

A lot of my clients are on their second or third custom home, or they’re first-timers who are very concerned about all the nightmare stories. Both are looking for a quality builder they can partner with to help educate them and then guide them to ensure a smooth process.

Question 7

Do you use the same subcontractors on every home?

Accepted Answer

Yes. I have worked with the same subcontractors for ten, fifteen, twenty years. If my plumber is two weeks behind, I wait for him rather than bring in someone I don’t know, because that is how I keep the quality where it should be.

Question 8

Do you work with architects, or do I need my own?

Accepted Answer

Either works. Pre-construction services are à la carte: I can bring in engineering, architecture, a surveyor, and interior design to help with your needs, or work with the architect you already have. I like joining the process early, as I can help assess your needs and site and help you navigate the process in a manner that makes sense for your situation.

Question 9

How long does it take to build a custom home with you, from first meeting to move-in?

Accepted Answer

I tell people to bank on a year for actual build time. This can vary, though, with the size and complexity of the build. The client’s ability to make decisions is actually a huge contributor to the length of the build. Pre-construction will vary a lot based on location, zoning, and plan development. I would definitely give the pre-construction phase at least six months to play out.

Question 10

What warranty do you offer on your own work?

Accepted Answer

We offer a standard 1-year workmanship warranty; on top of that, you have all the finish and material warranties, which differ from product to product. More importantly, we pride ourselves on protecting your home in more meaningful ways. We work with established and reputable subs and vendors that care about their work and will back up their product. Long after warranties have expired, I often find myself still in contact with previous clients, helping them through any issues that come up. I’m always available long after the move-in date to help where I can.

Question 11

Can you work with my construction lender, and are there lenders you recommend?

Accepted Answer

Yes and yes! We are totally flexible and have a range of options for you to try.

Question 12

What size and budget of home do you typically build?

Accepted Answer

Our average build is around $2M, but we vary a lot, ranging from $1M to $3M. While our construction quality is consistent no matter the price point, we let the clients dictate the final budgets based on their finish choices, so we get a lot of fluctuation in price points.

Question 13

Are you insured, and can I see your certificate?

Accepted Answer

We are fully licensed with the state of Tennessee and fully insured, including general liability, workers’ comp, and an umbrella policy. All of these are available to see at any time.

FAQ: Building a Custom Home in East Tennessee

Six questions to ask any builder.