Custom Homes FAQ

How does Constructive Builders set up its custom home fees?

There are three common ways for contractors/builders to work with clients. We are open to exploring any one of these options, depending on what works best for the type of project and the client:

1)       Fixed bid. This option offers the least flexibility for clients, but for some clients it provides the most peace-of-mind in terms of knowing exact costs. The downfall with this is that if costs come in lower than we estimate, the savings do not get passed on to you.

2)       Cost plus. With this option, Constructive Builders would earn a percentage (the industry standard is 15%) of the total cost of the project. In this option, if the client chooses more expensive tile, 15% on top goes to the builder. If the stucco comes in under-budget, then the builder earns less.

3)       Cost plus a fixed builder fee. At Constructive Builders, we think this option is the fairest and most “open book” option. With this option, we’d create a budget for the project and then set a builder’s fee. The builder’s fee would be paid in monthly installments throughout the life of the project, and the client pays for all actual building costs with no markup.

 

How is budgeting and accounting handled?

Constructive Builders uses Quickbooks software to create a detailed budget for your project. We can show you where you’re at in each category at any time. Our goal is to be as up front and open as possible. We can request payments from you throughout the project to cover all costs and subcontractor fees, or we can arrange all expenses and have you cut the checks directly. We are open to whatever works best for you and ensures that all bills are paid properly and on time.

 

How do I know that you’re paying the subcontractors? I don’t want a lien on my home.

Clients do sometimes mention horror stories about working with builders. If you feel more comfortable paying subcontractors directly, we can arrange for this. Or, we can provide detailed reports of what’s been paid, when checks clear, etc. so that you can feel at ease.

 

How do you work with architects?

Once you have a building site in mind, we’re happy to work with you and your architect to come up with the best plan. Or, if you already have a plan, we work well with architects to ensure that the project’s vision is attained. If you need architect recommendations, just contact us.

 

How do we find and purchase land?

Land is rather limited in Boulder County, but there are options. Right now, we have special arrangements with a few developers, but we can also work with you and/or your realtor to find a great site.

 

What are the benefits and drawbacks of building a custom home?

If you’re considering a custom home, you’ve probably figured out some of the benefits. In our opinion, the best thing about a custom home is that you have the power to create your dream home! By choosing your location, floor plan, finishes and details, you have the ability to get exactly what you want.

 

If you are extremely indecisive or don’t want to devote time to a home project, then building a custom home may not be for you. It can be a time-consuming effort, but we think most custom homeowners are delighted with the results.

 

How do you set a schedule?

We work with you to set a realistic schedule for your custom home project. It’s our goal to finish early rather than late, so we try to be conservative. Staying on time requires regular review of our progress, decision-making by clients, and a “planning ahead” approach to ordering materials and scheduling subcontractors. Because we’re on site almost all the time, it’s much easier for us to keep your project running smoothly and on time.

 

Why should I pick Constructive Builders over other custom homebuilders?

Our biggest point of difference is our service. We will be there for you, on site and via phone or email, to answer questions, make changes, update you on the budget to actuals, ensure quality and provide expert advice about design and changes. Because we’re the builder and the contractor, you have a lot more flexibility if changes need to be made. We don’t offer a packet of tile, cabinet and paint options like some builders do; this is your home and the possibilities are endless. Meet with us and we feel confident that you’ll understand the difference.