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During builder selection, DLD performs several key functions on your behalf to ensure you pick the proper builder not only for your project and budget, but for your personality, too. |
A N I D E A L P A R T N E R
Cost, Plus Fit
The builder selection process is primarily structured to generate bids on your project.
It’s also the time to consider “builder fit”, or, whether a builder’s project delivery method, profit and overhead structure, subcontractor network, availability, and personality are compatible with you and your project..
It’s also the time to consider “builder fit”, or, whether a builder’s project delivery method, profit and overhead structure, subcontractor network, availability, and personality are compatible with you and your project..
EXECUTION EXPERTS Sounds grim, but we mean the get-things-done-well meaning of the word. The skills and knowledge that builders possess is impressive. They are experts at delivering a wide-range of project types and solving a host of issues. Having an experience builder on your project is the critical to its success..
Yes, cost matters, and we are sensitive to the notion that we're not writing the checks. However, having worked with numerous builders over hundreds of projects we have seen first-hand the benefits of working with good builders who are well-matched with the particular needs of the project and the personalities of the homeowners.
At times that may be a more expensive builder, but no amount of savings can make up for a bad fit.
Considerations
Each project is unique just as each homeowner is unique, just as each builder is unique. Not all builders are equally suited to deliver every project equally well. Understanding which builders would be a good fit for your project is a critical aspect of a successful Builder Selection process.
> ARTICLE: When to Select a Builder
Is there, for example, a project supervisor on site every day? Do they communicate job status primarily through text and email, or in person? Do they rely on software to track and communicate project details or do they primarily communicate project status verbally? Is their subcontractor network filled with experienced, quality craftsmen, or tradesmen more focused on lower cost and expediency?
In our estimation, to consider only comparative construction costs to the exclusion of builder fit would be a mistake. The builder's crew will be in your house daily and a significant part of your life for many months.
How you work with them is as important as how much you pay them.
At times that may be a more expensive builder, but no amount of savings can make up for a bad fit.
Considerations
Each project is unique just as each homeowner is unique, just as each builder is unique. Not all builders are equally suited to deliver every project equally well. Understanding which builders would be a good fit for your project is a critical aspect of a successful Builder Selection process.
> ARTICLE: When to Select a Builder
Is there, for example, a project supervisor on site every day? Do they communicate job status primarily through text and email, or in person? Do they rely on software to track and communicate project details or do they primarily communicate project status verbally? Is their subcontractor network filled with experienced, quality craftsmen, or tradesmen more focused on lower cost and expediency?
In our estimation, to consider only comparative construction costs to the exclusion of builder fit would be a mistake. The builder's crew will be in your house daily and a significant part of your life for many months.
How you work with them is as important as how much you pay them.
ITS IN THE DETAILS Craftsmanship, attention to detail, and a no-shortcuts mindset are the hallmarks of a great builder and someone you want on your team building your project.
T H E B I D P R O C E S S
Step 1 Identify Builder Candidates
The list of builder candidates [typically 3] is often based on a combination of homeowner preference and recommendations from DLD. Although ultimately the responsibility of the homeowner, we can offer input and guidance on identifying trusted builders who would be a good fit for your project and personality.
DLD has no formal relationship with any particular builder. We do not follow a "design/build" project delivery method, where we are formally attached to a single builder partner. We will gladly work with any builder you select.
> ARTICLE: Construction Process Explained
We do, however, have relationships and experiences with a range of local builders, and we commonly offer our input on which builders we think might be best for you.
DLD has no formal relationship with any particular builder. We do not follow a "design/build" project delivery method, where we are formally attached to a single builder partner. We will gladly work with any builder you select.
> ARTICLE: Construction Process Explained
We do, however, have relationships and experiences with a range of local builders, and we commonly offer our input on which builders we think might be best for you.
A characteristic of a good builder is one who moves fast, yet takes the time to get it right.
Step 2 Request for Proposal
In a competitive bid environment, once the builder candidate list is determined, DLD will distribute a Request for Proposal [RFP]. An RFP is a formal invitation to the builders to enter into the bid process.
In the RFP distribution, the following documents are customarily included:
> Request for Proposal - a project description, bid requirements, and schedule
> The Pricing Set - fully designed and documented project
> Photos - images of the existing conditions of your house to aid in their understanding of the project
> Walk-through - a request to schedule a walk through
> ARTICLE: Construction Budget vs. Project Budget
In the RFP distribution, the following documents are customarily included:
> Request for Proposal - a project description, bid requirements, and schedule
> The Pricing Set - fully designed and documented project
> Photos - images of the existing conditions of your house to aid in their understanding of the project
> Walk-through - a request to schedule a walk through
> ARTICLE: Construction Budget vs. Project Budget
NOT FOR THE WEARY Building a house is demanding work, requiring smarts and brute force, but skilled tradesman constructing your project the right way is the hallmark of a great builder.
Step 3 Bid Assembly & Review
Site Walk-Through
Within 7-10 of distributing the Request for Proposal, DLD schedules and conducts walk-throughs with each builder candidate. At the walk-through, the builders and subcontractors can inspect the existing conditions of the home and ask any clarifying questions about the project and drawings.
Bid Assembly
Builders are given a minimum of three weeks to assemble the various estimates from their subcontractors, and to compile them into a formal bid document. If the project is large, complex, or if the bid period includes holidays, the timing may be extended.
Although tempting, this is not a process to rush, as strong, qualified bids are best secured when builders are given sufficient time. Builders can easily spend 40+ hours reviewing project documents, coordinating subcontractor estimates, and assembling the bid.
What we've spent months preparing, the builders must digest in a few short weeks.
Plan Modifications
It's not uncommon to adjust or fine tune a project's scope based on builder input during the builder selection process. They are experts on pricing and construction methods and often offer wonderful suggestions on alternative construction materials and methods that can save time and money.
Any plan modifications made during builder selection process are summarized by DLD in a written document and communicated to all builder candidates simultaneously. No project adjustments are communicated verbally or individually.
A final bid is re-submitted based on any adjustments to project scope.
Bid Review
Once estimates are submitted to DLD, they are inspected for any obvious errors or omissions.
If needed, they are returned to the builder for adjustment. Our goal is to standardize the bids to the greatest degree possible for an easier apples-to-apples comparison. It’s a challenging process as each builder has a different bid format and way of displaying and categorizing their pricing information. It's our goal at this stage in the process to reduce these variance as much as possible.
Once all estimates are gathered, builder interviews are conducted. During the interview, the builders have an opportunity to provide greater context to their bids and elaborate on any pricing assumptions or alternative work items they've identified.
Within 7-10 of distributing the Request for Proposal, DLD schedules and conducts walk-throughs with each builder candidate. At the walk-through, the builders and subcontractors can inspect the existing conditions of the home and ask any clarifying questions about the project and drawings.
Bid Assembly
Builders are given a minimum of three weeks to assemble the various estimates from their subcontractors, and to compile them into a formal bid document. If the project is large, complex, or if the bid period includes holidays, the timing may be extended.
Although tempting, this is not a process to rush, as strong, qualified bids are best secured when builders are given sufficient time. Builders can easily spend 40+ hours reviewing project documents, coordinating subcontractor estimates, and assembling the bid.
What we've spent months preparing, the builders must digest in a few short weeks.
Plan Modifications
It's not uncommon to adjust or fine tune a project's scope based on builder input during the builder selection process. They are experts on pricing and construction methods and often offer wonderful suggestions on alternative construction materials and methods that can save time and money.
Any plan modifications made during builder selection process are summarized by DLD in a written document and communicated to all builder candidates simultaneously. No project adjustments are communicated verbally or individually.
A final bid is re-submitted based on any adjustments to project scope.
Bid Review
Once estimates are submitted to DLD, they are inspected for any obvious errors or omissions.
If needed, they are returned to the builder for adjustment. Our goal is to standardize the bids to the greatest degree possible for an easier apples-to-apples comparison. It’s a challenging process as each builder has a different bid format and way of displaying and categorizing their pricing information. It's our goal at this stage in the process to reduce these variance as much as possible.
Once all estimates are gathered, builder interviews are conducted. During the interview, the builders have an opportunity to provide greater context to their bids and elaborate on any pricing assumptions or alternative work items they've identified.
A CROWNING ACHIEVEMENT Making sure the "crowns" of all framing members are oriented in the same direction is standard practice for a good builder and the only way to ensure your finished walls are flat and smooth.
Step 4 Negotiation & Notification
Bid Negotiation
With regard to materials and contract labor, often the price is the price. It's not uncommon for our plans to be submitted by multiple builders to the same lumber yard for quotes! There is still room, however, to negotiate, to talk with builders about their costs, their overhead and profit margin, material allowance assumptions, and project management fees.
As with all negotiations, there is a delicate balance between getting a good, fair bid, and squeezing price so much that a builder feels unfairly treated. You want a builder who's happy they took the project and who will stand to make a fair profit for their efforts.
Like all companies, they are in business to make money, but an honest and direct conversation about price is always advisable and appropriate, especially with the builder who's the final candidate.
Builder Notification
Once a builder is selected, DLD notifies all of the candidates. We first contact the chosen builder to verify their continued interest and availability, and to secure their commitment. We then notify the non-selected builders of the decision, thanking them for their participation.
Given the amount of time and effort each builder spends on bidding a project, it's a priority and our responsibility to communicate directly with each builder the results of your decision, even if it’s not in their favor.
With regard to materials and contract labor, often the price is the price. It's not uncommon for our plans to be submitted by multiple builders to the same lumber yard for quotes! There is still room, however, to negotiate, to talk with builders about their costs, their overhead and profit margin, material allowance assumptions, and project management fees.
As with all negotiations, there is a delicate balance between getting a good, fair bid, and squeezing price so much that a builder feels unfairly treated. You want a builder who's happy they took the project and who will stand to make a fair profit for their efforts.
Like all companies, they are in business to make money, but an honest and direct conversation about price is always advisable and appropriate, especially with the builder who's the final candidate.
Builder Notification
Once a builder is selected, DLD notifies all of the candidates. We first contact the chosen builder to verify their continued interest and availability, and to secure their commitment. We then notify the non-selected builders of the decision, thanking them for their participation.
Given the amount of time and effort each builder spends on bidding a project, it's a priority and our responsibility to communicate directly with each builder the results of your decision, even if it’s not in their favor.
LET IT FLOW Many of the tasks builders do are demanding and back-breaking, but pumping concrete from a hose is one we'd love to try. Hanging sheetrock, however, is not on our bucket list.
Step 5 Construction Contract
Construction Contract
The final step of the builder selection process is signing a construction contract. The construction contract is based on a final and updated drawing set, reflecting all alterations and modifications made during the builder selection process.
And with the signing of the construction contract, project timing and responsibility shifts away from DLD and to the contractor, whose job it is now to plan for construction, order materials, and schedule subcontractors.
That doesn’t mean, however, that we go away. Quite the opposite.
We will be with you during construction to ensure that design intent is followed and your interests are protected.
We've been told repeatedly by our clients, it’s a time when our value is most evident and our expertise is most needed.
The final step of the builder selection process is signing a construction contract. The construction contract is based on a final and updated drawing set, reflecting all alterations and modifications made during the builder selection process.
And with the signing of the construction contract, project timing and responsibility shifts away from DLD and to the contractor, whose job it is now to plan for construction, order materials, and schedule subcontractors.
That doesn’t mean, however, that we go away. Quite the opposite.
We will be with you during construction to ensure that design intent is followed and your interests are protected.
We've been told repeatedly by our clients, it’s a time when our value is most evident and our expertise is most needed.