Ask the Builder Q: How do workers comp and general liability complement one another? A: These policies work together to protect homeowners from claims for injury, and it’s important that all contractors on the job have them. If an insured worker falls off a ladder and breaks a leg, the workers compensation policy will pay […]
Ask the Builder Q: How much do permit requirements and codes vary from place to place?A: In the United States, the International Residential Code serves as the model code. States, and sometimes localities, can adopt all, part, or none of it, which means that requirements can vary somewhat from one jurisdiction to another. Politics can […]
Ask the Builder Q: How do allowances work? A: An allowance is an amount of money budgeted to cover an item not chosen before the building contract is signed. For instance, if the homeowners need more time to decide what style of cabinets they want, the builder can allocate a dollar amount for cabinets and […]
Ask the Builder Q: Why do so many products need to be ordered ahead of time? A: Manufacturers and dealers stock a lower variety of products than they once did. There are various reasons for this—for example, just-in-time manufacturing and inventory management—but the bottom line is that a lot of items can’t just be picked […]
Ask the Builder Q: Does every new home have a structured wiring system? A: Builders have responded to consumer demands for electronics and other technologies by adding structured wiring packages to their new homes. A structured or advanced wiring system is now offered as a standard feature in more than half of all new homes. […]
Ask the Builder Q: What’s the difference between an option and an upgrade? A: Options, also called standard options or specifications, are typically products or finishes (such as flooring or lighting) that are already included in the quoted, advertised, or negotiated price of a new home. Builders often allow buyers to choose among standard options […]
Ask the Builder Q: How do draw schedules work? A: Lenders don’t want to pay for work that isn’t done yet. If it’s a big job and the contractor can’t complete it for some reason, the lending company will want to protect itself. Most lenders require that construction loans include a draw schedule that ensures […]
Q: What’s the most common job site safety hazard? A: In residential construction, the most common hazards relate to falls, namely from roofs or areas that are more than six feet above the ground. OSHA reports that scaffolding, fall prevention, and ladders are among its top five most-frequently cited violations. They recently tightened standards to […]
Ask the Builder Q: What is the difference between pre- and post-consumer recycled content? A: An increasing number of building materials, such as flooring, contain some amount of recycled (instead of “virgin”) content. Pre-consumer content is material that is recovered from a manufacturing process, such as sawdust from a lumber mill; post-consumer content is material […]
Ask the Builder Q: What is the difference between markup and profit margin? A: Markup is what a builder adds to the price of an item, such as an appliance or lumber order, to cover overhead costs and achieve a reasonable profit margin on the project. The profit margin is what the builder makes on […]