Pre-Qualify Your Builder (before hiring them)

The single largest investment most of us make is the purchase of our home.  So when it comes to either remodeling our present home or building a new home, we want to get the highest quality possible for the least amount of money.  Problem is that some builders are better than others and the size of their company does not always mean very much.  Some of the larger companies do only average work while some of the smaller companies do outstanding work.  So, how do you keep from hiring a builder who doesn’t deliver high quality?  That’s easy, interview the builder.
Just like you did when you were interviewing a baby sitter for your kids, you need to be prepared to ask a builder questions.  Here are four simple questions any builder should be able to answer in your first interview.

  1. Ask him for the contact information of his major subcontractors.  Concrete, framing, roofing, plumbing, A/C and electrical are the most important.  If he can’t immediately give you the names of the subcontractors he normally uses, this means he is shopping for bids on every home he builds.  If he shops for bids and takes the lowest price on the foundation or the framing or the roof or the plumbing … what kind of home are you getting for the money?
  2. Ask for the contact information on his major suppliers.   Framing materials, doors, windows, floor covering, cabinets, countertops, appliances, etc.  Again, if he shops for bids on all of these items, you will end up with the cheapest cabinets and floors.
  3. Ask for his most recent referrals.  He should be able to give you referrals that are less than one month old.  Any older than one month equals a major red flag. 
  4. Ask for permission to contact his subcontractors, his suppliers and referrals.  

Sub-contractors are nothing more than specialists in a particular phase of the building project.  They should be someone the Builder trusts to do the work and uses on a regular basis.  Here are 5 questions to ask the sub-contractors.

  1. How long has this builder done business with you?
  2. How long have you been in business?
  3. How many crews … how many men work for you?
  4. How often does your original bid have to go up after the job is started?
  5. Does this builder pay on time?

Here are some questions to ask the major suppliers when calling:

  1. Ask to speak to the salesperson who handles the Builder’s account.  Ask how long they have handled the account.
  2. Does the Builder order material in a package all at once, or does he require “hotshot” deliveries to get him out of a bind?
  3. Does this builder pay on time?

Referrals from past clients are a great way find out about a Builder.  Most people will quickly give you their opinion.  Don’t rely on just one referral.  Call several so you don’t get a one sided look at the builder’s reputation. 
Questions to ask the referrals when calling:

  1. What type of work did the builder do for you (custom home, remodel, etc.)?
  2. Did he start on time and complete the job on time?
  3. Did he provide an accurate scope of work, plans and specifications so you clearly understood what you were paying for before the job started?
  4. Any change orders?
  5. Would you hire him again?
  6. Would you stake your reputation on referring him to a close friend?



Take the time to call these people.  Depending on how large the project is you are about to start, you could be dealing with your Builder for many months.  If you find a pattern in the builder’s history of easy to work with, they pay their bills on time, and gets done what they say they will do, you can feel more secure in your choice.  And if you find a pattern of delays, change orders, and slow payments, you might want to reconsider using them.  And if you don’t call, that’s OK too.  It’s only your largest investment.