Plumb Construction Company, Inc. offers construction management services as an alternative to hiring a builder for new home construction, where Plumb acts as a Partner and Consultant for the project. Typically, in this situation, the Owner has some knowledge of the building process and wants to play a major role. The Owner can be closely involved in the construction of the new home for the cost savings, or just to be able to say, “I built my own home”, or likely some of both.
Most banks who finance a new home will require a licensed Construction Manager to oversee a home built by the Owner, no matter their experience. The following are a few reasons why.
Subcontractors will be less responsive to an Owner, giving preference to their preferred construction managers and builders who provide them with the majority of their work. This results in time delays that extend the completion date of the home which will increase the construction loan interest cost. The Construction Manager’s experience will prevent structural issues and non-compliance with building codes that the Owner may miss. These issues would otherwise result in time delays, extra cost, and budget overruns. The Construction Manager’s long term relationships with material suppliers and subcontractors will reduce costs and time for completion, and increase the quality of the work.
Each situation will be different according to the Owner’s construction knowledge and experience, and how much responsibility the Owner wants to take on. That being said, there are basic responsibilities for each Partner.
Before the project starts, the Construction Manager will review the construction drawings to check for any structural problems and code compliance issues, and for overall livability of the plan for comfort, energy efficiency, durability and low maintenance over the years. He will also consult with the Owner as to the placement of the home on the property, for orientation to the sun, for the best fit to the lot topography, and for presentation as you approach the new home. The Construction Manager will help the Owner develop a budget for the project. He will review material and subcontract quotes and the subcontract certificates of insurance, to be sure they are complete and meet a high quality of standard, including the necessary warranties for labor and material. A project schedule will be supplied and monitored by the Construction Manager.
After construction starts, the Construction Manager will assure that all workmen are working safely and oversee management, coordination, and scheduling of the work, including necessary county inspections, to ensure the project is completed on time and within budget. As work progresses, he will review the work to assure compliance with building codes, the construction plans and specifications, material quality specified, and subcontract agreements. He will also consult with the Owner for any questions that may come up during construction and suggest changes that may enhance the value of the home.
Before the project starts, the Owner will be responsible for the construction drawings, obtaining the building permit, and getting quotes for materials and subcontract work. Ideally, most material selections will be made before construction begins to prevent project delays caused by materials not being available in a timely manner. Once the project begins, the Owner is responsible for paying for all labor, materials and subcontract work, and for any overruns on labor, material and subcontract cost. When the project is complete, the Owner will be responsible for completion of punchlist work, and warranty work during the warranty period.
The Construction Manager’s compensation will be 10% of the cost of labor, material and subcontract. This is about half the cost that would be charged by a Builder. The Construction Manager’s experience and contacts with local suppliers and subcontractors, resulting in a high quality project completed on time and within budget, will more than make up for his compensation, not to mention reduced stress and sleepless nights for the Owner.
The Construction Manager’s compensation will be paid by incremental draws as the project progresses.