How much information can you reasonably expect from your builder/renovator? The answer depends completely on you. Often, if you don’t ask you won’t get! You can cross your fingers and hope that everything will work out fine and that your builder/renovator will deal with you fairly. Or you can take the bull by the horns and make sure that everything goes well by getting involved early on. Remember, if you choose to jump in with both feet and request transparency from your builder/renovator, then you must be prepared to realize that your builder is in business to make money. He or she is not about to work for free, any more than you would go to work next week not expecting a paycheck.
Your relationship with your builder can determine what type of information you receive. Some contracts are set up as construction management contracts that outline a fee for service. This model offers complete transparency. The client gets access to all the information on trades, materials, and any costs associated with the project. The builder/renovator gets paid a percentage fee or a flat fee to manage the project. Believe me, they earn their money plus you get access to their stable of trades and suppliers which can bring discounts and other advantages that are hard to develop as a homeowner with a single project and no repeat business to bring to the table.
Even if you have a standard contract with your builder/renovator, you should still have access to a lot of information. It is your money after all, and you have a right to know where it is going. Don’t be afraid to ask.
An important distinction to make when considering between builders/renovators is efficiency. Two builders both using a markup of 20% may not be equal. A well-organized company with good trades can potentially deliver a project at a much lower cost and lower total dollar markup than one that is less organized.
But how do you ensure that your builder is organized? – ask! Ask to speak with current and former clients. Ask to speak with their trades to see what they are like to work with. Ask the builder themselves about how they schedule their work and how they track their costs. Ask for the credentials and references of their key staff. In short, interview your builder thoroughly, just as you would if you were hiring an employee or looking for a babysitter for your kids. You will have an ongoing relationship with your builder and one built on a solid foundation of trust and understanding will support you and your project well.
So, don’t be afraid to ask those difficult questions. All responsible builders welcome this level of inquiry. If he or she isn’t happy with you asking for detailed information on past projects then you might consider looking for another builder.