5 Essential Tips for Finding the Best Builder

Building a custom home is a large endeavor, but it is also a rewarding process so long as you select the builder that is right for you and your project. To help you find that perfect builder, we unlock five secrets we believe are essential to setting a custom home build up for success. We build custom homes in Bellingham, WA, but the below tips can be applied to any location.

 

1. Find Your General Contractor Early 

In Bellingham, WA, finding your builder before your architect can save time and money.

Many people think the first step to building a custom home is hiring an architect. However, it’s best to select your general contractor early in the design process. Why? A builder can help ensure your home design is feasible within your budget. Without this input, you may end up with plans that are too expensive to build.

In fact, it’s not uncommon for us to receive calls from clients who have invested in designs that far exceed their budgets. Bringing your contractor in early, either as part of a design-build firm or through a pre-construction agreement, reduces the risk of costly surprises down the road.

 

2. Avoid Competitive Bids for Custom Homes 

Custom homes in Bellingham, WA are too complex for competitive bidding.

You've probably heard the advice to "get three bids" when hiring a contractor. This works for small projects but not for something as complex as building a custom home. In Bellingham, experienced general contractors should have similar pricing for a large project because labor costs, material prices, and trade discounts are fairly consistent across the board.

Be cautious of contractors who offer extremely low bids. While it may seem like a good deal, these bids often lead to problems like budget overruns or even project abandonment. This is especially risky when working with solo contractors who might not have the resources to complete a large, multi-phase build.

Choose an established general contractor with a reliable team that can seamlessly step in if any team member is unable to fulfill their role during the project. This ensures continuity and keeps your custom home build on track, no matter what unexpected challenges arise.

 

3. Verify the Contractor’s Credentials  

Use the Washington State Contractor Lookup Tool to check for any red flags.

When entering any construction project, especially one as large and personal as a custom home, it only makes sense to thoroughly vet who you are doing business with.

If you’re building a custom home in Washington, Washington State makes it easy to verify a contractor’s good standing. Other states may do the same. Visit the Washington State Department of Labor & Industries Contractor Lookup Tool. Here, you’ll want to look for any lawsuits against the bond or savings; license violations; workers comp rates (higher than average rates indicate significant or frequent injury claims); contractor strikes; debarments; and workplace safety and health violations.

While using this tool, be sure to search not only the business name but also the owner’s name. If the owner has been involved with multiple companies that have since closed, it's important to investigate the reasons behind those closures. Look into whether the businesses were involved in lawsuits, bankruptcies, or other financial issues. This additional research can help you avoid contractors with a history of legal or financial troubles, ensuring you choose a trustworthy professional for your custom home project.

Of course, a good ol’ fashioned online search for the business as well as for the owner(s) never hurts. If the results are riddled with court cases and accusations, you may want to reconsider your options.

4. Ask About Project Management Systems 

Efficient processes ensure your custom home project stays on track.

Building a custom home requires more than just good craftsmanship—it demands strong project management. When interviewing contractors, ask about their systems for managing timelines, labor, and budgets.

The frequency of billing can be a good indicator of how closely your contractor is tracking the costs of your build. Though weekly billing may sound like a nuisance, it is a great way to ensure your project stays on track. Monthly or checkpoint-based billing agreements can lead to blown labor budgets and unpleasant surprises in the end. Even with weekly billing, however, it doesn’t hurt to ask if the company will be reviewing labor hours each week in respect to the budgeted hours.

For example, does the contractor use project management software? Are there weekly budget reviews to track labor costs and stay within your budget? Contractors who provide regular updates through cloud-based systems – where you can access schedules, progress photos, and more – often deliver smoother projects and offer better communication throughout the process.

 

5. Get Personal Referrals 

The best contractors often come recommended by friends or family.

Is it akin to learning Santa Claus isn’t real to discover not all online reviews are real either? When vetting online reviews, be cautious. Some companies pay for fake reviews to boost their ratings. Focus on detailed reviews that describe actual project experiences.

While online reviews can provide some insight, personal referrals are the gold standard when it comes to selecting a general contractor. In fact, over 60% of our custom home projects come from referrals in Bellingham, WA. Ask friends, family, or neighbors who have built homes about their experiences. Reputable contractors should also be willing to provide references or even show you homes they’ve built.

 

Start Your Custom Home Journey Today 

That’s it! Now that you are equipped with these five little secrets to making your home building experience successful, embrace the journey! If you are looking to build your custom home in or near Bellingham, WA, contact us. We’d love to meet you.

 

 

Additional FAQ

1. What should I look for when hiring a general contractor for a custom home?

Hiring a builder is a big decision, and isn’t as simple as going with the lowest estimate.. It’s important to find a contractor with a reputation for integrity – a builder willing to be transparent about their project management process and their ability to meet budgets and deadlines. A reliable contractor will be licensed, bonded, and insured and will have an established network of subcontractors.

2. How much does it cost to build a custom home in Bellingham, WA?

A mix of sources will give you a mix of answers, but to avoid build-budget bamboozling, it’s best to discuss construction costs directly with your builder who will have current local data. As of 2024 in Bellingham, WA, custom home costs start around $400/sf and can be higher for a variety of reasons.

3. What are common mistakes to avoid when selecting a general contractor?

Some of the most common mistakes people make when hiring a general contractor for their custom home build include: waiting until after they’ve finished the design process to hire their builder, going with the lowest estimate without consideration to other factors, and hiring a solo builder without the security of a team to step in if unexpected life events interfere with the build timeline.

4. How long does it take to build a custom home?

While we can’t give an exact number up front, there are time estimates that are good to keep in mind. Expect a truly custom home to take 6-12+ months to plan and permit and an additional 8-18 months to build. Utilizing the design-build process can help streamline the overall timeline. Because a design-build firm handles the planning, permitting, and building, it is in their interest to move through these phases as seamlessly as possible without gaps. If a separate architectural firm is handling permitting, there may be a waiting period after permitting before the builder is available.

5. Is it better to hire a design-build firm or separate architect and builder?

Working with one firm for the entirety of the design-build process is becoming increasingly popular with good reason. Rather than working with one architect or designer and a completely different company for construction, finding a design-build team that performs both services offers increased professional accountability, a more streamlined process, and improved communication and collaboration.

6. How do I verify if a general contractor is licensed and insured in Washington State?

Visit the Washington State Department of Labor & Industries Contractor Lookup Tool. Here, you’ll want to look for any lawsuits against the bond or savings; license violations; workers comp rates (higher than average rates indicate significant or frequent injury claims); contractor strikes; debarments; and workplace safety and health violations.

7. How does the bidding process work for a custom home?

Most builders do not use fixed bid contracts for custom homes. Instead, expect a cost-plus contract for your home. If you’ve set an appropriate budget for your project, try not to fixate on cost as you interview builders. Established general contractors serving the same local area should have similar pricing for building your home because labor costs, material prices, and trade discounts are fairly consistent across the board.

8. What is the difference between fixed-price and cost-plus contracts for custom homes?

In a fixed-price or fixed-bid contract, a contractor provides a quote for a project with a clearly defined scope. The final project costs can only differ from the initial fixed-price if the scope of work changes, requiring a change-order. The benefit to the client in this model is that they have a specific number to budget for. The drawback is that the fixed-bid number may be estimated high to ensure the contractor doesn’t end up losing money, which could mean the client overpays in the end.

In a cost-plus contract, an estimate is provided, but the actual costs billed reflect the cost of the materials and labor costs plus a mark-up (often 15%) to account for business overhead. Though this contract can seem intimidating to a client initially due to the level of trust it takes in a contractor that their initial estimate will be accurate, this model avoids any chance the client overpays for their project.

Fixed-price or fixed-bid contracts are common for commercial projects or large multi-family units. With single-family residences, fixed-price contracts are typically only used for small jobs. For a custom home build, expect to enter a cost-plus contract.

9. What role does a general contractor play during the design phase of a custom home?

Bringing your contractor in early, either by working with a design-build firm for the entirety of your process or through a pre-construction agreement, reduces the risk of costly surprises down the road. Without the expertise of a builder, you run the risk of paying for architectural plans that are in excess of your budget.

10. How do I find reliable reviews and referrals for general contractors?

Online contractors reviews can be found through general review hosting platforms like Google or contractor specific platforms, such as Houzz. Some contractors may even offer client testimonials on their websites. Because not all online reviews are authentic, it’s important to also seek out word-of-mouth reviews. If you are embarking on a large project, such as a luxury custom home, it’s also fair to ask for a tour of a home the contractor has built.