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Chapter 8 - True Ways to Save Money

WAYS TO SAVE MONEY? BEWARE!!

Some say there are ways to save substantial amounts of money when using a builder by purchasing interior finish out items yourself, saving the builders profit.

It is reported by some that there is no reason to pay the builder for items such as cabinets, plumbing fixtures, appliances, flooring, windows, hardware, mirrors, light fixtures, etc., because you the client "will be performing all the effort in selecting these items" so why pay the builder a profit for these items. The reason is simple; you are not paying the builder to make selections for you! You are paying the builder a profit for scheduling, coordinating, overseeing the PROPER installation of AND providing a warranty for these items.

I can assure you, your savings will be almost nil after you total up paying yourself your normal salary when you miss work to schedule, coordinate, oversee, the PROPER installation of and make warranty calls during normal business hours for these items. The above process cannot be performed at night and on the weekends. Also factor in your frustration and when it is over you will gladly give your savings back to the builder if you had to do it over again.

THERE ARE 17 TRUE WAYS TO SAVE MONEY

Here are 7 of the seventeen:

  • Receive competing bids from at least two builders.
  • Limit the number of Change Orders.
  • Make decisions in advance.
  • Go with final decisions, do not change your mind.
  • Pay suppliers with a credit card which earns points or travel miles.
  • ALWAYS use lien waivers when paying suppliers and sub-contractors.
  • Approve all draw requests. Do NOT PAY for work not completed or materials not on-site unless a deposit is required.


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