Building A New Home? How To Choose The Right General Contractor

by Diane Barnes

When it comes to building a new home, few people are as important to the project as the general contractor.  They make so many of the most important decisions:  Hiring a team, buying the materials, and making sure that the house is built in a timely fashion.  Because of how pivotal they are to the project, it's important that you make a sound choice when selecting your general contractor.  Use this information to learn two tips that can help guide you into choosing the right general contractor for you.

Ask For Financial References

While it's vital that you ask any potential contractors to supply you with references from former clients, it's equally critical for you to ask for financial references.  Financial references come from banks or other lenders, and can be just as important as client references when you're going through the selection process.

When you have secured a mortgage for new construction, it is the job of the general contractor to make draws on that amount to pay for tools, housing materials, and the salaries of the workers who are erecting the home.  If you choose someone who is accustomed to mismanaging funds, it could lead to extreme delays in the building process, or result in the usage of sub par materials to account for a lack of funds.

Ask any contractors that you're thinking about working with if they're willing to supply you with a list of financial referrals from banks that they've dealt with in the past.  You want to find out if they maintained a strict schedule of withdrawals, and if they laid out detailed plans concerning what they planned to do with each monetary draw that they were given.

Find Out How Many Concurrent Projects They'll Be Working On

It's also important to find out how many projects the contractor will be working on at the same time as yours.  While you don't necessarily have to rule out a contractor who will be building other homes along with yours, you do want to find out more about their team if this is the case.

A contractor that is overextended may have to push back building your house.  This could leave the foundation of your home open to the elements for longer than it should be.  Ask if they have subcontractors so you can make sure that your house will be a priority.

Finding the right general contractor doesn't have to be difficult if you know what to do.  The next time you're building a house, keep these tips in mind so you can make the right choice.