If you are considering building your home as an owner builder, Chris Esposito provides owner builder construction loans and a wealth of information through the Owner Builder 101 program. Visit www.OwnerBuilder101.com to learn more about owner builder loans, or call (877) 876-3688.
Owner builders oversee the construction of their new homes, cutting out the costs of a general contractor. To do this, though, owner builders need to hire and manage their own sub-contractors.
Choosing the right sub-contractors will make the difference between a successful owner builder construction project and a financial disaster.
Owner builders need to ask these 43 questions when choosing their sub-contractors:
Owner Builder Questions to Sub-Contractors
1) How long have you been in business?
2) Have you or your partners worked under any other names?
3) How many jobs do you do per year?
4) How many jobs do you work concurrently?
5) How much time are you (the owner of the sub-contractor firm) on site personally?
6) How many crews do you have?
7) Will you be working with the crew on my site?
8) Do you sub out any of the work? If so, what?
9) Do you have a contract you use? (Owner builders should use their own contract, not the sub-contractor's contract if at all possible.)
10) Can you provide me with a copy of the contract in advance?
11) How long has your foreman worked for you? (Owner builders should ask this if the owner of the company is not doing the job himself.)
12) Please provide me with a bank reference.
13) Please provide me with a copy of your insurance certificate.
14) Have you had any suits brought against you by any homeowners or builders for whom you have worked? (Owner builders can check their background for bankruptcies, judgments, and lawsuits. Let them know you will be checking.)
15) If yes, why, and what was the outcome?
16) How many change orders would you consider average per job?
17) Are there charges or fees for a change order (other than the obvious costs for the change)? Some contractors charge a fee for this.
18) If a mistake is made by one of your crews, who pays for it?
19) What kind of warranty do you provide?
20) Are your warranties guaranteed by you or a third party?
21) Please provide 3 (or 5) references for work done in the last 6 months.
22) Please provide 3 (or 5) suppliers you buy materials from.
Owner Builder Questions to Sub-Contractor's References
1) How would you rate your experience with this contractor?
2) How would you rate the contractor's communication with you?
3) What are the contractor's strong points?
4) Weak points?
5) Why did you choose this contractor? Was it quality, price, reputation, other?
6) Was the work finished on time?
7) Was the work completed on budget?
8) Would you hire this contractor again?
9) Have you called them back for any warranty work?
10) If yes, how did they respond?
11) Did they keep the work area clean and neat?
12) Were they easily accessible by phone?
13) Was he (if the owner) on site or did he have a supervisor on site?
14) Was the on-site supervision adequate?
15) Would you recommend them to a family member?
Owner Builder Questions to Sub-Contractor's Supplier References
1) How long have you known the contractor?
2) How would you rate his/her reputation?
3) Does he/she have an open account with you?
4) If so, what are the payment terms, and does he pay on time?
5) How much of your business does he do with you each year? (1%, 5%, etc.)
6) What is your relationship with the contractor? (Is it strictly business, personal friend, family, etc.?)
Remember, the more homework an owner builder does the more he is prepared before hammering the first nail. Owner builders will save significant time and money this way.
Owner builders who skip these steps and who think they can have a verbal agreement with a sub-contractor get burned in the long run.
Remember the big picture! The owner builder goal is to build your dream home and save tens of thousands of dollars in the process. This does not mean owner builders need to be cheap.
And it does not mean that owner builders should skip steps just to get to the fun of building - you will have plenty of time for that!
- Related Videos
- Related Articles
- Ask / Related Q&A
- The Ultimate DIY Project: Owner Builder Construction
- Five Questions Every Owner Builder Needs to Ask About His Loan
- The Inner Workings of Interest Rates for Owner Builder Loans
- Are Mortgage Insurance Companies Affecting Your Owner Builder Construction Loan?
- Owner Builder Lessons for the Project Management Industry
- The Truth About Owner Builder Loan Closing Costs
- The Four Attributes of a Good Owner Builder - Your Construction Loan and Project Depends on Them
- Who Are the People Involved in Your Construction Loan Process?




Review Car Insurance Policy to Save Money
By: Adrianna Noton | 17/12/2009How long has it been since you have thoroughly reviewed your car insurance policy? For many people, it has far too long and this may mean that you are paying more for insurance than you would have to pay. Here are some ways that you may be able to save...
Forex News: Forex Factory Calendar
By: James Roshwood | 17/12/2009Any successful forex trader needs constant access to currency trading information. World events, economic reports, financial index status changes, interest rate movements all of these forex news items are vital for the trader to know.
Credit Repair Software - Know How to Use It
By: Jim Eastman | 17/12/2009If you want to repair your credit, credit repair software can be an enormous time saver. But to be effective it must be used in the right way. While automation can be a great thing, unless used in conjunction with knowledge it's usefulness is questionable at best.
Debt Negotiation, Do You Require It?
By: James Mcguire | 17/12/2009Debt negotiation is a relatively new form of debt relief that is gaining popularity for its results in reducing credit card and consumer debt and because the process can also help homeowners avoid foreclosure by making home loan modifications more likely to be approved.
Debt Negotiation – Get the Relief on Debts
By: James Mcguire | 17/12/2009Debt negotiation is the process by which a company negotiates with a credit card company to get them to lower the amount that a consumer owes.
Save on Motorcycle Insurance
By: Coleen Smith | 17/12/2009Tired of paying too much for motorcycle insurance? You're not alone. Most drivers assume that there's nothing you can do about the price, but that's not true. Here are some ideas for getting the insurance you need for less. Reduce Your Risks Insurance is a numbers game. If the average motorcyclist like...
Which is Worse: Bankruptcy or Foreclosure
By: Jake Barnes | 17/12/2009Like many Americans, you may be swamped in debt. You are behind in your mortgage payments and your lender has sent you a notice of foreclosure. You cannot pay your bills even though you have a job and an income. You have the dreadful sense thatthe Titanic is headed straight...
Forex Mini Account Tips And Tricks
By: James Roshwood | 17/12/2009As forex trading becomes more and more popular with retail traders, it is becoming easier to open a forex trading mini account with a very small amount of money. People who want to get started with foreign exchange trading without risking their shirt can open accounts with some brokers with just $25. Many people, therefore, either lose their $25 a few times over and then conclude that forex trading 'doesn't work', or lose interest...
Home Improvement - Owner Builder Style
By: Chris Esposito | 12/10/2008 | Home ImprovementMany families who fix up their homes save money by doing some of the labor themselves. In many cases, it would be a waste to hire a general contractor for simple home improvements that you can do yourself. Therefore, people often get this DIY version of home improvement confused with full scale owner builder construction. Knowing the difference will make finding the right financing much easier.
Understanding Real Estate Zoning Before You Buy Your Land to Build Your House as An Owner Builder
By: Chris Esposito | 09/10/2008 | Real EstateIf you want to build your home with a general contractor or as an owner builder, you are almost certainly going to need financing in the form of a construction loan or an owner builder construction loan. So, before you ever commit to that dream plot of land, you better first understand the zoning implications - not just for your county's building permits but also for your owner builder loan terms.
The Inner Workings of Interest Rates for Owner Builder Loans
By: Chris Esposito | 06/10/2008 | Real EstateA good owner builder construction loan will have only one closing to cover the land purchase, construction phase, and conversion to your permanent financing. Therefore, the owner builder loan will have two sets of interest rates: one while you build, and one rate for when you move into your new home. Every owner builder should understand the inner workings of these rates when planning to build.
What Prevents Most Businesses from Using Ezine Marketing
By: Chris Esposito | 30/09/2008 | MarketingWho should be using ezines to market their products or services? Every single business owner in America. So, why do so few do it? The short answer is fear. But, if we can take a deeper look into the problem, we can come up with some easy solutions that will jump start your marketing system.
How to Co-Sign for a Loan Without Hurting Yourself
By: Chris Esposito | 27/09/2008 | CreditIf you are considering co-signing for a loan to help out a close friend or family member, the best advice is to walk away. Don't do it. It could cause real harm to your credit score and to your qualification numbers when you need a mortgage yourself. But, if you must be a co-signor, then make sure you follow these simple rules to ensure it won't hurt you in the long run.
Are Mortgage Insurance Companies Affecting Your Owner Builder Construction Loan?
By: Chris Esposito | 24/09/2008 | MortgageAn owner builder construction loan, just like any construction loan, will not have any mortgage insurance payments while you build. So, why is it then that mortgage insurance companies are having a huge impact on your ability as an owner builder to get a loan? The answer lies within the banks' rules for converting you to permanent financing once the home is built.
Having Your Loan Denied Due to Your Credit - Despite Having a Good Credit Score
By: Chris Esposito | 21/09/2008 | CreditEveryone knows that you need to have a good credit score to get the best rates and terms on any loan, especially a mortgage. But, many people don't realize that their credit report can cause them to be denied financing, despite having a good credit score. It's more important than ever to understand your entire credit history - not just your credit score itself.
Five Creative Ways to Secure an Owner Builder Loan Without a Down Payment at Closing
By: Chris Esposito | 18/09/2008 | MortgageOwner builder construction loans, like the rest of the mortgage industry, have had to tighten their belts to survive in today's lending climate. For borrowers who wish to build their own homes, this translates into tougher guidelines to secure financing. However, there are still four creative ways that an owner builder has available to close on a construction loan without a down payment.