Methods of Construction Management

We have developed two forms of construction management here at Gander Builders. Each method leads to the same end result, the construction of your new Custom Home. Each process will result in the same method of construction that will ensure you will receive the same level of construction management using the same standards of skill and expertise that Gander Builders stands for.

Method One

You pick a lot, we agree on the style and size of home you want constructed. We discuss the initial cost of your custom home reaching some degree of estimated cost (keeping in mind that this is a custom home, an exact cost cannot be assessed until the final plans and specifications are agreed to as well as letting the final plans out for bid).

This process will assure you will be getting exactly what you want at the price that meets your budget as well as allowing Gander Builders to meet its profit level. If we agree on the initial budget we will enter into a construction agreement. This will include a 5% down payment on the estimated cost of the project. We will then meet with the architect and enter into a preliminary plan development. At this time, the initial meeting will involve getting the general ideas into the architect’s head with him giving various inputs into your lifestyle, location and sizes of rooms. We can begin with a set of stock plans that we have previously built and modify these to meet your changes or we can start with a clean sheet.

This phase is entirely up to you, keeping in mind your budget and timeline constraints. After this initial meeting the architect will then be able to access the cost of the construction drawings and the timeline to the final plans. (Note: The timeline will completely be determined by the actual amount of time you need to spend with the architect, meeting with and discussing the development of your custom home. You will be allowed a certain amount of time that will be spelled out by the architect and the contractual agreement entered into prior to the start of the development stage. Any and all extra time spent over and above the allowed limits will be charged on an hourly basis. This process can take anywhere from three weeks to over eight months.) During this time you will need to amend the specification to fit your needs and desires. The home cannot be properly bid or constructed without Your Fullest Attention to the Detailed Specifications provided.

Once the plans are completed and the specifications meet your approval, we will then let the project out for bids. This process will take up to three weeks. The budget will then be established as well as the pricing based on this specific home using those specific specifications. Gander Builders will then be able to quote you the price for your home. This price will include the cost of the land, cost of construction financing, all insurances, hard cost of construction, budgeted landscaping, permit costs, overhead and profit, title insurance policy and warranty costs from date of completion through the end of the one year warranty.

At this time you have two different options; if the cost to build your home is beyond your proposed budget, we can find ways to delete items from the project to bring the cost of construction to within your budget. If you choose, Gander Builders will Refund your deposit less any expenses incurred up to this point in the project (expenses include, but not limited to, any and all architectural expenses, costs of special mailings or sending documents, engineering review or special county permits, and any local architectural review board fees which may have taken place based on your specific home on that specific lot).

Once the project meets your budget and we have agreed on the final specifications, we will enter into a construction agreement with another 10% deposit collected. (Another 10% payment would become due upon the roof being plywood sheathed as well as payment for any incurred extras as they occur during the construction process, with the final payment at closing). At this time, Gander Builders will start all final engineering needed to retain the building permit. This will include the site plan with any and all septic and development work, as well as preparing and submitting the completed plans for review by the local architectural review board (any changes required by this board may change the cost of the completed home), all local, county and state septic permits, as required, and the landscaping plan preparation.

Once all the required submissions and permits have been retained, the construction will finally begin. This process will be geared to a 6 to 6 1/2 month building schedule (unless acts of god, weather, war or local road closings interfere).

The plans can then be drawn to those specifications, followed by the bid process from which each subcontractor will be able to formulate his bid based on your approved specifications and plans. The specifications and plans are the only way you can be sure you are getting what you want, along with a thorough understanding of those specifications and plans. Then, and only then can a reputable builder be able to assemble the final cost of construction for your dream home. The following guidelines should be used to help you along the process of bringing the dream of your custom home to reality.

Method Two

As outlined above, Gander Builders will manage all construction. You will purchase the lot outright with a contract rider that states Gander Builders will be the Construction Manager. A deposit will be given to Gander Builders in the amount of $8000.00 to insure we are tied into the project. (If you already own your own lot, this is the best and only real option that exists. If I were to act as the Builder on Your Lot, it would be required that you Quit Claim Deed the property to Gander Builders. This is the only way we can retain a construction loan. Giving us the security of owning the property allows the bank to attach the lien necessary to secure the construction loan. In the event of some catastrophic problem causing the project to go south, both Gander Builders and the lender then secure with the ownership of the property. This would be the only security afforded to Gander Builders guaranteeing full and timely payments through to the final completion. (We do not recommend or endorse this. This is a matter best discussed with your attorney before acting.) By purchasing the lot outright, you now own the property. You have the capability to borrow money or fund the project from your own sources with the end loan for mortgage tied into this financing. Your cost to borrow this money will be less than a commercial loan required by Gander Builders.

Since you will be providing your own financing, this is one area, which you will save money during the course of the project. We believe in the Theory of Risk and Reward. If we provide the financing, we will be charging you for this service. We have a greater amount of risk involved in the project that will reap us greater rewards. By providing your own financing, you will own everything put into the project from day one. If something was to happen to Gander Builders, the project can continue with you losing nothing more than a construction manager. No monetary risk or loss to you will occur. Yourself and Gander Builders will review all bids once received. We will explain what all the bids represent. You will enter into the Architectural Contract to complete the building plans. We will still follow the Detailed Specifications we have tailored to have your home properly bid out. You will sign the proposals directly with the contractor involved and payment will be made through Title Escrow with deposits made directly by your bank or personal financing to the title company. No money will pass through Gander Builders.

This is another phase of Risk and Reward. Since I do not have to worry about contractual obligations and payment, Gander Builders management/profit fees will be lower (typically 17% of the total completed cost of construction not including architectural and permit fees). Gander Builders will be fully responsible for the coordination of the warranty for one year after completion, however if any expenses are incurred for repairs you will be liable for these, another example of risk and reward. Gander Builders will still provide the same management as though we were the builder throughout the project. The only extra work incurred by you is the actual signing of the proposals and signing off on the sworn owners statement as well as the sworn contractors statement review at each monthly payout. Gander Builders will prepare all documents as well as the contractors statement and monthly payouts. We will be sure all documents are sent to the proper personnel and all engineering, permitting and surveys are properly coordinated.

You will not have to make contract payments throughout the construction process. This option has been received quite popularly once presented to the potential client. If further explanation is needed, we will be happy to discuss this with you.