Construct With Confidence
New Home Construction Guide
Have you thought about being your own contractor and building your own home?
“Where to Start”
A suggested “Cost breakdown” is uploaded to this site to help with calculating the cost.
What is an “Owner Builder?
An owner builder is a person who is not a licensed building general contractor who will be building the house as the contractor. The owner builder will be responsible for obtaining the building lot, building permits, and managing the construction or doing the work them selves. The owner builder is responsible to be sure that all improvements (work on the buildings and lot improvements) meet all regulations and building codes are in compliant with state and federal laws.
In these pages are an overview of things I have learned as a Licensed General Contractor. I am nearing retirement so I want to pass on some of the insights and knowledge that I have gained through my years as a home building career. Hopefully the knowledge I share will be of help as you oversee the construction of your new home.
These pages are designed to help you manage the construction process and what kind of subcontractors you will need and a general description of the subcontractor and what they do. This page doesn’t include how to do manuals or text books to teach you how to do each of the trades, contractors either go to school for several years or work in the trades for several years before they become eligible to become licensed contractors.
There is a lot of information and on line help that can help with most of that. If you are just starting with little or no knowledge or experience be aware that there is a long and possibly very difficult learning curve. Building a house is not an easy project.
Hiring a contractor is expensive typically asking around 10% to 15%, A $500,000.00 house will cost in contractor fee’s about $40,000.00 to $75,000.00.
If you study the information on this website, follow the sequence, Have the determination. You should be able to manage your own project.
Disclaimer: This information is only a basic guide, no guarantee is stated or implied. Your success is entirely up to you.
Do You Have a Building Lot?
Some things to consider when looking for a building lot.
Will the house you want to build fit the Building lot. You might want to check with the Building Department to find out what their requirements are. Most cities have requirements how far from the property line the house needs to be, both from side to side and front and back. These are called “Set Backs” How far back from the street or sidewalk the city or county requires the house to set.
Do you have utilities either in the lot or available close by? What are utilities?
Utilities include Water, Sewer, Power. Other utilities may include Phone Service, Communications such as fiber optics. Cable.
If you are looking for a building lot you should do some research to determine what utilities are available. The availability of utilities can be a major determination of the cost of the building lot.
If the utilities are a distance from where the house will be built it can be much more expensive, you should obtain these costs prior to purchasing the property.
If you are working with a Real Estate Realtor you will encounter terms like “Stubbed” or “Available”. Are they already installed (stubbed) into the lot? (Developed building lot) or are they available in the street? (Undeveloped lot but utilities are close by) When you are talking about a “Building Lot” you are usually talking about a “Subdivision” or a small parcel of land that an owner may have divided of from his/her existing property. Lots are legally surveyed, divided and registered with the City or County Building Department.
If you are purchasing land that hasn’t been subdivided you will encounter a whole different set of rules. Some utilities may not be available, others may be a long distance from where you intend to build. Utilities that commonly are not available may be “water, sewer, and natural gas” and occasionally even “Power”
To solve the problem of no utilities you may need to drill a well for water, Install a septic system, build so you will be using propane, or other heating and cooking fuel
Drilling can become very expensive and prohibitive if there is even water under the land at all.
For a septic system you may be required to perform a “perk test” which is done by digging a hole in the ground (in our area 10′ deep) then putting water in the hole to see how long it takes for it to seep into the ground. This helps to determine the type of soil and water table. Some soils may have a lot of clay which won’t allow the water to disburse prohibiting the use of a septic system.
You may also be required to have a “soil test”. Soils may be unstable and may require stabilization. Building on unstable soil will eventually cause problems such severe endless settling which can cause cracks in the foundation. Building on unstable soil has been known to totally destroy houses.
The condition of the lot can dramatically impact the cost of building on it.
Pay attention of things like the terrain, is it reasonably level or does it slope, if it slopes how much? What is the relationship of the lot to the street? Is it on a hill above the street? Is the lot below the street? Is it even with the street? You may need to cut into the hill or bring in fill before you can build the house. Excavation can be expensive.
Before you make any serious decisions try to get prices (quotes/estimates)
HOA means Homeowners Association, a private organization in planned communities that creates and enforces rules (CC&Rs) for properties, manages common areas (pools, parks), collects fees (dues) for maintenance, and aims to maintain property values by ensuring a uniform appearance, though residents often have mandatory membership and can face fines or even foreclosure for violations.
CC&R’s are not unique to an HOA, Some subdivisions may have CC&Rs with out being an HOA
HOA’s and CC&Rs are usually registered with the County or City.
Do You Need a Loan?
Loans can come in many different ways. Bank loans, private loans, loans against existing assets. etc. Depending on which type of loan the interest rates can vary. Also requirements from entity to another may vary. Ask plenty of questions and be informed when applying for a loan.
As far as construction is concerned there are two main types of loans,
1. Construction Loan.
2. Long term (mortgage) loan.
There are also different types of lenders,
1.Traditional Bank or Credit Union lender, Private Lender, Government Lender (Low income subsidized) Home Equity Loan, (HELOC) Construction loans are temporary loans for the duration of the construction and are usually at a higher interest rate. Most bank construction loans are charged interest on the portion of the loan that has been drawn, For example if you make your first draw to pay the excavator and the draw is for $20,000.00 but your construction loan is for $400,000.00 you will start to pay interest on $20,000.00.
As you progress and make more draws you will be charged interest on what you have spent. So as you spend more money it will cost more interest. So the farther along you are the more important it will be to get the job done.
Some private lenders will charge a percent of the amount of the entire construction loan up front. This may be an advantage if it will take a longer time to build Either way you will need a “cost breakdown”.
Building Permit
Once you have properly researched the lot conditions and purchased the lot you will be required to purchase a building permit. This is done by going to your local Building department, Also called the Planning and Zoning department or Community Development department.
In order to obtain a permit you will need at least one full set of detailed plans, (Blue Print) Plans include floor plans for all floors, Foundation plan. Elevations, (Views of all four sides of the house) Framing, electrical, plumbing, HVAC.
Certain locations may require more detail concerning disaster mitigation, Example: Earth quake zones, Flood zones. Frost protection requirements.
Res Check. What the heck is a Res Check? A Res Check is calculations determining energy usage of the house, Window sizing, What type and thickness of insulation, Attic space, In our location the building department requires an air pressure test, You have to close all doors and windows and pressure up the house to determine how much air is being lost from the interior of the house. If you think some of these things seem silly to you, I agree. The requirements call for a structure that is sealed so tight as to prevent energy loss that the home is uninhabitable. So then if it is too tight you have to buy more equipment to bring in breathable and warm the air from outside. Who needs oxygen anyway?
Inspections
As you proceed through your building process some parts of the construction process require inspections to insure they meet building codes. Originally these were “Safety” inspections but now they have expanded to other areas such as “energy”. Completion Or aesthetics
Common inspections:
Footing & Foundation inspections: Determines correct re-bar installation is done correctly.
4-Way inspection: (Mechanical) A multiple part inspection covering Framing, Plumbing, HVAC, Electrical. This probably should be a 5-way inspection because in recent years many areas are now requiring window installation inspections also.
Window and Door installation inspection: Are required to have Window A Door flashing installed during installation.
Roof Underlayment Inspection: The roof typically requires two layers, the underlayment layer and the final covering,
Drywall: Check for nail or screw placement.
Final inspection: Ensure all elements of the house are are completed correctly.
Other types of inspection may be required for certain circumstances depending on conditions of location or local building codes. For example, in earth quake prone areas a size-mic or energy inspections may be required.
Some parts may not necessarily be governed by building codes or may not be visible to the inspector. Just because you “got away” with it doesn’t make it OK. Poorly or improperly, done work can still pose danger to the residents of the house. or reduce the life span of the house.
Drywall: Check for nail or screw placement. This inspection may not be required, check with your local building department.
Excavation: Laterals such as Water, Sewer, Electrical are required inspection items. Typically the excavator calls for the inspections when the trench has been dug and pipes and conduit are installed and ready to back fil the trench.
Final inspection: Ensure all elements of the house are completed correctly.
Other types of inspection may be required for certain circumstances depending on conditions of location or local building codes. For example, in earth quake prone areas a size-mic or energy inspections may be required.
Some parts may not necessarily be governed by building codes or may not be visible to the inspector. Just because you “got away” with it doesn’t make it OK. Poorly or improperly done work can still pose danger to the residents of the house. or reduce the life span of the house. Ultamatly the Home owner is the one who looses.
Subcontractors
Subcontractors are the various trades people you will need to hire for performing work on your house. Prior to awarding the contract to a subcontractor you should be sure they are legally licensed and in some cases they may need to be bonded (bonding is usually required for commercial building)
As a home owner you may perform any or all of the work your self, however you are still required to meet all code requirements. Also if you are doing the work or having friends, family, or other non licensed persons you assume FULL responsibility and liability for any thing that may not be done correctly.