Northwest Indiana Residential Builders | FAQs

FAQs

Q. Do you charge for estimates?
A. No, we typically do not charge for estimates. However, each situation is different. There may be a minimal charge of $100 or less, but this would be credited to the overall cost of the project if we enter into a contract.

Q. Should I just assume you will be the more expensive option?
A. Not necessarily. With the skilled labor that we are able to provide, you may find we can complete the project in less time than unskilled labor. Additionally, you are assured of receiving a quality project. While the initial cost may be slightly higher than non-union homebuilder, change orders are kept to a minimum, meaning that you will most likely pay less overall. We are thorough in our review of plans and anticipate all of the work required. Of course, changes to the plans that are requested by the homeowner after they enter into a contract, could result in additional costs.

Q. Why should I worry about the contractor being licensed and bonded?
A. While none of us want to admit it, things can go wrong. In most municipalities, a contractor is required to take a test in order to exhibit his full understanding of the National Building Codes. Without this knowledge, you cannot be assured that your home/building will be built to these standards. If a worker from a non-licensed contractor is injured while working on your home, you may be liable for this injury if they don't not carry workmen's compensation insurance.
By utilizing a contractor that is licensed and bonded, you are assured that they carry all necessary insurance to cover any accidents.
Also, a contractor who is licensed, bonded and insured means that your rights and interests will be protected in relation to the contract. You have a course of action if the work is not preformed per the contract.

Q. How can I check credentials of the people I am getting estimates from?
A. Begin by contacting the local building department. Ask them if they are aware of any problems with the contractor. Ask the contractor for a copy of insurance proving they are insured. You can also check with your local Better Business Bureau, but note that they may not have been notified of issues. Another source would be to contact the local union or Building Trades organization to request information. Contacting references that are provided by the contractor is not necessarily a reliable indication as they are likely not to include references for troubled projects.

Q. How do you handle changes from the original scope of work?
A. We provide the owner with a detailed breakdown of the costs for any changes that are requested. The owner is then asked to sign a document indicating their acknowledgement of these costs and that the cost will be added to the contract amount. Once the owner has approved the changes, work on that portion of the project will begin. Vice-versa, changes resulting in a credit to the owner will be provided in the same manner.

Q. What are typical payment terms?
A. Legitimate contractors will never request a down-payment before work begins. Progress invoices will be submitted based on the work performed during the previous month. Invoices are then typically due within 30 days from the day that they are submitted to the owner. Be sure to request lien waivers from the contractor, subcontractors and any material suppliers that are involved in your project.

Q. Do you make money off of the materials you buy?
A. We do make a small percentage of profit to cover the costs of procuring the materials. This profit also covers the finance costs associated with paying for the materials prior to receiving payment from the owner. The contractors also need to pay freight and/or delivery charges to make sure the materials are taken to the job site.