Writing about construction for McSpadden Custom Homes has certainly piqued my overall interest in custom home building. Recently I noticed that there was a new lake front custom home being built on the NC side of Lake Wylie that looked about the same size (or maybe a little smaller)
as the cottage style lake front home we saw last week – where Mike Jenkins is the project manager. And it seemed to me that these houses broke ground around the same time. However, Mike’s project is much farther along. Roof was finished weeks ago – the drywall is in. The windows are in. The wood flooring is in. But this other house is not even close to being under roof. The second story is not finished being framed out. This project seems months behind Mike’s project.
So I wondered: does a slower project matter, cost wise, to the home owner? And that is the question I took to Doug McSpadden. The answer is yes. He explained first that a construction loan is made for a certain amount of time (such as 8 months) – when you go over that the interest on that loan accrues each month. This can be quite costly to the home owner. A second cost factor is the fact that the home owner is paying to live somewhere else while their new home is being built. Of course they planned on that (for the time of the loan) but just like the interest on the construction loan; this can add up very quickly. And a third cost is really in diminishing quality – having your new home open to the elements unnecessarily for several months is damaging in the long run and should be of concern.
And then I wondered – well, what about McSpadden custom homes? Is there a statistic that can tell me how often they get the projects done in the estimated time? So I called Deb over in the office and posed that question to her. I believe her answer will astound you. Especially if you have EVER built a home or even renovated a home. Deb said “Well, I have been here for 3 years and I can tell you that (barring home owner changes or customizations) we have finished every project before or on time.” I’m sure, like me, your response was “Wow”.
So, finally, I suggest that if you are working with another builder you might ask them that question. Because if they run over your construction loan time you will be the one having to pay and that builder will have reasons and excuses but in the end let’s face it. They are not out any money. They are just sorry.