Step 1: Buying Land

1. Make sure you have access to the property – Verify that you have access to the property. Do you have right-
away to the property? Once had a friend, who had a beautiful four acres of land in Ohio overlooking one of the
most popular lakes in the state. He was not able to build his lake house on the property, because the Corp of
Engineers would not grant right-away to drive over two feet of land between land and a public road. Access from
any other direction required buying miles of right-away from numerous property owners. In fact, the Corp of
Engineers threatened prosecution for simply stepping or jumping across the two feet of land.

2. Verify the legal plot of the land - A survey is the only way to verify the legal description of the land you are
buying.

3. What is the extent of your ownership? - The legal description identifies the borders of the property, easements
and other legal encumbrances existing with the property. For example, prior owners may have “stripped” certain
rights that generally transfer with property. Rights to third parties, mineral rights and other rights that generally
transfer with a property can be stripped and withheld from sale. Make sure a land survey is obtained.

4. Walk the property – Note any structures or use of the property not disclosed by the buyer. There might
“squatters” living on the property, structures that might warn of problems taking later possession and other types of
issues that require legal measures to fight for title. There might even be someone attempting to take a piece of
vacant land buy a legal procedure called “adverse possession.” A property near me has passed through three
owners and not one has questions a structure built on the property that is an attempt to take a section of the
property by adverse possession.

4. What if you miss something? - Make sure you buy title insurance. Even when you cannot buy title insurance from
standard title companies, there are specialty insurers that take on riskier properties and will insure title.

5. What about lack of city water? – You need a well, so obtain a well test and engineer report regarding water table.

6. What about removing used water? - You need a soil test for a septic system.
7. Determine what utilities are available? – Living off of the grid can be work, so make sure you are prepared for
such an endeavor, otherwise, you need to make sure you have adequate utilities.

8. All land is not equal for building? Rocky land, poor drainage, creeks that rise and flood, can add problems to
building. You need to know how difficult improving your land and costly the land is to improve. I have observed
someone buy a Oregon land with a beautiful view overlooking the ocean, only to find out that they needed an
engineering firm and a company to set explosives to remove the cap of a granite rock that was under the property.
A very expensive surprise!

Step 2: Before Land Closing

9. Cash or Mortgage? – The good fortune of cash simplifies paying for the land, but most property is purchased with
a loan. This generally means you should also hire a qualified real estate attorney to review your loan documents.

10. What are you building? – A lender will want to see the Specifications Sheet, so this detailed report needs to be
prepared before you go to the lender. The sheet tells the lender what you want to build.

11. The “Take Offs” List – this is used by suppliers to determine materials needed to build the structure. The
estimates of labor costs and such are included. This also provides a reasonable estimate of the cost to build the
structures. This needs to be prepared before seeking loans.

12. Submit your loan application – Your loan application starts the process of obtain a loan.
13. Getting water to the property – Apply with the local building authorities to obtain a sewer tap (or septic system)
permit. Water is going to be needed to build the structures.

14. You need permission to build – Getting permission generally means getting a building permit.

15. Cash or lending – Again cash is one way, but most projects need “construction” financing. This is a loan obtained
during the building stage and is replaced with a more permanent loan at the end of the build.

Step 3: After Land Closing

16. Who does the building? – Of course, you someone qualified to build the project. Some locales prohibit
unlicensed persons for building, others not so picky. Know the rules! The lender may have specific requirements
too.
17. Check for compliance bond requirements.

18. Back to getting water again – A physical connection needs to be made to the local water supply authorities, in
most cases a city within which the property is located. You need a “water tap” and water meter installed. If you are
not supplied by a water authority, but instead using well water, then contact a well digger.

19. Subcontractors need power - It is time to order temporary services. Power tools are essential requirements and
it takes electricity to operate them. Water is an essential resource for many aspects of construction, bricks cannot
be set without mortar and water is essential to mortar.

20. Prepare Site Plan - A site plan is a document that precisely maps out the area of the building site to scale.
Generally speaking there are two site plans provided: an existing site plan and a proposed site plan. The existing
plan the ‘before’ shot. This site plan shows the site in its current state. The proposed plan shows the ‘after’ shot.
The proposed site plan shows what’s going to change, and how the site will look once construction’s finished.

Step 4: Dealing With Subcontractors

21. References – checking references is a good starting point, but let’s face it even this can be a roll of the dice.
People may say they had good experiences, but then your project may be a complete disaster. Keeping control over
the money, as work is performed, is a solid way to protect yourself from unfinished or poor workmanship.

22. Bonded Subs - There are bonds that may be used in this building. A surety bond is often obtained and required
by subcontractors bidding on governmental work. This can be used in other projects, so consider subs with this type
of protection for you. There are also bonds or insurance policies that you can obtain to protect the general
contractor against default by subcontractors on their obligations. One potential obligation to consider is what
happens when the subcontractor you hire, turns around and hires other people and/or subcontractors, who then do
not get paid. When the unpaid workers start filing liens against your property for work you already paid someone
else for, this could be an expensive issue to resolve.

23. Licensed vs. Unlicensed – Licensed trades are generally required to meet minimum levels of knowledge to obtain
a license. Plumbers, electricians and similar trades generally are required to gain experience under the supervision
of experienced licensees of the trade. Experienced licensees may know of issues specific to your location that
generally do not apply to other parts of the country.

24. Workmanship guaranteed – someone can say there is a guarantee, but it goes without saying, if the
subcontractor is not in business for the length of the warranty, then there is not much value. Make sure you seek
quality workmanship in the first place.

25. Length of time of guarantee? – It would be useful to at least have a written guarantee. Get the terms and length
of time in writing. A verbal guarantee is not worth much. Be wary of subcontractors who try to win bids, but
matching another bidder’s warranty, especially when verbal. This can be a warning of the quality and reliability of
the subs’ work.

26. Liability Insurance – subs, or even the owner-builder, should consider the consequences of liability for a near
disaster. That 100 foot oak tree that is in the middle of the build site that gets felled in the wrong direction and ends
up crushing the neighbors’ home could be an expensive liability.

27. Workman’s compensation insurance – understand your state’s position on who pays injured workers injured on
your site, or for that matter claiming to have been injured on your build site. Workers protected by worker’s
compensation are generally well protected and failure to obtain worker’s compensation by a subcontractor or
contractor can open the door to unlimited liability. Worker’s compensation insurance in your state may limit the
extent of liability.

28. Subcontractors used by better builders – a one build project may not get the same respect or attention that a
professional builder who builds many projects receives. There may be times when work is slow and the best subs
are willing to take your project.

29. Written estimates required – it simply makes sense to write down the terms of performance, before the work
starts. All parties need to be on the same page. It goes without saying, you must know what you want the
subcontractor to do, before you ask for a written estimate. Try to avoid changing terms as the project is being
performed. Bid changes should also be in writing.

30. Low bids may not be a bargain – the items listed above discuss the ways to protect yourself. The low bidders are
probably not going provide many of the protections above. The low bidders often avoid worker’s compensation,
liability insurances and well trained workers. A low bid needs to be checked. It might be a warning that signals the
potential for your serious regret later.

Step 5: Purchasing Building Materials

31. Getting building supplies – the “take-off” mentioned above is the basis for ordering supplies. Subcontractors
expect materials to be available at the job site upon arrival. You want reputable building supply firms capable of
delivering the materials for a project. Think about investigating two or three building supply firms, let them know
your project and verify that they are able to fulfill your requirements. Years ago, it was possible to have a supply do
a “take-off” simply to win the bid. Many suppliers now charge a fee for a take-off and estimate of cost. From
personal knowledge, a take-off is time consuming.

32. Preparing your own material estimates – you may be able to prepare a material estimate and submit this to each
of the suppliers.

33. Combination approach - The supply house bids and your original estimate provide a check and balance.
Variances in bids might not necessarily mean the best price, so reconcile any significant differences for accurate
expectations.
34. Choose the best supplier – It goes without saying your build will cause stress. You want to control stress and a
building supply that works with you to get the material to your site on time relieves stress. You want to save money
on materials, but service and service are also important. You want the best combination of price, service and terms
for payment. There terms need to work with your lender’s requirements.

Step 6: Preparing the Site & Foundation

35. Rough grading – the site plans determines the rough grading needs. Delivery vehicles carrying supplies,
subcontractors, building inspectors and other visitors to your building site need to have access. A wet muddy site
may cause many delays, so gravel and other materials may be needed to simply fulfill the build. Grading to level, fix
drainage problems and other issues need to be considered in the rough grade.

36. Cut access to the property – the access from public roads to the build site needs 4”-6” of gravel.

38. Water meter or the well needs to be dug – this has been discussed above, many subcontractors use water
starting with the initial stages of the project.
39. Work area preparation – the specific area of the home, plus a ten to fifteen foot are surrounding the structure
needs to be cleared. Keep this in mind during your pre-planning phase for location considerations.

40. Providing temporary power – a pole needs to be installed on the site to hold a meter for the power company to
connect power to your site. Before you start, find out the requirements of the power company for installation and
location. Coordinating the needs of your subcontractors to provide your needs and the power company
requirements is a step that an experienced general contractor understands before stepping on to the site, so double
check the coordination of efforts, especially if the build is a large property and the build is a distance from public
service points.

41. Slabs, crawl spaces, basement, piers, etc. – this is very variable and depends on the type of foundation to fulfill
the needs. There are so many different types of materials available to build your foundation choice. The best advice
on this one is know what you want and work with good subcontractors to tie the needs together. It would be a
disaster to pour a slab foundation, only to discover later that you needed rough-in plumbing under the slab. In
general, a project needs batter boards installed, foundation footings need to be dug, blocks need to be laid, and
walls need to be poured. What applies to your project is site specific.

42. Termite treatment - this is so much cheaper to apply under a foundation and a quality treat almost makes a
structure impervious to termites. Termites do not like traveling through the barrier. A word of caution though.
Plumbers like to dig through the barrier later in the project to correct drain pipe issues, as well as other
subcontractors. This provides a weak point, so it may be necessary to touchup weak points to the original
application. You will need to deal with tunnels on the outside perimeter of the home, but this can be controlled by
visual inspection.

43. Protecting the surfaces under the earth – Certain types of foundations benefit from waterproofing. Before the
foundation is backfilled, make sure your surfaces that provide access into the structure are waterproofed. A leaky
basement will be a lifetime of water entering the structure. At some point, the property needs to be backfilled.

44. Pouring slabs and the garage area – work with slab foundation subcontractor to plan the concrete pour for the
slab and garage floor. The levels and particularly final grade need to be considered to avoid drainage issues. Here is
definitely where adequate pre-planning is required. Consider materials being added at the final grades that might
change the topography of the site. Make sure a grade level during the build will not change so much at final grade
that you are literally under water. Even the mass builders often get this one wrong. The site drains adequately
during the build, the Bobcat comes in level the grade, sod gets laid and upon the first good rainstorm, water is
coming in under the backdoor and several feet of carpet is ruined.

As to construction, form boards need to be installed. Make sure your subcontractor plans to install the form boards
and prepare the site for a pour. Rough-in plumbing needs to be installed by a licensed plumber to deal with water,
sewer and gas runs. Any special needs need to be considered at this point to ensure anything that needs to go
under the foundation is installed before the pour. Gravel, polyethylene vapor barriers, pre-wiring for landscape
lighting, spot foundation surveys and utility lines need to be considered before the foundation is poured. After this
crucial step is properly planned and executed, you need to get concrete and materials on the site for the
subcontractors to finish this step.
Step 7: Framing

47. Buy a building level – if you buy no other tool, at least buy a level. Check everything that needs to be level for
accuracy. Check pipes and other work that needs to be sloped. Make sure it slopes in the direction required for the
slope. All framing and finish work depends on prior framing steps remaining level. It is equally important that the
foundation is level, check that step too.

48. Buy a framing square – check your foundation for square and level. Square and level framing depends on a
square and level foundation.

49. Recheck framing – the framing goes up, check and recheck again. A bad framing job means doors, windows and
just about any component in the build do not hang or fit correctly. Every subcontractor that follows the foundation
and framing work needs to adjust for previous poor workmanship.

50. Obtaining the framing materials – You are the general contractor and the framing subcontractor will expect the
materials to be on the site. Here is one of the first dilemmas you face. You need very expensive materials on the job
site, when the subcontractor arrives to do the job. Your problem is that you may have very expensive material
sitting on the site too early and need to protect your investment from theft. Everything arriving on you job site is
subject to theft, so either you need to insure or protect yourself.

53. Checklist of Potential Framing Structure (Check Level, Square & Layout as work progresses)

a. Walls & Beams (Basement)

b. Subfloor, 1st Floor

c. Set Special Tubs, 1st Floor

d. Walls/ Partitions, 1st Floor

e. Subfloor, 2nd Floor

f. Set Special Tub, 2nd Floor

g. Walls/ Partitions, 2nd Floor

h. Wall Sheathing

i. Ceiling Joists
j. Rafters & Trusses

k. Roof Sheathing and Felt

l. Framing Inspection

m. Install Doors/Windows

n. Measure Cabinets

This document is not to be construed as legal, construction or any other form advice. The document is a checklist
prepared by the author for use by the author in his own owner-builder research. You should discuss legal matters
with a qualified attorney. Residential construction involves special skills necessary to understand the complete
building process. The author is not a builder.