Most custom home projects fail for fairly predictable reasons. Just about every failed custom home project has been based on a number of assumptions that were not tested before the project began. The budget for a project is created without first testing the soil on a property, the design for a home is approved without first establishing the correct location on a property for that home (i.e. The correct setbacks for that home), and the schedule for the completion of a project is created without first establishing a core team of subcontractors and tradesmen that have all worked together before on projects of a similar nature.
While local experience cannot be a marketed differentiator, your clients will clearly recognize the specific skills and knowledge that will influence the cost and time to deliver their project. We identify these skills and knowledge, price them out, and use them during the selection and planning process for a custom home.
What jurisdictional fluency actually covers
Permitting, The General Builder vs. The Locally Competent Builder. Within two municipalities only twenty minutes apart (Springfield, Plainfield) within twenty miles of each other, the same builder will have to perform work of a significantly different nature to obtain the necessary permits for a single project, such as a custom home. The builder in Springfield will rely on the stormwater detention requirements set forth in Chapter 16 of the MRCodes for certain types of developments. In Plainfield, however, the builder must determine culvert size for individual driveways. In addition, the plan reviewer for a permit application in one municipality may require engineered truss drawings to be submitted as part of the application, while such drawings would only be required to be submitted for framing inspection in another municipality. Finally, the energy code requirements for two municipalities may differ (e.g. IBC Section 1203 for Springfield vs. IBC Section 1204 for Plainfield). The builder must determine which requirements will apply to the custom home project under consideration.
The builder has recently completed a number of volume homes in the jurisdiction, thus he is able to clearly state the review cycle in weeks as opposed to guessing at it. This allows for a significant reduction in the front end of the schedule, typically in the order of a month, and prevents the most costly form of change, i.e. Redesign to accommodate a condition that was not anticipated.
Site conditions that repeat across a region
Your home’s foundation is designed based on the soil that it will sit on and the water table depth. Based on the conditions in the Columbus, Ohio region where The Soper Group builds custom homes, our design considers the frost line in the winter months as well as the use of expansive clay in the structure’s footings. A builder with local experience in designing and building custom homes will be able to better serve you in planning and designing the structural elements of your home.
How to test a builder’s local track record
References from prior clients can help you determine whether or not a builder is capable of running a project of custom home design for you; however, those same prior clients will not know whether or not the builder can run a project of similar design and scope in your local jurisdiction. If you are weighing options in central Ohio, it is worth shortlisting custom home builders in Columbus, Ohio who can point to a steady record of permits and completions in the specific township you intend to build in.
- How many permits have been pulled in this jurisdiction in the past twenty-four months, and what was the average review duration
- Which engineering, survey, and septic or utility consultants are used locally, and how long has each relationship run
- Which plan review comment comes up most often here, and how does the design now avoid it
- Which subcontractors on the roster have worked together on more than five of the builder’s projects
- What was the last project in this area that went over schedule, and what caused it
Reading the answers
My comment regarding warnings would be for a builder to describe their quality system by stating that they prefer to have certain practices done in a certain way, but they cannot guarantee that all practices will be done that way, since the builder can only supervise. This means that the quality system of a builder can be described by naming the same framing subcontractor and the same mechanical subcontractor, for example, that they use on project after project, year after year.
Where local knowledge changes each project stage
| Stage | Risk without local experience | What local experience contributes |
| Feasibility and lot review | Buying a lot that cannot support the intended footprint | Early read on setbacks, easements, utility runs, and grading cost |
| Preliminary budget | Allowances set from national averages | Unit pricing drawn from recent local bids and current trade capacity |
| Design development | Details that no local trade builds efficiently | Specifications matched to available labor and supply |
| Permitting | Multiple resubmittals and idle schedule | Submission packages formatted to reviewer expectations |
| Construction | Inspection failures and weather-driven delays | Sequencing built around local inspection rhythm and season |
| Closeout | Warranty issues from unfamiliar assemblies | Assemblies proven in the same climate over multiple years |
Budget accuracy depends on local pricing history
A custom home budget can only be as good as the information that it was based on. Although there are national cost databases that provide average cost information for custom homes, labor rates, soil conditions and material lead times can vary significantly from market to market.
Ask for the basis of the largest three soft cost categories for a home, sitework, mechanical systems, and exterior finishes. Soft cost categories for a home should be based on recent comparable home construction projects (i.e. Don’t be misled by a percentage of total construction cost).
Contingency sized to actual local variance
Again, the contingency amount is only as good as the builder’s insight into what really constitutes uncertainty for any given project. For example, a 5% contingency may be sufficient for a custom home built on a serviced lot in a familiar jurisdiction. However, for a custom home built on a sloping site with a private well and septic system, a 10-12% contingency may be more appropriate. The only way to know for sure is for the builder to have analyzed his or her past projects.
Turning local knowledge into contract terms
Finally, local knowledge to a home building project is of little value unless translated into commitments in your agreement with the builder.
- Require a site investigation report, including soil testing, before the budget is fixed
- Name the permitting milestones and assign responsibility for resubmittals
- List key subcontractors by trade, with a substitution clause requiring written notice
- Tie allowance reconciliation to documented bids rather than builder estimates
- Define weather delay provisions using local seasonal norms, not generic language
The Most Valuable Asset They Paid For, Was The Repeated Delivery Of The Same Type Of Custom Home Projects Over and Over. It was the Best Selection, the Best Design, the Best Construction of custom homes all delivered within the tightest of schedules using the best possible processes and highest quality materials.