Construction Disasters

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March 27, 2005

We just met some new friends last night and they told us a tale almost too disasterous to imagine. Here's the scenario:

Purchased a lot and selected a model to be built from a local well known builder (will remain nameless at this point). During construction, would be owners observed that the elevation being built was not what they contracted for. The construction manager continuosly ignored their requests to check the the contract and repeatedly told them they were in error. Eventually it got fixed but the builder literally had to tear down much of the exterior and start over.

This is only the beginning...

MoneyInHand.gifThey documented over 34 pages of punch list items at the final walkthrough, including severely sloping floors and appliances that were not installed. After several months and several thousand dollars (in the $5,000 range) in independent inspectors, engineers and lawyers, the issues are not resolved and the builder denies any responsibility for the severe structural problems.

How do these people stay in business? My friends report that all of their new neighbors had severe issues as well. In fact, a consecutive row of 6 houses all had an inside water pipe break (with obvious results) and according to the builder the insulation provided was within code but not enough to keep the pipes from freezing the first winter. Oh, the pipes were run in an exterior wall. DUH! (Can you see me smaking my head with the palm of my hand?)

Now my perspective...These really nice people made several errors in their purchase (maybe unknowingly):

  • They didn't use a REALTOR®. An agent experienced with new construction (important), contracts, processes and procedure could have run the interference for the buyers and maybe mitigate the problems.
  • They weren't dealing with an executive of the company soon enough. Buyers need to find out who is really in charge and copy that person on all correspondence (oh, good point...all communication should be followed up in writing...verbal doesn't hold people accountable). A really good agent will do this for you.
  • They didn't have their own inspector work with them during construction! This is essential. Builders don't generally like it but, you are the customer. Insist.

    New construction can be a demoralizing experience. We are watching our dream home being built and have great expectations. When it goes bad, you just don't quite ever get over it.

    My very next article will be "13 Things You Need to Know Before Buying new Construction".

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