With real estate prices soaring in Vancouver, more and more people want in on the action. Whether its through buying land for development, purchasing properties intended to be flipped or a means of creating passive income by remodelling a property for rental. A point of contention that repeatedly comes up is the cost of building homes. Since building material prices are dramatically fluctuating, to be on the safe side many first-time investors opt to hire an average builder or even a general contractor, over a trustworthy professional building company.
What’s The Difference?
So, is this a problem? What is the difference between a regular builder and a professional home builder?
A regular builder or general contractor is often a sole proprietor or a single-person contractor who can do general repairs around the house. Often times these builders are usually only equipped with a van full of tools and not much more. There is no barrier of entry when it comes to becoming a builder, most start as apprentices and learn on the job. They do not require any advanced technical training or degrees which leaves many, often times underqualified, workers to enter the profession.
In comparison, a professional home builder often possesses a team of advanced construction experts who have complete in-house capability to build homes from top to bottom. They usually have a head office with departments in engineering, design, accounting, & marketing. Professional home builders in BC are classified as Licensed Residential Builders which comes with governing provisions they must follow. This is to ensure that homes are constructed to meet only the most stringent requirements. Professional Home Builders must also supply their clients with a 2-5-10 construction warranty on their erected structures. The 2-5-10 warranty gives the homeowner a 2-year warranty on labour and materials (some limits apply), a 5-year warranty on the building envelope (including water penetration) & a 10-year warranty on the structure.
It is often said whatever you save in the short run by hiring just any regular builder will be multiplied by 10 and spent in the long run. Licensed residential builders in Vancouver bring multiple attributes to the table which a regular builder or general contractor does not. So why do some people choose these builders? Let’s take a look at the multiple facets which you must consider before committing to either one of these two options.
It is definitely a rational move for an investor to look for any means to reduce the cost of construction, but a professional building company will bring many advantages in terms of quality, safety, reliability and productivity to a project which makes it a definite must. The funny thing is that in a long run a professional building company will be more affordable than an average builder and will save many sorrows and regrets at the end for investors.
The major reasons it is preferred to choose a professional home builder in Vancouver over a regular home builder are as follows:
Professional Building Companies in Vancouver have systems in place for each step of construction, these systems ensure the quality of the work completed and makes sure to minimizes risk and errors/work repetition. These systems also ensure effective scheduling is implemented which significantly reduces the construction time and consequent cost.
Effective Management and Communication
Profession building companies possess comprehensive reporting and documentation routines which will ensure all details of the work are checked and recorded. Nowadays, these systems are cloud based which makes the information available for everyone in the company. These systems are an effective tool for communicating with investors to help them stay up to date with any and all aspects of the ongoing project.
Productive & Clear Scheduling
Through effective scheduling practices, a professional building company will inform the investors of the exact time of commencement and completion of each task as well as whole project. Hence, from the start of a project an investor will remain well informed of project timelines, task costs, timing and construction draw amounts.
Effective scheduling will help the projects run smoothly. It prevents confusion and headaches concerning project financials. It will reassure investors that there is no increase in the construction costs and helps avoid any unwarranted costs down the road.
Professional builders are held accountable for their actions to a greater degree than an average builder or general contractors. They have a reputation to fight for and won’t will be repeatedly readjusting their designs, styles, controlled routines.
Professional building companies possess customer service capabilities which are much more robust and reliable than an average builder. It is always easier and more pleasant to deal with a team of professionals who have staff on standby.
With a professional building company, you can rest assured that they are held to a stringent standard and won’t increase your costs down the line. An average builder on the other hand is expected to only follow rudimentary code. On average, home builders are researched by prospective clients anywhere between 6 to 12 times more than regular builders and general contractors! This also leads to an increase in possible litigation. Professional home builders in Vancouver are held legally liable for their work which also plays a large role in why they hold themselves to such high standards.
Distinction & Ease of Sale
Every intelligent new home buyer always asks for the builder’s information and schedules to meet with that builder to go through the home’s details. Professional building companies put their brand on your home and bring distinction and prestige to your investment. They signal to all future home buyers that the home was made by the best. These kinds of homes sell for much higher during any market.
Of course, non of the above stated advantages would come free with a professional building company. Keep in mind that a professional building company will also save on construction costs through several ingenious means like significantly decreasing construction time, increasing the building quality dramatically & making the home energy efficient in all aspects of design.
Here is some examples of savings which a professional builder can make:
- Lowering Carrying Cost: Time is money! The shorter the construction time will cause lower carrying cost for the investor. Likewise, the shorter a house stays in the market the more profit it will yield for the investor.
- Saving on Sub-Contractors: Many sub-contractors prefer the ease of working with a professional home builder, and in return these professional home builders are charged lower rates. In addition, it is always an advantage for a sub-contractor to have a professional builder as a reference for his marketing and proof of work quality.
- Saving on Suppliers: The same principle which applies to sub-contractors also applies with suppliers. Suppliers will also opt to give better discounts to professional builders as they know they can expect to receive higher volume of orders then from an average builder.
- Saving on Warranty Items: Due to higher professional standards, a professional building company has significantly less cases of warranty issues brought up by clients than an average builder. This will not only save the investor from having to deal with headaches but will also markedly reduces the cost for the investor as well.
If you take into account all the savings stated above, you can rest assured that hiring a professional builder is much more affordable than an average builder. In addition to the monetary benefits, hiring a professional builder will ensure a higher quality product, peace of mind, less financial risk & less wasted time. These are invaluable advantages which are greatly appreciated in a line of work which requires attention to detail. Considering the high costs involved in redoing a poor work, the last thing any investor wants is to spend a fortune on poor quality work.
Now you may wonder how you can find a professional builder? Should you google them? Should you just rely on references? What do you even need to look for? Simply, give us a call at, (604) 200-7678 for a free consultation or stay tuned for our next article.
At IRACA Group construction we are Vancouver’s premier construction and renovation company. We are a North Vancouver-based home custom home development expert. We specialize in luxury single-family residential homes, providing stellar home development and construction services to homeowners and investors. Offering services in everything from custom home renovation and modern home remodelling to 3D design and real estate consulting. Our skilled team of construction professionals & engineers have decades of experience across various housing & development projects throughout Vancouver. We are always at your fingertips so feel free to Contact Us!
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