Real World Dilemma: Who Pays for a Redo?

Welcome to Owner Notes, a free newsletter for anyone planning (or dreaming about) building a custom home.

👉 If you enjoy Owner Notes, share this link with pals or read past issues.

Last week, we learned about thermal bridges and thermal breaks. This week, we'll take a peek at an online discussion that highlights a common dilemma in home construction.

Who Pays?

When problems occur in custom home construction, corrections usually cost money. The big question is: who pays? The GC? The homeowner? As I wrote a few weeks ago, these instances can lead to awkward conversations, delays, and strained relationships.

I recently came across an online discussion that illustrates this situation and provides a window into how GCs think about responsibilities. The discussion is from the r/Construction forum on Reddit. A GC asks: "Nobody at Fault" Situation. What is Fair?

We poured a slab on a summer day with the typical (Southeast US) ~25% chance of scattered thunderstorms. At about 5PM, a small storm hit the job site in Raleigh. It dumped almost an inch of rain and hail in about 30 minutes. Didn’t rain a drop at my house about 20 minutes away. The valleys from the roof dumped water onto the slab, exposing some aggregate. Hard to notice now that the slab has seen some wear, but the client wants it all ripped out and replaced. Probably about $10k.

I've removed my markup, and offered an additional 20% credit. They seem fixated on the "principle", stating things like, "the finished product we were promised, and which we paid for, was never delivered".

It's an interesting situation from an ethical standpoint. On the same project, a couple months later, a branch fell on the roof, bending some of the standing seams on the metal roof. That was a more straightforward insurance situation. The concrete is more complicated given that it happened just hours after we poured.

The highest ranked responses were nearly unanimous:

"Its your liability as the GC. 25% chance or 0% chance of rain you own the results." Read more

"I am a GC; it is 100% on you to make this right and redo. Yes, it sucks, but as GC, 100% your responsibility." Read more

GC responsibility on this one. You made the decision to pour, so weather results, even if unexpected, are on you. This is why you take out builder's risk insurance. Read more

Generally, it’s the GC’s responsibility to protect the work until the work is accepted by the owner. If the work is damaged, the GC is responsible to repair the work. Read more

I think the key quote for homeowners is the last one. "It's the GC's responsibility to protect the work until the work is accepted by the owner". Keep this in mind for your build.

What to Remember

When hiring a GC, read their contract and ask questions. How do they handle examples like the one above? Do they have insurance? How does it work? They may have an "act of god" clause that exempts them from these kinds of expenses.

Keep in mind that verbal agreements can complicate the situation. For example, if the GC is unsure about pouring concrete with rain in the forecast and you say it's OK because you want stay on schedule, you may be more responsible for the outcome.

Always try to resolve any ambiguity about roles and responsibilities early in the process. When issues arise in the middle of the project they can quickly get messy.

👉 We cover this subject and much more in our Custom Home Planning Navigator Course.

Did you find this helpful? Do you have ideas for future issues? Reply to this message or email me anytime at lee@buildlivable.com.

Lee LeFever, Build Livable

Build Livable helps homeowners navigate custom home construction. Learn More.
Please feel free to forward this email to a friend. Subscribe and view past issues.

Build Livable's Owner Notes + Courses for Homeowners

Real World Dilemma: Who Pays for a Redo?

Who Pays?

What to Remember

Why Planning Home is Like Thanksgiving Dinner 🦃

2-for-1 Sale: Course Bundle for Homeowners

The Gap in the Homeowner Experience