December 16, 2023
Common Mistakes First-Time Builders Make in Houston
By Candra Brown · December 16, 2023
After years of running BEDDIEO Construction & Design and watching first-time builders walk in and out of Houston job sites, the mistakes are remarkably consistent. Different people. Same seven mistakes. Five of them are avoidable on day one if somebody tells you. Here they are.
1. Under-Budgeting Contingency
First-time builders almost always set contingency at 5 percent or skip it entirely. Set it at 10 percent of hard cost minimum. On older lots, 15 percent is safer. The day you do not need contingency is the only day you are glad you did not have it.
2. Choosing the Wrong Lot
Cheap lots are usually cheap for a reason. Drainage, soils, deed restrictions, flood history, easements, lot configuration. A $40,000 lot can cost you $80,000 in problems before the slab is poured. Walk every lot. Pull every document. If a wholesaler is rushing you, the lot is the problem.
3. Picking Subs by Price
The lowest bid is almost never the right bid. Cheap subs leave problems for the next sub, who charges to fix them. By the time you are at trim, you have paid the lowest bid twice. Pick subs based on referrals, walked work, and communication, not price.
4. Ignoring Soils and Drainage
Houston clay moves. Houston gets rain. The lot that looks flat is not flat. Soils reports and a real grading plan cost a few thousand dollars and save builders from foundation cracks, drainage failures, and angry neighbors. Pay for the report. Read the report. Follow the report.
5. Weak Contracts
First-time builders sign whatever the sub puts in front of them or work on handshakes. Then they have nothing when something goes wrong. Use a Texas attorney to draft your standard contracts for subs, owners, and lenders. Use the same templates every time. Adjust the schedules and prices, not the terms.
6. No Draw Schedule
A draw schedule ties payments to verifiable milestones. Foundation poured. Framing complete and inspected. Rough-in inspected. Drywall complete. Trim complete. Final. Without a draw schedule, money goes out the door before the work justifies it. Subs disappear with deposits. Lenders flag your file.
7. No Project Management Cadence
First-time builders show up to the site when they remember. Then they wonder why something they expected was not done. A fixed cadence, even just twice a week with the foreman and once a week with the financial review, prevents 80 percent of the surprises that wreck first builds.
The Common Thread
Five of the seven are avoidable on day one. Contingency. Lot vetting. Sub selection. Soils. Contracts. The other two, draw schedule and cadence, are habits you can install before the first job site visit. None of these are glamorous. All of them save first-time builders from the most expensive lessons in the business.
Where to Avoid Them
Coffee & Construction Houston is built around helping first-time builders avoid the avoidable. The room is The Construction Lounge. The firm is BEDDIEO Construction & Design. You can also learn about my work as a Houston developer.
"There are seven mistakes I watch first-time builders make. Five of them are avoidable on day one."
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Coffee & Construction is the original Houston workshop series, curated by Candra Brown of BEDDIEO Construction & Design. Four years running. The next session is at The Construction Lounge in Houston. Reserve your seat below.
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