“I didn’t know what I didn’t know”

We often joke at our office that there are some owners who will put more time and research into the purchase of a tv than into selecting a contractor to build or remodel their multi-million dollar home. Sometimes there may be a mentality at all contractors are equal and that one is just as good as any other. I doubt that anyone really believes that but I have seen over and over super smart, successful people, get taken by contracting with the wrong contractor. Is it the hope of saving a few dollars? Is it the hope that someone unproven can pull of a big job? Unfortunately, we’ve seen a number of projects and clients who have come out on the bad end of quick and/or ill made contractor selections. As one, such client Bill put it, “I didn’t know what I didn’t know". Let me tell you Bill’s story.

Bill was a well educated and successful doctor. Bill came across a beautiful, wooded lot in Houston’s memorial area and decided it was where he wanted to build his dream home. Bill found a great architect for his project and spent ten months designing his house. At the end of the design process Bill’s architect suggested two contractors that he had good experiences on similar projects with for Bill to interview. Bill also got the name of another contractor, Fred, who did a small addition project for a neighbor. Bill liked all three contractors and asked all three to work up pricing estimates. When the bids were returned the two established contractors’ numbers were about 5% apart. Fred the contractor was 20% less than the other two but much closer to Bill’s initial budget. While Fred the contractor had very limited experience with projects of this scale he convinced Bill he was up for the project. Bill decided to move forward with Fred. Fred got started with the job and immediately realized he had missed a number of items in the bid. At that point the change orders started to which Bill reluctantly agreed. After the concrete foundation was installed, the next problem arose when the framing contractor who was going to start the project didn’t show and ultimately declined to do the job. After waiting 4 long weeks Fred was able to gather a framing crew. The crew was able to start but the small crew had little experience with large new homes. The framing work took 8 weeks longer than originally planned and the quality was less than great. As the project progressed the poor quality of the framework became evident as it was discovered walls weren’t always straight or plumb and some floors were a bit out of level. As the project continued the quality issues and scheduling issues with lower priced subcontractors became evident. Other problems arose when Fred wasn’t able to manage his cash flow to keep the subcontractors and vendors paid up to date. Fred worked his way through the job. The quality of the finish work was a C level and the work took about 6 months longer than originally planned. Bill spent about 20% more than the original “high” bids that he had received. Additionally, the stress levels Bill had during the project where high. Bill constantly felt the need to keep a watch on the project and help Fred get over the finish line. There were a number of unfinished items that Bill needed help finishing which is where we came into the picture to help finish and troubleshoot a few items. As Bill told me he didn’t know what he didn’t know. Bill had regret that he hadn’t listened to his inner voice telling him to good with the more experienced contractor. Bill hadn’t realized the complexities of a custom home and the real amount of work it takes to successfully pull off a project.