The Best Custom Home Builders in Virginia Beach, Virginia

WHAT KIND OF DOWN PAYMENT SHOULD A CONSUMER EXPECT WHEN WORKING A CUSTOM HOME BUILDER IN VIRGINIA?

The Virginia Board for Contractors recommends that the initial down payment for a consumer engaging with a licensed contractor be no more than 10% or $1,000 (whichever is less) — unless the job requires custom made items, where the initial down payment should be no more than 30% of the total value of the contract. Further, if you are dissatisfied with the work performed by the sub-contractors you may hold the general contractor responsible. Finally, in accordance with the Virginia Home Solicitation Sales Act, consumers have a three-day right to cancel a contract which you have negotiated. Finally, The Contractor Transaction Recovery Act provides relief to eligible consumers who have incurred losses through the improper and dishonest conduct of a licensed contractor.

WHAT IS THE BEST WAY TO WORK WITH A CUSTOM HOME BUILDER IN VIRGINIA BEACH, VIRGINIA?

When you have found the Custom Home Builder you want work with, it’s important to first define their role and their scope of work. Since Custom Home Builders can provide a variety of services, including: Design Build, Construction Management, and General Contracting. Once you have determined your Custom Home Builder’s role in your project, request a written contract that includes a detailed scope of work, agreed-upon start and finish dates, the down payment or deposit owed at signing, a cancellation policy, and the total price and payment schedule — including contingencies for paying for work due only upon completion. If you are using a Construction Loan to finance the creation of your custom home, ensure the Custom Home Builder is aware of this dynamic and has the opportunity to establish a direct relationship with your lender to understand their specific needs and criteria for underwriting the project and for issuing payment. In addition, ensure your Custom Home Builder obtains all necessary building permits for the project before beginning work — the permit holder becomes the general contractor and assumes responsibility for the overall project (which may include taxes, workers’ compensation, and other legal liabilities). When engaging with a Custom Home Builder, ensure they also have a process for addressing Change Orders that may surface as the project progresses and ensure when work is completed by sub-contractors or tradespeople a lien release is issued, removing you from any additional liability. Finally, while it is not required in Virginia, ensure your Custom Home Builder carries an active general liability and workers compensation insurance policy.

WHAT IS A PRIME CONTRACTOR?

Per the Virginia Board of Contractors, a Prime Contractor is a licensed contractor that performs, supervises, or manages the construction, removal, repair, or improvement of real property pursuant to the terms of a primary contract with the property owner/lessee. The Prime Contractor may use its own employees to perform the work — or use the services of other licensed contractors. In certain cases, a Prime Contractor can also be the General Contractor. In other cases, a Prime Contractor can hire a General Contractor to manage the project.