Do You Know What Design/Construct (or Design/Build ) Means? I Think You Should!

These real questions on 'How To' build are answered by a US Master Builder and myself from the development viewpoint, after I received them from readers of my e-book, "Residential Development Made Easy."

Question 1.

'Design / Construct' is a development processwhere the contractor engages and instructs all the design consultants for the project and submits a price for the design and construction of the project to the developer,hopefully meeting the developer's requirements as far as aesthetics and space requirements.

The contractor, if awarded the project, proceeds with the engagement and briefing of the design consultants, obtains authority approval and constructs the project without the developer having to deal with any consultant. This generally saves the developer the hassle of going through various tender exercises. Can you explain a bit more about this process?

Master Builder & Developer's Reply:

Essentially what you have said above is correct, however as with most things in life, there is a "BUT" involved.

And before I talk about the "BUT," I should say"D & C" is usually reserved for commercial development like office, industrial and standard retail shopping buildings.

Commercial developments are essentially concerned with "creating space" that can be easily specified on a plan and specifications. The buildings, on completion, look different because of shape and how they are 'dressed-up." It is non-personal - it's business.

The design of residential accommodation is all about "personal."

Now back to the "But" - not all contractors can provide 'Design / Construct services. Not all builders have anyability at determining 'good design.' Just because a contractor can construct a house, does not mean he can design one or supervise a consultant to design of one.

Contractor are concerned with 'cost' and getting the job done.

Remember, in the pecking order of seniority in the industry, the designer architect usually 'tells' the builder what to do. 'Design / Construct reverse this role.

Contractor are usually practical people and like to complain about the fancy ideas of designers. However it is the fancy ideas that distinguish your house for the one next door and makes it work better and sell better.

As a developer of residential accommodation I would never use this process, because it is the designers who interpret your design ideas - things you definitely want in your projects of say six or ten or moreunits.

In my e-book I tell you how to go about your own market research. Well at the end of that you will have reached some firm ideas of what you want in your project.

It is the designer who will put those in place for you on a plan, not a contractor.

Now let's go up a few rungs on the contractor expertise ladder to the Master Builders level and I'll let Leonard answer from his perspective. As with all human endeavors, there are different levels service and expertise within the his fraternity.

Design / Construct is basically what I do at USA Master Builders.comexcept we have taken the process several steps further. But before I get to that I will advise you

We call our Design / Construct teams, "Residential Development Teams." Where we go further than other Master Builders is as follows:

* We do the basic market research for you.

* We create demand for the properties.

* We locate the buyers.

* We provide financing and insurance.

* We locate a developer who develops properties in a specific price range we've specified.

Question 2.

Will the contractor be able to work out a package with me, where I provide the initial concept and schematic design whist the contractor provides all the working details and specifications to come to an agreed fixed price plus agreed profit?

Master Builders & Developer's Reply:

Depending upon the contractor you choose they should be able to do this for you. Let me walk you through how USA Master Builders.com work with developers.

Let's say that you've done your home work.

Know what property you want to build.

Know how much you want to budget for each property. (If not, we can assist)

I want you to tell me:

1) Fair Market Value $X

2) Appraised Value $X

3) Cost of each lot $X

4) How much you have budget for each property.

5) If you have floor plan that would be good. If not, we would help you with that. You would tell us what you have budgeted for each unit and ask us if we can construct for that? We review the information, discuss details with you and give you a quote.

When we provide you with a final quote it is all inclusive.

It includes everything we can control. Included are the certified architect blueprints, structural engineering reports, cost for building the property, providing financing for those who will be purchasing the property, insurance for those purchasing the property, Realtors trained to sell and create a demand for your properties.

In addition, to the above we would provide you with a 100% Money Back Guarantee which simply stated, "If you don't like the property once it is completed you don't have to buy it."

We insist that you hire the property inspector of your choice to inspect the property BEFORE you take possession of it. We also provide you with daily video updates on the project so you have video documentation of the progress of your property.

Unlike a lot of builders we think "long term" not short term. We understand that we make our money building and you make your money selling at retail. If we want more business from you it's important to help to ensure your profitability as much as possible.

Question 3.

What kind of warranties do Master builders offer?

Master Builders & Developer's Reply:

Depends upon the property and place. Some areas require warranty on plumbing, gas lines, etc?

We provide all standard warranties in each area. In addition our structural warranty is 20 years instead of five or ten that local builders offer. Our roofs are 20 years. And, we have a 100% Money Back Guarantee to ensure you're not stuck with a lemon.

Oh yes, one last point that does not really come under warranties, but it does give peace of mind to out clients. Every part of the house we build for you is computerized for you.

So What?

Well let's say, in 4 years or 10 years, you have a window badly damaged, a door, a kitchen bench - whatever - think about what you would have to do to get it fixed. Well with us, you just phone or email - tell us which part you want replaced, it's exact location, and we'll have the exact part, in the right size, in the right material sent to you, after you have approvedthe pricing.

So you see that the "BUT" I mentioned above covers a lot that is within the term 'Design / Construct.'

****************************

Author & $1.2 Billion Developer, Colm Dillon, Has Written The Best Selling 'How-To' E-book, "Residential Development Made Easy," With Readers In All States Of The USA, Canada, Australia, New Zealand, UK, Ireland and 79 Other Countries. His Independent Web Site is: http://www.realestatedevelopmentcoach.com

More than 40 states signed onto a proposed $25-billion deal with major mortgage servicers over faulty foreclosure practices. New York, Nevada and Delaware joined California in holding out for better terms.

More than 40 states signed onto a proposed $25-billion settlement with major mortgage servicers over faulty foreclosure procedures, but California, New York and other key states were still not among them.

California has until Monday to share in a multi-state deal with banks to obtain mortgage relief and reforms. Atty. Gen. Kamala Harris, who walked away from talks last year, says the door remains open.

With a Monday deadline at hand, California officials have resumed direct talks with the Obama administration about joining a multibillion-dollar, multi-state mortgage settlement with the nation's largest banks, a source said Sunday.

The talk show host pays $12 million for the 4,088-square-foot house with four bedrooms and four bathrooms. The ocean-view home sits on 1.26 bluff-top acres with beach access.

In one of the more talked-about transactions in town, actors Brad Pitt and Angelina Jolie have sold their Malibu beach house to daytime host and comedian Ellen De Generes for $12 million.

The four-bedroom, five-bathroom house built in 1920 for industrialist James Wigmore lists for $2,875,000.

A decorative cast stone entrance opens to this restored Spanish Colonial Revival-style house in Pasadena's South Orange Grove area. Built in 1920 for industrialist James Wigmore, the house retains such original details as coffered wood ceilings and arched doorways.

They don't believe they can sell their property for what it's worth, so they're spending money on making their homes more comfortable.

Do you fit any of these descriptions?

A biennial research report by the National Assn. of Realtors indicates that a handful of real estate agents and brokers and their clients either don't know the law or don't care to follow it.

When it comes to lawsuits, real estate agents and brokers tangle mostly among themselves.

The president aims to help about 3.5 million people with good credit who are unable to refinance at historically low rates because their homes are worth less than their mortgages.

 

The White House hopes to help millions of homeowners lower their monthly mortgage bill with a $5 billion to $10 billion plan to set up a streamlined refinancing program for people who are current on their payments.

The Standard & Poor's/Case-Shiller index of 20 large U.S. cities fell 1.3% in November from October as foreclosures continue to drag down the housing market.

Three straight months of home-price declines in the biggest U.S. cities showed that foreclosures remain a significant drag on a housing market that is entering its fifth year of deterioration.

L.A. Clipper Chris Paul may be quick down the court, but he moves pretty fast when it comes to buying multimillion-dollar real estate too.