Finding success building a custom home starts with finding the right business to do the job. Home buyers sometimes ask during this process whether it makes a difference to hire a general contractor
General Contractor vs Builder
Finding success building a custom home starts with finding the right business to do the job. Home buyers sometimes ask during this process whether it makes a difference to hire a general contractor or a home builder. In this article, we'll explore the differences between these two types of businesses to help you decide which to hire when building a custom home.
How Are General Contractors and Home Builders Different?
The primary difference between a general contractor and a home builder is the type of license they hold and the kind of work they can perform. In Colorado, contractor licenses are issued at the local level. In El Paso County, the Regional Building Department issues contractor licenses.
The building code breaks contractor definitions into four sub-categories. There is General Commercial, Limited Commercial, Home Builder, and Specialty Trade. Both General Commercial and Limited Commercial are considered general contractor licenses. The difference between the two is that a contractor with a General Commercial license can build any type of building, whereas a limited commercial license holder cannot build properties greater than 30,000 square feet.
A home builder’s license allows the holder to construct, alter, or repair residential properties ranging from a single-family home up to an eight-plex and any attachments to those buildings, such as a detached garage or deck.
Home Builders are Specialists in Residential Construction
While general contractors can and often do specialize, there are some that do a little bit of everything. When you hire a home builder, you are hiring a company that specializes in residential construction, and there are benefits that come with that specialized knowledge. Compare it to the difference between a family practice doctor and an orthopedic surgeon. If you need a new knee, it would be wise to choose an orthopedic surgeon whose experience is focused on knee replacement.
Home builders like Wayne Anthony Custom Homes (WACH), with years of experience in real estate and new home construction, know what is trending, what sells, and what doesn’t. Because of this, they can offer suggestions when you need to make floor plan decisions or design selections like flooring, countertops, cabinetry, etc.
They also know how long things take or how long they should take.
A home builder’s sub-contractors also specialize in building homes and carry a Specialty Trade license. From framing to roofing to electrical and plumbing, the sub-contractors are all experienced in building homes. And they know the local residential building codes.
General Contractor vs Home Builder Cost
In theory, the cost to build a home should be very close to that of a general contractor and a home builder. However, if the general contractor’s company is larger in size and has layers of management, the price could be higher.
Additionally, the prices for materials and labor can fluctuate and vary between suppliers and vendors. You should ask any company that you interview if you will see the actual invoices for materials as the project progresses. A contractor that doesn’t want to show you invoices may be adding a fee or percentage on top of the materials and labor prices they receive and then adding their contractor percentage on top of that.
Why Customers Come to Wayne Anthony Custom Homes
At WACH, there aren’t layers of management. The owners are the management, and they take responsibility for the outcome of your project. They work on a cost-plus contract, which means you pay for the cost of materials, plus the cost of the sub-contractors, plus a percentage markup on the total for them. Because the owners are firm believers in transparency, they do not add additional unseen markup to the material or labor costs. What the suppliers and contractors charge the company is what you will see on your bills.
As home builders, all WACH does is build homes. Over the years, they’ve honed their processes to ensure all the details are taken care of in an organized fashion. This allows them to have consistent results and focus on providing a great home-building experience to each customer.
Contact Wayne Anthony Custom Homes
Good home builders are experienced, specialized, and knowledgeable about the home-building process from start to finish. They can communicate in a deep and knowledgeable way about their craft, helping home buyers through the process of constructing their homes.
This is what you can expect when working with Wayne Anthony Custom Homes. As a Colorado Springs home builder, we're experts in home construction. It is our pleasure to help our customers build the home they've always wanted, down to the finishes, layout, and location. To get started with the process, contact us.
