Maximizing the Custom Home Building Experience

For the homeowner, building a custom-designed house should be an exciting and enjoyable venture, the fulfillment of a cherished dream. Sometimes, however, those dreams are edged out by the disappointment of an exasperating experience. At Castle Contractors, LLC, President Alan Looney has devised a home planning process to help his clients maximize the most rewarding aspects of the construction experience, while at the same time minimizing the frustrations which too often occur when the buyer and the builder have two conflicting sets of expectations. “A lot of times, people don’t know where to begin,” Alan says. “So our whole process is an educational experience for the owner.”

The process of educating the potential client begins with the color-coded chart Alan has created and posted on the Castle Contractors website(www.castlecontractors.com). The chart is divided into four major categories: Milestones, Homeowner Meetings, Financial Decisions and Construction Decisions. Because specific activities within each general category are required at particular times as construction on the house proceeds, Alan has devised a flow-chart for easy reference. Alan explains that his website serves two purposes: “Selling our services and describing what we do. Most importantly, it answers the critical question in any home buyer’s mind: How do I get started?”

The right starting point can help the homeowner avoid expensive mistakes. “The clients are always excited at first and can’t wait to break ground,” Alan says. “But I try to convince them that it’s more important to plan carefully on the front end in order to minimize problems on the back end.” For example, some people decide that consulting an architect should be their first step, and sometimes that doesn’t work. For example, the architect, according to Alan, will design the house and then put it out for bid with three or four different builders. “The problem with that is you are not always comparing apples to apples. Some builders will estimate the sticks and bricks of a house, but then will put in allowances for the other items.” These categorical allotments do not always provide the buyer with desirable selections. Alan says his company may not be the least expensive building firm, but one reason he involves himself in the budgeting process is to make sure that the buyer’s money is well spent. “When the homeowner comes to us, they’re obtaining our services to help them with the design process,” he says. “And my goal is to keep the architect’s ideas in check so that one or two additional items won’t blow the buyer’s entire budget.”

For this reason, Castle Contractors spends a great deal of time working with the buyers during the beginning stages of the process. “Once we have the plan, we start selecting all the finishes up front,” Alan explains. “The types of faucets, countertops, floors, paint, trims -- all details are chosen on the front end. So when I give them the price, that’s what the house is really going to cost.” That figure may be altered under one condition: the homeowner signs a change order and then writes a check for the cost of that item. Even though most clients are eager to get construction underway, Alan doesn’t rush the process. “I like to spend time helping the client make the best selections within his budget, and that sometimes includes making suggestions about alternative products which will maintain the quality the client is seeking but will not destroy his budget.”

Another advantage to Alan’s method is that “by preselecting everything on the front end, we find we have fewer change orders and people know what they’re getting, with no surprises.” He says, “A lot of times a builder will write in a certain amount of money allotted for tile, as an example. But they don’t really lock in on what the total amount is going to be.” The problem occurs when the client goes to select the tile and discovers that the allotted amount of money will only purchase a tile of lesser quality than s/he had hoped for. “Through our process, the client becomes aware of the actual cost of the materials he selects,” Alan says. “Still, there are always trade-offs, “he explains. “I always advise the clients to put their money into the areas that are going to be most visible. You want to elevate those areas so that people can appreciate what you have done.”

Eliminating Unnecessary Expenses

Alan is aware that his process is very involved, but his attention to the elements of the early phases of construction usually pays off for his clients. “We try to make it fun, as well as exciting and enjoyable, and I try to take the surprises out of it. The clients always know where they stand on the budget.” One of the greatest benefits is that “You don’t get to the end of the project and say “Gosh, I don’t remember approving all that.” In Alan’s process, everything is documented in the beginning. “It’s a lot more paperwork on the front end for us,” he says, “but we try to manage the project effectively.”

After buying the lot, the homeowner selects a builder, but during the initial consultation, s/he often begins with the wrong question: How much do you change per square foot to build a house? According to Alan, “This is not a realistic place to start because pricing can vary between $150 to $300, depending on the style of house, size, as well as many other variables. That’s why they really need the team of an architect and estimator.” He has heard too many stories, either from bankers or friends, who describe their homebuilding experience as a costly venture. “They may have been told the house was going to cost one million dollars and it ended up costing $1.2 million,” Alan says. “ The reason for this expensive discrepancy most of the time, is that the builder is not a good estimator. He may have rushed into the agreement and set the price at $1 million. But from that point on, he does each thing on a cost-plus basis, charging the client extra for each item.” Alan’s approach is different. “If a potential client calls and asks me to give him a number up front, I can’t always do that. But once I explain the factors involved - architectural style of the house, size and the finishes they want, they begin to understand why I can’t just give them a number.” But after Alan emphasizes that Castle Contractors’ approach is an educational process which is beneficial to the homeowners , most of them are very open to spending extra time on the front end working with him. He tries to ensure that the client knows all the factors involved in the pricing of the house.

Passion and Practicality

Alan feels it is extremely important that his clients know what to expect, both in terms of the construction process and the special services offered by Castle Contractors. “ I also like to talk to clients about how the financing works-- the process of doing a construction permit, then referring them to some local mortgage companies that we prefer to work with and who have been in the business for many years,” he says. “We also tell the clients about our background. We have been building in Nashville for twelve years and we offer a very special service. We also build the more expensive homes and work with the high-end architects.” Alan describes his approach to working with clients as “very hands on.” His background, which includes both a degree in Industrial Engineering and four years as an estimator in the IE Dept. at general Dynamics in Ft. Worth, TX, offers his clients a solid combination of ability and experience. “During that four years I gained good estimating experience and that has helped me in estimating the costs of home building.” Alan actually began building in 1985, first with one house at a time and adding to that number as he continued to grow his company. Since his move to Nashville, Alan has been building full time. “My passion has always been building houses,” he says. “It has evolved over the years and continues to evolve.” We’re always trying to stay a little bit ahead of the curve and provide the best product and the best service we possibly can.”

Castle Contractors has changed its approach to housing design and construction since the company moved to Nashville. “Our style of building has also evolved over the years,” Alan says. “A lot of builders are still doing the big two story family rooms, two story foyers, which contain a great deal of wasted space, which is harder to heat and cool. We’ve gone back to the ten or twelve foot ceilings and homes are more cozy.” In order to design and build the best homes for his clients, Alan looks beyond size. “ Many contractors try to build as much square footage as possible and base their prices on that, but we look at other factors: Where do you want to live? How do you want to live? We build spaces that people will utilize,” he says. “Too many home owners are buying a lot of square footage they don’t even want, but they’re buying it because there’s nothing else on the market.” Alan believes the custom-built home should reflect the client’s lifestyles and should be aesthetically satisfying as well. “ People come to us because they want a custom home to fit the needs they actually have,” he says. “I’m also big on symmetry and access within a house-- when you’re in one room and looking into the next, you aren’t just looking at a blank wall, but you’ll have nice visuals that are appealing to the eye. We try to explain this to the homeowner.”

Communication is Crucial

“The biggest thing between the client and ourselves is communicating, making sure on the front end that they understand the process,” Alan says. “After we do the design and the selections and the budget, we have a budget presentation meeting in the office.” At that meeting, Alan and his staff look over it item by item and explain to the client why the house costs what it costs. The clients have an opportunity to look at the invoices and decide whether they want to make some changes. “When they get to a number they feel comfortable with, we do the contract and list the specifications,” Alan explains. He also provides up to date information by keeping in touch with his clients via Internet, in effect, managing the projects online. “If I’m building your house, you can actually go into the schedule and keep track of the whole building process,” he says. Also, if the client wants to refresh his memory regarding a particular item he has selected, he can check the specifications, including model numbers, pictures and names of manufacturers. Additionally, if the client wants to make a change from the original selection, this can be done prior to the specified deadlines. Admittedly, this service involves a great deal of work for the Castle staff. However, according to Alan, “Once it’s all done, the client always knows when particular stages of the building will be completed.”

Castle Contractors’ central goal, as Alan explains, is to “Try to build a house that’s timeless, and one that demonstrates architectural integrity. When somebody looks at the house, he’ll know that it’s a Country French or an Italian Renaissance, that it has the recognizable detail on the inside as well as the outside. Alan’s wife Heather, who has spent 14 years in interior design and marketing, works closely with clients during the various design phases of the construction process and also plays a pivotal role in achieving the company’s goal. In Alan’s words, “She tries to stay away from trendy looks and goes for classical effects that are going to stay around for long periods of time. When the client walks into the house now or twenty years from now, he’s going to say ‘This is really cool!’”

For clients of Castle Contractors, the most exciting part of the process happens near the end when they see all their ideas come together. “This process has worked for us,” Alan says. “We try to take the guesswork and surprises out of the construction experience. For us, that’s the most important thing.”