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minnesotaguy28

Final Walkthrough/Punch List Question

15 years ago

We are set to close on Friday (2/25). We are having a Final Walkthrough on Tuesday (I searched this site and got a lot of good info on what to look for). But the house still will need 1 more coat of paint (Wednesday, which family and friends that have walked through stated doesn�t seem it will be enough since there is a lot of stain on the walls since the trim/cabinets were stained in place). The house also won't be cleaned until Friday evening/Saturday (After we close). Should I schedule another walkthrough with the builder on Thursday or is this normal? We are closing Friday since the builder is leaving out of town the following week (more of a favor to him) and our 4-month rate lock is up on March 3rd. The bank is doing their inspection/appraisal on Thursday (2/24).

I have been walking through the house each day (currently living with in-laws next door to our new house) and have been sending the builder emails daily with the items that need fixing as I come across them. He has stated we will look over them come Tuesday�s walkthrough. Seems like he might be cutting it close with 3 days to finish some of these items up, I can foresee him stating that it might be after the closing that some of these items get addressed.

Since we live in Minnesota, the builder is waiting to pour our Concrete garage floor (had quite a bit of fill in back corner so builder wanted to wait till spring) Driveway, Sidewalk, Final Grade, Landscaping, A/C, ETC. The Title company/Bank is holding 1.5x bid cost of these items until they are finished, so I am not too worried there as long as everything gets included in that list (Which I have asked to see before being submitted to Bank/Title Company)

Some of the items that need to be addressed are a cracked tile in the shower near the faucet head, a few cracked shingles (I went up their today since the weather has been so nice taking pictures and came across a vent pipe that still had it�s sealed cover on that I think was suppose to be cut off by now. I knew I better make it up there today since we are suppose to get 12-15 inches of snow today) The cracked shingles are all in the same area, which I think happened when the sheetrock guys loaded their drywall through the window just above the shingles in question. A large gouge in the top of the bench in the mudroom, which was sanded and now feels very bumpy as you run your fingers across it (Are we too picky?) Rough areas on the sides of the railings going up and down the stairs (again too picky?), the dryer vent was moved and before they seal up the hole I spray foamed into the cavity since I knew the sheetrock guys would just mud over the area (which still hasn't been done yet) and a list of other small items.

Should I request the builder have these items finished before I close (3 days time between walkthrough and closing) or is it acceptable to have him do some/most/all of them after the closing. I have already told him I have heard too many stories that once we close the builder gets around to things rather slowly, which he has stated will not be the case. The house comes with a 1 year fit and finish type warranty, which the builder stated he would send me the statue, but I haven't seen it yet. The contract states "During 1 year period the dwelling shall be free from defects caused by faulty workmanship and defective materials due to non-compliance with building standards" it goes on to state that I get 2 years for plumbing, electrical, heating, cooling.

He has been a great GC so far and has done a few change orders that would cost more money for no cost for the change order or the upgrade (Adding a hearth to the fireplace, Dutch lap Vinyl siding, painted garage doors) We have also noticed some things where we paid for the standard and got an upgrade (paid for 25 year shingles and got 30 year architectural, paid for standard round knob doors and got lever style)

Comments (2)

  • 15 years ago
    last modified: 11 years ago

    Insist that he finish (including cleaning) before you close. Construction clean up can be expensive! If you still need another coat of paint after Wednesday, getting that done (without getting paint on stained woodwork) can also be pretty expensive.

    For the big jobs that can't be done until spring (landscaping, final A/C testing, etc.) maybe having title company hold 1.5 times the bid price will work. But, make SURE you ask what happens if the builder DOESN'T come back and finish in a reasonably timely manner and that "timely manner" is defined. Will the title company release the funds to you if you wind up having to hire someone else to do the job? Or does the language say that, once the big jobs are complete, Title company will release the funds to the builder? If so, builder just has to wait for you to finally get fed up and pay someone else to do the job then he can waltz into title company and say "job's finished, pay me." And you get stuck paying twice! Make sure that after a certain date, you have the option of hiring someone else to do the jobs and then the money will released to YOU to pay them - including an additional 20% to pay you for doing builder's job of hiring and overseeing the work!

    And, for the little jobs, is title company going to want to bother policing builder's performance?

    For smaller jobs, the only alternative I would agree to would be if builder was willing, in writing, to allow me (not bank or mortgage company) to hold back least 2 to 3 times as much money as I thought it would cost to hire other people to come in and do the jobs AND he agreed that after a limited period of time (say 6 weeks maximum) any jobs that were not competed, I had the right to hire anyone I wanted to finish them and, when all work was done, then builder got paid whatever was left over, if any, after I deducted all costs for finishing the work plus an additional 20% to pay for my trouble. And, all I had to provide to builder was a copy of receipts for materials and labor paid out to justify what I deducted.

    I don't think you're being at all picky expecting that your new house won't have cracked shingles or cracked tiles or gouges in the bench of your mudroom. The house should be as near to perfect when you move in as it will ever be.

    Maybe your builder needs to postpone his trip out of town???

  • 15 years ago
    last modified: 11 years ago

    Thanks Bevangel,

    The bank, which is our mortgage company and is different from the title company) has said that they take 1.5x in case the builder doesn't come back or finish the items so you can hire someone else to do the job. I do think however that he will be trying to get them done as soon as possible since that 0.5x the bid is his profits for the job.

    For the small items I want to hear tomorrow in my meeting that most of them will be done by the closing and set a time frame for the remaining items. I can sense that he might try to push some of them off until the 11 month warranty check when he comes back and fixes anything that has popped up in the mean time.