City inspectors are there to enforce basic code requirements (electrical, plumbing, etc.). They have no interest in quality of construction or construction details unless they affect code compliance or safety in areas that they are responsible for. They're not working for you as a quality check on your contractor...they're protecting the community from unsafe housing, fires, etc.

Presumably the bank's inspectors are not conducting a quality check either then, just ensuring that materials have been bought and installed?

I just posted this on the other message. but I didn't address the inspection part. Our state (Florida) inspects the whole process through-out the build, I would imaging ather states do the same thing.

minnt, we are building without a loan. Here is our contract given to us by our builder, and acceptable to us:
1st Draw: 10% due upon signing contract, and work completed before 2nd draw would be: Site prep, footings dug, poured and inspected, foundation block in place.

2nd Draw: 10% and work to be done before 3rd draw is: Rough plumbing, soil treatment, vapor barrier in place & slab poured.

3rd Draw: 15% and work to be completed before next draw: walls up to roof, dry-in felts on roof, gable ends closed in and framing complete

4th Draw: 15% and work to be completed before 5th draw: Rough electric, plumbing and air ducts, wall and ceiling installation, tub and shower pans set, window sashes and sill installed and framing inspection complete.

5th Draw: 25% and work to be completed before 6th draw: Finish roof in place, plaster or drywall complete, spray pain interior, windows and exterior doors in and interior trim complete.

6th Draw: 15% and work to be completed before final PAYMENT: stucco, exterior pain complete, exterior trim complete.

Final Payment 10% and everything should be done! Plumbing fixtures set, bathroom tile, kitchen cabinets installed, plumbing, electric, a/c complete. All sidewalks, driveways and landscaping complete, property clean and ready for occupancy - and CO issued.

It's not so much different from building with a construction loan, which we did back in 2002. We're building right now in Arizona. Our builder included a draw schedule as part of the contract we signed.

He requires 10% down before he starts anything. Then there are four 20% draws which are due at various important phases of the build, such as site work, foundation, slab and infrastructure rough-in; framing; windows, roof and siding; drywalling; and inside finish work. The final 10% is due after completion and issuance of certificate of occupancy.

This schedule may not be exactly what's in the contract, but you get the idea. Of course, your builder may have a different schedule, but there should definitely be a draw schedule right in the contract. It should require the builder to notify you in writing when another draw is due and specify how many days you have to effect it.

We are set up to make electronic fund transfers right from our bank account into his business account.

Whether you hire your own inspectors is up to you. The most important stage would probably be to hire a structural engineer to inspect the framing, roof and so forth after the house is closed in and before inside work starts.

Your builder will have to pull permits for the various stages of construction, and that means the city will send out an inspector to look at and approve the rough electrical, rough plumbing, etc. You don't really have to participate in any of the city inspections if you don't want to.

Be aware that the city inspections are often very cursory. and if you have any doubts about the quality of the work the plumber or whoever has done (or even if you don't), you might want to hire your own inspector.

On the other hand, the city inspectors often find slight violations of the building code that you may find ridiculous. If you're working with an experienced builder in the area, s/he should have a good idea of the code requirements, but they do keep getting more complicated, so don't be surprised if he misses a few and has to make a few minor changes.

BTW, our construction in Arizona has been delayed a bit because of heavy rains! Who woudda thunk it?

Just curious, can anyone comment as to the liklihood that a builder (assume a builder who does mostly spec homes, but also does some custom homes) will react negatively to the notion of having a house professionally inspected by a person of the homeowner's choosing? Would it be considered unusual for a builder to balk at this request, or is it the norm for custom homes? I realize the answer may vary by market/state. I live in the heart of the Midwest; the market is not nearly as good as it was 3 years ago; builders are still building spec homes, the market is just somewhat softer. So you'd think a builder would be more likely to agree to this type of request, with a contract in hand for a custom home. At least I'd hope so. Anyone had a prospective builder say "No Way"?

I wouldn't hire a builder who objected to third party inspection. Period.

I am the same as freedingfrenzy. They should have no objections at all.

Key is finding a GC you trust, who has built in the area for some time, and whose clients have been in their homes for more than two years and still recommend the GC.

The GC will provide you with the lien releases and material bills before collecting on the draws. We paid our GC by check.

Leave a sizeable draw at the end. I've yet to meet a builder who doesn't LOVE the big work (framing, masonry, etc.) and dread the finishing touches. Time spent at YOUR house doing those things is less fun than moving on to the next project, digging, hammering, being Bob The Builder! LOL

Our city happens to be picky with rigid codes and inspections. I worry about some people on this forum who were so happy to have no municipality and no building restrictions -- or who built during a boom when the city inspectors were spread thin.

No GC should object to your hiring your own inpsector -- although it may prove difficult to find a good one who isn't just doing a perfunctory job and taking your money. If he finds problems, will it be degenerate into "He said; no, HE said," argument? You will want to take photos all along, if only to be able to say, "Here's where the whatsis was installed, right beside this beam."

Where are you building? Do you own the land? Custom build? Are you familiar with the area?

Sorry if this is a long response ---
I am very familiar with the area, but don't know if it's to be expected for a builder to agree, no problem, with 3rd party inspections. We have in mind a truly custom home to be built in a section of a development that is about 90% built out. Probably 90% of the homes in this development were spec homes. But the builders are local guys, most of whom have many years experience building in this area, and most of whom (or at least many of them) also build custom or semi-custom homes (in this development but all around the county, too). The developer has a long, stable track record; no concerns there.

The lots we would be interested in will not even be avaiable to be built on for at least 4-5 months. The developer will only sell lots to builders, so it's up to us to make sure we select a good & competant builder and get a contract with him, and then make sure he buys one of the couple of lots we want. Then entire field of builders is about 15, and we think we've narrowed it down to 3 that we want to approach initially. We understand that when the builder has a contract in hand, the developer will usually sell him the requested lot. We understand from our research that around here, it's about 50-50 whether a custom build like ours will have a construction loan or whether the builder will "float" the buyer (I am sure after getting from the buyer a decent-sized amount of money at the start -- maybe 10%?). From the builder's perspective, if we back out of the deal, he feels pretty sure he can sell our house to someone else and also I think it alleviates the hassle of dealing with a bank (we'd also rather not deal with a bank).

We built a semi-custom home in another state about 9 years ago and did not ask for 3rd party inspections (just were ignorant --- we had no problems with the house). Now from this forum, I know better. So from your responses, it IS the norm, and noone here seems to have heard of a builder balking at this request. I see how crucial it is to make sure that if a bank is not demanding inspections, that we do so.

Hi Emily,

I built mine on a cost-plus basis. Builder and I agreed on a budget, with the understanding that if I selected items upgraded or above agreed upon budget, I needed to be prepared to pay for those items. I paid vendors/subcontractors directly as the work was completed. I never paid a bill until the job was finished; builder was paid his fee after I took possession, had the CO and was pleased with everything done. Talking with others in the community and seeing what this builder did prior to us going into the project made all the difference. We had a great relationship, knew exactly what to expect. I never hired an independent inspector because I had that much confidence in my builder.

Best wishes on you project,

C.

We, too, had a 'cost plus' project. We paid all invoices from our builder upon delivery of supplies, completion of work and/or delivery/installation of fixtures, etc.

I do not think it is needed to have a independant inspector. I just would not go with a builder who would baulk at someone else inspecting his/her work. I would not trust the banks inspector. My banks inspector is just a real estate agent (i kow her) and she just takes pictures (usually from afar).

I am building as an owner/builder. I have friends and family come over and instruct me on what to do, what I do wrong, and how to fix it. There are many opinions on "the right way" to do stuff. It leads to some good drinking and friendly arguments. I always just joke and ask who to send the check to.