Free checklist · Straightedge Advisory

Before you pick a builder

Work through this with every bid on the table. Anything you can't tick is a question to ask before you sign, while you still have leverage.

The builder

• Tennessee contractor license is active and the monetary limit covers your project (verify at verify.tn.gov)
• General liability and workers' comp certificates are current, sent to you directly by the insurer
• You've spoken with at least two past clients and one whose home is under construction now
• You know who will run your job day to day and how many other jobs that person has

The bids

• Every builder priced the same plans and the same written specifications
• Each bid is broken out by trade or cost code, not a single lump sum
• You can see what each bid excludes: site work, utilities, permits and impact fees, landscaping, driveway
• Rock, poor soil and other unknowns below grade are addressed, with a stated unit price or contingency

The allowances

• Every allowance is listed with a dollar amount: cabinets, countertops, flooring, tile, plumbing fixtures, lighting, appliances
• Each allowance has been checked against real quotes for the finish level you expect
• The contract says whether allowances cover material only or material and labor
• You know the builder's markup on allowance overages and the credit for coming in under

The contract

• The pricing model is clear: fixed price, or cost-plus with a stated fee and open books
• Change orders must be written, priced and signed before the work is done, with the markup stated
• There's a start date, a completion date, and language on what counts as an excusable delay
• Warranty terms are in writing, including who handles callbacks in the first year
• It says who carries builder's risk insurance and who pays for it
• Your attorney has read it

The money

• The draw schedule is tied to work completed, not to dates
• The deposit is modest and tied to real up-front costs
• Lien waivers from the builder, subs and suppliers come with every draw
• You've set aside your own contingency, separate from the builder's price
• Selection deadlines are scheduled so late decisions don't become delay charges

General guidance for homeowners, not legal advice. Straightedge Advisory provides advisory services only and is builder-neutral.