BC Custom Home Builders
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Cover of the free BC custom home buyer's guide PDF
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Free guide for BC homeowners

The BC custom home buyer's guide

Six things to settle, and five questions to ask, before you sign a build contract or pay a deposit. Read them here, then use the short form for the PDF.

  • Six things to settle before you sign or pay a deposit
  • Five questions to ask a builder, in writing
  • Fixed price, cost-plus and construction management in plain words

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Building stage
Do you own the property yet
Do you have financing in place

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Six things to settle first

Move through these in order. Each one is easier to fix before a deposit than after.

  1. Land and zoning

    Confirm the lot can carry the house. Ask who orders the survey and the geotechnical report, and how slopes, rock, water and tree rules change the foundation.

  2. Budget and financing

    Settle how you will pay before you sign. Ask what each allowance covers, such as flooring, fixtures and appliances, and who pays when you go over.

  3. Design

    Finish the drawings before you lock a number. On the coast, ask about a rain screen and flashing at every window. Inland, ask about snow load and frost depth for your address.

  4. Contract

    Choose fixed price, cost-plus or construction management, and get the scope in writing before you pay a deposit.

  5. Permits and warranty

    Ask who applies for the building permit. A new home built for sale or on contract is built by a licensed residential builder, unless an exemption such as an owner builder authorization applies. Licensed builders arrange third party home warranty. The minimum is 2 years on labour and materials, 5 years on the building envelope and 10 years on the structure. Ask to see the policy for your own build.

  6. Build

    Ask for a schedule that names the stages, and for two past clients whose homes are at least a year old. Ask who tells you when permits, weather or trades slip.

Five questions to ask

Ask these before you sign or pay a deposit. Get the answers in writing.

  • Which BC Housing licence number do you hold, and can I look it up?

  • Who is the warranty provider, and may I read the policy for my build?

  • Is the contract fixed price or cost-plus, and what do the allowances cover?

  • Who orders the survey and soils report, and who applies for the permit?

  • What is the written schedule by stage, and what happens when it slips?

Three ways to write the contract

The contract type decides who carries the risk when the work changes.

Fixed price

Scope One price for a defined set of drawings and work.

When it moves Changes are written change orders, each with its own price.

Fits when The drawings are finished before you sign.

Cost-plus

Scope The builder bills the real cost of labour, trades and materials, plus a fee.

When it moves The final number moves with the job. Some agreements also name a maximum.

Fits when The design is still moving.

Construction management

Scope You pay a fee to have the job run. Trade contracts can sit with you or with the manager.

When it moves Trade costs sit outside the fee, so they move on their own.

Fits when You want to see each trade contract, and you ask who signs it.

Where these rules come from

Checked against BC Housing and the City of Vancouver. This directory does not check a builder's licence or warranty for you. Look the builder up on the public registry before you sign.

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