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Create Equity by Building your next Home

by Lee Seward Uncategorized, building a house, buying a new home, Construction, construction companies, construction contractor, Custom Homes, florida homes for sale, for sale by owner, general contractor services, Home Equity, Home For Sale, home mortgage, Home Remodeling, houses for sale, Housing Market, investing in real estate, local building contractor, local construction company, market trends in real estate, mortgage rates, new home construction, new home florida, new homes for sale florida, Property For Sale, Real Estate, real estate investing, real estate market, Rebuilding Homes, Remodeling, Renovation, small construction companies

Time to Build your Home

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Create Equity 2024

10% Down for Loans up to $800,000

20% Down for a loan up to $1.5M 

30% Down for a loans up to $3.5M

Put $700,000 of Equity in your Wallet

POPULATION GROWTH IN FLORIDA has been booming lately. According to recently released census data, Florida has seen its total population grow by 14.6% over the last decade, nearly double the growth rate of the United States.

The thousands of people streaming into Florida are putting pressure on housing prices. The Florida Realtors association reports that the statewide median sales price for single-family existing homes is $375,000, up 23% from the previous year.

With the increasing demand for real estate and rising prices across the state, many people have turned to construction loans to finance the building of new homes. If you’re going to spend a lot of money on a house, you might as well purchase a lot and build a custom dream home, right?

When someone decides to build a new dream home, one of the first things they start exploring are construction loans, which are a little different from conventional mortgages when you’re purchasing an existing home.

As you research, you’ll soon find that construction loans have different rules and qualifying criteria. The nightmare scenario to avoid is one where you’ve committed to purchasing a lot but end up struggling to find a construction loan.

Fortunately, there are loan officers that specialize in construction loans. They have years of experience working with underwriters to make sure you navigate the application, pre-approval, and closing process. 

If you’re a homebuyer looking for a construction loan specialist, we can quickly connect you with several options customized to your specific needs so that you can make the best decision for you

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Benefits of a new a construction loan in Florida

Construction loans are short-term financing that are used to cover the cost of building a house from start to finish. Construction loans can cover the costs of buying land, working with an architect to draft plans, permit fees, and the labor and materials necessary to complete the house.

Because construction loans aren’t secured by a completed house, the approval process for a borrower can be more complex than for a traditional mortgage. Your lender will likely want to be more involved in the process of understanding the construction timeline, budget, plans and your personal financial situation before approving the loan.

The other important thing to consider is that home construction loans aren’t distributed as a lump sum. Instead, your lender will distribute money to you through a series of installment payments as the states of the construction are completed.

The benefit of a construction loan is that you’ll typically only be required to pay the interest on the funds as they are drawn. You won’t need to make the principal payments until you complete construction. Your lender will probably have an option to convert your construction loan into a typical mortgage at the end of the construction process.

 

$14,000 Down Payment

The Iridium Team works with you to from property selection to building completion and each step along the way. We know how to get you the most value for your desired budget and that is why we start with developing your budget. Once we have finalized the budget we help you in property selection and lending. Our network treats you as top priority, everything is streamlined and efficient. Our Realtors provide the best service all over Florida and our Preferred Lenders offer various low cost options.

Lets go over the numbers and the type of Equity you will create. Depending on what your final budget is we can put you in a $1.5M home for $800,000 with an $80,000 cash down payment. You will create $700,000 in equity plus own an amazing home. $14,000 down payment will get you a $140,000 construction/permanent fixed 30 year mortgage and instant equity of $150,000 from a $290,000 home valuation. 

 

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5 Top Florida Construction Loans

1. TD Bank

The TD Bank construction loan has some great benefits if you’re looking to build a house, with down payments as low as 20% for a loan up to $1,500,000.

  • 720-740 FICO score desired

  • 20% down required on loans up to 1.5M

  • 30% down required on loans up to 3M

  • One-time close

  • Primary or secondary homes are eligible

  • Fixed rate and ARMs are available

  • Purchased lot considered in the down payment

  • No pre-payment penalties

  • Interest rate locked before construction begins

  • If land has been owned for at least 6 months, we will lend up to 80% of the appraised value of the entire project.

  • If land has not been owned for at least 6 months, we will lend up to 80% of the land acquisition cost+cost of construction

  • No Condos or Co-Ops. No investment properties.

TD Bank requires 10% of the construction costs to be held in reserve, and you can use their loans for vacation properties.

 

2. Space Coast Credit Union

The folks over at Space Coast Credit Union offer a home construction loan up to $650,000, so long as you have a minimum credit score of 650.

  • One Loan: from Construction through Final Permanent Mortgage

  • One Application, One Closing and One Paperwork Filing

  • Up to 90% Financing Available

  • We Make the Payments to Your Builder at Key Points Throughout the Process

  • Automatic Modification to Traditional Home Loan at the End of Construction

  • Fast Pre-approval Decisions, Online or Over the Phone

  • No Intangible Tax

  • SCCU Member Service for the Life of the Loan

  • SCCU Interest Rate Guarantee

As far as fees go, Space Coast Credit Union is advertising no application fees or pre-payment penalties. As of the time of publishing, they are charging $1,100 in origination fees.

 

3. MidFlorida

MidFlorida is a regional credit union based in Lakeland, Florida with a construction mortgage product.

  • Down payment as low as 10%

  • Financing is secured before construction begins. You only need to be approved once.

  • Interest-only payments during construction

  • One-step, one-time closing

  • Converts to a fixed- or adjustable-rate mortgage.

  • Flexible loan terms up to 30 years

  • Jumbo loans available

MidFlorida offers you the option of converting your construction loan into a conventional mortgage once construction is complete. There may be additional closing costs associated with that conversion since you’ll be establishing an escrow account for insurance and taxes, paying title insurance fees and possibly paying off any unpaid construction phase interest.

 

4. Seacoast Bank

Seacoast Bank is another option as they lend in Florida and have a construction loan product. 

  • Adjustable Rate Mortgage options are available

  • Fixed Rate Mortgage options are available that would give you the same fixed rate from construction through permanent loan

  • One-time closing

  • Local underwriting and closing decision-makers during the loan process

Seacoast Bank has a long history in Florida, tracing its roots back to 1926. Their primary areas of focus today are in Broward County through the Treasure Coast into Orlando and west to Tampa.

 

Does a Florida construction loan make sense for you?

Getting a construction loan in Florida comes with huge benefits and very little downside. You’ll likely be able to make interest only payments during the construction phase, which makes your monthly payment  affordable as an existing homeowner since you’ll be making mortgage payments on your current home until the new construction is complete.

The challenges of a construction loan in Florida are that you’ll find the process different from a typical mortgage, which is why we recommend working with a loan officer that specializes in construction loans. At the end of the day, you’re going to want someone who has extensive experience doing nothing but construction loans day in and day out.

If you have an interest we can help you select a property that will fit the home you want to build and we can connect you with a professional experienced lender to assist you in the process. Our extensive network of realtors and architects are available all over Florida. Give us a call or send an email to learn more. 

Contact Us
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Interior Designer

by Lee Seward Home Remodeling, add second story addition, building a house, buying a new home, Construction, construction companies, construction contractor, construction contractors, Contractors, Custom Homes, fix and flip, flipping florida, flipping homes, florida homes for sale, for sale by owner, general contractor services, Home For Sale, home mortgage, houses for sale, Housing Market, improve sales in real estate, investing in real estate, licensed contractors, local building contractor, local construction company, market trends in real estate, new home construction, new home florida, new homes for sale florida, Paint, real estate market, Rebuilding Homes, Remodeling, Renovation, Repairing Home, small construction companies, Uncategorized

Is the Contractor holding you back?

Details in your Design Expensive?

The Contractor is an Extension of your Creativity

We see and hear it all of the time, “I wanted to do this but the costs were to much so we removed it.” 

Simple is easy and boring

Symmetry

Regardless what you imagine, don’t let yourself be restricted by simple.

Not Complicated

If you have experience and an open mind the work really isn’t complicated and there are ways to make it fit the budget. 

You Control

The Designer is in control of the style and the contractor finds a way to make it happen.

Be You

Let Iridium Help

Private Commissioned Residences

For the Discerning Designer

561-597-0021

Luxury Estate and Development

Reoccurring Flood Damage

by Lee Seward Flood damage, building a house, Construction, construction companies, construction contractor, construction contractors, Contractors, Custom Homes, general contractor services, Home Equity, Home Remodeling, Housing Market, licensed contractors, local building contractor, local construction company, new home construction, Paint, Rebuilding Homes, Remodeling, Renovation, Repairing Home, small construction companies, Uncategorized

Home DIY

Flood Prevention 101

Here are some tips to keep water where it should be

Did you know that “INSANITY” is defined by doing the same thing over and over again and expecting different results? 

  Replace drywall, install new cabinets, moldings, flooring, furniture…wait for it….BOOM!  the next storm surge (not hurricane) your home is damaged again. Be angry at those property owners who drove past your home and created a wave that gets your house wet. How dare they leave the house they own to get away or go the house they own to check damage. You have every right to be upset, you just replaced all of the damage created from the last flood and now your home is damaged again. 

If your house flooded from a storm surge and you only replaced everything, you could be INSANE. You need different solutions to stop future water damage.

  • Where was water infiltration entry?

  • How high was the surge and water level outside and flood water inside?

  • What height (off the floor) are the entrance doors to the house?

  Take this information and create a plan.

  Most likely the height of the water level caused the damage. Raise all of your door entrances up as high as possible. Replace the space above your doors to installing that space below your doors. Add a landing outside to enter, and one inside if needed. Waterproof the lower elevation of your home, the entire perimeter. There are many waterproof membranes that can be applied as paint and will stop any water from entering. Besides being easy to apply, you can also paint over so it is not visible. Build the grade around your house up, add planting beds to buffer water and make sure you waterproof continuously behind and higher than the beds prior to creating the beds. Your garage, raise everything off the floor, be sure to waterproof the all of the walls 24″ up and to the concrete slab. Remove HVAC units, water heaters anything in the way and replace after applications are applied generously. Cover the entire concrete slab, be sure to raise the entrance door from the house to the garage to the max and add landing as needed.  

  Raise your exterior doors to create a buffer below. This work may be involved but if you do it once correctly you won’t have to do it again unless something huge came through. If your home has 8ft ceilings and you door sits on the floor of your home, you have these options:

  • Option 1 remove the lintel and replace with a laminated wood beam that is short in height and fat. Use the difference in height to raise the door with cement infill and waterproofing. A typical door is supporting 1 or 2 trusses so a 4″-5″ tall laminate beam is suffice. 

  • Option 2 remove the lintel and open the ceiling up inside, install a flush header above the block walls and joist hanger the trusses into the beam for support. put your door to the ceiling line and add the space below with cement and waterproof to bottom of footing. 

  • Option 3 open the ceiling, remove 2-4 trusses entirely, create a reverse gable roof and infill with framing. Raise your door 2ft and create an entrance outside and inside. Be certain to waterproof your exter to the bottom of your footing or at the least to the top of your footing well below your concrete floor elevation. 

What is the cost? What is the amount of work involved? Slightly more than the work to replace what is damaged. So if you do this work while you are repairing your home the cost is nominal and you would not feel it. You would stop the stress worrying about flooding again, you would also increase your homes value. When you have a claim on your home it is noted and recorded. Your premiums and future owners premiums will be higher and it will be an issue later. 

Recap, doing the same thing and expecting different results is Insane. 

Give us a call we provide free estimates and we can help you. 561-597-0021

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Home Flood Prevention and Mitigation

by Lee Seward Repairing Home, building a house, Construction, construction companies, construction contractor, construction contractors, Contractors, Custom Homes, Flood damage, general contractor services, Home Remodeling, licensed contractors, local building contractor, local construction company, new home construction, Rebuilding Homes, Remodeling, Renovation, small construction companies, Uncategorized

Flood Damage

Flood Mitigation

  When you have water damage the first thing you need to do when the water recedes is to dehumidify the area. If you have a dehumidifier set it up to run 24-7. If you do not have one then you can set your thermostat low and run your ac until you are able to get your hands on a dehumidifier. Remove everything that is wet from the house including drywall. Cut the drywall above the waterline until you find dry area. Drywall will soak the water so the sooner you cut it the less you will need to purchase later. Remove wet wood moldings carefully so you can possibly re-use when it drys out. 

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DIY PREVENTION

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  Besides raising your home there are steps you can take to prevent damage from storm surges. One is notice how the water has entered your home. Through the walls, through doorways etc. If your home is block construction on concrete slab (like the one in the picture), the focus needs to be on waterproofing the lower level of the masonry walls. Raise your entrance doors and help offset water damage to the extent possible. 

Raise Exterior Doors

  In the picture (above) you see the step up to enter the home at the front door, this is good and you can also see the space above the front door to the ceiling. Raise your front door, create steps and landing outside, modify the ceiling inside and outside, create a landing inside to step down. This would need to be done at all exterior doors including the one from the garage to the house. 

  Next, waterproof the entire lower section from below the interior floor level. Dig the soil away where possible by hand and apply a waterproof membrane. Manufactures are plenty (Laticrete is a brand we use often) and apply this over the surface and include the area you raised under your door ways. Cover the surface area heavily including wall to floor along your garage floor and walls,  apply multiple coats after each drys properly. You can also apply Laticrete to the lower section of your finish interior walls and the corner of the floor, this will stop water from intruding into the wall and prevent your drywall from getting wet in the event you experience water intrusion. Laticrete and most products can be painted over so this will allow you to blend it in. They have a fabric that can be applied at the corner of the wall and floor, this will seal the edges and keep the wall dry. 

  The steps above will help resist water from flooding into your home based on the elevation but it is not a sure fix. Elevate your home is a sure fix and this can be done by building over your existing walls. The cost to elevate your home will reduce your flood insurance and increase your home value. Repairing will help prevent damage from surges at the lowest expense to you, but it will not increase your home value. 

    Information to know, single story masonry block wall homes are built on top of concrete footings set in the dirt. The floors are concrete slabs installed over compacted soil. Your interior walls are built over the concrete slab. House movers raise homes, these homes are typically wood frame homes (floor & walls) built on top of foundations. The interior floors are structural wood floors with beams posted down to concrete footings. To raise a wood frame home there are location points used to jack up the home, because the floor is structural they use the post locations to raise the floor and the entire home. 

  Could you lift a slab on grade single story masonry home in similar fashion? Yes but in order to raise it supports have to be added to the existing concrete slab that your interior walls sit on. So you tunnel underneath to add supports and lift or you cut up the existing floor and add supports to lift. Think of the amount of work involved. Labor is expensive and really what are you saving in the end? 

Elevate your Home

  Our solution is to remove your roof demo all of the interior walls and flooring, reinforce footings as needed with masonry piers, plus necessary anchors, then build a new floor, with new walls on top of your existing block walls at the elevation required. 3-4 months work and done to the style design you want all new. 

  The cost to elevate your home increases the value of your home offsetting the cost to do the work. We can raise your existing home at a cost of $111-$185 per square foot. The price is based on the structural integrity of your existing foundation and maintaining the same footprint of your existing home.

If you are interested give us a call and we can provide you with a free estimate. 561-597-0021.

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How to hire a Remodeling Contractor

by Lee Seward Remodeling, building a house, Construction, construction companies, construction contractor, construction contractors, Contractors, Custom Homes, general contractor services, Home For Sale, Home Remodeling, Housing Market, licensed contractors, local building contractor, local construction company, new home construction, Property For Sale, Real Estate, Rebuilding Homes, Renovation, Repairing Home, small construction companies, Subcontractors

Remodeling in Pinellas County

  New Kitchen or Bathroom is very important to you and your Family. The added space or versatility in use or just updating the design to something current requires selecting a licensed contractor to do the work. 

  There are many steps in the process and everyone wants to save money. What typically happens is the cheapest path becomes the most expensive and sometimes never completed.  Horror story after horror story, clients have paid contractors more than 50% + of the contract and no or little work is completed in place. 

  Make sure you have answers to these questions in writing: 

  • What precisely is the scope of work?

  • How long will the work take overall?

  • What are the work hours/days?

  • Will I be out of a Kitchen for 2 weeks or 9 months?

  • What happens if the project takes a year?

  • What happens if you did not add work but the Contractor wants more money?

  • Who is responsible for managing the subcontractors? 

  • Is the contractor capitalized to operate business?

  Typical issues

  Google Reviews, There are companies you can hire to create multiple positive Google reviews. Companies with lots of positive reviews are not safe from being bad companies. But there is a way to vet the reviews to help pick good from bad. Read the reviews and you will start to see who the company truly is. You can tell the fake ones from real, the anger from clients and the absurdity from the contractors responses. 

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Summary Sheet of New Home Cost

Renovation in Naples

If you follow these steps you will reduce a bad experience.

  1. Read the reviews and responses.

  2. Stay away from narcissistic responses from the contractor.

  3. Meet face to face with the contractor and go over the work ask about all details.

  4. Review the estimate provided by the contractor beyond the price, look for details= product description, qty, cost. 

  5. Ask for written language of time duration and how will the work be managed.

  6. Ask for missing details to be added.

  7. Define what you are expected to do and what you expect from them.

  8. Add language for delays. 

Transparency

  Selecting the contractor because they provided the lower cost doesn’t mean that is the real cost. I have seen this numerous times over the years, clients pick the lower cost.

  Now what?

  The number was wrong, the contractor did not include 1/2 the work and you find out when you are to far in. You signed a contract that has no finish details but pages of how you cannot give a bad review or negative press. 

  If you have no details explaining what is included in your project then do not hire the contractor, this is true for Plumbing, Electrical, HVAC, Roofing, or General Contracting, Lawn Mowing, Car Repair, etc. 

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Contractor not showing up

Above we discussed how to avoid a bad situation, but what if you are already in one?

Here are some things you need to know.

  1. Confront your contractor and request a completion schedule in writing, make sure you paper all interactions going forward.

  2. Request a list of who and what was paid to date along with signed, notarized lien waivers. 

  3. The lien waivers are proof of payment and you need to know who was paid and how much by your contractor.

  4. Regardless of how much you paid your contractor, if the subcontractors were not paid they can legally (within 90 days) lien your home and foreclose on your property.  

  5. The state of Florida is very difficult to obtain a contractor license. You can use this as leverage, all contractors are out of business without a license. Report your contractor, it is a class one felony to take a clients payment and use the funds for anything outside of the clients project. 

  6. Threaten a lawsuit and hire an attorney. Most likely you have paid for the majority of the work and nothing or hardly anything is completed on site. Hire an attorney and go after the liability insurance the contractor has, also you can go after the state for allowing this person to operate. If this has happened to you there is a very high probability there are many more clients in the same situation, find them and share the cost. 

  7. If you have come to terms, sign a new amendment to go with your original contract. Be certain to have an agreed completion date, cost to complete, timeline and penalty for delays,  all missing details of what is included, and all lien waivers that match your overall payments to date and request lien waivers for all future payments.   

  If you are in a bad situation with your current contractor we can help you by providing you with a real cost to complete the work. This can be used to collect the overpayments you have made to your contractor. We can also work for you as an owners rep and help manage your contractor to complete the work at or near the contract price if possible. 

New Bathroom or Kitchen

If you want to remodel your home please contact Iridium Development Inc. We provide free transparent estimates that are detailed. Our contracts are detailed as well and we use industry standard AIA contracts. During the construction process, we provide our clients with login portals to view who we paid and how much we paid each vendor and sub. 

You can be assured our prices are very fair, the cost includes the entire scope of work to perform the work and complete the work. We stand by our timelines and minimize the overall duration. With our full transparency we eliminate stress and drama and that is always our goal. 

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New Home for Sale in Florida

by Lee Seward Home For Sale, building a house, Construction, construction companies, construction contractor, construction contractors, Contractors, Custom Homes, florida homes for sale, for sale by owner, general contractor services, Home Equity, Home Remodeling, houses for sale, Housing Market, licensed contractors, local building contractor, local construction company, new home construction, new home florida, new homes for sale florida, Property For Sale, Real Estate, real estate market, Rebuilding Homes, Remodeling, Renovation, Repairing Home, small construction companies, Subcontractors

Thinking of Moving?

Tired of the high taxes, crime, cold weather, and short summers?

Florida has 0% personal income tax.

5.5% corporate income tax.

6% state sales tax and max 2% local sales tax (Avge sales tax 7.02%)

$1.3-$1.5M New Home built 2023 in St. Petersburg annual property tax $3,500-$4,200 per yr.  

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Summer all year long!

20 minutes to white sandy beaches.

73 degree average Gulf water temps in November.

Lower cost of Living compared to the North East.

 

 

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Shore Acres St. Petersburg FL

4 Bedroom 4.5 Bathroom Home

Chefs Kitchen

Spacious Rooms

4+ Car Garage

Elevated and Safe

Completion April 2024

New Homes, Additions, Renovations, Remodeling, St. Petersburg and Naples Florida.

561-597-0021 or info@iridiumdev.io

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How to Select the Best Subcontractor

by Lee Seward Subcontractors

Making the best choice

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Is Price Everything?

There is no definitive way to know who is the best choice.  We have created ways that have helped us with selections of vendors and subcontractors. First impression means a lot and we are lying if we say it different. But it is not always a true guide to choosing the best person for the job. 

Over the years we have created a few ways to help us make the best choices and in this article we are going to share them with you. 

1) Presentation

Our first interaction and every interaction after really allows you to see or discover who this person and company is:

Are they detailed, or over detailed?

Do they really know what they are doing? Or are they trying to hard to win you over with personality?

Is everything a problem? Or are they providing solutions?

When we send out bid packages to new subcontractors we discover a lot about the person bidding and the company. When we send packages out sometimes we receive questions, most times the questions are answered already and the real reason for the call is to try to influence us to think the person really is the best for this job. On our side of the phone we are taking notes, questions asked by vendor are overlooked on the bid details, or subcontractor did not read what we requested pricing on, etc. 

Other times we receive a call and small chit chat and then a round cost over the phone for the work. This happens more often than you would imagine and really I still do not understand the reason behind it. “Ok we can do your work then for $100 per square let us know when you are ready”. No written proposal, no details of what is required or included. Do they really think that will result in obtaining a job?

Then there are those who send over a number, no inclusions, sometimes exclusions, but never any details of what is included and the price is insanely high. These bids to me are “F/U”, why do they send it rather than just pass? I don’t know and from my point of view a pass would be better than a telephone number without details. Why go through the trouble?

Last is the fishing expedition, the phone call where they have the price and start talking to you. They talk about everything and anything they can to become friends and then hit you with a ridiculous price they are thinking of sending over but want to know what I think. Hmm, I think…. no I won’t share what I really think but most of my responses are,

How long do you expect the work to take you?

How many people?

How many hours do your crews work a day? 

I always leave it at this, if they cannot see that charging $100.00 per hour per person to install siding (material and nails extra) isn’t insane… then we really shouldn’t work together. 

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Remodeling

2) Details 

When you do get past the stage of presentation and recievea bid, then you need to review the details. The saying “what you see is what you get,” that becomes true at this stage. A specific detailed bid regardless fo the number represents someone who reviewed the work and put time in to present the bid. They can drive a dirty disheveled truck and where dirty clothes but they reviewed the work and created on paper a list of what the work is and a cost associated. This is very important, and price is not a factor yet. You need more of these types of bids to asses and choose wisely. This is where you start your qualification process in selecting the best person for the job. 

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New Homes

3) Leveling

At this stage you have detailed bids to review. The subcontractors submitted insurance certificates so you can cross reference and mark who has what coverage (keep in mind you can request them to add missing items to be awarded the work later). You now create a leveling model where you have items listed across of inclusions and exclusions. 99% of the time the bids are different so you consolidate the missing information and request this information from the other bidders. When you are  finished you have created equal content in each bid or excluded a bidder during the process. 

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4) Price 

You really cannot select anyone earlier than this stage based on price. Until you level the field you just have no idea what the cost should because you haven’t defined the work. Now you can and here is how we make our decisions. We want to know how many people on the crew and what are the hours involved in the work. One of the selections is too much time, I want my subcontractors in and out. The least amount of time is best for me and I would pay a little extra for that. When I see the amount of time and hours to do the work then I can break down a fair cost. As mentioned earlier, I really am not going to pay siders $100.00 per hour to cut and nail siding I purchased, sorry.  If there are insurance gaps we request the contender to agree to add the coverage we need, plus tell us the cost. This is how we finalize selection of scope and price.  

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Choose your General Contractor

5) Selection

Now you have a few bids to make your selection. For us it comes down to who do we feel will work harder for us and get the job done. We are hired to perform and our vendors and subs need to perform. We like to be dealing with decision makers and ideally the person who is in charge of the schedule and work. Larger companies with estimating divisions etc. do not fit in our specialty space. Our clients hire us to get the work done at the highest level of quality and detail. For us to perform at this caliber the team we put together needs to be the same as us.  

We select our subcontractor or vendor and put together an agreement made with the details we leveled and cost. Our agreements are based on time to complete and this is where we add language of the work days, crew size, and duration. Unless acts of God or something that is outside the control of the subcontractor or vendor cause delays to the project there is a penalty imposed for delays. 

Of the 120 custom homes we have built over the years we have only imposed a penalty for one subcontractor to date.  The penalty did what it was supposed to do and that was protect us from those who start projects and never finish. We had a plumber who started an 18,500 sf house for us, $125,000 plumbing contract and they had 2 people on site and not even everyday. They worked random days and hours. We missed our inspection schedule and eventually had to bring another company on board to finish. It was a disaster and with all of the selection and due diligence process until it comes down to doing the work you just never really know. 

Contract

6) Contract

Paper everything, make sure to put all of the details of the work, the insurance and the duration of the project on paper. Discuss everything with your vendor or subcontractor. The last thing you want to do is start a project with someone who is not going to pull through. You also do not want to try to trap someone and take advantage of them. Be honest and open, discuss needs and create an agreement everyone can sign and be happy with. 

We lay everything out on paper and place schedule and performance in the hands of the sub or vendor. I write our agreements as if I am performing the work, If everything is on site can I finish the work in X days? Sure, as long as everything is there and there are no changes I can do it. So if I can then you can and we need to find a timeline and language that works. Include the cost of the project the scope of work and the payment arrangements. Most jobs are progress payments and per AIA (and State) law “deposits are for material only”. You cannot collect a deposit for labor and the deposit you collect has to be for material delivered onsite, not in your warehouse. We are paid and we pay for work performed in place. This is standard language and law in most states and is in Florida. I have heard of many General Contractors billing clients over 60% of the project before any work has begun. That is actually a felony and not allowed in the State of Florida. 

A contract is only as good as the paper it is written on, our goal is to bring everything to the surface, be transparent and open so we can work and complete the project knowing what we have to do, what the cost is, and when we will get paid. These are the main objectives and what we accomplish. 

Good luck in your venture and if you have any questions or need any advice please contact us at: info@iridiumdev.io

Luxury Real Estate

Is the Building Code Enough?

by Lee Seward Contractors
Luxury Real Estate
Master Bathroom
Photo Apr 27 4 27 33 PM scaled

Should you only build to code?

  So many builders and tradesman stop at what the code requires. This falls under my earlier blog of “Good Enough”. The building code is the baseline not the end line.

  Remodeling, New Homes, Commercial and Residential require more than just “to code”. Applying more than just code reduces call backs and improves the quality of your service. 

Marble Slab Floors

Stone Slab Floor

This stone floor made of 3/4″ thick slabs cut to fit the floor space. We set the slabs over 1-1/2″ thick cement slab. The top of the finish stone is the same elevation as the finish wood flooring. We have a 1/4″ metal angle tucked under the slab edge to finish the stone to wood edge, everything is even at the top elevation. 

How?
Why?

Photo Apr 27 4 27 33 PM scaled

  The framed floor in the photo shows TJI floor joists and also LVL joists. The LVL joists are shorter elevation than the TJI. This is how we create room for the cement slab under the stone. If you were pouring a cement slab floor you would create the same situation (bathrooms and showers). 

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Flush or Drop Beam?

  Do you opt for drop or flush beams? Drop beams are easy to install and easy for tradesman to run wires, pipes, ducts. 

Which one is better?

  Flush beam I have found serves multiple purposes and is always what I opt for. Yes it requires more installation labor, yes the electrician, plumber, HVAC contractors have to work around this. But the advantages are huge. 

  I always discuss with my structural engineer sizing and prefer wider over height, short and fat is perfect for this application. I always prefer the beam to be shorter in height than the floor joists. I always set the beam to the top of the joists. The gap at the bottom allows the needed wire or pipe to run past if needed. The drywall will also easily run past without a bump. 

   The biggest benefit over the two installations is the weight transfer above the beam. Most times you have a beam to cut span and also the engineer will stack weight from floors above on this beam. Have you ever been in an old house and the doors are angled? Floors by the door jamb have sunk down, or the top of the door is cut on some sort of angle so it will close? 

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  The reason for this ( I really hope you see it in old houses and not new) is that there is no blocking between the joists running over the dropped beam or bearing wall.

  With TJI joists you have to add squash blocks to the side of the joists. They work great when a door opening above aligns perfectly over the squash block but not when the other side is in between joists. The proper install for a drop beam or joists over a bearing wall is to add bearing solid blocking. The issue is most trades after the framer remove the blocks to run there items over. It is not code so the inspectors do not make you change it. 

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More Work,
Quality Results!

  Flush beam in place tight under sheathing provides constant support and also provides continuous ceilings below. Solid blocking over bearing walls and monitoring trades provides the same constant support as well. 

Luxury Real Estate

  As the Builder or General Contractor you have the ability to sit with the structural engineer and architect to avoid future issues, include a higher level of finish.  

  Your workmanship and management shows in the level of quality provided by your detailed finishes. Most people do not notice these details and regardless if they do, you still spend the time and coordination to provide them. That is the difference between “Great work” or “Good Enough”. 

Any questions please contact us  info@iridiumdev.io

Buy or Build?

by Lee Seward Contractors

High Interest Rates

If you are locked in with a low mortgage rate it most likely makes sense to renovate instead of buying new. 

The downside is living in a construction zone!

 

Luxury Estate

Selecting the right contractor can make a big difference.  Organization is the first ingredient to a successful renovation. You can assess how organized your contractor is by the estimate they provide you.

Having a detailed scope of work and values not only provides transparency but also shows you that the contractor understands what is need to complete the work.  

Luxury Real Estate

When we built Judge Judy’s Home we included every detail in the estimate from how many hinges to manufacture model numbers. This has been our standard process and always provided up front in our estimate. 

Regardless if the project is cost plus or fixed price, we list every detail, qty, count, size so there is less confusion later.  

We have found over the years that this makes the process much easier for the clients and for us. 

If you are presented with an estimate (or worse a contract) and after review you have no idea what is included…..I can assure you that this is not going to be a fun or successful journey. 

Our estimates have every detail. 

Start with all of the details and cost, then execute the work. Doing the work is always the easiest, making selections and knowing the true cost is best when it is presented clearly upfront. 

What makes a Great General Contractor

by Lee Seward Contractors

Recognizing the signs of a bad contractor is crucial when undertaking any construction project. Whether it’s a home renovation or a commercial development, hiring a reliable and competent contractor is essential for the success of the project. This section will explore some key indicators that can help identify a problematic contractor before any significant issues arise.

One of the telltale signs of an unreliable contractor is disorganization. A lack of attention to detail, missed deadlines, and poor communication can lead to delays and frustration for all parties involved. Additionally, estimates or contracts lacking clarity and specific values can indicate potential problems down the line, such as unexpected costs or disputes over payment.

Another red flag to watch out for is when contractors request large upfront payments with little to no work performed. Reputable contractors typically follow industry standards and establish payment schedules based on completed milestones or stages of the project. If a contractor insists on substantial upfront payments without demonstrating progress, it may be wise to reconsider their suitability for the job.

Subcontractors and employees constantly complaining about the company they work for is another sign that should not be ignored. Dissatisfied workers often indicate underlying issues within an organization that can negatively impact your project’s outcome.

Furthermore, if you find yourself in a situation where there are no workers at your house consistently or sporadically, it may be indicative of poor management or scheduling conflicts within the contracting company. Lack of manpower can lead to significant delays in completing your project as planned.

Lastly, overbilling or experiencing instances where you feel you have overpaid your contractor without receiving satisfactory results should raise concerns. It is important to closely monitor financial transactions related to your project and seek professional advice from a construction attorney if necessary.

By being aware of these warning signs and taking appropriate action when necessary, you can mitigate potential risks associated with hiring an unreliable contractor. Remember that thorough research, reference checks, and clear communication are essential in ensuring a successful construction endeavor while avoiding common contractor scams and pitfalls.

If you have any questions or want to learn more please reach out to us by phone or email.

Iridium Development

561-597-0021

info@iridiumdev.io

 

How to Hire a Contractor

by Lee Seward Contractors

When it comes to undertaking a remodeling or renovation project, hiring a reliable and competent general contractor is essential. With the abundance of options available, it can be overwhelming to select the right professional for the job. However, by following a few guidelines, the process can become much easier and more streamlined.

First and foremost, it is crucial to ensure that the general contractor you choose is licensed and insured. This provides you with peace of mind knowing that they have met certain requirements and possess the necessary expertise to handle your project. Additionally, insurance coverage protects both parties in case of any unforeseen accidents or damages during the construction process.

Another important step is to check for any negative feedback or complaints against the contractor with reputable sources such as the Better Business Bureau (BBB). This will give you valuable insights into their reputation and reliability within the industry.

Reviewing the estimate provided by the contractor is also essential. Take your time to thoroughly understand all aspects of the estimate, including details about the scope of work and costs involved. Pay close attention to any allowances mentioned in the estimate as these may impact your overall budget.

Finally, ensure that any contract you enter into with a general contractor follows an AIA (American Institute of Architects) standard contract. These contracts are widely recognized within the industry and provide clear guidelines for both parties involved.

By adhering to these guidelines when hiring a general contractor for your remodeling or renovation project, you can confidently move forward knowing that you have made an informed decision based on important factors such as licensing, insurance coverage, reputation, cost transparency, and contractual standards.

Solvency of General Contractors

by Lee Seward Contractors

Discovering that the contractor you hired has run out of money can be a frustrating and disheartening experience. It’s especially alarming when you’ve already paid more than 50% of the contract amount, but only 5% of the work has been completed. Unfortunately, this is a common issue in SW Florida, where predatory contractors often take advantage of homeowners. The consequences can be devastating, leaving you with a delayed remodeling project, unpaid subcontractors, and even an unfinished or unbuilt home. In this section, we will delve into the challenges faced when encountering such situations and explore potential solutions to navigate through this unfortunate scenario.

Your Contractor is out of Money

The first item to uncover is discovering the items actually paid for your project. Since you are in a situation (you never asked to be in), you cannot take this at face value. You have to request a list of items the contractor paid with the actual invoices. You then need to call to confirm the payments were made. If this goes to court the information will be divulged. Trying to work this out is the best situation for the builder and yourself.

The Workout Option

Once you figured out how bad it is you have two options, attorney and court or try to work it out. Both options suck but if it is possible to work it out that will most likely offer you the most return. Legal battles are costly and if the contractor is out of money and you win, what would you expect to gain? 

Finishing your project is the best situation. The path forward would result in the contractor providing labor to cover the amount of money stolen from your project. You need to pay for the materials and subcontractors directly to assure they are actually paid. You will make the contractor source the lowest cost forward to finish your project and you will make sure they are providing you full cooperation to see this through. 

 

The Legal Option

This path is costly but may be your only path, NOTE: we are not providing legal advice and before committing to either option you should always consult with your attorney first. 

The discovery process will uncover what was paid and how your money was spent. Most likely they used your money to pay bills from past projects and cover operation overhead. Depending on how big that hole is will determine your outcome.  The downside of this process is time. It takes time to get this to court while you spend money. Your project will sit longer unfinished while you wait. There is a chance the court will require the contractor to finish your project if they do not have the cash to refund you but the capability to finish. Hopefully when all is final you are able to recover some cash. 

Protect Yourself

Try to be as proactive as possible. Make sure you know what is included in your scope of work and the values used to create your agreed cost.

Pay only for work in place, deposits are always required to purchase items and legally the deposit you are requested to pay should only be used for supplies to start your project. Have discussions of what has been purchased, windows have long lead times and need to be paid prior to ordering, plumbing fixtures need to be present for plumbing roughs, cabinets, stone/tile, etc. 

Most of all make sure when you have paid or are about to pay your contractor that they have performed the equivalent of work in place. If there is no action and you have paid a great amount then you should reach out to an attorney and see what your options are. 

Proactive is the best protection. 

If you find yourself in a situation where you need a second opinion, please feel free to give us a call 561-597-0021 or send us an email at info@iridiumdev.io

Hiring a Bad Contractor #2

by Lee Seward Contractors

What can you do?

Hiring a contractor for your project can be a daunting task, and unfortunately, not all contractors are created equal. If you find yourself in a situation where you need to fire your contractor due to poor performance or other issues, it’s important to protect yourself and your investment.

One of the most critical steps is ensuring that all work is paid up to date between your contractor, suppliers, and subcontractors. This includes requesting lien waivers with dollar values and percentages to complete. These waivers protect you from any legal claims against your property by unpaid suppliers or subcontractors.

Additionally, it’s essential to request subcontract agreements and contact information for everyone who worked or has been assigned to your project. This information will help you stay informed about who is working on your project and ensure that everyone is paid fairly.

If you’ve already paid your contractor but suspect that they have overbilled you or delayed the project without justification, it’s important to know your legal rights. You may be entitled to compensation or other remedies under state law.

Finally, make sure that you keep a detailed list of deposits made throughout the project. This will help ensure that all payments are accounted for and can be used as evidence if needed in any legal disputes.

By taking these steps, you can protect yourself from bad contractors and ensure that your project stays on track financially.

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Hiring a Bad Contractor

by Lee Seward Contractors

What can you do when you have a contract with a bad contractor?

Hiring a contractor for your project is a big decision, and it can be frustrating when things don’t go as planned. If you suspect that you have a bad contractor working on your project, it’s important to take action quickly. The first step is to quantify what work is left to finish and the actual cost to complete it. This will give you a clear understanding of the situation and help you make informed decisions.

It’s also crucial to know what and who your contractor has paid up to date on your project, as well as the amount left to complete the project. This information will help you determine if you have been overbilled by the contractor or if they are delaying the project unnecessarily.

If you do decide to fire your contractor, it’s important to understand your legal rights and obligations. You may need to obtain lien waivers from subcontractors or suppliers who have worked on your project before making final payments.

In the next section, we will explore these topics in more detail and provide guidance on how best to handle a bad contractor situation.