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It is important to note, that it is at this time of the project that the large outlays of money begin to occur. lumber sales costs for a home construction are quite large, and final payments are due to the excavator and foundation subcontractors. excavation/sitework and foundation installations are a significant portion of the cost of building a home. in addition, the framing subcontractor requires a portion of his labor to be paid in advance.also, it is very important that homeowner construction insurance be obtained prior to the construction phase. this insurance protects the homeowner/builder against material theft and job injuries. all of your subcontractors and their employees should be insured but don’t count on it. during any building project, subcontractors are bound to hire extra help for short stints and i would be surprised if these temporary employees were added to the subcontractor’s insurance policy. the homeowner/builder insurance policy is small change compared to the risk of theft or the threat of injury lawsuits.
finally and perhaps of lesser importance is that the lumber sales chosen should not twist, cup or deform in service. this requires some skill and experience on the part of the lumber mill as the majority of hardwoods require carefully controlled kiln drying to bring the moisture content of the wood down from more than 25% with freshly cut timber to approximately 16%. if the timber is dried to fast it can crack and twist when in service. even when properly kiln dried, all timber will expand and contract to some extent in service particularly in damp conditions. in such conditions, a timber species with a low shrinkage rate may be preferable. such species would include ipe, selangan batu, merbau and teak amongst others.
mistake # 2 : if you fail to plan, you plan to fail. an idea is not a business plan, or a marketing plan, or even just a goal. it is simply an idea. although the planning process may seem long and tedious now, it will benefit you more than you could imagine in the future. for example, when you are seeking funding, when you are joining an association of professionals, when your goals change, when your business changes, or if you take on a partner or investor. your plan should guide you, but not constrain you. if something in your plan doesn’t fit just right, change it. your business plan will never have a final draft.
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