Frequently Asked Questions

and the answers of course

Frequently Asked Questions

and the answers of course

FAQs

Remodeling and building a home can be a stressful and an expensive process. We understand questions pop up all the time. Here are the answers to some of the most asked questions.

FAQs

Remodeling and building a home can be a stressful and an expensive process. We understand questions pop up all the time. Here are the answers to some of the most asked questions.

Custom Home Building FAQs

In what areas do you build custom homes?

We keep all our work very close to home, working these local areas: all of South Walton, Santa Rosa Beach, 30A area, Dune Allen, Blue Mountain Beach, Gulf Place, Grayton Beach, WaterColor, Seaside, Seagrove Beach, Rosemary Beach, Seacrest, Inlet Beach.

If I have my lot, where should I start next?

While the answer may seem obvious that it should be the architect or designer, in most cases you should start with the builder. Settle on your builder first—one that you’re really comfortable with, that you can trust to really hear you, and will be candid and truthful with you. The right builder can help guide you through the design process and steer clear all types of issues with the plans, engineering, finishes and budget that could cause major headaches and delays.

How should I allocate my budget?

The short answer is spend on what is most important to you for your on personal custom home. It could be lot location, pool and exterior, kitchen, baths, square footage or any other impactful item to you—or on all of them if you can—but most owners have to pick a few and settle on others. If you are building a vacation home that you will rent out or sell later, you should consider more about what the market wants and build what will give you the most value.

Which comes first: builder, architect or lot?

While the answer may seem obvious, it’s important to know the right answer in order to avoid problems from the beginning. Surely it’s the designer, right? Ok well then it must be the lot? Wrong for both! Don’t get the cart before the horse. Yes, before you build you do need a lot and a plan—but you really need to get a BUILDER before both. Settle on a BUILDER FIRST—one that you are comfortable with, one you can trust to really hear you, one that will tell you all the truth. A good builder can help you steer clear of all types of plan or lot issues that could cause major headaches or even prevent you building what you truly want.

Here’s a short list of items they can help with:

  • Maintaining a desired budget - the wrong plan can bust your budget wide open
  • ​Provide a preliminary estimate - knowing the local building costs can get you headed in the right direction
  • Determine restrictions or limitations of a potential lot - additional costs or requirements on lots can mean big money
  • ​Navigate county planning and building codes - this can greatly affect what you can build and the time frame

What are some of the qualities I should look for when selecting a builder?

Determine what you value and decide what is most important to YOU:
Quality — Speed — Service — Price
Of course you want all four components to be excellent, but most often you will need to find a builder who can provide a high degree of two or three of these four items and reasonable on the others. That’s just reality.

  • Quality — A good builder prides himself on providing a high quality product, especially in the custom home market. He encourages you to look closely at work done for others and affirm you would be happy with the same type workmanship. Top quality often requires top quality material and labor which can often cost a bit more but also speed up your job.
  • Speed — Building quickly depends mostly on the builders mindset and experience but also on his planning and organizational skills. Good relationships with quality vendors and subs that he has used for years can help speed projects up along with having multiple options when needed. A builders resourcefulness goes a long way especially in a busy building market. Ask how long he has taken on recent jobs.
  • ​Service — Exceptional client care takes good communication before, during and after your project is completed. How do they communicate and how often? How do they manage the job? How often are they there? Do they use email, text, website, phone calls, on-site visits, photos, videos, job cost updates, etc.—all these can keep you informed and comfortable throughout the whole process.
  • Price — The best builders are never the cheapest—but probably not the most expensive either. Great builders deliver good value and strive for excellence in all areas. An honest builder will charge at or below local market prices for the level of service and quality product they provide. Very seldom is the cheapest price the best choice.

Should I use a Fixed-Price or Cost-Plus Contract?

Fixed-Price
This is a contract in which the plans, specs, all materials and finishes are fully determined (fixed) before you start construction on your home.

  • Pro - the price you pay for your home is pre-determined or fixed whether or not the price of material or labor goes up or down
  • ​Pro - the builder assumes full responsibility for all risk associated with building your home including price fluctuations
  • ​Con - the price is higher for the builder taking all that risk
  • Con - changes to the plans and specs can be costly to the owner
  • Con - timeframe is usually longer—owner must chose all material and finishes prior to start

Who should choose fixed-price? Owners willing to pay a premium for locking in the total cost of the project and are not likely to make changes—mostly used for pre-sale, pre-set plans with limited finish choices.

Cost-Plus
This is a contract that takes all the costs of the home and adds either a percentage or a flat fee for the builders overhead and management fee.

  • Pro - good for larger custom homes with high finish levels and likely changes
  • Pro - owners know their actual invoiced costs on an ongoing regular basis—everything is 100% transparent - no need to worry about builder markups or expensive change orders
  • Pro - your builder will charge a smaller fee since he assumes less risk
  • Pro - your costs are largely determined by your choices of detail, material and finishes
  • Pro - owner and builder are on the same team
  • Pro - the project can start sooner, before every detail has been decided - owner make decisions throughout the construction process
  • Pro - both look for solutions in the best interest of the owner
  • Con- you won’t know your total final cost until your project is finished and a full accounting is done
  • Con - you assume the risk of price fluctuations for material and labor

Who should choose cost-plus? Owners who are comfortable knowing their costs are determined mostly by their choices and have a trustworthy builder—almost always used for larger custom homes.

The builder’s costs are the same with both types of contracts, however, the price the owner pays will differ because of the risk associated with each type of contract.

Will we go over budget?

If you’re like most people, yes, you will probably go over budget. I’ve found that it generally doesn’t matter how high the initial budget, most projects will go over budget—most clients make changes and additions—most projects just become more than initially expected.

Here are just a few reasons:

  • ​Changes in labor costs - due to availability and current labor demand
  • ​Changes in material costs - some building material costs fluctuate like commodity prices—other suppliers increase prices annually or unexpectedly
  • ​Building site conditions - site prep surprises, weather conditions, house elevation changes
  • ​Plan changes - clients often make adjustments after they walk thru the house & come up with “new” ideas
  • ​Spec changes - clients always change the finishes—more tile, cabinets, trim, pool, etc.
  • Allowance overages - upgrades are so hard to pass up—flooring, appliances, lights, etc.

Building cost is almost always an important part of a successful project. We like to work closely and early on in the process with our clients to establish a realistic workable budget and clearly define the costs for every single line item before construction starts. This will “minimize” your budget changes. Inevitably, some changes are unavoidable, others make good sense and a few indulgences are hard to pass up, but they all lead to higher costs than the initial budget. My suggestion is to plan for that contingency by making sure you have 5-10% more funds available and staying on top of the costs every week.

Why do I need to make sure a contractor has workers compensation and liability insurance?

  • ​If you don’t, you could be exposed to major risk that your homeowners policy probably will not cover. In FL, every licensed contractor is required to maintain a minimal GL policy in order to pull a building permit, BUT no workers comp or exemption is required for a permit in Walton County, HOWEVER, the State of FL Div of Workers Comp DOES require every worker on a construction site have either (1) an active workers comp policy that covers all workers for that business OR (2) an exemption for workers comp issued by the Div (but this can only cover the owner(s) of that company—max of three).
  • ​You should make very sure your licensed general contractor has adequate General Liability insurance. They can easily have their insurance company email you a GL Insurance Certificate with you the owner as the Certificate Holder—it looks like this GL Insurance Certificate. This way if any damage occurs to your home or a neighbors property during construction, you’re covered.
  • ​Also, in FL all workers on construction job sites are required to be covered under a Workers Comp Policy OR be Exempt as a business owner—here is what an exemption looks like. The FL Div of Workers Comp link is here.

Do you guarantee your work?

Yes, we have a 1-year warranty on workmanship and a 10-year structural warranty. We make every effort to conform our workmanship to generally accepted construction practices like those set forth in the NAHB Residential Construction Performance Guidelines.

How do you handle changes?

The way a cat handles a cucumber (you should Youtube that). To honestly get you what you really want in your nice custom dream home, we completely expect you to have many changes during the design, planning, selections and construction phases. Everyone does. Seldom is everything laid out perfectly in advance, your ideas evolve and each step brings new surprises, so we all graciously smile, adjust and keep the project moving forward. They can also be costly, disruptive and time consuming – that’s why we plan as much as possible and inform you of all the options and ramifications so we can make good choices.

Will you provide me with a schedule?

On most projects, YES we can provide an estimated schedule early in the process. Since we communicate on a constant basis, you can always stay up-to-date on the progress and expected completion.

Will you do my project if I purchase some of the materials?

As a general rule, it is better for us to purchase all the materials, so that we can maintain control of the process, the vendor and the warranty on the product. Client-purchased products will not include a warranty for install labor. Occassionally it may make sense for a client to purchase a few items for convenience or speed.

Remodeling FAQs

In what area will you remodel?

We keep all our work very close to home, working these local areas: all of South Walton, Santa Rosa Beach, 30A area, Dune Allen, Blue Mountain Beach, Gulf Place, Grayton Beach, Watercolor, Seaside, Seagrove Beach, Rosemary Beach, Seacrest, Inlet Beach.

What type of remodel projects do you do?

Almost anything but generally medium to large jobs. The more difficult the project the better we like it. Here’s a short list of some of the projects we’ve done over the last 10 years:

  • ​Kitchen remodel/relocation
  • ​Bathroom remodel
  • ​Window/Door Replacement
  • ​Siding Replacement
  • ​New Decking
  • ​New Wiring
  • ​New Waterproofing
  • ​Repair Structural Damage
  • ​Repair Major Water Damage
  • ​Repair/Replae Stucco
  • ​New Flooring
  • ​Full Gut Remodels
  • ​Paint Interior/Exterior

How do you charge for remodel projects?

While each project is unique, and varies in price, we've put together some pricing on our remodeling page that will give you an idea of what to expect on different kitchen and bathroom remodels here in the Santa Rosa Beach, FL area. Remodel projects that are simple, straight forward and predictable are generally contracted on a fixed price basis. But plenty of our remodels involve major complicated repairs, many unknown issues, hidden damage or custom work, so we often contract those on a cost/plus basis. Sometimes we even combine the two pricing methods. We can customize the pricing to fit the client and project.

Do I need a permit for my project?

Typically, yes. But we will always take care of the permit. If the work is considered minor and no structural or major mechanical work is needed, then no permit is needed.

Why do I need to make sure a contractor has workers compensation and liability insurance?

  • ​If you don’t, you could be exposed to major risk that your homeowners policy probably will not cover. In FL, every licensed contractor is required to maintain a minimal GL policy in order to pull a building permit, BUT no workers comp or exemption is required for a permit in Walton County, HOWEVER, the State of FL Div of Workers Comp DOES require every worker on a construction site have either (1) an active workers comp policy that covers all workers for that business OR (2) an exemption for workers comp issued by the Div (but this can only cover the owner(s) of that company—max of three).
  • ​You should make very sure your licensed general contractor has adequate General Liability insurance. They can easily have their insurance company email you a GL Insurance Certificate with you the owner as the Certificate Holder—it looks like this GL Insurance Certificate. This way if any damage occurs to your home or a neighbors property during construction, you’re covered.
  • ​Also, in FL all workers on construction job sites are required to be covered under a Workers Comp Policy OR be Exempt as a business owner—here is what an exemption looks like. The FL Div of Workers Comp link is here.

How do you handle changes?

In remodeling we definitely EXPECT changes. Seldom is everything laid out perfectly in advance. Surprises can be around every corner. They can also be costly, disruptive and time consuming. We plan as much as possible but we adjust as we go as needed. We keep our clients informed of any issues outside the expected scope of work, and we work together to find a good solution that gets the job done right.

How do you keep dirt and dust out of other parts of my home?

Although remodeling can often be very dusty and dirty, we do take many precautions to minimize the mess. We install plastic curtain walls to section off work areas - we cover furniture, lights, cabinets, floors as needed to keep dust away and we turn off the AC or add filters to reduce dust as much as possible. We can also budget to completely deep clean the home in all affected areas to hand off a clean home back to you.

Why should we start with a budget first on our project?

You can have a great design for a new home or remodel, but if your budget doesn’t support it, you may have to substantially modify or start over and will waste lots of time and money.

By starting with a realistic budget, you can design in a way to meet both your needs and your budget. We have many years of experience and by being candid about your budget we can come up with value driven budget ideas together.

It’s very normal not to know what a realistic budget should be for your project, so let’s talk and we can help you get a better idea what your ideas may cost. Check out our own cost estimates for some general project costs.

Can I be in my home during the remodeling?

It depends on what work we are doing on your home, but it is highly recommended that you NOT be in the home during most remodels. Most all remodel work can be quite disruptive, noisy, dusty, messy. Multiple workers, parking, deliveries, storing materials can present a difficult situation for an owner staying on site. However, if you have no other option but to stay in the home during remodeling, we may be able to accommodate you if the work is very isolated to one area or is outside. Almost all of our clients live out-of-town and only visit a few times during construction, but you would find that our team of professional tradesmen are very courteous and respectful of you and your home and would provide for you as much as possible. Let’s discuss your specific situation prior to scheduling your project and go from there.

I've heard of projects taking forever and some contractors not finishing—will you complete my job timely and to my liking?

We've been building and remodeling for over 30 years, and have heard many of those stories too. In fact, we’ve worked with many clients who called us to complete a "job gone bad." We have NEVER left a project unfinished, or had any significant delays. The vast majority of our jobs are finished faster than most clients expected. We take great care in planning ahead and lining up our workers well in advance. While we do have many great subs and vendors we rely on, our construction market currently is very busy and some delays are common, but we plan for much of that anyway. Owner Tate Watson's personal (and business) principle is: “Do What You Say.” So we take that very seriously and make every effort possible to live by that everyday.

If we decide to work together, we will do absolutely everything possible to keep your project moving as quickly as possible and ensuring it is to your satisfaction throughout the process. Many of these stories stem from contractors starting too many projects at one time or charging too little up front to get the business, which in turn doesn’t match the scope of work. Our vast experience building and remodeling has reinforced many lessons along the way including not taking on more than we can handle, pricing jobs appropriately on the front end and leaving ourselves many options with subs and vendors.

Should I budget for costs beyond the original estimate?

Yes, No, Maybe ….. This can be a tricky question, but we always advise our clients to set aside additional funds beyond the anticipated cost. Unknown issues almost always tend to come up — after demo surprises usually surface — including structural problems, outdated wiring, moisture intrusion and rotting wood — these plus your own changes can result in additional costs beyond those expected initially. We do try to predict as many of the likely hidden expenses as possible. However, serious issues can arise beyond our control that need considerable attention. No matter what may happen, we will always consult with our client, review all options and do everything we can to “make it right”.

Will you do my project if I purchase some of the materials?

As a general rule, it is better for us to purchase all the materials, so that we can maintain control of the process, the vendor and the warranty on the product. Client-purchased products will not include a warranty for install labor. Occassionally it may make sense for a client to purchase a few items for convenience or speed.

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Established by Tate Watson and located in gorgeous Santa Rosa Beach, Florida, 850 Building Group has been custom building and remodeling fine homes for over 30 years.

Lic # CBC-1254315
850 Building Group, LLC © 2024

Contact Info

850 Building Group, LLC
551 Serenoa Rd
Unit A
Santa Rosa Beach, FL 32459


Phone: (850) 270-8904
Email: Tate@850BuildingGroup.com

Proud Members of:

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