When it comes to building or renovating a custom home, choosing the right contractor can make or break your entire experience. From missed timelines to poor craftsmanship and hidden upcharges, the risks are real, especially if you don’t know what to look for in a proposal.
We spoke with Terry Paterson of Paterson Project Management, who shared expert insights on what homeowners should watch out for, what a solid proposal should include, and why transparency matters from day one.
Red Flag #1: A Two-Page Proposal
If a builder hands you a basic two-page proposal, that’s a major warning sign. According to Terry, a thorough proposal should be detailed, specific and reflect real input from subcontractors. His team takes 45 to 60 days to prepare proposals, gathering multiple hard bids and not just choosing the cheapest option, but the right one. The result? Proposals that are often 30 to 45 pages long, covering every little detail.
Red Flag #2: “Developer Experience” vs. Custom Homebuilding
Not all builders are the same — especially when it comes to working with homeowners. Terry points out that someone who typically builds works as a developer may not have the same process for collaborating with clients. “There’s a very big difference,” he says. When a builder is working for themselves, decisions are faster and simpler. But when building for a client, they need to know how to translate a homeowner’s vision into real plans, and that takes a very different skill set.
Red Flag #3: No Room for Review or Revisions
If the proposal process feels rushed, that’s another issue. Terry’s team schedules 4 to 6 hours of review time with each client across multiple sessions. “It’s the most important part,” he says. These meetings are where the real decision-making begins, and they often spark new ideas or tweaks that matter in the final build.
Final Advice: Trust the Process, Not Just the Price
A high-quality builder won’t just hand you a number. They’ll walk you through the why behind every item, offer multiple vetted bids and adjust the plan based on your input – long before construction begins. It’s a time-consuming process, but it’s one that leads to far fewer surprises down the line.
Want more insights from Terry? Listen to the full episode of The Home Design Podcast for expert advice on building a luxury home the right way: EP 41: The Client Experience in Luxury Home Building with Terry Paterson
The Home Design Podcast brings together industry leaders, design professionals, and innovative brands to explore the ideas, trends, and technologies shaping the world of home improvement. With a focus on education and inspiration, each episode offers valuable insights and takeaways for both homeowners and professionals looking to elevate their knowledge and stay ahead in the ever-evolving design space.
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