UBuildIt - An Alternative to Traditional Contracting

Builder/Architect - NW Indiana/Chicago Southland Edition

The concept is simple and the savings substantial. UBuildIt consultants assist new home buyers, and those who are planning additions or major renovations to existing homes, by holding clients’ hands and guiding them through the process of being their own general contractors.

Those who are most interested in the UBuildIt concept, said David Contorno, owner of UBuildIt in Mokena, are young couples, retired people and those in the building trades. “The majority of clients are as, if not more, interested in controlling the process and quality of their new homes as they are concerned about saving money. The ideal UBuildIt client is the person who would be out at the job site every weekend anyway,” he said.

“The UBuildIt model allows the buyer to think through the entire job before ground is broken. Before we agree to take on a client, we hold a preplanning meeting. We’ll walk through what’s involved and make sure they’re going to be comfortable and capable of fulfilling their side of the relationship.”

Has Contorno ever turned down a prospective client? “This is, essentially, a marriage between us and our clients for the duration of the project. If both husband and wife work long hours or travel for business, they are probably not the best fit for the UBuildIt system. If the job is a remodel and they are planning to live in the house, that’s also an additional stress to the family. I trust my gut feeling — I would rather steer a family to using a general contractor than to have a client who won’t be able to carry the project through.”

Eighty percent of Contorno’s clients will do some aspect of the work, including site cleanup, painting or landscaping. “We’ve had electricians who choose to do their own wiring,” he noted, but actually a small percentage of clients do the majority of the build.

A TEAM OF EXPERTS: ADVICE AND ASSISTANCE

Contorno has a staff of six, including two field consultants with more than 40 combined years in the building business. He also employs a planning consultant, an operations manager and field planning coordinator.

Contorno himself is more than qualified to man the UBuildIt franchise. He began by acting as his own general contractor, building his own home in 1987 and began a contracting business soon after. His first spec home sold for $25,000 more than his asking price and his custom building business was off the ground. He taught classes at local park districts and junior colleges, “How to Be Your Own General Contractor,” with the idea that he would find clients.

As he looked for appropriate curriculum materials, he came across a new business opportunity. UBuildIt, based in Washington since 1988, had a solid model. The only drawback was that they were not yet licensed in Illinois. As soon as they were, he was invited to come to Seattle to discuss becoming a franchisee. He opened his UBuildIt office in 2005. “I’m one of their most experienced owners,” Contorno said. “I’ve done remodeling, built homes, worked on commercial projects, been a general contractor for more than 20 years, and have both taught and consulted on home building.”

Contorno sits on the Southwest Suburban Board of Building Officials, is certified in residential construction management and a member of the National Association of Home Builders and Southwest Suburban Home Builders Association (SSHBA). His business and public management degrees come in handy at times as well.

HOW UBUILDIT WORKS

Similar to a traditional build, the process begins by establishing the buyer’s budget, wants and needs. If needed, the planning consultant will even help them locate land or evaluate building sites to determine if the site is compatible with the project. In the case of an addition or remodel, the consultant will visit the existing home. A written evaluation is then prepared and discussed with the client.

During the planning phase, the client chooses and, with the help of their consultant, customizes a plan that will meet local codes as well as the buyer’s needs (UBuildIt has more than 14,000 stock plans available online). The consultant reviews each and every plan with a builder’s eye to reduce the chance of complications and potential cost overruns after construction begins.

As the client moves into the specifications stage, they will select cabinets, flooring, fixtures and everything else that defines a custom home, with the consultant helping to prepare all elements of project specs. UBuildIt then prepares complete job costing, with detailed line items prepared from the many UBuildIt-approved contractors and suppliers. The consultant leverages their relationships with these subcontractors and vendors to assist with the costs in the client’s favor. “All estimates and bids are open book. We don’t charge any kind of markup,” Contorno stated.

Help during the construction phase comes in several forms, including a planning manual that contains dozens of timelines and checklists. These are also available online. The client manages the tasks of scheduling contractors, deliveries and inspections on a week-to-week basis. Contorno or one of UBuildIt’s field consultants make up to 23 site visits to assure that the work is being completed as planned and according to local building code.

“We’re also available by phone and e-mail any time our clients have a question or need assistance. With our service, you get an experienced professional that will hold your hand and take you through the process,” he said.

PRICING

"We give a prospect an estimated consulting fee based on their budget and fine-tune it when the plans come in," Contorno said. “It might appear to be easier to base our fee on the size of the home, but there can be a big difference in cost for two homes with the same square footage. The distance from Mokena (travel time for the consultant) and the complexity of the design (involving additional permits and inspections) also determine our fees.”

The savings can be dramatic, with UBuildIt’s clients saving an average of 20% - 25% of their homes’ appraised values. “We’re saving at least $120,000 to $130,000, maybe more,” said Scott Hopkins, a client who is building a $550,000 home in New Lenox. The home is scheduled for completion in July.

Hopkins said he’s found the experience rewarding and “would absolutely recommend it to friends.” He makes time daily to visit the job site and does his best to be available to answer questions and make decisions as they arise. He and his teenage son clean up at the site almost daily. “It’s a gratifying experience. I’ve found my next career after I retire — I’d like to manage some sort of construction business,” he said.

UBUILDIT = INSTANT EQUITY

Although most of the 40 to 50 clients who annually use the service do so to maintain control over the quality of their projects, the instant equity is a big sell as well. For the cost of about 15 to 20 hours per week during the two- to four-month timespan of a typical build, the client saves money in several ways.

Because of the purchasing power and relationships that Contorno’s business has with vendors and subs, the homes nearly always appraise higher than the cost of building. If the client invests in some sweat equity, the cost drops more. The client saves even more by acting as general contractor. For example, a recently completed home that cost $700,000 to build appraised at more than a million dollars. Clients may choose a lower monthly mortgage payment or may invest in more homes or higher-quality amenities.

“Whether the project is a room addition or a home that costs a million dollars, acting as your own general contractor makes sense. Remember, it’s your dream home, our experts and your instant equity,” Contorno said.

Contorno’s Mokena location serves Will, DuPage, Grundy and
Kankakee counties in Illinois and Lake County, Indiana.
UBuildIt - Mokena
19606 South LaGrange Road
Mokena, IL 60448
(708) 478-2211 Fax: (708) 478-2210
www.ubuildit.com

© 2006 Sunshine Media, Inc. - Usage Agreement Good Through: 8/29/08
Article Run Date: July 28, 2005.
Author: TJ Neale