“Building a home is a taxing process for any person but I believe it’s a lot more difficult when you’re young and add to the mix, a woman. There is no protection anywhere in the system for a first-time home builder, contractors could wreck you and walk away scot-free.”
The words of a young professional who is currently building her first home. Meticulous, smart and focused sums her up. She has tackled tough examinations, job interviews and so on but according to her, no amount of planning really prevents an individual from being fleeced during the building process.
Her approach to the process was to go in with a “solid plan”. This included getting six estimates, analyzing them against the bill of quantities which the architect submitted and meeting the shortlisted contractors. After nearly a year of reviewing estimates, research and tapping into resource persons in her circle she settled on a contractor.
“I was careful and patient because I’ve heard so many horror stories. I vetted my three shortlisted candidates, and that process was long but even when I thought I had my guy he threw a curve ball,” she said.
She described the selected contractor as professional, knowledgeable, and decent. He had an office where all the meetings were held. He came recommended by trusted sources and he took the time to explain aspects of the building process to her, a beginner. But one month before construction was scheduled to commence, he called her into a meeting and requested $2 million in cash for “pre-start work”. The list he submitted included toilet facilities for his workmen, insurance coverage, $500,000 to build a shed among other things.
“I had an approved bank loan for a hefty sum based on my vision for my home and his estimate, and here this man was telling me I had to finance out of pocket money we never discussed. I was already financing a part of the project as per bank policy. Also, this request came some months into the pandemic when people were losing jobs and construction had come to a halt,” she told me.
For her, getting the bank loan was the easiest part of the process. As she recalled, the bank interview went smoothly and the loan officer at her bank was very helpful every step of the way. The loan amount, which she did not disclose, was approved in just over a month.
“For me it was not about picking just any contractor I wanted one that had a good track record, professional credentials in a specific field, for example, engineering, plumbing, electrical. This guy checked all my boxes, but I wasn’t going to pay him $2 million upfront during a period of uncertainty with jobs, the housing sector etc.”
She was also of the opinion the contractor was taking certain liberties because she was a woman. While the contractors she met with during the vetting process found she was not a pushover, she could not shake the feeling that they had tried things they would not ordinarily have tried had they been talking to a man.
So, her strategy changed when she restarted the process of shortlisting contractors. This time she went to the meetings with a man. According to her, the tone of the discussions changed with the contractors and just about every one of them kept talking to the man as though he was the client.
“He had to keep reminding them I was handling the building process and that I was the homeowner. I also realized this second crop showed me a lot more respect than when I sat in the earlier meetings alone. The funny thing is his knowledge of the building process equaled mine. The whole situation was eye-opening.”
Late last year, she settled on a contractor who “emerged from the evaluation process still standing.” She described him as professional, knowledgeable, decent, and seemingly looking out for the client. Construction commenced mid-January with a timeline for completion in August this year subject to weather conditions and the bank approvals. The process was going well in the beginning until it was not.
She had a contract drawn up which the contractor agreed to sign but eventually she decided against it.
“I realized when you lock in a contract you lock in terms, money, everything. I also realized that even if I have a signed contract and he messed up what was next? Litigation? In this climate? I might as well save that lawyer money and finish my house, so I said no in the end.”
Unfortunately for her tragedy struck shortly into the process when a family member became ill. She was no longer able to effectively monitor the process and keep an eye on the contractor. Her daily checks at the work site turned into weekly checks and at one stage, she didn’t visit for three weeks.
The contractor used this opportunity to drag out the work and put forward multiple excuses for the delay such as a lack of construction materials in the country. Some of what he said checked out. There was a temporary material shortage during the period. He also assured her that all was going well and that the work would resume when he had the materials.
During the family tragedy she spent the time away from the work site researching the feasibility of having another professional evaluate the project.
“I thought about having an engineer or a clerk of works review my project. The reality is while I could go there and police him daily, I have no idea whether structurally he is doing the right thing.”
It turned out that this sort of assistance does not come cheap. The engineers who were interested quoted upwards of $80,000 a month to do one visit and prepare a report. The clerk of works was not likely unless she had $45,000 minimum a month and similarly, this individual would complete one visit and submit a report monthly.
“I’m a professional so I’m aware professional help comes at a cost, but I had no idea it was going to be this rough. You have the bank payment monthly, your rent, bills etc and factoring in expert help was the equivalence of putting yourself in a choke hold.”
She eventually quit the plan to bring in an engineer or clerk of works and sought the help of another contractor to assess the work and give her an independent report. The contractor agreed to do the review for free but offered his services should it be needed. The independent opinion revealed defects such as exposed steel in the columns which had started to rust, column sizes reduced from plan specifications, columns not properly aligned, among other things.
“I had a gut feeling things were off because sometimes you just know but to the average person these things are not easy to spot. Truth is, you need the knowledge, training, and experience to know these things.”
Armed with her independent report she scheduled a meeting with her contractor and took two men with her. For the meeting she also prepared a spreadsheet outlining the following: funds disbursed, work completed, status of incomplete works, timeline for completion etc.
“When he saw me with the guys walking over to meet him, he asked whether everything was okay. I smiled and calmly said all was well for now. I could see the instant change in his mood.”
She led the meeting going through the independent report and requesting immediate feedback on what went wrong from the contractor. She also submitted her spreadsheet and discussed the various aspects.
“This house is my life’s investment and he looked at me and said the men he put on the job failed me. I hired a contractor to do a job and he turns around and says to me the men he hired failed me. You can’t make this stuff up but it’s happening all over this country. Where is government oversight when you need it?”
It was at this stage of the project that she indicated work would cease.
“That was unacceptable for me and I told him so. I am paying him millions of borrowed money and I don’t expect substandard work. If there was a regulatory authority to report these issues to, I would not have hesitated because accountability is seriously lacking in this sector.”
During further investigations she discovered the contractor was building six other houses. This is after committing to a timeline for her which he has since revised.
“This probably sounds like a broken record, but I would advise any first-time home builder to be careful, doubly so if you’re a woman and or you’re young. Do the research, vet them, ask people about them and stay on top of things. I have to keep reminding myself that even if I had hired an engineer as a project manager this is still my project. I can’t abdicate the responsibility to maintain control.”
She added, “Most people build only one house in their lifetime and in Guyana that process is demanding even for those who actually have knowledge and experience of the process. I had to learn the hard way to step up and take real control through every stage. It’s not easy but I may not build a second home so it’s important to get it right this time.”
I will continue to follow this young woman’s building project and may do another piece following completion. For now, ladies listen to her advice and be careful if you are about to start that building project. Think wisely, act smartly and if you can, rely on trusted advice.
