Part 2: Does your builder pull permits? (and why that matters)

Last post I talked about why whether your builder pays taxes should matter to you as a client. This time I am going to answer a related question: "why should I waste time or money pulling permits?"

Taxes are a hassle as a business owner, but they usually don't directly affect the scope or timeline of a specific project. On the other hand, permits are a hassle for a business owner and client alike. They take up space in the budget and therefore affect scope, and they can often seem to waste everyone's time. Why should it matter if a builder pulls permits or not?

First, I would say it's the law. And as a client, whether your builder obeys the law or not should matter to you. If your builder claims to operate with integrity but picks and chooses which laws he obeys, I view that as a major consistency issue. That is a strange definition of integrity -- choosing when it matters to be honest or not.

But likely more relevant to you as a client is the fact that you'll pay for it on one end or another. When you add on to a garage but don't pull a permit, when you sell a house an inspector will discover the illegal work. The outcome is either causing a future buyer to question the work done on your home, or losing the ultimate price per square foot you could achieve if you did the project properly from the beginning. The time or cost savings up front will never justify the potential loss on the back end when you sell your house. The builder you hire should be staunch on his policy of permit-pulling, or he shouldn't be trusted. Or hired. 

(*gets off soapbox*)

-- Tim

Part 1: Does your builder pay his taxes? (and why that matters)

Paying taxes is a total pain as a small business owner. A HUGE chunk of our overhead goes straight to the IRS. Many companies fudge the numbers, avoid paying, or declare bankruptcy. A builder who doesn't pay taxes on his income can "offer" you a much better deal than we can to redo your space, no doubt. 

(Excuse us while we roll our eyes)

Many people believe it’s not their problem if they are hiring a company who evades taxes or hires illegal immigrants. But if a company is willing to dishonestly handle their own business in this way, we would have some major concerns about how they are handling you as a client. Time and again we see building practices mirror business practices. That is, if your builder cuts corners in his business (like paying taxes) (which is not your problem), we can almost guarantee he will cut corners in his building as well (like in your bathroom), (which is most definitely your problem). In the long run, these shortcuts are so, so much more expensive and can even cross into dangerous territory. I hate to be cliche but it is so dang true: you always get what you pay for.

The market is saturated with builders marketing their "integrity." An easy way to ask how that plays out in business or in building is to ask a contractor how paying taxes has impacted his growth as a company. If the answer is anything besides "it is really difficult" I would proceed with extreme caution. More than that, I would run the other way.

Building Right,

Tim