Avoid These Major Mistakes When Building a New Home: Advice From a Luxury Home Builder

Congratulations - you have decided to build a new home rather than buying a pre-owned property. This is by far one of the most exciting times and you can now turn what was only a dream into a reality.

At Mehus Construction, with over forty years as a luxury home builder, we understand how you might be feeling right now, but our experience has shown us how things can go horribly wrong for new home self-builders.

We would like to pass on some advice on how to avoid some major mistakes when building a new home.

No matter how tempting it may be - do not operate as your own general contractor.

Perhaps you are a DIY enthusiast, and know something about the basics of construction, but this is the number one mistake made. You know how things work - you just need to hire a few people to do the hard work, like bricklayers, concrete finishers, a drywall installer, plumbers, electricians - the list goes on. Do you know who to contact? Do you search the "Yellow Pages" or troll the Internet looking for the best that's available in a few month's time?

We have been in business since 1975 and have a team of experienced project management personnel along with the best architects, designers, and sub-contractors who can take you through the whole process of your new home construction in Los Gatos, CA.

Choosing the wrong general contractor.

Apart from acting as your own general contractor for what is possibly the biggest investment, you will make, choosing the wrong contractor is the next most common mistake made.

An internet search is not the best way to find your general contractor. Reviews may sound good, but are they genuine? Are there any new houses being built in your area? Who is the contractor? Do some field research. Select a couple of local contractors and check them out. Ask to see some houses they have built. Speak to the owners and ask if they are happy with their home. Request some references and check them. You won't get any names of dissatisfied clients, but when you contact any clients ask if they know of anyone who had a problem with building work. If any contractor seems reluctant to cooperate, then strike them off your list of contenders.

We will be pleased to give you a list of past and present clients, and show some of the houses we have built or are in the process of building to allow you to judge for yourself the quality of our work.

Not getting a good set of floor plans.

Having house plans should be one of the first things you get — before you hire anyone. You may be tempted to buy plans online, but are they really what you want or need? A good set of plans is a must if your project is going to be a success. Without a complete set of plans, you can't get estimates for materials. Contractors can't give you a price for labor. You need a full set of house plans so that everyone is on the same page and knows exactly what you want and where you want it.

You should also make sure that the plans you obtain are suitable for the land you plan to build on. If your site is on a slope, then having plans that accommodate the grade is essential. The last thing you want is a double garage a few feet off the ground or the rear kitchen windows below ground level.


Our team of planners and architects will make sure that the home you plan to build suits the lot you have purchased. If there are any problems, we can make the necessary changes, so that everything is a match, from the grade of the site to the height and pitch of the roof.

Failing to thoroughly read your contract.

Your contractor will more than likely give you a contract or agreement that will contain all the details of your job and timelines. Read any contract very carefully, if necessary, get a lawyer to look at it before you sign.

You may not be aware of this, but you could be held liable for payments to suppliers and subcontractors if the general contractor fails to pay his bills. The result is that a lien could be put on your property. You can protect yourself against this by having a clause in the contract stating that the general contractor must receive a lien waiver from each vendor and subcontractor for each payment made. Having lien waivers for each payment, subcontractor, vendor, and supplier engaged on the project should be stipulated in the contract as a condition for signing off on completion and the final payment to your general contractor.

The contract should also contain details of estimated delivery dates and a projection of costs that will release you from any accountability for delays or additional costs.

Hiring a contractor based on price.

When you put your project out for bids, you should get a minimum of three, but don't be tempted to discard the highest bid out of fear of being overcharged. On the other hand, if a bid is too low, then a red flag should be raised, and you would be wise to disregard it. Inferior quality materials or taking far too long to complete the job could be the reason for the low bid.

If you have given each contractor the same set of plans and details of the construction, then you should receive comparable prices. To allow you to evaluate the bids accurately, you need a detailed breakdown of unit, labor, and material costs so that you can equate like for like. Occasionally bids may only show item and labor costs, leaving out important details regarding the execution of the project. You need to get everything detailed on the bid, including:

  • A schedule of the start and completion dates.

  • Terms of payment.

  • Any payments that are required in advance.

  • What change orders are required for the scope of work.

  • Permit costs and general conditions.

Armed with all that information, you should be able to choose the perfect general contractor.

Failing to have a buffer in your budget.

At the start of your project planning, you must budget for the whole construction, start to finish. A common mistake is not sitting down with a professional to help with the budget.

As a luxury home builder, Mehus Construction has done this many times and knows what needs to be included in the budget. We will make sure that all the necessary items are covered while recommending others that should be accounted for in case of unexpected conditions or extras. By including us at the budget stage, we can prevent any financial scares or work interruptions as the project progresses.

As your general contractor, we will also be able to give you some ideas as to what can and cannot be included in your luxury home. Things like that "man cave" you always wanted, or a "craft room" you didn't think could be included, but with careful planning and working with us, your dreams can become a reality.

Mehus Construction has been building luxury homes in the Los Gatos, CA area since 1975 and we are proud of our relationships with architects, designers, and subcontractors. Allow us to be your general contractor and avoid any major mistakes when building your new home.