Due diligence
1. Verify the Builder's Licensing, Insurance, and Business Credentials
In Nevada, verify the contractor directly through the Nevada State Contractors Board rather than relying solely on a license number shown on a website, proposal, vehicle, or advertisement. You can look up and verify a contractor's license here.
Confirm:
- The license is active.
- The license classification is appropriate for the work being performed.
- The business name matches the company you are contracting with.
- Required licensing and bonding information is current.
- The builder carries appropriate insurance for a project of your scale.
Ask the builder to provide a current certificate of insurance and explain the coverage carried for general liability, workers' compensation, and other applicable policies. For a major custom estate, financial administration also deserves attention. Ask how progress billing is handled, how subcontractor invoices are documented, how lien releases are administered, and what controls exist around owner funds.
Questions to ask:
- What Nevada contractor licenses do you hold?
- Can you provide current insurance certificates?
- How are subcontractor payments and lien releases tracked?
- How are progress billings documented?
- Can bonding be provided if the project requires it?
Licensing establishes that a builder is legally qualified to operate.
2. Ask to See Completed Projects Comparable to Yours
A builder may have an impressive portfolio without having experience with the type of home you intend to build. When reviewing luxury custom home builders, look for projects comparable in:
- Size
- Architectural complexity
- Structural complexity
- Finish level
- Site conditions
- Specialty systems
- Custom fabrication
- Landscape and exterior scope
- Overall construction quality
A builder experienced primarily with smaller homes or production-style construction may operate very differently from a builder accustomed to large custom estates. Whenever possible, ask to see both active construction and completed homes. An active project reveals organization, field supervision, trade coordination, protection of finished work, cleanliness, sequencing, and the general standard of the construction operation. A completed home shows craftsmanship. An older completed home can show how that craftsmanship performs over time.
Ask:
Can you show me completed homes that are comparable to what I am planning to build?
3. Find Out Who Will Actually Manage Your Home
The person presenting the company may not be the person managing your construction. Before selecting a custom home builder, understand who will be responsible for your project after the contract is signed. A sophisticated custom home team may include:
- Project executive
- Project manager
- Superintendent
- Project engineer
- Estimating and preconstruction personnel
- Procurement support
- Project accounting
- Specialty construction personnel
Ask to meet key members of the team before construction begins. You should understand who makes field decisions, who communicates with the architect, who controls the schedule, who manages the budget, and who is responsible for resolving issues.
Questions to ask:
- Who will be my primary point of contact?
- Who will manage construction in the field?
- Who manages the financial side of the project?
- Who coordinates with my architect and interior designer?
- Which members of the team will remain involved from preconstruction through completion?
On a complex estate, the depth of the organization behind the superintendent can be as important as the superintendent personally.
4. Ask How Many Projects Your Superintendent Will Be Managing
This is one of the most useful questions you can ask a luxury home builder. A superintendent responsible for several projects cannot physically be in several places at once. Ask directly:
How many other projects will my superintendent be responsible for while my home is under construction?
Be cautious of general answers about having an experienced team and ask for clarity. Ask how the superintendent's time is actually allocated. Large custom homes involve constant coordination among trades, inspectors, designers, vendors, consultants, and project management. Field conditions change quickly, and many important quality-control decisions occur before finished work covers what is underneath. For a complex custom estate, determine whether the level of on-site supervision is appropriate for the size and complexity of the project.