FAQ
- How long have you been in business?
CHAPARRAL CONSTRUCTION COMPANY was incorporated in January of 1999, after Owner, Rick Lobato, worked for 5 different building companies over a 23 year period.
- How big is your company?
CHAPARRAL CONSTRUCTION COMPANY is a one-man company, by choice, to best provide direct service to owners and architects. Chaparral Construction Company can add qualified staff as required for larger projects.
- How many houses do you build at one time?
Because of its emphasis on owner customer service CHAPARRAL CONSTRUCTION COMPANY will only work on one or two projects at a time with overlaps as schedules may dictate.
About Contracts and Agreements
- How do you typically work with clients contractually?
The typical contract is on a cost plus basis, which means that CHAPARRAL CONSTRUCTION COMPANY will build the project for the actual costs of invoiced materials and labor plus a fixed percentage for profit and overhead. Chaparral Construction Company presents an open book accounting with all bids and cost information is shared openly. This is the best value for owners, which allows them to benefit from any cost economies that may be found over the duration of the project.
- Is this the only way, what if I want a fixed price?
CHAPARRAL CONSTRUCTION COMPANY is happy to discuss other contract arrangements and is also confident to work on a fixed price basis. However, under this arrangement all invoices, bids, and subcontracts are kept confidential from the owner. The owner has the benefit of a firm price but may not realize potential savings that may emerge. There are other contract types to consider as well, each with its pros and cons.
- What incentive is there for CHAPARRAL CONSTRUCTION COMPANY to keep the budget in check on a cost plus basis when under cost plus, the more money gets spent, the higher the profit number?
Integrity, reputation, and honesty. Once the construction budget is agreed on all changes and overruns are tracked separately. The only reason for the original budget to change is because the owner has directed changes in the work. Subject to certain constraints, a fixed fee amount is also a possibility.
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Why would anybody go the cost plus route when fixed price gives them better piece of mind?
Two reasons:
a. It's a better value. The owner benefits from getting the complete work at the lowest cost possible paying only for what goes into the project and not paying for contingency items that may not be needed.
b. It is also difficult in a truly custom project to price everything to final detail. This is because custom projects tend to be a work-in-process from start to finish. Neither the architect nor the owner knows with certainty in advance all the specifications for tile, mill work, carpet, door hardware, etc down to the last detail. The builder can help the owner to learn about and explore all the product options available to them every step of the way. The only way to have an all inclusive fixed price in advance is to have all inclusive specifications in advance. This is rare and not necessarily desirable in custom residential work. The owner will always prefer absolute freedom to change and revise product selections as the work progresses.
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Is the cost plus approach then the better deal?
Yes. Another benefit is the owner gets to have detailed feedback on cost items early on so they can prioritize the expenditures that make the project better and reconsider those that don't provide personal value.
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How do I know I will get the best construction price compared to another builder?
The cost of construction is driven much more by the design than by the builder. It is the builder's role to buy materials right, to minimize waste, and to maintain the best possible scheduling. Another builder that may promise to build for less cost is most likely manipulating the number presentation. Also, an owner who intends to go with the contractor with the lowest fee is also indirectly asking for their job to have a lowest priority as well.
About Quality
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How will I know that I'm getting the best subcontractors through CHAPARRAL CONSTRUCTION COMPANY?
CHAPARRAL CONSTRUCTION COMPANY will only contract with legitimate, quality oriented subcontractors. Owners may disapprove of subcontractors if they choose, but the Contractor must have the final say on approved alternates.
About Costs
- How will I know I'm getting the best price on subcontractors and suppliers?
First off, the best price is never the lowest price for several reasons. Subcontractors will prioritize the job that affords them to make a reasonable profit. The best price is the one that is competitive with others and is from a subcontractor who can readily support the schedule progress required. A low bid eventually costs more if the subcontractor is constantly late or can't get the work done on schedule. When it comes to your project, you want nothing less than qualified professionals who are established in the business and charge for their work accordingly.
About Scheduling
As the old saying goes "Time is money". A well-run job should run smoothly from start to finish with minimal delays with subcontractors. CHAPARRAL CONSTRUCTION COMPANY is committed to making the best schedule progress possible from start to finish. Realistically, there are always potential conflicts. The goal is keep open communication with subs, weeks in advance, so they know when they will be needed and can work the job into their schedules accordingly.
About Service
Good service makes the difference between a pleasurable experience and one filled with frustration. CHAPARRAL CONSTRUCTION COMPANY is committed to providing the best service possible, with timely reporting, and a low-stress organized approach to all the decisions that go into making a completed project an enjoyable one.
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