Guide · Construction

Managing the construction phase

The short answer

In the construction phase you manage the builder, not the subcontractors. The builder runs the crews; you approve finishes, monitor the budget against the plan, and release payment only when milestones are met. Never pay ahead of the work. A flat builder fee locked in after the budget keeps everyone's incentives aligned.

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Your job once the dirt moves

You are not on the roof. The builder manages the subcontractors and the schedule. Your job is oversight: approve the finishes, watch the budget against the plan, and keep the timeline honest.

The golden rule is payment discipline. You pay only when a milestone is actually met, never ahead of the work. That single habit prevents the most common way builds go sideways.

Controlling budget and risk

Lock a flat builder fee after the budget is set, not a percentage that grows every time a cost does. A flat fee aligns the builder with finishing on budget instead of spending more.

Carry a contingency, hold the line on change orders, and treat every overrun as a decision rather than a surprise. Discipline here is what protects the margin you underwrote.

Your construction-phase checklist

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Common questions about construction

Do you manage the subcontractors as a developer?

No, you manage the builder, and the builder manages the subs. Your job is oversight: approve the finishes, watch the budget against the plan, and release payment only when milestones are met. Never pay ahead of the work.

Should you pay a builder a flat fee or a percentage?

A flat fee locked in after the budget aligns the builder with finishing on budget instead of spending more. A percentage fee quietly rewards higher costs. We set the fee once the budget is known so everyone's incentives point the same direction.

How do you keep a build on budget?

Lock a flat builder fee after the budget is set, carry a contingency, and hold the line on change orders. Treat every overrun as a decision, not a surprise. That discipline is what protects the margin you underwrote.

What is the golden rule of paying a builder?

Pay only when a milestone is actually met, never ahead of the work. That single habit of payment discipline prevents the most common way builds go sideways.

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