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July 6, 2023

Due Diligence: How to Choose the Right Building Contractor to Build My Custom Residential Home

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Whether you are building your first custom dream home or are looking to build one or
more investment homes, completing a thorough due diligence process is vital for
‘peace of mind’ and a successful partnership with your building contractor. Here at the
Wilmington Building Co. (WBC) we fully understand the importance of ensuring that you are
choosing the right building contractor to meet your expectations.


Due diligence in choosing the right building contractor is crucial when building your dream
home. The construction of a house involves significant financial investment and emotional
attachment, making it essential to select a contractor who can deliver high-quality
workmanship, adhere to timelines and ensure a smooth building process. Here are six reasons
why due diligence is important in this decision:

  1. Quality of workmanship: Your dream home deserves the best craftsmanship.
    Thoroughly researching and vetting potential contractors allows you to assess their
    track record, experience, and reputation. Look for evidence of their past projects, read
    reviews, and ask for references. By doing so, you can evaluate the quality of their work
    and determine if they align with your expectations.
  2. Compliance with regulations and standards: Building codes, regulations, and industry
    standards exist to ensure the safety, functionality, and longevity of structures. A
    reputable contractor will have a thorough understanding of these requirements and
    adhere to them diligently. Conducting due diligence helps you verify that the contractor
    has the necessary licenses, permits, and certifications to comply with all applicable
    regulations.
  3. Budget and timeline management: Building a home involves intricate coordination of
    resources, schedules, and budgets. A competent contractor will provide a detailed cost
    estimate and timeline for the project, including materials, labor, and any potential
    contingencies. Conducting due diligence allows you to compare different contractors’
    proposals, assess their ability to manage costs effectively, and determine their reliability
    in meeting project deadlines.
  4. Communication and collaboration: Effective communication and collaboration between
    the homeowner and the contractor are vital for a successful construction project. During
    the due diligence process, you can evaluate how responsive, transparent, and
    communicative a contractor is. Assess their ability to listen to your needs, provide input,
    and maintain open lines of communication throughout the project.
  5. Contractual agreements and insurance: Engaging in due diligence provides an
    opportunity to thoroughly review and negotiate the terms of the contract with the
    contractor. A well-drafted contract should clearly outline project scope, specifications,
    payment schedules, dispute resolution mechanisms, and warranties. It is also crucial to
    ensure that the contractor has appropriate insurance coverage, including liability
    insurance and worker’s compensation, to protect both parties in the event of
    unforeseen circumstances.
  6. Peace of mind: By conducting due diligence, you gain peace of mind knowing that you
    have made an informed decision. Investing time and effort upfront to select the right contractor significantly reduces the risk of potential disputes, construction delays, and subpar workmanship. It allows you to entrust your dream home to a qualified professional who will work diligently to bring your vision to life.

To conduct due diligence:

  • Research and gather information about potential contractors.
  • Check their credentials, licenses, certifications, and insurance coverage.
  • Request references and speak to previous clients.
  • Visit completed projects or ongoing construction sites, if possible.
  • Obtain multiple bids and thoroughly evaluate the proposed plans, timelines, and costs.
  • Clarify any doubts, concerns, or expectations through direct communication with the contractors.
  • Review and negotiate the terms of the contract before signing.


Building your dream home is a significant undertaking, and choosing the right building
contractor is a critical decision. By conducting due diligence, you increase the likelihood of a
successful and satisfying building experience, ensuring that your vision is brought to life with
the highest standards of quality and professionalism.


Here at WBC, customer satisfaction is our highest priority-from the quality of our
craftsmanship, to building compliance, communication, timelines, and budgets, we will help to
ensure that due diligence is fully complete and that your new custom home project is met with
the highest quality of honesty, integrity and communication.


To learn more about the WBC process, our story and to meet our team, visit our website at
www.wilmingtonbuildingco.com or give us a call today at 910-473-5023

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