How long each phase of a custom home takes, what really causes delays, and how builders put together a construction schedule that holds up.

What a development pro forma is, what goes into one, and a hypothetical four-unit infill example showing how small builders decide on a deal.

Where small builders find spec home investors, what to show them, how deals are commonly structured, and why securities law applies.

How spec builders fund construction: bank loans, private lenders, and equity partners, plus what lenders want to see and how to compare options.

How to calculate profit margin on a spec home, with a hypothetical worked example and the two things that erase margin fastest: time and price.

Spec building swaps client risk for market risk. Here is a step-by-step guide to starting, from picking the lot to selling the house.

A spec home is built without a buyer, at the builder's risk. Here is what that means for buyers and builders, and how it differs from custom.

A builder's plain-English rundown of the sections every custom home building contract needs, and why samples are only a starting point.

A draw schedule decides when money moves during a build. Here is how it works, an example with percentages, and how to set one from your budget.

Vague specs are a blank check. Here is a step-by-step method for writing construction specifications, with an example and a full category list.

Home builders move a lot of money and keep little of it. Here is how gross and net margin work, what is common, and how to stop the usual leaks.

A 20% builder markup is a 16.7% margin, not 20%. Here is the conversion formula, a worked example, and how to set a markup from your own overhead.

Fixed price puts cost risk on the builder. Cost plus puts it on the owner. Here is how each contract works and how to pick the right one for the job.

Construction contingency is your reserve for the unknown. Here is how much builders commonly carry, who owns it, and the rules for spending it.

An allowance covers a known item with an unknown price. A contingency covers the unknown. Here is how builders should carry and track each one.

A construction allowance is a placeholder budget for an unselected item. Here is how allowances work, what is typical, and how to set them realistically.

Your change order clause is the rulebook for everything nobody planned. Here are the nine things it should say and how to make it hold up on the job.

See a filled-in construction change order for a hypothetical custom home, with every line explained and the common mistakes to keep off your forms.

A change order is agreed and signed. A change directive is not. Here is how each construction change document works and which ones builders need.

Change order markup should cover overhead and profit on the most disruptive work you do. Here is how to set the percentage, the fee, and the price.