The articles which cannot be directly specified should be secured outside the general contract. Altogether, the plan of letting most of the work in one contract, as outlined, is the best and safest for those to pursue who are not thoroughly familiar with building operations.

The plan of subletting the separate contracts to the lowest bidders is not to be recommended to those without large experience. The difficulty in locating responsibility for delays is great. There is apt to be contention, annoyance, and sometimes loss, by this confusion. The plan of building by the day is more satisfactory for experienced builders than the one just mentioned, but it has the disadvantage of not fully representing to the owner before it is finished the cost of his structure.

In nearly every city or town there are a number of good builders, not well supplied with means, who will take a contract for building a house, work on it themselves until it is finished, and then take another, never having more than one or two houses on hand. One can frequently get good work from such builders at a much less cost than from large contractors. The larger contractors employ a foreman at about the same price a day that the small contractors expect to get per day out of their entire contract. Then, in addition to that, they receive their profits of ten, fifteen, or other per cent for their time and attention. Any one building with the help of the smaller contractors must be very careful, or he will get into trouble on account of the small margin of profit.

To recur to the method first mentioned. It is well that suggestions be made as to the course to be pursued in receiving bids on work, as classified in that suggestion. In the first place, there should be accurate plans and specifications made by an architect capable of doing that kind of work. Everything should be fully represented to the owner in both a positive and negative way; that is, not only as to what is to go into his house, but as to what is not to go into it. As soon as the architect or those in charge of the work begin to take bids, the owner should be provided with a complete copy of the plans and specifications, in order that he may be fully conversant with what is to be done. It was said that everything should be represented to the owner in both a positive and negative way. Not only should it be stated to him that the first floor of the house is to be plastered, but, if such is the case, that the cellar is not to be plastered. If the cellar floor is not to be cemented, it should be stated definitely to him in that way before beginning to take bids. If fly-screens are not included in the building contract, it should be so stated. Everything should be fully represented, and a record thereof placed before the owner, so that there can be not the slightest opportunity for misunderstanding or disagreement. Thus, if everything is presented to the owner, he will know what he is to have and what he is not to have, and his business will be done for him in a way satisfactory to all. When this is done, it is time to begin taking bids.

In doing this there should be no favoritism. The builder should be allowed to take a copy of the plans and specifications with him to his office or place of business, and keep them a day or more, in order to take off his quantities and become thoroughly conversant with everything connected with them. Then he can return the plans, and, while others are doing the same thing, he can compile his figures. Generally it takes about a day for each contractor to get through with a set of plans; that is, if five bids are received, it generally takes five or six days, assuming that only one set of plans is in use. No one should be asked to figure on a building unless the owner is willing to award him the contract, providing his bid is the lowest. Anything else is unfair. When all the bids have been received in sealed envelopes, the architect and owner may open them. After selecting the lowest, they may add to that figure the cost of everything not included in that proposition,—the furnace, mantels, gas fixtures, ornamental glass, and anything else that has not been included in the bid. This may be readily done, if the architect provide a schedule, similar to schedule “B,” of everything which may go into the house.

In the matter of closing the contract, only general statements can be made. Where an architect is employed, he will give proper directions; but, as many houses are built without such assistance, it is proper to make general statements which will assist in this work. There are forms of building-contracts, or articles of agreement, which may be secured from various regular sources. It is proper to fix the time of the completion of the work, which will vary in different parts of the country according to general customs. A house to cost from fifteen hundred to four thousand dollars may be very easily finished, under favorable circumstances, in ninety to a hundred days. Such houses can be built in less time, but it is best to give the builder at least three months. He will do better work in that time than in less. For the higher figure named, or for those which approach it, it may be better to allow even a little more rather than less time. As a price for liquidated damages in event of delay in completion, the rental value of the property is the usual sum specified.

There are various plans pursued in the matter of payments. Where there is an architect or superintendent, he usually issues orders on the owner for payment of material and labor furnished by a contractor less ten or fifteen per cent. Sometimes it is stated that two-fifths of the money will be paid when the building is enclosed and under roof; one-fifth additional when building is plastered, painted on exterior, all exterior appurtenances finished, the floors laid, and the house ready for other interior wood-work; and the remaining two-fifths when all work is finished. At times this apportionment is correct, and at other times not. However, it is a very good general rule. It is a good plan to add the ten per cent discount to it when possible. Sometimes an indemnifying bond is required of the contractor in order to secure the owner the proper execution of the contract. Otherwise the ten or fifteen per cent discount is relied upon to secure that end.

The lien laws in the various States make it very important that the owner, or his agent in the matter of building, should be very careful to see that the contractor pays all his bills, or secures releases from those who have furnished material and labor on account of the building contract, before money is paid by owner.

The law is different in various States, and renders the owner liable, under varying conditions, for material and labor furnished to contractor by others as employees or sub-contractor, even though payment has been made by owner to general contractor. Where a bond is not required, it is proper for the owner or his agent to exact releases in proper form from those who have furnished material and labor to contractor. The following form is in use by the writer:—

Work located

The undersigned, in consideration of the personal credit extended by to , Contractor, hereby consent that may pay to said contractor any sum that may be now owing to, or may hereafter become due, said contractor, on account of contract for the construction of the above works, and we hereby waive all rights to Mechanics’ Liens or other claims which we have, or may have, against said property, or owner, on account of labor or material furnished by us.

Indianapolis,1889.