Top 5 Risks We Take As Builders | Build Show Podcast Ep 206

Construction-defect liability is the biggest long-tail risk: flat-roof/TPO seams, plumbing run in exterior walls, and hard freezes can surface years later, so spec the best products and installers and consider an envelope consultant on high-profile jobs.

Always document and inform: when a client insists on a cheaper roofer or product against your judgment, get it in writing so the choice, and the risk, are clearly theirs.

Cash flow only gets harder as you grow; use milestone-tied draw schedules, take large deposits, and never co-mingle funds or rob one job to pay another, which was a recession-era recipe for disaster.

Contracts protect you: use a promulgated contract like the Texas Association of Builders agreement, close scope gaps, and add clauses documenting known material risks such as marble staining and chipping.

Protect your subcontractors; pay a great tile installer out of your own builder fee if needed to make them whole, because one unpaid change order can wipe out a fabulous craftsman who's a poor businessman.

Diversify against market sensitivity (Matt runs both a building and a remodeling company) and take big deposits, since clients often stop spending on feeling rather than an actual lack of funds.

Owner burnout is real; set intentional boundaries and time off, lean on a builder peer group like a Builder 20, and don't be afraid to say no to a job or to vet clients who won't treat you well.