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Builder says customer pays sub-contractors directly...

Anon Z
2 months ago
last modified: 2 months ago

I have been looking for a custom home builder in Arkansas. Talked to one yesterday and really liked him BUT they have their customers pay the sub-contractors directly (I don't mean cut the builder a check once a week so they don't have to float the cash, I mean the customer actually pays the subs directly).

I have never heard of such a thing. Is that common for some areas? It seems as if that would make *me* the General Contractor and the builder would basically be a hired manager. Also seems like if there was a costly mistake I would be on the hook to pay for it since there is no agreement that the builder will provide X house for a specific dollar amount.

Does this seem very shady? I should mention I live out of state (9 hour drive away from the build site) so I won't be there to check things every week.

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