What Are My Builder's Responsibilities When Building a New Home?

Updated April 17, 2017

As a homebuyer, you should be aware that there are responsibilities your builder has when it comes to the construction of new homes. In this article you will find some useful advice about what your builder should have in place to make construction of your new home a task which is proper and in order.

Obtain Proper License

Your builder should have obtained a license or building permit prior to beginning to build. A license is a necessary step for homes that require an approval, which accounts for the majority of homes. Moreover, all the workers your builder has a contract with, including carpenters, electricians and plumbers, must be qualified.

Maintaining Safety

There are several safety hazards and risks when building and on the property. The builder has to make sure safety precautions are in place and maintained on a regular basis. The last thing a builder needs is for a scaffold or ladder, for example, to collapse and injure his contractors or just someone walking by.

Insuring and Protecting Home During Construction

Your builder needs to own an insurance policy. Usually the builder will have what is called builder's risk insurance. This type of insurance protects your home and the builder while your home is being constructed. The builder must also have liability insurance. The builder may also be responsible for flaws discovered after as much as 10 years.


Although the homebuyer shares the responsibility of getting the home inspected, the builder is responsible for having periodic inspections throughout the stages of building.

Preparing for Home Ownership

Oftentimes, the buyer does not know responsibilities of the builder and this opens up opportunities for hazards. By learning the responsibilities of your builder now, perhaps if you haven't chosen your builder, you know what to look for and if you do have a builder, you know what to check for.

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About the Author

Kaydence Small is a journalist who began writing professionally in 1996. She has written on military life, empowerment, travel, fitness, healthy lifestyles, frugal living and cooking. She is also an Army Family Team Building Master Trainer/Program Manager. She attended the University of Texas, Austin and received a Bachelor of Arts in journalism and a Bachelor of Fine Arts in performing arts.