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What to Look for in a Reliable ADU Company in San Diego

Sep 27, 2024 | 1 comment

Choosing the right ADU company is critical to the success of your accessory dwelling unit (ADU) project. An ADU company specializes in navigating the complexities of designing, permitting, and constructing accessory dwelling units. Working with one of the best ADU construction companies in your area ensures your project runs smoothly, adheres to local regulations, and stays within budget.

With so many ADU construction companies available, it can be difficult to know which one to trust. This guide will help you find the best ADU company in San Diego, highlighting what to look for in an ADU building company and the key qualities that separate top providers from the rest.

Why Choosing the Right ADU Company Matters

Selecting an experienced ADU company is essential to the success of your project. There are thousands of considerations from design and permitting to build out and final inspections, with complex regulatory and construction considerations in the mix. Experienced ADU companies will minimize common issues like project delays, cost overruns, and subpar workmanship.

The Risks of Choosing the Wrong ADU Company

Cost Overruns

Budget management is a critical aspect of any ADU project. Reliable builders provide accurate estimates, take regulatory requirements into account, and maintain transparency throughout the process. In contrast, inexperienced or unreliable ADU companies might provide low initial bids to win the contract, only to introduce numerous unexpected costs later. These overruns often stem from failing to account for local and state regulations, such as zoning laws, setbacks, or utility upgrades. Overlooking these important factors can lead to significant budget overruns as new requirements arise during the project.

Project Delays

Timely completion is essential for any construction project. Inexperienced ADU providers may underestimate the time required to navigate the permitting process, mismanage resources, or fail to accurately project the construction scope, causing delays. These setbacks not only disrupt your timeline but can also increase costs as new regulations may require changes to approved plans or additional inspections. Properly navigating local codes and permitting requirements from the start helps ensure a smoother, more predictable timeline.

Quality of Workmanship

The quality of construction directly impacts the longevity and safety of your new home. Unreliable ADU construction companies may cut corners, use subpar materials, or lack the skills to execute the project to high standards. This can result in structural issues, poor insulation, visible damage years or even months after the build is complete, and other defects that diminish the value and functionality of your ADU. Unfortunately, they may also not honor warranty requests.

Real Examples of Issues to Avoid on ADU Projects

We have an entire article devoted to documenting the many hurdles that can arise in an ADU project, and what an experienced design build company like SnapADU was able to do to overcome them. Choosing the right ADU builder is crucial to avoid pitfalls and ensure a successful project. A reputable and experienced company will provide accurate estimates, high-quality workmanship, and navigate regulatory requirements efficiently, ultimately saving you time, money, and stress.

Understanding Your ADU Company Options: Pros and Cons

When choosing the right ADU company for your project, it’s important to understand the different types of ADU providers available. Each type offers distinct benefits and limitations, depending on the size and complexity of your ADU project. Here are the main categories of ADU companies and what you can expect from each:

ADU Consultant Companies

An ADU consultant company like Maxable or Cottage specializes in offering advice and feasibility reports for ADU projects. They help homeowners navigate the initial stages of their ADU journey by providing information, recommendations and referrals to other contractors for the actual design and construction. They may also offer tools for you to manage the project yourself and vet providers like architects and general contractors.

  • Pros: Can be helpful in the early planning stages by offering feasibility assessments and recommendations, as well as tools for homeowners who want to be more hands-on.
  • Cons: They don’t handle construction themselves, so you’ll need to rely on separate contractors for the actual build, which can lead to additional coordination.

 

ADU Management Companies

An ADU management company like ADU Geeks oversees your entire project from start to finish but outsources all the design and construction work to third-party contractors. They do not hold a general contractor license themselves, but they act as your primary point of contact throughout the process.

  • Pros: One-stop-shop for managing the project and coordinating contractors; useful if you want someone else to handle all logistics.
  • Cons: Act as the main point of contact but are not directly accountable for different contractors involved. This means they are coordinating multiple parties who don’t ultimately report to them, making it harder to build truly integrated systems to effectively solve the challenges that may arise during the project.

 

ADU Architects & Designers

ADU architects like Modern Granny Flat or Ten Seventy Architecture focus largely on designing ADUs and developing the architectural plans needed for your project. While architects can provide great designs, they often lack accountability or involvement in the entire project’s scope, especially when it comes to utilities, sitework, and build costs. This can lead to disconnects between design and practical construction requirements, potentially increasing costs and causing timeline delays later in the process. Read more about ADU architects.

  • Pros: Skilled in creating visually appealing, functional designs that meet local zoning and code requirements. Skilled in offering unique designs for high end custom projects.
  • Cons: Lack of project oversight and involvement in construction often leads to higher costs due to unforeseen issues with utilities and sitework. Architects are also less experienced with budget considerations, which can result in over-designed projects that exceed your budget.

 

Home Improvement and Remodeling Contractors

Remodeling General contractors like Specialty Home Improvement and Better Place Remodeling come from a background focused on home renovations and remodeling rather than ADU construction. While they bring solid expertise in project management and the construction process, their experience is typically geared toward interior remodels, kitchen upgrades, or general home improvements. Their generalist focus on home improvement means they might not be as well-versed in navigating ADU-specific regulations, such as utility integration and local & state ADU laws. Remodel contractors often subcontract the design work to external architects or designers.

  • Pros: They have strong expertise in construction and project management, especially for remodels.
  • Cons: General contractors who focus primarily on remodels are often more experienced with smaller-scale projects. This background may lead to less familiarity with the specific complexities of ADU builds, such as utility integration, permitting challenges, and maximizing lot space. As a result, there can be delays or cost increases due to the learning curve involved with ADU-specific projects.

 

Design Build Construction Companies

Design build companies like Jackson Design & Remodeling and Kaminsky Design & Remodeling manage the entire process in-house. They handle everything from design to permitting to construction of the ADU. However, many of these companies focus primarily on large-scale remodels or general home construction and may not specialize in ADUs. This lack of specialization can result in higher price points and a slower overall process due to less familiarity with ADU-specific challenges.

  • Pros: Integrated approach with one team handling every aspect of the project, reducing communication gaps and ensuring cohesive execution.
  • Cons: These companies are not ADU specialists, which can lead to higher costs and slower timelines compared to firms that focus exclusively on ADUs. High overhead from showrooms and a focus on custom homes also contribute to increased overall costs.

 

ADU Design Build General Contractors

Full-service ADU design build construction companies like SnapADU and Acton ADU handle every aspect of your project in-house from concept to completion. These firms manage the design, permitting, and construction under one roof, with their own employees overseeing each phase of the project. Typically several staff are licensed in architecture, and the company holds a general contracting license. ADU design build companies are dedicated to ADU projects, allowing them to efficiently manage the entire process while focusing on the unique requirements and challenges of building ADUs. Read more about the ADU Design Build approach.

  • Pros: Full-service management under one roof leads to better project cohesion, fewer communication gaps, and a streamlined workflow. With their specialized focus on ADUs, these companies can anticipate and solve project-specific challenges. Their experience allows them to advocate for homeowners, often helping to avoid unnecessary requirements or extra costs imposed by regulatory agencies.
  • Cons: Upfront budgets may be higher than hiring separate contractors. However, the streamlined process often results in fewer delays, more accurate budgeting, and overall savings by avoiding unnecessary expenses.

 

Modular ADU Companies

Modular and prefab ADU companies like Samara and Abodu offer pre-designed, factory-built ADUs that are delivered to your property and installed. Manufactured ADUs are often faster to build than traditional, on-site construction and can be more affordable upfront. However, modular ADUs come with limitations, such as design constraints and potential difficulties with integrating the unit into your property. Read more about choosing between stick-built vs. prefab construction methods.

  • Pros: Faster build time, generally more affordable than custom builds, and fewer surprises during the construction phase.
  • Cons: Prefabricated ADUs may not blend seamlessly with the look of your main home, as the design options are often limited. Additionally, modular ADUs require easy access to the lot for delivery, making them impractical for properties with constrained or difficult-to-access spaces.

 

Which Type of ADU Company is Right for You?

The ideal ADU company for your project will depend on the size and complexity of the project, as well as how much involvement you want to have in the process. If your project is in the early planning stages or if you plan to manage the build yourself, an ADU consultant company might be enough to guide you through feasibility and initial steps. For those who want a single point of contact throughout the process but prefer outsourcing the work, an ADU management company could be a suitable choice.

For larger or more complex projects, a full-service ADU design build company is often the best choice. This approach provides a cohesive experience, with everything handled by a single team for a streamlined process. These companies provide an integrated service that eliminates coordination gaps and typically leads to a more efficient, cost-effective project overall.

Remember, ADUs are still relatively new in many regions, and local jurisdictions may interpret regulations differently. It’s crucial to work with a provider experienced in local codes and who can advocate on your behalf when challenges arise. In many cases, experienced ADU companies can push back on unnecessary requirements, like excessive right-of-way work, potentially saving you significant costs. Choosing a provider who understands how to navigate these complexities can make all the difference in your project’s success.

Top Questions to Ask to Find the Best ADU Companies

To ensure a successful ADU project, it’s important to choose from the best companies that specialize in ADU design and construction. Here’s what to ask and look for when selecting the right ADU company near you:

ADU Specialization and Expertise

Can you show me examples of ADU projects you’ve completed? How familiar are you with the type of ADU I want to build, whether it’s a new build, conversion, or addition? How do you ensure that your team has the expertise and resources to manage the complexity of my project?

The world of residential contracting is diverse, from large-scale builders to smaller remodeling services. It’s essential to find a contractor that fits your project’s expertise and scale. Building an ADU involves navigating intricate regulations and processes. Hiring a company very familiar with potential challenges can save both time and money. A smaller or less experienced contractor might struggle with the complexity of ADU projects, leading to delays and increased costs.

Proven Track Record & ADU Portfolio

Can I see a portfolio of your past ADU projects? Do you have reviews or testimonials from past clients? Are these reviews specifically related to ADU projects?

Your potential ADU company’s portfolio is a gold mine of information. This gallery of past ADU projects will provide insights into the aesthetics and quality of the company’s work, demonstrating their execution competence from concept to build-out. Given the privacy and liability concerns tied to ADUs (since they are situated on occupied properties), a majority of reputable builders may not offer onsite visits. In such cases, look for detailed portfolios, virtual tours, and reviews from previous clients. Look for a contractor who is proud to showcase their accomplishments, as this is indicative of their confidence in their work and their commitment to transparency.

Local Experience in ADU Construction

How many ADU projects have you completed in this jurisdiction? What have been some of the biggest hurdles with local requirements & processes? What was the most unexpected item that has come up during inspections?

Every city has unique regulations that will affect your build, and your contractor should be able to provide insight as to what those are. Many companies will have resources available on the internet to help homeowners gain a better understanding of what a build might look like. However, when it comes to beginning a project, your contractor should be highly familiar with the intricacies of your jurisdiction’s ADU regulations.

Be aware of all the major requirements from the city and/or hire a company that will be accounting for these factors (e.g. will you need to upsize water meter, will you need a building location survey, has the ADU been designed to swiftly pass permitting etc).

Transparent Pricing

Can you provide a detailed and transparent quote for my ADU? What’s included in the scope of the project, and what additional costs might arise? What are the responsibilities that fall on me, and what is included in your services?

Hidden costs can take the joy out of your ADU project. Avoid ADU companies who won’t provide pricing information during early conversations or directly on their website. This can be a sales tactic to keep prices lower. Or this could be a genuine oversight because the company simply doesn’t know the full scope and expected costs for your ADU. Consider a builder that is honest with you about the full pricing up front. Additional sitework costs will eventually come up whether or not your contractor anticipates them. Find a contractor who informs you of the true project cost upfront so you can plan accordingly.

Visible Project Timeline

Can you outline a realistic timeline for completing my ADU? How long have similar projects in my jurisdiction taken, and what potential delays should I be aware of?

A good contractor will know what to expect for the timeline to build an ADU of the size you want, in your jurisdiction, and on your particular property. An ADU will take at least 10 months to design, permit, and build, and often much longer. A good builder won’t lure you with unrealistic estimates, but instead, will keep you informed about the project’s phases and their respective durations.

Clear & Consistent Communication

How do you communicate throughout the project? How often will I receive updates? Do you use project management tools to help me track progress?

A responsive contractor is a gem. If you find communication challenging even before signing a contract, consider this a red flag. Communication rarely gets better after the sales process, the time when a company puts their best foot forward. Also ask how the company handles their project management throughout the build, as well as their communications with you. If you can track your $12 Domino’s pizza in real time, you should be able to track your $400K ADU project live, too.

Payment Structure Aligned with Project Milestones

What does your payment schedule look like? Do payments align with project milestones? What can I expect for your invoicing process?

Reputable ADU companies will have a clear and reasonable payment schedule that aligns with project milestones. It’s normal to make progress payments throughout the pre-construction process as design work, coordination, utility planning and material ordering are completed. It’s important that the payments are tied to tangible progress, such as completing work products like construction documents. Establish these payment milestones in writing early in the process. Both parties should understand the phases at which payments will be made. This ensures the financial aspect of the project runs as smoothly as the construction itself.

Written Warranty Policy

What type of warranty do you offer? How long does it cover both cosmetic and structural issues? Can you give me examples of how you’ve addressed warranty claims in the past?

You want your ADU completed on time and on budget, but you also want to know the contractor will stand behind their work even after they’re finished. Sometimes issues can pop up after the job’s done, so how your contractor handles those can really matter. For instance, a reputable contractor typically provides a 2-year warranty covering any cosmetic defects that aren’t a result of standard wear and tear or the homeowner’s neglect. Additionally, they may offer a 10-year warranty against any structural flaws resulting from failure to comply with approved plans and specifications. This kind of warranty policy safeguards your investment and peace of mind.

Proper Licensing and Insurance

Can you provide proof of your general liability insurance and workers’ compensation coverage? Do you work with licensed subcontractors?

This is a given. In cases where thousands of dollars are going to be spent on a new guest house, your builder must have the correct certifications and training to carry out your job safely. Many companies will display their general contracting license number on their website or business profile. You can also check a license online for California. They should also carry general liability insurance and workers compensation, as well as provide lien waivers. It’s equally important that all subcontractors are licensed, as some contractors may try to cut corners in this area.

Trusted Reputation and Reviews

Can you provide recent reviews from clients with similar projects? Are you a member of any local trade organizations, such as the Chamber of Commerce, Builders Industry Association or other professional associations?

Good reviews can speak volumes about a business. Also consider the quality and color of the reviews. How the contractor overcomes difficulties is extremely important, as construction is often dealing with the unexpected. ADU construction companies endorsed by locals and organizations alike show that they are recognized experts, which can give you peace of mind about your investment in your new ADU. Belonging to professional groups indicates the company has its operations organized enough to meet industry standards and actively contribute to the local business community.

Red Flags to Watch Out for in ADU Companies

Choosing the right ADU company is critical to the success of your project. However, not all builders are created equal. Here are some red flags to watch out for when selecting an ADU construction company.

Limited Knowledge of Local Regulations

Lack of Expertise in Local Codes: ADUs must comply with specific local regulations. Providers who are not well-versed in local building codes and permitting processes can cause delays and incur additional costs. Look up your local ADU regulations.

Lack of Specialization

“We Do It All” Approach: Be cautious of contractors who claim they can do everything. Building ADUs requires specialized knowledge and experience. Look for builders who have completed dozens of ADUs and have a deep understanding of the unique challenges involved.

Unwillingness to Share Portfolio

Limited Portfolio or Few References: A reputable ADU company should be proud to showcase their work. If a company is hesitant to share their portfolio or provide verifiable client testimonials, it’s a major red flag. See our ADU projects.

Unclear Pricing and Unforeseen Details

Lacking Detail in Bids: Beware of companies who provide vague or overly simplistic bids. Detailed and specific estimates are crucial for avoiding unexpected costs and ensuring transparency. Brush up on what to expect for your ADU costs so you know what to look for in bids and can hold your providers accountable.

Large Deposits

Asking for Excessive Money Upfront: A red flag is when a contractor requests a large deposit before starting work. While a small deposit is standard (up to $1,000 in California by law), asking for a substantial amount may indicate financial instability or lack of trust. Reputable ADU companies will align payments with project milestones, ensuring you only pay for completed work.

Unrealistic Timelines

Overly Optimistic Estimates: If a builder tells you the project will be a breeze and can be completed in an unrealistically short timeframe, they likely don’t understand the complexities involved. A well-informed ADU construction company will provide realistic and achievable timelines. Read more about how long it takes to build an ADU.

Ambiguous Process

Uncoordinated Workflows and Partnerships: Some builders claim to partner with architects and other professionals but lack proper coordination. This can lead to miscommunication and inconsistent service. Opt for ADU companies with clear processes and in-house resources to ensure a seamless project experience. Learn more about our project management.

One-Man Band

Limited Resources: While it’s nice to know who you are dealing with, a small operation often lacks the resources to manage large projects like an ADU effectively. This can result in delays, subpar workmanship, and a lack of experience in overcoming hurdles. Choose a builder with an established team to ensure comprehensive support and expertise. See the SnapADU team.

No Warranty or Poor Warranty Terms

Lack of Warranty: A reputable ADU building company should offer a clear and comprehensive warranty for their work. If the warranty terms are vague or not easily accessible, it’s a sign that the builder may not stand behind their work. See more about our warranty.

Negative Reviews and Limited Track Record

Lack of Online Reviews: Perhaps this goes without saying, but a builder with many negative reviews or limited track record should be approached with caution. Look for construction companies with positive feedback and a strong reputation in the community. Hear interviews with SnapADU clients.

By being aware of these red flags, homeowners can make more informed decisions and choose an ADU company who is reliable, experienced, and committed to delivering high-quality results.

Key Steps to Evaluating Top ADU Companies San Diego

Finding the best ADU company in San Diego requires a thoughtful approach. Here are some expert tips to help you make an informed decision:

1. Conduct Thorough Research

Start by researching ADU companies near me online. Look for reviews, testimonials, and portfolios to get a sense of their experience and quality of work. Seek out ADU companies San Diego with a proven track record of success in the area. A company with a solid online presence and positive feedback is often a good sign that their overall operations are running smoothly. Look for client testimonials and online reviews on websites like Google, Yelp, Houzz, and Better Business Bureau.

2. Schedule Multiple Consultations & Compare Bids

Meet with several ADU construction companies to discuss your project. This will give you a better understanding of their approach, communication style, and professionalism. It also allows you to compare different perspectives and quotes. You’ve likely heard it’s wise to secure 2-3 bids on a project. If one bid is much lower than the rest, double check that there are no key components missing from the bid (plan submission & permit processing? sitework and utilities? any required solar? has each handled finish materials consistently?). A good contractor should want to minimize surprises so that clients are happy with the experience and want to refer others. Read more about how to compare ADU quotes.

3. Evaluate Communication & Project Management

One of the hallmarks of the best ADU companies is clear and responsive communication. Inquire about the ADU company’s project management process. A reliable builder should have a clear and organized process, be able to explain each step, and use project management tools like Buildertrend to keep you, their subcontractors and team informed. They should also be able to clearly articulate a detailed scope of work for your project, including the nuances for your specific lot and exactly what finishes are included.

4. Verify Builders’ Credentials

Ensure the ADU construction company is licensed, insured, and bonded. Check their credentials with local licensing boards and verify their insurance coverage to protect yourself from potential liabilities. Additionally, confirm their experience specifically with ADU projects, as this specialization can significantly impact the smoothness and success of your project. Check a License – CSLB.

5. Read the Fine Print

Carefully review the contract details. Ensure it outlines clear payment milestones, explains what is and isn’t in scope, and includes any necessary studies – such as site evaluations and utility mapping – that will finalize pricing in later phases. Your agreement should also explain how the contractor will handle change orders or unexpected costs during construction. Understanding all terms and conditions upfront will help protect your interests and prevent future disputes.

Why Local ADU Companies Near Me Are a Smart Choice

Opting for local ADU construction companies near you is typically a good idea, especially when building in areas like California with extensive regulatory & building requirements. A local ADU company understands the region’s specific regulations, potential challenges, and nuances of the permitting process. Moreover, they are likely to have strong relationships with local suppliers, inspectors, and subcontractors, which can contribute to a smoother project.

Building an ADU is a significant investment, and working with a trusted ADU company is the key to a successful project. By choosing one of the best ADU companies San Diego, you can ensure that your project stays on budget, complies with local regulations, and is completed to the highest standards.

Start by researching ADU companies near me, evaluating their experience, reputation, and communication skills. With the right ADU building company on your side, your project will be completed efficiently, on time, and within budget.

Home Builder Digest has put together a list of The 11 Best Accessory Dwelling Unit Builders in San Diego, California.

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  1. Certifications and training are crucial because they ensure that the builder has the necessary knowledge and skills to handle the job safely and efficiently. It’s always a good practice to check the builder’s general contracting license number to verify its authenticity. This can be easily done by visiting their website or business profile, as mentioned in the article.

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