Production Builder
Also known as: Volume Builder, National Builder
A large homebuilding company that constructs hundreds or thousands of homes per year using standardized floor plans, processes, and contracts. Examples include D.R. Horton, Lennar, and PulteGroup.
Detailed Explanation
Production builders operate at scale, constructing entire communities of homes using a limited number of floor plans and standardized construction processes. Their business model depends on volume and efficiency.
The economies of scale allow production builders to offer lower prices than custom builders. However, the standardization extends to their contracts — purchase agreements are standardized, non-negotiable contracts of adhesion.
Production builders typically have in-house or affiliated mortgage companies, design centers for upgrade selections, and warranty departments. The buying process is structured and moves quickly.
In Your Contract
Production builder contracts are the most standardized in the industry. Expect a take-it-or-leave-it agreement with arbitration, class action waivers, habitability waivers, and other one-sided provisions.
Key Points
- 1Build hundreds or thousands of homes per year.
- 2Standardized floor plans, processes, and contracts.
- 3Lower prices due to economies of scale.
- 4Contracts are non-negotiable (contracts of adhesion).
- 5Most new homes in the U.S. are built by production builders.
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