“Superior Craftsmanship Matched with Exquisite Taste” Building a FINE CUSTOM HOME in Greater Victoria

2019 & 2020 CHBA, Vancouver Island, “Builder of the Year”

Inside your Custom Home Build Package Estimate Please take a moment to read through your Custom Home Build Package Estimate. You will find several different sections outlining your Custom Home Building Experience offered by the LIDA Homes Team.

Table of Contents Section 1........................................................................................................ 2 A Letter from our President Dave Stephens. Section 2 ....................................................................................................... 4 The LIDA Homes Proven Process and your Custom Home Experience. Section 3 ....................................................................................................... 6 The LIDA Homes Standard Building Practices. Section 4 ..................................................................................................... 10 LIDA Homes and client expectations. Section 5 ..................................................................................................... 18 Your Estimate.

A LIDA Homes Custom Home… is more than a house. It is a home package representing our best recommendations for you and your family, our proven building practices developed from over 26 years of building experience and backed by a promise of complete transparency. We hope you enjoy it and we look forward to building you a beautiful home

“The Pursuit of Complete Customer Satisfaction”

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2019 & 2020 CHBA, Vancouver Island, “Builder of the Year”

Section 1 LIDA Homes Inc. Thank you for considering LIDA Homes as your builder of choice. We are Victoria’s premier custom home construction company, featuring award-winning craftsmanship and a promise of complete transparency. In a sea of sameness, it’s my belief that LIDA Homes stands out among Greater Victoria home builders. With over 250 homes built in Greater Victoria, I’m proud to say that our Core Values and Purpose define who we are and what we do. They are the litmus tests through which we make every decision. We believe that delivering an exceptional experience and a consistent outcome requires a highly refined process; a process that protects our clients considerable financial and emotional investment. As stewards of your investment – which is often the culmination of a lifetime of hard work – we’re passionate about fiscal responsibility. Our systems and processes ensure you are in complete control of your number one investment in life. Our name and our relationships are important to us, as this is where we live and raise our families. So, while other builders talk about warranties, we focus on doing what’s right. If we get something wrong, we’ll fix it. It’s that simple. We are fortunate to be recognized with many local, provincial, and national construction of excellence awards. We have also been featured in many of the city’s high-profile magazines and in local television spots. However, our greatest joy is found in discovering your meaning of a home and turning your dream into a reality. It would be my sincere honour to help bring your vision to life. Sincerely,

Dave Stephens Principal & President

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LIDA HOMES

“The Pursuit of Complete Customer Satisfaction”

2019 & 2020 CHBA, Vancouver Island, “Builder of the Year”

Dave Stephens Dave has been building homes for over two decades. He has been featured on CHEK TV’s “Trend” speaking and educating the public about the construction industry. Dave is truly committed to the home building industry and is passionate about professional development for himself, his team, and the construction industry. He is the Vice President of the Canadian Home Builders Association (CHBAVI) and Past President of the National Association of Home Builders (NAHB), Cornerstones Builder 20 Group. He is proud to head a company that has been recognized by the CHBA, Vancouver Island, as “Builder of the Year” 2019 & 2020 as well as “Customer Service Builder” 2020! Dave fosters an inclusive and enjoyable work environment for his team and a happy client at a project’s end brings a smile to his face. He enjoys travelling with his wife, Lisa, reading, working out, and yoga. He has three children – Gareth, Conner and Travis.

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Section 2 The LIDA Homes Proven Process

The LIDA Homes

We know from our years of experience that an organized construction process and clear transparent comunication combined with a relentless commitment to customer service is the key to a successful custom home build experience.

We know from our years of experience that an organized construction pr commitment to customer service is the key to a succe

CONSULTATION

COLLABORATION

CONTRACT & DESIGN

• Team LIDA Homes • Due Diligence • Mutual fit? • Project Management Software

• PSA • Prepare Plans • Value Engineering • Bidding & Estimating

• Contract • Integrated Design Process • Energy Modelling • Building Permit • Interior Design • Budget & Schedule

Why us

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Construction of Excellence Our Interior Design Team and Construction Operations Team work seamlessly together which has allowed us to win many CHBA Local, Provincial, and National Construction of Excellence Awards.

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“The Pursuit of Complete Customer Satisfaction”

Transparent Build Process You will see all of our trade partners invoices in the LIDA Homes Project Management Software.

s Proven Process

rocess and clear transparent communication combined with a relentless essful custom home build or remodeling experience.

CONSTRUCTION • Kick-off Meeting • Purchase Orders • Quality Inspections • Envelope Engineer • Weekly & Monthly Meetings

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COMPLETION • Possession Date • Systems Orientation • Zero Deficiency List

Integrated Design Process We Collaborate and Value Engineer with all key stakeholders, clients, and trade partners from design to completion.

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CONTINUING CARE • 2-5-10 Home Warranty • 3,6, & 12 Month Check-Ins

Our Culture ROCKS! Our business management operation system is EOS Traction which focuses on instilling discipline and accountability throughout the company. LIDA HOMES |

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2019 & 2020 CHBA, Vancouver Island, “Builder of the Year”

Section 3 Standard Building Practices & Techniques It is no accident that we have been in business since 1998. It is a direct result of the importance we place on sustainable business practices. We build for people who plan to live in their home for years to come. People who care about things like quality materials, craftsmanship and proven building practices. People are reassured by knowing we partner with our trades and vendor partners who share our commitment to building value that lasts.

Regularly Scheduled Meetings Pre-construction meeting with your construction team Interior Design Meetings with your interior designer Monthly site, budget, and schedule Meetings with your project manager Scheduled site walk through(s) Warranty 3.6.12/2.5.10 • Completion Deficiency Walkthrough • Completion Deficiency Walkthrough # 2 • Post-Construction 3 Month Review – Project Manager Walkthrough • Post-Construction 6 Month Review – Project Manager Walkthrough • Post-Construction 12 Month Review – Project Manager Walkthrough

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“The Pursuit of Complete Customer Satisfaction”

2019 & 2020 CHBA, Vancouver Island, “Builder of the Year”

Neighbour Care Prior to construction we introduce ourselves to your neighbours and provide them with our contact information. We want to ensure every part of living in your home is as enjoyable as possible. That means having friendly neighbours! Your site will be clean every day. We have LIDA Homes staff members in charge of keeping your home, property, street and sidewalks clean.

Demolition & Excavation Manage and supervise during demolition to ensure quality and safety. Ensuring hazardous materials and reports are documented with city, you, the homeowner, and us. All stockpiled material covered with poly to protect from the elements. Banks of excavation covered with poly to protect from erosion.

Building Experiences LIDA Homes hardhats provided for safety! Professional photography at the completion of your home. ¾ inch clear crush backfilled into open excavation to help keep site clean and surrounding neighbourhood clean of dirt & mud.

Site Prep Construction site fencing for security. Surveillance camera set up. 5-million-dollar liability insurance. Pacific Home Warranty Insurance protection. Pre-installed Fortis 3-inch pipe for residential gas line installed at back-fill of foundation for quick and easy access for Fortis at final gas line install. Saves time and money not having to re-dig gas lines when home is near completion.

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2019 & 2020 CHBA, Vancouver Island, “Builder of the Year”

Foundation Standards Footings and foundation walls reinforced with engineered 15 mm rebar. Basement slab and sidewalks reinforced with 10 mm steel (or steel mesh for basement slabs with radiant heat) and approximately 4” thick • to minimize cracking and any settling. • Conduit sleeves run through or across all concrete sidewalks for future electrical or irrigation runs. Three-part Foundation protection. 1. Footing drains with gravel. 2. Spray foundation with two coats of non-oil-based damp proofing. 3. Install dimple board protection membrane. Smooth finish foundation wall. Any exposed area above 8 inches going into a stair well. Voids and burrs will be cleaned up. Customer walk through prior to sidewalk form work for approved layout. Area drainage put in any areas where water can collect. Lawn, garden beds etc… All hydro and telephone pipes installed during forming and backfilling. Perforated PVC exterior drain tile and rainwater leaders with cleanout pipes in case of clogs.

Framing 1/2” plywood used for all wall and roof sheathing. 5/8” tongue & groove plywood subfloors, screwed and glued. Glue all bridging between joists and check for any missed subfloor screws to prevent floor squeaks. Reinforced backing at desired TV locations. Done at walk through after framing. For TVs and handrails etc.… Floor leveling prior to concrete and hardwood, laminate or tile floor installation. All truss work is engineered, and hurricane clips installed. All required inspections are completed as part of BC building code. Heaters in the basement of the home prior to drywall to ensure proper moisture levels. Ceiling drops to be minimized by onsite inspections and built with steel studs to minimize height of drop and future shrinking.

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LIDA HOMES

“The Pursuit of Complete Customer Satisfaction”

2019 & 2020 CHBA, Vancouver Island, “Builder of the Year”

Plumbing & Tile Kerdi membrane used in all showers with tile floors to protect from water damage. Water resistant drywall surrounding showers and bathtubs. Lawn taps all placed on insulated walls or provided with a winter shut off valve. Exterior water hose bib will be frost free if space provides. Cover all bathtubs to prevent damage and water test each drain.

Electrical Detailed electrical walk through with “As-Built” drawings provided so you can see what you have picked and for future reference if ever needed! Coaxial TV, Cat-5 Network & Cat-5 Telephone all run to Smart Box Panel. Security alarm roughed in for future ease. Wood backing for TV in all desired locations with conduit run for ease of electronic wiring.

Finishing – Interior and Exterior Door jambs constructed out of finger-jointed wood. All cabinets provided with soft close doors and drawers. Ceilings all completed with a smooth finish and painted white. All finishing details prepped and custom cut on site rather than pre-manufactured. During construction, all floor is covered with a special floor cover to ensure your floors are protected. Grading and landscape drains. All interiors of windows sealed with backer rod and caulking. All interior walls to be painted with a durable, family friendly washable paint. Anti-fracture membrane under all floor tile work on concrete. All ducts power vacuumed to ensure cleanliness of your HRV and mechanical system. Proof of our unwavering commitment to communication in general, and listening in particular, is everywhere from our daily interactions with you, the client, but also with our colleagues, trade and supplier partners to ensure the best building practices and products are used in your new home.

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2019 & 2020 CHBA, Vancouver Island, “Builder of the Year”

III. How often does LIDA Homes communicate with me? The Project Manager will upload a “Weekly Update” document into our project management software that will cover budget, schedule, on site work this week and on site work next week, any change orders, and interior selections. Interior Design / Project Support will communicate with you on as needed basis.

Staffing I. How many LIDA Homes employees will be on my job? It varies. At a minimum you have a Project Manager and Interior Designer/Project Support that is dedicated to your job. The schedule may be such that they are not always required on site and will only be there to check on the job as needed. When a full crew is required that will typically be two to four people. We have learned that two to four people can work very effectively and efficiently. Once you go above four people the Project Manager must turn into a full-time manager, and this isn’t very efficient. It adds a tremendous amount of management time.

II. Will LIDA Homes employees be on my jobsite every day? No. Only as required. It is worth noting that sometimes the schedule works out in such a way that we cannot always staff every job with the ideal number of employees. To retain excellent staff, we need to run multiple jobs at once and there are always a couple times a year where we get stretched thin. We work hard to prevent this, but it is possible.

III. What holidays do you observe? We observe all statutory holidays. Our employees will take additional time off around these holidays as well.

IV. What is your vacation and sick policy? We provide paid sick time. We also provide and encourage our employees to take vacations. Please note this will likely happen during your project. This applies to all management and field staff.

Schedule I. How accurate is your Project Management Software Schedule? Our Project Management Software gets updated on a bi-weekly basis by the Project Manager. That said, it is a living document and is in a continual state of change.

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2019 & 2020 CHBA, Vancouver Island, “Builder of the Year”

II. When will the project be finished? You can move in once we have received final occupancy and a final walk through has been performed, but not before. We have learned that if a final walk through is not performed it becomes impossible to determine how much actual work is left and what has been damaged by movers, kids, dogs, etc. during occupancy. Please, do not schedule major life events such as weddings, birthdays, holidays, anniversary parties, graduation parties, etc. based upon an anticipated move in date. You will likely be overly excited to move in at the end, but it is critical that the necessary time is taken to complete all work to a high quality.

Change Orders I. Can I make changes to my project with field staff, subcontractors, or suppliers?

No. All changes need to run through the Project Manager or Interior Designer if the change is a selection.

II. How do I make changes to my project? Contact your Project Manager or Interior Designer. If the change in scope requires a change order, then we will calculate the cost of the change order and add it to our Project Management Software for approval. Once payment has been received, we will proceed with the Change Order.

Emotions I. Is building or remodeling an emotional experience for most people? It certainly can be. We work hard to plan and manage our projects in such a way that we prevent difficult scenarios as much as possible. That said, despite our best efforts, this is a challenging industry, and it is highly likely that something will happen that triggers an emotional response during construction.

II. What emotions might I experience during my project? We promise that you will experience a variety of emotions during your project. Below you will find a general guideline on what you may experience • Selection of contractor and architect. Excitement, trepidation, anxiety. • Planning. Depending on what making decisions is like for you this will vary between joy, boredom, and anxiety. • Permitting. All time low. Lots of time, energy and money have already been spent with no physical work to show for it. • Start of construction. All time high.

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LIDA HOMES

“The Pursuit of Complete Customer Satisfaction”

2019 & 2020 CHBA, Vancouver Island, “Builder of the Year”

• Excavation, concrete, and framing. Lots of visible progress so the high continues. • Rough in. Excitement starting the lessen. Site walks required, lots of different subcontractors are involved during this phase. The house does not change much and lots of money is being spent on stuff that you don’t see in the end. • Drywall and paint. Is this over yet? Why isn’t this happening faster? • Finishes. Cabinets, flooring, tile. Excitement is increasing. Patience for completion is decreasing. Why isn’t this happening faster? • Finishes. Nearing completion. Excitement to be done extremely high. Patience at an all-time low. • Completion. We love LIDA Homes but get out of our house already. This is historically an exceedingly difficult time for clients to be patient, but it’s critical for the proper completion of the project.

III. Will everything go perfect on my project? Maybe, but probably not. Completion of a custom home typically takes between 30 and 50 different companies and suppliers, as well as their employees. Chances are that you will feel frustrated at some point during the build. When this happens, please remember that we will find a solution to the situation, communicate with you, and move forward. Unfortunately, this is just part of the process.

IV. Will I always be happy with Lida Homes? That is the goal, but probably not. If you are frustrated with us, please let us know. Every project has its own unique challenges and every client has their own communication style. If you let us know what is going on, then we can work to improve the situation.

V. Can you give me an example of a scenario that could delay the project? Caused by subcontractors • The electrician is scheduled to start work on Monday. Over the weekend their kid comes down with food poisoning. They are required to stay home for two days. This delays the project two days. • The plumber is scheduled to start on Monday. They have 10 employees and have 46 active projects It just so happens that 34 of those projects happen to require work on the same week. They have the capacity to properly take on 10 projects. In this scenario we may be delayed depending on when we got in their que. This delays the project two weeks. Caused by suppliers • Windows are scheduled to be delivered on Monday. As we get closer to the delivery we check in and they tell us that their production department cannot keep up with the demand. This ultimately delays the project 3 weeks. • A highly specialized limestone floor is requested. This has a 12-week lead time. We order enough for the project and 15% extra to protect against running out of material. The material shows up 4 weeks before we need it so we can properly check the order. It turns out that 20% of the boxes have been damaged in transport and we will not have enough material. This delays the project 8 weeks.

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2019 & 2020 CHBA, Vancouver Island, “Builder of the Year”

Caused by LIDA Homes in house labour • We have built the perfect crew schedule for the next month and all is going according to plan. That is, until one employee has a death in the family and one job finds 200 hours of rot repair that needs to get repaired right away. In addition, another job has a client add a deck that will require 500 hours of additional work. In this scenario we now have one less employee and 700 extra hours of work that we need to produce. There is no easy solution to this problem. We cannot hire high quality employees overnight, and we may not need them in a few weeks anyway. In this scenario we would be stretched thin and we would do the best that we can with the resources that we have. This does not happen often, but some version of this usually happens once or twice a year.

Builder Trend I. What is your Project Management Software and how is it used? LIDA Homes uses Builder Trend as our cloud based Project Management Software. It can be used on your PC or phone. We run your entire project in this software.

II. Do you use the messaging function on Builder Trend? We ask that all communication take place within our Project Management Software. This avoids he said she said scenario and always provides a clear reference on what was decided.

Management I. What is a stop & hold? We have created a series of key steps during pre-construction and construction. We require that various people within LIDA Homes, and occasionally the clients, sign off at key intervals. This guarantees that key details are never missed.

II. Am I expected participate in occasional site visits with subcontractors and management?

Yes we ask that you meet with your Project Manager at certain construction milestones for inspections and sign off.

III. If I need to meet with office staff will I need to schedule an appointment? Yes. We want to make sure that we have time, are prepared, and are dedicated to you. This is much easier when appointments are set.

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LIDA HOMES

“The Pursuit of Complete Customer Satisfaction”

2019 & 2020 CHBA, Vancouver Island, “Builder of the Year”

IV. What are your typical office hours? There is almost always someone at the office between 9 and 5. Of course, there are occasions where the office will be empty during this time, but it is rare.

V. What are your typical construction hours? 7:30-4. This can vary depending on the season.

VI. My friend’s neighbor’s mom’s son is a painter. Can you use them? No. We have spent years developing our list of suppliers and subcontractors. When you hire us, you are trusting us to deliver your project as promised. That is hard for us to do when we work with companies that we are not familiar or comfortable with. We are of course happy to take your recommendation and if they are an appropriate fit and can get through our vetting process then we may choose to use them. That said, we have final say over which subcontractors and suppliers we use.

Material purchases & owner supplied labour I. Can I provide my own materials? No. We are solely responsible for providing all materials for the jobsite. On rare occasions we make exceptions, but this needs to be discussed and agreed upon ahead of time in writing. If clients provide their own materials, we run into several issues. 1. Who is responsible for the warranty if something happens? Is it the homeowner who supplied the material or the contractor that installed it? 2. Who is responsible for delays in the schedule if materials are not provided on time? Even though the client may be late in providing the material we have learned that at the end of the project we often take the blame for all delays. We would much prefer to be 100% responsible.

II. I framed a couple houses in college, can I help you frame this house? No. We are one hundred percent responsible for the completion of the project.

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2019 2019& &2020 2020CHBA, CHBA,Vancouver VancouverIsland, Island,“Renovator “Builder ofofthe theYear” Year”

Cost of the project I. Will my project increase in price? Likely, yes. We have learned that almost every project we have ever done has had additional work requested by the client.

II. What kind of scenarios lead to unanticipated change orders? Excavation and concrete. We cannot see what’s under the ground. If we run into rock, blue clay, buried stumps, unmarked utilities, poor subgrade for a foundation, oil tanks, etc. then the price can increase. Poor and/or incomplete plans. If the plans are just the bare minimum to get a permit, then it is likely that there will be some design details that were missed. Extremely complex plans. If a project is extremely complex, then it is not reasonable to assume that every detail can be thought out before construction starts. Often, we find conflicting details and details that do not work as planned. When we have to start troubleshooting and coming up with new solutions this can add to the cost. Discovery of asbestos. We legally cannot remove asbestos and are required to hire an abatement company. Owners with an artist’s touch. If a client wants to make changes every time, they walk on site the project will get much more expensive and take much longer. Every change can have a ripple effect that can easily add weeks and months to a project.

III. What items typically are not included in your estimate that I need to plan on? Typically, our projects may not include landscaping, utility hookup fees, blinds, mitigation requirements, permit fees, architecture fees, associated consulting fees during the design process, etc. These can vary drastically but budgeting 10% to 20% of project costs would be wise. These will be above and beyond LIDA Homes Construction price.

Thank you, The LIDA Homes Team

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“The Pursuit of Complete Customer Satisfaction”

2019 & 2020 CHBA, Vancouver Island, “Builder of the Year”

“The Pursuit of Complete Customer Satisfaction”

LIDA HOMES |

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We look forward to working with you

lidahomes.ca | 778-440-5432