A.     Decide which log home company you will partner with.  We understand that you have a choice in log home manufacturers, and we thank you for considering Tennessee Log Homes.  You'll soon see why we're The Natural Choice.TM  In fact, in the last two years, over 96% of our customers say, in writing, that they will, or probably will, recommend Tennessee Log Homes to their own family and friends.  We think this is the best customer service record in the industry.  We also lead the way in best standard package, best component quality, best manufacturing precision, and best operational methods. B.     Locate your sales representative and begin a relationship with this person.  We feel we have the most qualified and best trained sales rep.s and support staff in the industry.  You can bet that these people will work very hard for you, before, during and after the sale is made.  Selecting a design, arranging builders, contractors and financing can all seem a little intimidating. That’s where we come in. We sort through all the details with you, helping with the design and engineering of your home, referring you to competent contractors, and providing expertise to guide you through the financial maze.  Let your sales rep. help you through the rest of the process. C.     Determine what you can afford, secure financing and develop a budget.  How much can you spend on the total project?   We will discuss financing in detail later in the program and will give you opportunity to meet with our mortgage company representatives.  You can also discuss the matter with your sales rep.  We include the point here as a reminder that financing must be secured early in the pre-construction period.  You must know what you can afford and how much money you will have access to. D.     Choose a house plan.  You will need to refine your choices of house plans based on your budget, your family needs, and the topography of the land.  Your sales rep can discuss options that may help your plan better fit your budget .   We have over 250 plans on our website and thousands more in our archives.  Our pre-designed standard home plans may be perfect for you, or we can modify them until we’ve got them just right for your needs. Or how about that plan in the magazine you liked or your sketch on the dinner napkin?  Standard plans, custom plans, your plans, our plans.  No problem!  E.      Get Estimates on your plan.  If you would like a free estimate on your custom plan, or on a modification of one of our standard models, simply discuss it with your sales rep.  We do hundreds of estimates per month and can deliver very thorough documentation of the estimate via the web.  The estimate will include a written description of all items in the package being quoted, an itemized listing and even a Purchase Agreement.  Estimates are handled by Stan Harris, 1-800-251-9218, ext.14, sharris@tnloghomes.com and Bill Ramsey, bramsey@tnloghomes.com, 1-800-251-9218, ext. 22. F.      Prepare a general Turn-Key Estimate to make sure the plan fits your budget.  We have included a Turn-Key Estimate Worksheet as a general guide to help you develop an estimate of how much the total project will cost. G.     Sign a Purchase Agreement.  Once the design, package and price are close to what you want, we will prepare a Purchase Agreement.  A deposit is required, and we will need to know your plans for payment and an estimated delivery date. H.     Begin developing your blueprints.  Once the Purchase Agreement and deposit is received, drafting work is initiated in the Tennessee Log Homes Design Center.  An initial drawing of your plan will be made and sent to you via email, fax or U.S. mail for your review.  Only floor plans and elevations will be sent until plans are finalized.  You may mark the plans for changes as you like and send them back to the Design Center for revision.  You may call Dianne Wilson toll free at any time for discussion at 1-800-251-9218, ext.25.  Dianne’s email address is dwilson@tnloghomes.com .  Dianne’s staff includes Mary Beth Smith, mbsmith@tnloghomes.com and Jackie Hensley, jdhensley@tnloghomes.com. I.        Re-estimate the package price based on the changed plans.  Keep in mind that changes to your plans may also change the package price.  For instance, if you change a double window to a six-foot door, the price will go up.  A six-foot door costs more than a the double window.  Once your plans are finalized, a final package price can be determined.  If necessary, a Purchase Agreement Amendment will be drafted to address the changes in materials and price.  Greg Gibson generally handles estimates at this point in the process.  He can be reached at ggibson@tnloghomes.com or 1-800-251-9218, ext. 39. J.       Bring your deposits up to 50% or provide a Bank Letter of Credit.  This should be done at least 45 days before the desired delivery date.  You will be corresponding and talking with Deloris McKeehan throughout this process.  Deloris handles all scheduling and coordinates, monitors and reports your progress to the rest of the company.  She can also provide helpful advice along the way.  Deloris may be reached at 1-800-251-9218, ext. 27, or by email at dmckeehan@tnloghomes.com . K.    Once blueprints are approved and deposits reach 50%, the Design Center will prepare your Final Construction Documents.  This set of blueprints will include the following components: Floorplan for each floor Door and Window Schedules Elevation for each side of the structure 3D Perspective View (2 corners) Foundation Plan Second Floor Framing Plan Roof Framing Plan Sectional Views of Roof Framing Log Wall Layout Construction Notes Construction detail of typical wall Construction detail of special features Electrical plan (prepared by electrical contractor) Plumbing plan (prepared by electrical contractor) Heating plan (prepared by HVAC contractor) How many copies you will need: a)      Master set of plans (generally held by architect or designer) b)     Set for building permits. c)      Set for subcontractor submitting a bids (e.g. plumber, carpenter, electrician, etc.) d)     Set for the lending institution e)      Set for owners f)       Set to keep on job site for inspectors L.      A Materials List and Manufacturing Order is developed using ArchiCAD and Greg Gibson, and your package moves into the manufacturing and assembly stage of production.  This part of the process is carried out at the facilities of our sister company, Timber Tech, Inc.  You’ll meet the Jones family and their staff later in the day.  The Tennessee Log Homes contact at the manufacturing plant is Joe Washington, jwashington@tnloghomes.com, 423-745-5725.  Joe coordinates the logistics of the delivery and oversees the shipping process. Other pre-construction activities that usually run concurrently with the aforementioned activities are listed below: Survey And Plot Plan Once you have purchased your land, determined any and all zoning requirements (codes, covenants and restrictions) incumbent on the land and developed your house plans accordingly, you are ready to prepare a survey and develop the plot plan.  The plot plan generally will include the following: 1.      Compass direction showing north 2.      Boundaries of the property lines and their distances 3.      Lot corners Location and dimensions of easements 4.      Location and dimensions of the house, garage, carport, and any other buildings 5.      Location and dimensions of walks and driveways, steps, porches, etc. 6.      Scale of the drawing 7.      Description of the lot and section number 8.      Location of existing trees (optional) 9.      Location and dimensions of water and sewer lines, gas, electric, telephone and TV cable service (optional) 10.  A benchmark or elevation point from which the finished floor elevations, etc. can be calculated (optional) N.    Subcontractors Locating reliable subcontractors, learning local trade customs, and securing bids may require a good deal of time.  While this may be new to you it is a common everyday occurrence in the industry.  Here are some tips and suggestions. 1.      Locating a reliable contractor a.       Ask your log home producer or dealer b.      Check with local homebuilder’s association c.       Check with local building supply houses d.      Check with a local bank’s building department e.       Check with local Chamber of Commerce f.        Check with your local Better Business Bureau g.       Check with subcontractors in other trades h.       Check with family, friends, etc. i.         Ask general contractors for recommendations j.        Contact subs working on larger projects k.      Use newspaper ads, telephone books 2.      Determining the “quality” of a subcontractor a.       Contact references where they have worked b.      Visit a job site while the subcontractor is at work and talk with his crew; determine if they are knowledgeable, permanent employees c.       Consider the subcontractor’s personality.  Is he friendly, knowledgeable, helpful, open to your suggestions? d.      Are his prices in line with the quality of his workmanship? e.       Are his prices competitive? 3.Developing a subcontractor file a.       On file cards, note the subcontractor’s pertinent info, name, address, etc. b.      Note personal comments, impressions, etc. c.       Add subcontractor’s comments, suggestions, prices, etc. d.      Add dates your requests for quotes are sent out e.       Add dates the return bids are received 4.Meet With Subcontractors And Secure Bids a. Obtaining bids b.Meet with subcontractors (at building site, if possible) c. Provide set of blueprints and specifications sheet d.Discuss work in detail, especially points which are important to you e. If different from specifications, get a clear explanation of how the subcontractor proposes to do the work f.  Make certain the bid fully explains all costs, all work to be done, time frame, charges for extras, detailed specifications, etc. g. Let the subcontractor know exactly when and how payments are to be made h. Let the subcontractor know others are bidding on the job.  Be honest with them if you are expecting them to be honest with you. i.   Get all bids in writing j.  Review bids with the subcontractor; ask him to write in any points you discuss while reviewing bid k.Contact each bidder and let them know when you have made a final choice l.   Make certain you spend all the time you need to get the best quality subcontractors; it is time well spent m.    Sign contracts and enter firm figures on your budget sheet n. Make a copy of every bid for your bank loan file; the lending officer will generally ask to see bids O.    Building Permits You will need to obtain certain permits before you can begin to build or even move into a finished home.  Here is a list of the permits, which are generally required, and the steps necessary to obtain them: 1.      Building Permit This is the general building permit obtained by you or your builder.  To obtain this permit, you must present to the local building department a set of building plans (blueprints) plus a copy of a certified plot plan by a registered surveyor.  The cost of a building permit is generally based on the size or square footage of the building or its estimated cost.  The permit is usually good for a prescribed period of time after which it must be renewed.  This permit generally covers the excavation, footings, foundation, masonry, rough framing and finish carpentry.  An inspection is required at the completion of each of these phases of work, as well as work covered by other permits. 2.      Plumbing Permit Since many localities require that licensed plumbers complete plumbing, they usually obtain this permit as part of your contract with them.  The cost of this permit is usually based on the number of fixtures to be installed.  Installed piping must be inspected before it is concealed. 3.      Electrical Permit (HVAC) The heating and air conditioning contractor usually obtains this permit as part of your contract with them, unless the heating system is included in another permit.  A hot water system, for example, may be included in the plumbing permit, a gas or oil forced-air system in the general building permit or an electric heating system in the electrical permit.  The cost of this permit may be based on the size of the heating equipment or on a flat fee.  All work must be inspected before any part is concealed. 4.      Occupancy Permit Many communities require that you receive an occupancy permit before you move in.  You or your builder obtain this permit.  The building inspector and other inspectors make a final inspection to insure that all construction under their jurisdiction is installed and operating in good order, and that all work conforms to requirements of the local building codes.  The cost of the occupancy permit varies.  Determine in advance if the permit cost is included in the general contractor’s bid, or if it is an extra charge. 5.      Other Permits There are a number of additional permits that are sometimes required by various communities.  It is a good idea to meet with the building official when you apply for your general building permit.  Review your plans with him and ask if there are any additional permits required.  A partial list would include: a.       Septic system permit b.      Road or bridge permit c.       Zoning permit d.      Well drilling permit e.       Access permit f.        Grading permit g.       Coastal commission permit h.       Flood control permit i.         Tree cutting permit j.        Energy code permit 6.      Percolation Test A percolation test is needed to determine if, and at what rate, your soil will absorb water.  If you intend to install a septic system, you will need a “perk” test.  This test if often made at the time the land is purchased.  Other times, the “perk” is made by the building inspector prior to issuing a building permit. 7.      Temporary Utilities and Services You will need to provide for temporary utilities before you begin construction.  Be sure to contact all utilities and services well in advance. Here is a list of the services you will need: a.       Electrical service                                                               i.      Contact the electric company for installation information 8.      Water service a.       Public water:  arrange for tap, installation of meter and spigot b.      Private water:  install your well before the start of construction or arrange for water delivery and storage 9.      Telephone service a.       Contact the telephone company for installation information 10.  Toilet facilities a.       Contact a portable sanitation equipment company for information 11.  Sewage facilities a.       Contact your public utility, or install your septic system P.      Insurance Coverage As an owner-builder, you will need certain types of insurance to protect you, your employees, and property during the construction phase of your home.  If using a general contractor, verify his coverage.  We recommend you review your plans with an insurance agent.  Here are the types of coverage you should consider: 1.      Title insurance:  coverage to guarantee that ownership of the property is as stated in the deed 2.      Public liability:  coverage to provide protection from the public for injury at the construction site 3.      Builder’s risk insurance:  coverage for damage to the property and the home while under construction caused by fire, wind, theft, vandalism, etc. 4.      Workman’s compensation:  coverage to guarantee compensation for any contractor or worker who is injured while working on your home.  This includes persons you employ, as well as friends who may be helping you and working without pay 5.      Vehicle and equipment insurance:  coverage for any vehicles or equipment used in the project 6.      Bonds as may be required by the lender or licensing and inspection authority Q.    Time Plan – Schedule Contractors And Suppliers 1.      Each of us has a set of priorities and responsibilities that will govern the pace at which we build our log home.  If subcontractors are doing the work, they will want to know when they are scheduled to begin their work and when they are expected to have the job completed.  Suppliers will want to know when to deliver their materials.  Therefore, it is important to develop a schedule for completing your project.  This schedule must be realistic.  You should always build into your schedule enough extra time to allow for any contingencies.  R.     Here are general chronological outlines of pre-construction-construction schedule to give you an idea of what is involved.  Sample Pre-Construction Schedule and Time Plan: 1.      Week 1 Prepare time plan and budget 2.      Week 2 Develop house plans 3.      Week 3 Arrange for survey, plot plan 4.      Week 4 Arrange for financing 5.      Week 5 Develop list of subcontractors 6.      Week 6 Meet with subcontractors, secure bids 7.      Week 7 Arrange for insurance 8.      Week 8 Secure permits 9.      Week 9 Schedule contractors 10.  Week 10 Begin construction Begin Construction - You are now ready to being with the actual construction of your new log home. Acknowledgements Log Home Living Seminar Workbook, © 1995, Log Home Living Seminars, Inc., St. Louis, Missouri. Tennessee Log Homes Construction Guide, © 1997, Tennessee Log Homes, Inc., Athens, Tennessee.

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