What key concept does “due diligence” refer to in residential construction?

Due diligence in residential construction refers to the responsibility to investigate potential issues before starting a project. This crucial process involves researching various aspects that could impact the project's success, such as site conditions, zoning laws, environmental concerns, and financial stability of suppliers or subcontractors. Conducting due diligence helps builders identify risks early on and allows for informed decision-making, which can prevent costly problems down the line. Properly executed due diligence is a fundamental practice that not only protects the interests of the builder but also ensures compliance with legal and safety standards, ultimately leading to a smoother project execution.