TERMEER CUSTOM HOMES

In 6/2012, I contracted with John Termeer of Termeer & Associates (who also goes by Termeer Design Group and Termeer Custom Homes) to build my custom home in the Lake Conroe subdivision of Bella Vita.
Mr. Termeer's website is impressive, as are the homes highlighted on the website---many of which are in the prestigious gated community of Carlton Woods in The Woodlands. However, consumers need to be mindful that those homes were built years ago when many people worked with/for Termeer. Termeer & Associates now appears to consist of just 3 people: Mr. Termeer (who is in his late 70's), his daughter, Sharon McHugh, and their admin.
When researching Termeer, I located a negative review from a Bella Vita homeowner on Yelp/Local. In her review, she mentioned warranty issues and that she had been advised to sue Mr. Termeer. At the time, hers was the only Bella Vita home built by Termeer. When I asked about the review, Termeer told me her problems were the result of a swimming pool she contracted to build AFTER she purchased and moved into the home. I took him at his word. 
Before signing the contract for Termeer to build my home, I was not aware that homeowners Ramon and Wenona Martinez had filed a lawsuit in the Harris County District Court against Termeer & Associate and John Termeer over "a $3.2 million home built by Termeer" for alleged shoddy work. They also were quoted (in the newspaper) that Termeer is "underfunded."
I was also not aware that Termeer did not own any lots in Bella Vita. My understanding is preferred builders must own two lots in Bella Vita. No one will explain to me how Termeer is allowed to build in Bella Vita; although I have sent an email request to the developer (Signorelli/BV Board of Director) who never responded.
My husband and I moved into the home when it was considered substantially completed 6/2/2013.  As of TODAY, Termeer has not completed the punch list, and the City of Conroe did not issue me a Certificate of Completion to occupy the home until 8/2013.
The building process with Termeer was a nightmare---the way Termeer handles allowances, change orders, invoices (or lack thereof), and final settlement. I received sub-contractor's threats of liens against my house for unpaid bills. A  $40,000 check that Termeer wrote to the pool builder bounced. At the same time, the Bella Vita HOA was calling me, emailing me, and sending me "covenant violations" notices with fines of $100/day---when the violations were being broken by Termeer, not by me (working on Sunday, no erosion fence)!
The day-to-day supervision of the building of my home was handled by Termeer's daughter, Sharon McHugh, who he did not introduce me to until AFTER he and I had signed the contract. Once the construction of the house began, and I started experiencing problems which I brought to Termeer's attention, Termeer repeatedly ignored my request that he take a more hands-on approach. Ms. McHugh was habitually late for almost every meeting I had with her. I would often get a call from her asking that I "meet me at the house ASAP." I rarely had advance notice of a meeting.
There were a lot of quality control issues, which we are still trying to resolve with Termeer. For example, Ms. McHugh, without our permission, substituted tankless hot water systems for what our specifications stated (conventional hot water heaters). Once installed, we complained over and over again that we could not get consistent hot water at our faucets. My husband shaved in cold water, and we took cold showers, because we could not get the hot water to come on and stay on. Mr. Termeer sent many email replies advising that nothing was wrong with our hot water supply. At no time did he visit our house to test for himself. Two months after moving into the house, I contacted and paid for a private plumber who advised me the tankless hot water systems were installed incorrectly to one main pipe versus being cut/capped to act independently---they were confusing each other and shutting off altogether. This "lack of hot water at faucets in an acceptable timeframe" issue is ongoing. Our travertine tiles in our house/floor are now cracking. Our stucco that was damaged by Termeer's subs was (just last week) repaired using the wrong color and remains unresolved. Believe it or not, I lived in this house for over two months before Termeer hired a locksmith and I was given keys to my front door and my garage door! If I wanted to lock the doors and leave the house, I had to exit through the back patio doors and walk around the house, because my husband and I were only given two keys to the house when we moved in, and those were to the back doors, not the front or garage doors.
I also learned upon closer review that the Greater Houston Builders Association (GHBA) contract that Termeer uses favors the builder, not the homeowner. For example, it prohibits (in italics and bold letters) the homeowner from withholding or retaining the final 10% (of the cost of the home) under the Texas Property Code as regards to mechanics, contractor's or material's liens. The Texas Property Code Subchapter E, Section 53.101 "Required Retainage" states "(a) During the progress of work under an original contract for which a mechanic's lien may be claimed and for 30 days after the work is completed, the owner shall retain: (1) 10 percent of the contractor price of the work to the owner." However, as stated above, unless prior to signing the GHBA contract, the client asks that the contract be changed, the client will be expected to pay Termeer IN FULL within three days of each draw request, including the last one.
In addition, the GHBA contract states that the "commencement fee," which in our case was 10% of the contract price of the home is "non refundable under any circumstances." Be very sure you want to use Termeer, considering he could keep the commencement fee that you pay without having broken ground, much less poured your home's foundation.  
As regards to "allowances," the GHBA contract also states that "purchases will be made from suppliers who are typically used by the builder." In my case, Termeer had one preferred supplier for plumbing and appliances. If I had to do it over again, I would have that sentence removed. When a preferred supplier KNOWS they are going to get your business, they don't necessarily have to offer you lower prices, in my opinion. Also pay close attention to the bold and italics section of item 4 ALLOWANCES on the GHBA contract. You will be solely responsible for the adequacy of the allowance amounts, but as per Ms. McHugh's policy, the quotes go to Termeer FIRST. Often, I had to ask Ms. McHugh for copies of the allowance quotes. If you know anything about allowances, you will understand why it is VERY IMPORTANT TO KEEP TRACK OF ALLOWANCES DURING THE HOME BUILDING PROCESS. You do not want any extra dollar surprises at the end when the final payment is due. Understand what "change order fee" means on item 9 of the GHBA contract that Termeer uses. Not understanding and not keeping a close eye on changes could also result in major shock when the final payment is due.
And lastly, pay attention to item 10 of the GHBA contract. In bold and italics, it states "the Owner agrees not to instruct, direct, or otherwise communicate with the subcontractors retained by the Builder as to the scheduling of or details about the work..." Termeer and Ms. McHugh quoted that sentence of the GHBA contract to me many times. It's in there for a reason. And in my opinion, it is not in the client's best interest. Bottom line: Termeer's GHBA contract is not client-friendly.
I just completed a year-long process walking my house, watching the construction of my home, dealing with the financial aspects, and the father/daughter d