One of the worst calamities that can befall a homebuilder is working with an incompetent or unreliable subcontractor. In the technology area, this can be a particular problem because many of the home-technology installation companies are small integrators. Indeed, the average integrator earns less than $700,000 in total revenues. This small size can also lead to a big potential problem: lack of flexibility.

Even small custom builders need a contractor who has the manpower to be able to tweak the schedule with short notice. Bad weather, delayed inspections and equipment-delivery problems are the most-common culprits that require pushing back the installation schedule. But if your integrator has only one installation crew and your custom-home project is ready for pre-wiring, waiting two days for them to clear their schedule is not a pretty option.

Flexibility is the primary reason most builders use an electrician to install their home electronics, according to the Builder Practices Study conducted by the Consumer Electronics Association and the National Association of Home Builders.

However, in most cases, the advantages gained from having a flexible electrician on-site should be outweighed by the increased upselling potential that an integrator brings to the job. That's probably why the percentage of builders using integrators grew to 52 percent in 2005 vs. just 34 percent the year before. Builders are opting to go for the extra money.

I don't think it has to be an "either/or" choice between electricians and integrators. By conducting due diligence with your integration subcontractor, you can have the best of both worlds: lots of upselling money and a crew that shows up on time.

In a session at TBX, Brookfield Homes' Southern California division described four simple criteria in place that an integrator must meet before he is even allowed to bid on a project:

• Proof of licensing, either low-voltage or high-voltage, if he is an electrician.
• Proof of insurance, or proof that he has the ability to be bonded to a certain amount.
• Proof of the ability to electronically communicate via email. Though Brookfield isn't communicating electronically yet with 100 percent of its subcontractors, the company hopes to be doing so within six months. (See related story on page 32.)
• Proof that the integrator's company is a certain size. Because it is a large production builder, Brookfield needs an integrator who has a minimum number of crews to be able to handle the possible schedule changes.

Some other suggestions to look for in an integrator include:

Customer references -- Survey at least five other builders and create a rating system. You should target only integrators with above-average or higher ratings.
Trade references -- Survey at least five other business partners that the integrator works with (cabinetmaker, framer, electrician, etc.) and target above-average or higher ratings.
Complaint history -- Check state records and the Better Business Bureau to weed out companies with unusual complaint histories.
Credit history -- When available, pull Dun & Bradstreet credit reports for firms; or you can independently check with their bank and other key sources.
Civil legal history -- Use Dun & Bradstreet reports to confirm that companies have no unusual pattern of legal filings or complaints.
Business identity -- Not to be confused with licensing, you should confirm that integrators are properly registered to do business in the state.

Am I missing anything? What are you doing?