Buying An Uncompleted Project — When Is Free Too Much?

Buying An Uncompleted Project — When Is Free Too Much?

By Budd Davisson, EAA 22483

This article first appeared in the March 2019 issue of EAA Sport Aviation.

One of the first subjects we delved into in Shop Talk was the concept of buying unfinished homebuilt projects. Since then, we’ve mentioned the subject from time to time because it’s a topic of conversation that needs to be revisited periodically. Now seems like a good time to do it again. Every year we welcome thousands of new builders into the experimental amateur-built (E-AB) fold, and one of the first things they notice are the listings of unfinished projects for sale. The allure is obvious: An uncompleted project looks like a way to greatly aid completion. However, it’s really easy for a shortcut to a dream to lead to a nightmare. There are projects worth having, and projects to be avoided.

Don’t Leap Until You’re Capable of Looking

When first coming into the homebuilding arena, one of the difficulties is not having developed an eye for structural details. In the beginning, an RV is an RV or a Hatz is a Hatz. Their overall image bowls us over. It isn’t until we’ve seen a number of each and start educating ourselves about the process of building that our eye for details begins to develop. We begin to see differences between the good builders and the unbelievable builders. We’ll also become aware that some airplanes display lower levels of craftsmanship that are deeper than lackluster paint. However, that’s not necessarily a bad thing. Not everyone is building for trophies. They’re in it for flying fun.

An eye for details is gained by developing an understanding of the processes involved. It isn’t until we see riveting being done that we can judge its quality inside and out. It isn’t until we experience welding and see a number of welded assemblies out in the open that we recognize what constitutes a good weld. We don’t necessarily need those skills, but we have to recognize when they’re right and when they’re not. The same thing is true for almost every aspect of fabrication. If we have developed nothing intellectually to use as a datum for judging quality, we can’t accurately judge an unfinished project.

Quality, combined with condition, is the primary attribute to be examined in any potential project to be purchased. A project that is worth buying is one that presents you with a partially built airplane that is a firm basis on which to launch your building program. There should be few, if any, things you’re going to want to do over because they either don’t meet your own building standards or are simply wrong, as defined by the plans or accepted building standards.

Let’s repeat what the last paragraph says because it’s important: We don’t want to buy another builder’s mistakes. Period. If acceptable quality isn’t there, there is no price low enough to make it worth buying.

How Is ‘Questionable’ Quality Defined?

A project can be questionable because of the value it represents for the asking price, but that is strictly the buyer’s decision. However, what really makes a project a questionable purchase is the fabrication quality (craftsmanship) and the condition of the components that are there.

Some checklist items for the quality question include, but are not limited to, the following. Different types of construction material can have different areas of concern.

  • Questionable welds — under cut, ground down, frosty/oxidized appearance.
  • Riveted components are bad — clinched rivets, etc.
  • Sheets are scratched and dinged.
  • Fittings are rough around the edges.
  • Dimensions are wrong. Bring a tape measure and a smart level.
  • Hardware store components. This says something about the builder’s attitude.
  • Wiring is messy and/or hard to decipher.

Study the Design Before Committing

It’s not unusual to find really good projects for really good prices, often less than the total cost of the material and parts. However, it’s difficult to make an informed decision on something you know little about. This can be remedied by asking for help from someone more knowledgeable about that design than yourself. However, it may not be possible for that person to travel with you to do an on-site inspection. This is where the smartphone earns its keep.

Have your consulting friend write up a series of photos they want to see of the project, have the seller shoot them in as high resolution as possible, and assemble a photo album for the consulting friend to examine carefully.

Whether you’re borrowing expertise or not, spend some time “learning” the design. If possible, borrow a set of plans so you know what its details are supposed to look like. Spend as much time as needed on the internet talking to the chat groups associated with that airplane and ask for areas known to be problems with the design. Ask if anyone on the net knows the project and can cast a critical eye on it for you.

Design Popularity Is a Big Factor in Project Worth

It’s not unusual to hear of an unfinished Jungster I or Mong Sport being discovered in a barn. These were pioneering designs from the ’50s and ’60s and are among a whole flock of good, and not so good, airplanes designed at the beginning of the homebuilt movement, many of which are being rediscovered today. But, you’ve probably never heard of either. There’s a reason for that.

In homebuilding’s history, there are dozens, maybe hundreds, of designs that never gained any level of popularity. So, few were built and there is little knowledge about them available. Other aircraft that date from the same period, like the Wittman Tailwind, Pitts S-1C, Thorp T-18, and many others, still enjoy high popularity and unfinished projects abound. The purchase price differential between unpopular projects and popular ones at the same level of completion might be 200 percent or more. Unpopular projects often go for peanuts. They appear to be nearly free so they are very tempting. However, all things being equal, it will cost exactly the same to finish an unpopular design from a project as it will a popular design, but the worth of the final airplanes will be drastically different.

When the initial cost of buying the project, assuming a bare bones airframe without an engine, is put against the cost of finishing it, the purchase price of the project is a very minor part of the whole. It’s better to start with a known design than an orphan. Also, if an airplane is popular, you can assume it is a good flying airplane. The market decides what is a good flying airplane and what isn’t, and the numbers built and still flying reflect that.

Storage Conditions

A lot of storage factors work with, or against, the materials used in the airframe to determine the condition of a dormant airframe. The storage factors include, but are not limited to:

  • Type of storage: Heated and cooled storage is ideal but almost never seen when projects surface. Dry storage has to be part of the equation regardless of the airframe material.
  • Geographical location: Coastal areas and their ocean air work against airframe condition. Major cities have acidic air, which can also be a problem. Also, factor in the cost of bringing it home. Closer is better.
  • Storage preparation: Few airframes are built to be stored and are often abandoned in a where-is, as-is condition. Nothing is oiled and nothing is covered. This is especially critical if an engine is involved. Combined with the previous two paragraphs, this can be critical.

Some Materials Store Better Than Others

It goes without saying that some materials will survive almost any storage condition, depending on the geographical location and environmental conditions. However, some airframe materials are pretty picky when it comes to where and how they are stored.

  • Steel: 4130 steel does not fare well in high humidity situations. It loves to rust unless painted or oiled. However, minor oxide frost that can be taken to bare metal with Scotch-Brite is worrisome, but not critical. Pitting is a deal breaker.
  • Wood: Wood hates high humidity and moisture, and also high heat combined with low humidity. Inspect carefully for cracking of major members, delaminating plywood, and glue joints. Ditto warpages.
  • Aluminum: Aluminum isn’t affected by humidity as long as no salt or acid is involved. It ignores desert conditions.
  • Composites: Composites don’t like direct sunlight while uncoated but otherwise store well.

Degree of Completion

The degree of airframe completion is hard to categorize in terms of worth. A bare airframe is the primary asset. Installed systems are of worth, but not usually as much as the builder thinks. This is where the cost of materials won’t be recovered, but high dollar components like avionics will come close.

This is also where the buyer needs a fair amount of knowledge of the airplane and equipment involved so they can accurately estimate what it’s going to cost to complete it from the stage that it is in. Do a complete, item-by-item inventory before writing the check.

Component Age and Condition

Additional components like engines, propellers, brakes, and avionics are definitely going to raise the purchase price, but be aware that some components, like engines, will age and raise the need for proper storage. A newly overhauled engine that has been sitting for a year with factory preservation systems in force is one thing. However, 15 years later, that same engine will be suspect, and the price is driven by both the age and the environment in which it has been stored. It might be perfect. However, it might not be and will need to be broken down and inspected. Always assume the worst-case scenario so you’re not surprised.

A similar situation exists with instruments and avionics. Given enough time, instruments need overhauling and avionics age out simply because they aren’t new technology, if that is of any importance to a buyer.

Legalities: The 51 Percent Hurdle

An E-AB project that has never been certificated is just an expensive pile of metal, wood, and/or composites until you try to certificate it as an amateur-built airplane. Then, in the FAA’s eyes the pile becomes potential airplane components of which 51 percent must have been built by an amateur. If not you, then someone in the abandoned project’s background. And you have to be able to prove that. This may be difficult for something like a Tailwind fuselage that has been passed from barn to workshop to hangar and back to barn over decades.

The ideal project is accompanied by photos and a builder’s log clearly demonstrating that the project is more than half amateur-built. If an approved kit, the components will be included in a preapproved FAA list, but any further work needs to have been done by an amateur. However, in the case of the aforementioned Tailwind fuselage, by comparing what is completed on the project with the FAA’s Amateur-Built Fabrication and Assembly Checklist, it can be seen that there is still enough work left to be done on the fuselage that you’ll be in the clear. However, there can be gray areas. Unless you check the project with your local inspector, you won’t know for sure that you’re good because there is a certain amount of interpretation in the way the rules are applied and may differ project to project. There is an excellent Q&A section on this exact subject on EAA’s website. Study it to avoid problems.

Experimental/Exhibition Certification

Don’t assume that when the project exceeds the minimums in terms of professional help or when you can’t prove 51 percent that you can automatically license it in the experimental exhibition category. The intent of that category is to cover aircraft that the owner claims will see most of their use being exhibited, and this is another gray area that is open to some discretion on the side of the inspector. Usually, there’s no problem. However, there are some projects out there that might never get certificated in any category. Get that clarified before jumping into the project.

The Bottom Line

The only substitute for education and homebuilt experience when buying an unfinished project is more education and experience. Failing that, buddy up with a longtime homebuilding friend or a tech counselor and borrow their knowledge.

Budd Davisson is an aeronautical engineer, has flown more than 300 different types of aircraft, and has published four books and more than 4,000 articles. He is editor-in-chief of Flight Journal magazine and a flight instructor primarily in Pitts/tailwheel aircraft. Visit him on www.AirBum.com. For more from Budd, read his Shop Talk column every month in EAA Sport Aviation.

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