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Remodeling Nightmares... How to avoid them...
There goes the college fund, your bonus, life insurance
policy... Take those braces off your kid's teeth, no more music lessons,
we'll vacation in the back yard... All these (and many more) are real
life examples of how desperate homeowners have coped with paying the real
cost of that remodel.
Agreed, few projects can be more challenging than a complicated
kitchen and bath remodel. But when it comes to devouring dollars, these
"dreams" can turn into a nightmare. One surprise follows another.
Your project costs rocket, wiping out your reserves, savings and next
year's vacation.
Unlike new construction, where we hope everything is detailed
on your plans, remodels have many hidden areas with unpredictable elements.
You have to contend with buried dry rot, missing foundation bolts, corroded
pipes and other less-than-welcome surprises. Most of the time, your contractor,
not being able to see through walls, is within his or her rights to charge
you extra.
What can you do, (in advance) to minimize these problems?
How can you, short of stripping every wall down to it's bare studs, anticipate
the unexpected?
The short answer is, you can't get everything, but you can
eliminate 95% of them. The following steps will put you in charge, because
they apply strategies which empower you to resolve problems in advance.
Let me explain in more detail. Contractors obviously want
your project to go smoothly. They don't want to have one hassle after
another, with each followed by a hefty change order. Homeowners soon become
discouraged and suspicious, wondering if their contractor plans to pay
for his winter vacation through all those extras.
On the other hand, contractors don't want to find themselves
in a situation where a building inspector (for example) demands additional
engineering and enlarged foundations, during the course of adding a second
story master suite. They are reluctant to shell out for extensive dry
rot repairs, when these were not obvious before demolition.
In an ideal world, homeowners want a fixed, cast-in-stone
price. Contractors are happy to deliver, provided they know exactly what
they will have to deal with. That gap between these two extremes is what
some have called the remodeling pit.
The steps that follow are condensed overviews. Our manuals and publications
give you the big-picture, in-depth, "howto's." The skills and
methods we refer to are not about doing the construction work yourself.
Rather than trying to learn how to be a carpenter, plumber or electrician-
why not master the systems that will put you in charge? That's our goal.
So here's the first step.
#1) Build your project on paper first.*
This means (among other things) getting a good architect
who has extensive experience* with remodels of your size. This may be
easy when your budget is $100,000. But if you don't want to spend more
than $30,000, architects start to look pricey. My advice is this: an architect's
fee is still cheap compared to a thirty or forty percent cost overrun
on any remodel.
If you really are struggling financially, explain that up
front. Most architects really want to help, because they align themselves
with owners. Unless you have considerable experience with construction,
you need their expertise.
#2) Understand exactly...
what your plans show. Even if it takes another six months,
take time to review, to sketch, to consider. People who rush ahead invariably
make changes during construction. Those changes usually cost twice as
much when added after your original bid.
# 3) Select everything...
All your finish materials. Tile, flooring, hardware, plumbing
fixtures. Your goal is to give a list to your contractor with everything
included. Don't ask for a bid until you have defined the whole kit and
caboodle- written down for him (or her) to supply.
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Why? The clearer your project is, the more complete it is
in every detail, the quicker he or she can finish. Contractors like projects
that are defined. Vague, fuzzy plans and missing details are a gold mine
to the few unscrupulous contractors out there. They will change order
their way into the very depths of your bank account, even as you lose
sanity, respect and cash. Reputable contractors want things clear. They
plan to stay in business for years, and they guard their reputation (and
yours) with great care.
#4) Review your working drawings...
With someone other than your architect. You want to get
your completed plans and preliminary specifications (your lists of plumbing
fixtures, finish materials, tile, floor coverings and so on) reviewed
by an independent contractor- preferably retired. You want to pay someone
to do this. Don't expect freebies.
This reviewer is not the person you might later want to
bid upon your project. It's a strange fact that architects and contractors
tend to compete. Ask an independent contractor to review a set of plans
and it's amazing how many items he will spot which neither you or your
architect have considered. That feedback is valuable and it's worth paying
for.
# 5) Move responsibility...*
For hidden components and problems onto your contractor.
He or she is the expert. Rather than experience the unraveling nightmare
of hidden dry rot, missing structural elements, rusty plumbing and inadequate
wiring, shift the responsibility for all these areas onto your contractor.
What does this mean? During the process of generating your specifications,
you will spell out that, prior to getting bids, your contractors need
to determine what sort of hidden problems are buried beneath your floor,
in your walls and so forth.
They have the experience to determine far more readily than
you, what it will really take to deal with those hidden headaches.
Does this mean your bids will be sky high? Surely these
contractors, to cover themselves, will simply add thousands of dollars
to their bids?
Not if you include the right clauses and terminology. We
have prepared a number of these clauses which you can use in your contract*.
They shift responsibility to your contractor without triggering massive
increases in your bids.
#6) Get your own bids...
For certain items in your project. With these figures,
you will have hard numbers you can later use to compare against the quotes
you get from contractors. Which ones are easy to bid out on your own?
Start with windows. Most window suppliers will do a take off for you.
Move on to appliances and cabinets. You want to get these done while your
working drawings are being prepared.
#7) Apply for a building permit...
As an owner builder. I know this may seem like a lot of
hassle for some of you. If necessary, have your architect do it. But your
goal is to get a set of plans which have been approved by the local building
department.
When you have plans, permit and funds available, your project
is a lot more attractive to contractors. They know they could start right
a way (if they wanted to). Simplicity and predictability are valuable
and will result in lower bid prices.
#8) Use Bid strategies...
As you prepare to send your project out to bid, you want
to be sure and ask for line item bids. You want each of your contractors
to give you individual figures for labor, lumber, rough plumbing, windows,
roofing etc.
Space does not allow a full explanation of why this is so
useful, but a request for a full breakdown has numerous advantages to
you. First, it pushes contractors to really look at your project. Secondly,
it allows you to compare each bid, line by line. Your questions about
bids become far more accurate and meaningful when you can ask a contractor,
"Why is your roofing quote 50% higher than these other two?"
Third, you gain a clear understanding of the overhead and profit figures
for each contractor- and whether they have buried hidden mark ups in some
of those line items.
"*" Refers to articles and topics available on
our members only site, or in our books and publications.
Copyright © C. S. McMinn 2003
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