Wednesday, November 16, 2011

Planning your project

Knowledge is power and it will save you time, money and stress

Our goal is to educate the community on what they need to know to make good decisions in their next home improvement project. From basic home repairs, remodeling and landscaping to GREEN building; this article help you learn more on a variety of subjects.

Unless the consumer has the design work and building specs done themselves, they are relying on the contractor to determine the finished product. Consequently, this means that no two estimates will be the same. This article is written to help you, the home owner, navigate the complex world of remodeling and landscaping.

Things to consider when planning a home improvement project

Customers will ask me what it will cost to remodel their kitchen or bathroom or even the price of a small home repair project. My answer is always the same. "It depends on what you want, the materials you choose, if you want to change the walls or structure, etc. And most importantly, do you want it done correctly."

There a whole range of things that will determine the cost on a project. Even how long you are going to keep the house before you sell it will impact your decisions. Every decision involves choices in quality, look, durability, labor to install, etc. A home improvement project will be more successful if it is planned and budgeted well in the beginning. Be sure to select a contractor with plenty of experience with your type of project. And remember, lowest price does not ensure a successful project.

What's your budget? This is the most important beginning factor. Many consumers approach the concept of home improvement project totally backward. Before anything else, you have to figure out what you want and how much you are willing to spend. Then the contractor can build an estimate based on that budget. If you bring in several contractors before you figure this out you will just add confusion to the situation.

Do your research: It's your home and you are the one who is going to live there. If you are unsure of what you want then I would suggest hiring an interior designer, architect or landscape designer. Many consumers try and get the contractor to be the designer. I recommend going online and to stores and get your ideas organized. Decisions will need to be made on plumbing fixtures, lighting, cabinets, flooring, windows, tub and shower designs, sinks, appliances, etc. There are literally hundreds of choices in each of the mentioned categories, including quality levels.

How long are you going to keep the home before you sell it? This is vital unless you have money to burn. If you are keeping your home and you want something special, then go ahead and spend the money. But, if you are going to sell it in a couple of years, then be frugal & functional and remodel it to be attractive to the typical consumer. Remodels can be a decent investment, but in today’s market, it’s not a great equity gain unless you are remodeling for energy savings and disabilities. Kitchens, bathrooms, and spare rooms are typically the best return on investment.

What is your dream idea? How do you want to feel when you walk into the room or how you want it to function? These are important factors. The dream or goal is directly tied to a experience. My wife and I have totally different ideas about the kitchen vs. the garage or even a bathroom.

Resale value and cub appeal: Remodeling and landscaping for value is determined by the market, your neighborhood and the type of work performed. Home improvement projects have different impacts on the value of the property. Kitchens, bathrooms and adding additional space are among the highest return values in remodeling.

What is your time-line? In other words, when do you want the project started and completed? In-home construction impacts your livability on the property and you need to be prepared for that. Also, if you want a remodel done in the busy season, it is important to be scheduling with your designers and contractor well in advanced. A popular contractor can be scheduled out for many months at a time. Design work and permitting are also time consuming and can delay the construction start schedule.

How are you going to finance the project? It boils down to your budget and what you can afford. Every component of the project can be adjusted to fit the budget. It is so important to have design work done on larger remodeling and landscaping projects before you start asking contractors for an estimate. There are many variables and if there are structural changes it needs to be done by the right professional.

A properly designed and engineered plan is going to produce a much more reliable construction plan and budget. It’s all blue sky and guesswork until construction documents are finalized. If you are going to a bank for financing, then an accurate estimate and budget is vital. I have seen 20% to 50% variables in estimates on projects that don’t have the design and engineering done first.

Be prepared for unforeseen conditions: Remodeling and landscaping projects are laced with unknown issues. Everything from improper construction practices and CODE issues to structural issues, water damage or insect damage. Until the demo work is done, there are usually unknowns. Eighty percent of the projects I have done in the Olympia area have had hidden issues. All seasoned contractors have clear exclusions and change order sections in their contracts to cover these circumstances. This is also another important point to make sure you know what your budget is.

Who else is going to be using the area? I always suggest that the key people are on the same page when deciding what result they want. Even children and pets can affect the choices in styles, materials, safety, access and materials.

Are you dealing with an aging family member or do people who live there or visit have accessibility issues?

There are over 54 million people in the country who claim to have some form of a disability. (One out of every five Americans) There are also approximately 7,900 baby-boomers turning 60 each day in this country. Aging-in-place, limited mobility, safety and accessibility are smart design concepts to integrate into your remodeling project, especially if you are selling your home soon.

Are you prepared to have portions your home unusable for a period of time? This is important; you will have people in your home at odd hours, noise, dust, mold, safety issues, etc. Areas will be totally unusable by the family until the project is completed. Pets can also be an issue. If it's a large invasive remodel, I would suggest finding a temporary place to stay. (or even take a vacation) But, if you leave town, make sure you stay available for questions and decisions. There are almost always unforeseen issues and change orders in remodeling & landscaping projects.

What defines a project that needs design work and permitting? You can swap the kitchen cabinets, appliances, sinks and shower without a permit, but if you want walls moved, space added to the footprint of the structure or the roof structure changed, you’re going to need permits. (Check your local local or state building CODES) And, to get permits approved then there needs to be design work, construction documents and possibly engineer specs. This is usually determined in the first meeting with your contractor. Design-build is a concept used in major renovations. It is a construction process where the design and construction of a project are handled by a team under one umbrella. (See: Design-Build)

Design work, construction documents and building permits: Having the design work and material specifications done in the beginning simplifies the estimating process. When a consumer starts on a empty slate and expects the contractor to design the project, they will never have apple-to-apple estimates to compare.

Each contractor will bring different ideas to the table which will effect the total project plan and price. If you want to simplify the process and eliminate confusion and stress, get the design work done first. Then, the estimates you get will be based on the same plan and materials specifications.

You can hire the designers yourself or hire a design-build firm that will bring all the necessary professionals to the project. Design-build is a construction process where the design and construction of a project are handled by a team under one umbrella. Instead of dealing with multiple contractors, designers & consultants, all of your budgeting, construction project management, permitting, change orders and billing are handled through a single source. In more recent times, the contractor is typically the lead on design-build teams. Projects that change the structure of the building or increase the building footprint on the property will require design work and construction documents to get permits. Smaller projects may only require an interior design or non-structural design work.

ESTIMATES, BUDGETS, DESIGN AGREEMENTS AND CONTRACTS

THE ESTIMATE: The estimate is the foundation for the project plan and the contract defines the relationship between the client and the contractor during the project. (Both are vital) The estimate explains what is to be done, as well as, what isn’t going to be done on the project. From the first conversation to the point of the contract, a lot of ideas can be discussed and can lead to misunderstandings about what the scope of the work actually will be. Unless you have construction documents to bid the work off of, estimates from different contractors may define different scopes of work.

A good estimate defines scope, schedule, payment schedules and how unforeseen issues and change-orders are going to be handled. What is defined in the estimate is a lot more important that the price on the estimate. Almost every home improvement project I have done, has had unforeseen issues, CODE issues and change orders. How the contractor deals with and charges for those issues, is what truly defines the actual cost of the project. Too many people look at the price, when they should be looking at the "terms and conditions". Even fixed-price bids have clauses for unforeseen issues in the contract.

THE CONTRACT: The contract defines the final agreement that you and your contractor have crafted. It also defines the relationship between the client and the contractor in terms of communication and how payments and issues are going to dealt with. A well written estimate and contract becomes the foundation for the project plan. In some cases the estimate may also have the contract integrated in the document. If a contractor leaves out details it can add delays and additional expenses to the project. Omission estimating is common in the remodeling industry and can lead to huge cost and time overruns on the project.

ADDITIONAL NOTES ON ESTIMATES & CONTRACTS
  • ESTIMATING: Definitive and accurate estimating takes time to produce. I get a lot of what I call "curious shoppers" looking for a price to do a project. This means I am going to give a guesstimate based on my past experiences on similar projects. The bottom line is the customer needs to start with a budget and a plan. There are too many variables in remodeling and landscaping to start asking contractors for estimates before you know what you want and can afford. The concept of getting a bunch of "free-estimates" can put price as the key component instead of value, quality materials & workmanship and customer service.
  • THE LOWEST PRICE: My first response to this is "You get what you pay for". Let me explain; taking an older and possibly damaged structure to an attractive, functional final product requires a highly skilled contractor. Home repair, remodeling and landscaping is a merger between troubleshooting, art, customer service and construction. Your home is a huge investment and it requires quality care and maintenance to keep or improve its value. Quality work and materials, customer service and reduced maintenance is a product of “value at a reasonable price” which is not typically “the lowest price”.
  • TIME & MATERIAL: This type of contract is usually seen on small home repair projects where the variables are high and it is almost impossible to give a fixed bid on. You will also see this as a clause for repairing unforeseen conditions on a fixed price bid.
  • FIXED PRICE BID: There is a huge difference between getting a bid on replacing your windows, siding or roof and having a bathroom or kitchen remodeled. Remodeling and landscaping projects are laced with many different product choices, potential for customer change orders and unforeseen issues. A contractor is going to have strong clauses in the contract to cover these contingencies. For a fixed price bid to apply, all the details and planning need to be extremely thorough. (i.e. fixtures, appliances, materials, processes, design work, etc)
  • COST-PLUS AGREEMENTS: This is similar to a time & materials project, basically all the project costs are on the table. The project is recorded in detail and an agreed upon profit is added to end price. Without a base line "not to exceed" value on a project, this type of agreement is risky.
  • COMBINATION AGREEMENTS: To me, most home improvement projects are a combination of a fixed price and a time and material agreements. I may do the demo work for time and materials until we get enough of the issues exposed to actually do a fixed price estimate on. Or, I may do a fixed price bid with time and material charges for change orders or customer change orders. But if I do this, then my estimate is extremely detailed so there is no question what is in the bid vs. what is extra work. The bottom line for me is the written word. There are usually several conversations leading up to the start of project and misunderstandings about the actual scope of the work or products can occur.
  • PROJECT FEASIBILITY AGREEMENTS (Budget Development / Designs provided) The contractor is hired to establish a range of values for the determination of the budget based upon a designer or architect's drawings that the customer provides. This budget plan typically doesn't represent an estimate by the contractor. It is complied to give the customer a price range on their remodeling concept. Basically, you are hiring the contractor as a consultant.
  • DESIGN AGREEMENT (Budget Development / Designs not provided) This scenario is where the contractor is hired to produce conceptual drawings & construction documents and build a project plan with a budget based on the customers ideas. The process typically requires design work, engineering, multiple sub-contractor bids and a budget plan. It will produce everything needed to get the project permitted and built. The contractor functions as a project manager for the client to do all the things necessary to turn their ideas into a workable project. Again, you are hiring the contractor as a consultant.
Are you driven by “GREEN” issues? Remodeling and landscaping to sustainable and energy saving standards impacts many decisions you will need to make. Everything from the materials you choose and even the contractor you hire to do the work. Green is an overused word in today's marketplace and there is a sea of information to sort through. The key to green building is a team approach. Make sure the contractor is truly plugged into the right professionals to be able to deliver a sustainable result. See: Green Building (Web articles)

Landscaping: The weather conditions of Western Washington and the geology of the area impact the ground your house is sitting on. Have you ever seen a retaining wall, a paver walkway or patio two years after it has been installed? The evidence of poor landscaping practices is in every neighborhood in the Olympia area. You can't just place blocks or pavers on the ground and expect them to stay in place. The ground is always moving and what is done under the ground is vital to stabilizing the work that is done above the ground.

Do you like or trust the contractor? This is vital because they will be in your home for eight plus hours a day for weeks or even months. I once heard an old-school contractor say he would never sign a contract with someone he didn't trust with a handshake agreement first. As a contractor, it’s one of the first things I ask myself about the client with whom I am discussing the potential project with. I put my heart and soul into my projects and I need to work for customers that I’m comfortable with and trust. The same goes for you and the contractor you choose.

Chris

Cascadia Design Build
Arch-Eco Design
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