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Remodeling Budget-- Good or Bad?

Posted by Mike Bruno on Tue, Jul 21, 2009 @ 07:14 PM
  
  
  
  
  
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I met with a potential client a few months ago to discuss a remodeling project. The whole scope consisted of an office and master bedroom addition, a kitchen and bath remodel, as well as several other smaller items. Rather then prequalify the client on the phone, I figured I would do it in person once we met. So when I arrived I got a tour of the house as well as all of the ideas and the wish list.  I then asked the big question "do you have a budget"... the meeting turned from pleasant to uncomfortable in a matter of seconds. The potential client proceeded to explain to me that he was not stupid and knew that if he told me what he wanted to spend then thats exactly what all the contractors would charge. Now having been in the construction business for almost twenty years, I have never been in a situation where my price was cheaper than what the client had expected nor have I accepted a project based on what the client wants to pay. At Stone Creek Builderswe build estimates like projects one piece at a time, specifically tailored to that project. I explained that I understood his concern; however, not to discuss his budget would just make the bidding and proposal review process much more difficult for him and for the contractors to bid properly and competitively. I explained that the project could cost $200,000 - $350,000 depending on all the variables. Did they want Aristokraft cabinets or Apple Valley Cabinets, crawl space or basement, standard trim or custom trim, wood floors or carpet, etc. All of these items can dramatically change the cost of the project. So without a budget one contractor could be at $200,000, one at $265,000, one at $375,000, etc. - all based on different assumptions and different material choices.  Hypothetically, if the budget was $150,000, the time spent by all parties would be wasted producing proposals that didn't fit the financial requirements of the project. If the budget was put out there from the beginning, then the contractors bidding the project could have developed a scope of work based on that budget. In that case the proposals would be more competitive, more detailed and most likely within 2-5% of each other, not 15-30% different and over budget.

When I was driving back to the office I thought to myself - why is it that when people purchase other items in life such as a house, car, flat screen tv, vacation, etc., they establish a budget first but when remodeling their home some people don't. Why, in some cases, do people choose the cheapest bid without understanding the contract specifications which usually leads to change orders and a higher cost anyway? 

Then I thought about what a difficult relationship builders and clients have. There is a better way when we build trusting relationships first, where the budget is discussed openly, and then build projects. I think the experience is better for the client and better for the builder. In some cases, we have found this better way and I hope I find it more times than not.  

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Preparing Your Home for a Remodeling Project

Posted by Mike Bruno on Thu, Jul 09, 2009 @ 01:29 PM
  
  
  
  
  
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So your selected a contractor, the contracts are signed and the permits are ready, now what?

Most likely your contractor requested that you move your items from the work areas so that the work can be performed properly. So what exactly does this mean? Do the rooms have to be completely empty? Can I store stuff in the basement or garage? Can I stack everything in one room and then move it around as the project progresses? Those are all good questions and the best way to start is to ask the contractor where the best place is. During a remodel the contractors need access to adjacent areas so maybe the basement or attic isn't a good place to store items.  In some cases there is just not enough room in the house to store the items and either a portable storage container and or a mover may be the best option. After all its a lot of stuff to move and since it needs stored properly why not have a professional move it. Check out http://www.bdmovers.com/ for a list of professional moving services available. Not only is a mover a good option before the remodel but its even more important after. With new floors, paint, trim etc the last thing you would want to do is cause any damage.

Successful remodeling projects are a team effort between you and your contractor. Check out www.stonecreekbldrs.com/remodeling-boot-camp-remodeling-planning/ for more ideas from Stone Creek Builders and Remodeling Boot Camp.

 

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