1.    Plan First.  List what you like and don’t like about your existing kitchen or bath.  Also what you like or don’t like about kitchens and baths you’ve been in – maybe a luxury hotel or former home.  Write it down.  Turn it into a wish-list for your remodel.  Review the wish-list at several points during the planning process and one last time before you begin construction.  Make sure you’re not forgetting anything.  It’s really easy to forget a small but important detail.
2.    Create a workbook. Clip Pictures and analyze.  It’s rare that you like everything in the image in a shelter magazine.  What’s making you feel good about the room?  Is it the color, the light fixtures, the color of the wood, the style of the cabinets.  Then review it with others – not to get them to approve but to have them tell you what they see.  We all take in details differently.  Maybe they notice a detail that’s important to the look that your eye missed.
3.    Guidelines from NKBA – The National Kitchen and Bath Association.
These guidelines are a must read for anyone remodeling a kitchen or bath.  If you stick with these guidelines, you will avoid myriad problems such as not being able to fully open appliance doors or bumping into stools every time you move around the new island.
Kitchen Guidelines
Bath Guidelines
4.    Create a Budget – Even if you’re hiring a contractor to do most of the work, a detailed budget is a must.  List the price of everything (and I mean everything) you want/need to purchase.  Here are some resources to follow:
- Budgeting for Remodeling a Project
- What Does It Cost to Remodel A Kitchen?
- Comparing Bids
Then remember to also:
- Round up all numbers
- Remember to add in a line for the cost of shipping, delivery and tax
- Add at least 3%-5% for items that you’ve left off the list (this is separate from the contingency (below)
5.    Add a contingency of 10% to 25%. The contingency can be 10% if you’ve done this before and it’s a relatively straightforward remodel.  If it’s your first time or it’s an old house, I strongly recommend a contingency of 25%.  There are dozens of items that you don’t know you need until you’re missing it.
6.    Update your budget every time your purchase an item or something changes.   If you budgeted $100 for hardware and end up spending $300, update the budget.  Going over your budgeted allowance by $200 on 10 items is $2,000 added to the budget.  Don’t get surprised at the end or end up not being able to finish because you ran out of money.  If the contractor included allowances in the budget for items like fixtures, keep you own budget of the actual versus the allowance.
7.    Include Decorating Items in the budget. Your remodel isn’t really complete until you’re installed items like window treatments, rugs and specialty items like stools.  If you haven’t purchased them lately, these items can be quite expensive.  Don’t get caught without money to complete the work.
8.    Make a Schedule & add 30%. Work with your contractor or installer (maybe your husband, brother, or sister) to establish a schedule.  And than add 30% to the planned time.  If your installer has never done it before – add 50% or more to the schedule.  If your contractor says it will take 2 months, plan on a 10-11 week project.  Rarely does everything go as planned and we usually underestimate the time it will take to accomplish any task.   Mentally it’s far easier to have the remodeled kitchen ready before you plan than to have weeks of work left when you thought you would be enjoying the new room.
9.    Make sure this is a good time to remodel – Think about activities that you have planned – a dinner party or graduation ceremony.  Don’t cut the time too close.  Also add in time for you to get the new space set-up and decorated.
10.    Don’t confuse price with quality. You can buy the same size stainless steel sink for $200 or $2000.  Don’t presume that the $2,000 sink is better.  Its higher price is likely due to name brand, finishes or features that may or may not be useful to you.  Think through what you need and don’t be persuaded that more is better.
11.    Read Reviews. One of the best things about the internet is the ability to read what folks think about the product or service you’re thinking of buying.  And remember, we don’t all value things the same way.  So even if someone rated a product poorly (or highly), they might want the product to perform differently than how you intend to use it.  Pay attention especially to issues of maintenance or reliability.  Reviews can be really helpful to help you figure out whether the features of the higher priced sink or other fixture is worth the additional money for the way you cook or live.  I personally like Amazon reviews and often start there for most products.
12.    Don’t Necessarily Go with the low Price Merchant. Along with product reviews, also read merchant reviews.  You don’t want to delay your project because items don’t arrive or arrive damaged.
13.    Have the Installer Review Product Specs Before You Buy. Kitchen and bath fixtures and appliances have become quite complex.  It used to be that you could be pretty certain that a faucet or drain would work with any sink.  No longer.  Some sinks require 1-1/4 inch drain assemblies and some require 1-3/8 or 1/1/2 assemblies.  Some sinks require overflow drain assemblies and some will leak if you use an overflow drain assembly.  One cooktop described as 36” can fit in a 36” cabinet and some require a 39” or 42” cabinet.  The list is endless.
14.    Select the contractor carefully. Don’t assume that because your neighbor or friend had a good experience with a contractor that you will also.  The difference in experience might be because you expect a different level of quality, because the scope of the work is different, or because the finish level is different.  Here’s a handy guide about what to ask references (including your friend or neighbor).
Remember, that you’ll be with your contractor every day for weeks or months.  Make sure you like them.  If you have any hesitation about the individual listen to your gut!
15.    Plan for a Temporary Kitchen. If you’re doing a kitchen remodel, there will likely be some period when the kitchen is unavailable.  Work with your contractor to figure out where and how you can make coffee, make breakfast and dinner, wash dishes.  This should be someplace with water but could be near a bath or in the basement.  Also work with the contractor to limit the time that the kitchen is unavailable to you.  This can be done by appropriate staging of the work.
16.    Remodeling is Dirty and Dusty. Plan accordingly.  First, make sure that the contractor or installer is experienced using strategies to reduce dust and dirt in the living area.  Second, make sure you protect your furnishing and equipment.   Third, think about whether you can tolerate the dust and disruption for the period of the project.  Your frustrations will probably be even worse if you have children.  If this is going to strain your family, plan to live someplace else during construction – but still make sure that your contractor used strategies to limit dust and dirt.
17.    Plan for a move-in cleaning service before you move back in or start using the new room.

The next few items have to do with the design itself:

18.    Make sure there’s enough light– daylight and artificial.  Too many homeowners leave lighting to the end – having sufficient daylight and artificial light is critical to your enjoyment of the remodeled home.  If your budget is tight, think about sacrificing some of the more expensive details for larger or more windows and better lighting.  Further, if you wait until the end to think about lighting, it can significantly increase your building costs since running wires is done early in the remodeling process.
19.    Make sure there’s enough storage. You already own a lot of what will go into the remodeled space and know of future needs.  Plan where everything goes before you complete your planning process so you know you have spaces for everything.
20.    Do Furniture Arrangements Before Your Start Construction. Far too often I hear complaints that homeowners feel that furniture arrangements are awkward after all the work of remodeling.  It’s easy to see a big space on the floor plan and just assume that your furniture will work.  Use a low-cost software program or a cut and paste planner to arrange your furniture and make sure it will work in the new space.  If my clients have artwork or other special items, I make sure spaces are pre-planned for these special items.
21.    Make sure the views are inviting. When I design plans for my clients, I think about focal points and views through rooms and to the outside.  This prevents finding out only after you’ve finished that you look at dirty dishes each time you walk into the house or that when you sit down you lose the gorgeous views.  I use rendering software to accomplish this.  You can also frame views with cardboard cutouts or other such physical means.
22.    Involve all the members of your household. Your children have valuable insight into what’s comfortable and how they use the house.  Make sure you involve everyone who will be living in the home.  It will also help create buy-in to the end result.  If you’re using a designer, he or she can help you with this process and help reconcile divergent opinions so that tension doesn’t result.
23.    Keep style consistent with rest of home. I personally hate when I walk into a house and know exactly where the addition starts and the original house ends because the homeowner changed style or trim details.  This doesn’t mean that you need to replicate what exists, but don’t plan for conflicting styles.  It be as simple as replicating crown or base molding.
24.    Think through future remodeling plans. If you’re planning on several phases of work, make sure you design the subsequent phases before moving forward with early phases.  You’ll feel awful if your only choice next year or in five years is to either forego something that you really want to do or rip out portions of what you’ve already because you didn’t think it through in advance.
25.    Enjoy yourself! Remodeling can create strain and conflict – worries about money, frustration at the mess and the strain of having strangers in your house each day.  If you can’t enjoy the process keep your mind focused on the terrific outcome.

Comparing Prices on a Stone Terrace

One of the most frustrating experiences for a homeowner looking to do work on their home is to get estimates that differ wildly in price – especially when all the contractors are recommended by friends or neighbors.  This article is about how to compare the estimates when you’ve provided the contractor a drawing of what you want.  In a future article, we’ll talk about the more complicated situation where you haven’t provided a drawing.

In my experience, the primary reason that contractor estimates differ by a third, 50% or even 100% is that the scope quoted is dramatically different.  Contractors, small contractors in particular, will often provide a sentence or bullet points about what’s included.  But often fail to spell out clearly how they’ll do the job, what is being done by others, and what allowances or assumptions they’ve made.

I recently designed a basement media room including a wet bar.  The total price I quoted after the design was approved was $45,000.  The price was based on estimates from subcontractors on individual components including demolition, construction, plumbing, electrical, tiling, painting, installation of the new media equipment, plus my time for construction management and a 10% contingency.  The contingency, of course, would only be used if necessary.

Having been a client of home improvement contractors long before I ever became a contractor, my philosophy is a bit different from most contractors.  As the client I did not want cost surprises at the end of the job.  If I was told the job was going to cost $30,000, I didn’t want to end up paying $35,000 let alone $45,000.  So when I do job costing, I use assumptions – often called allowances – based on the client’s actual tastes and not assuming “builder” grade materials.  I also always include at least 10% contingency and often 15% to 20% contingency depending on the job and the age and general condition of the house.

My business model is different in another way from most design/build firms in that I separate the design and build phases.  Clients are free to take my design to others for bid.  That’s what this client did; he took the design to a carpenter he’s used in the past and got a quote of $20,000.  He asked me to talk with this other contractor to see if the lower bid made sense to take.

While at first blush it seemed like the homeowner could save a lot of money by using the other contractor, it turns out that the carpenter was really bidding only on the part of the job that he was comfortable doing – the demolition, construction, and tiling.  The bid did not include plumbing, electrical, electronics, painting, or construction management.  In addition, the carpenter assumed that the homeowner would purchase all the decorative items like tile, carpet, plumbing fixtures, drawer pulls, and so on.  And, of course, there was no provision for contingency.  When we added back in the other trades, the cost of materials, and the contingency, the difference in the bids was about $3,500.

When I asked the homeowner whether he was interested in performing the construction management role – sourcing and ordering materials, hiring and scheduling subcontractors, he indicated that he did not have time and wanted me to play that role.  When we added back in this time, the actual “bid” was just slightly higher than my original bid.  But the homeowner still wanted to use contractors that he had used before so I kept the build contract but subcontracted to the carpenter with whom the homeowner was already familiar.

When you have a good vision of what you want – and you share that vision clearly with a drawing – to contractors, the difference in price has to come down to 3 things:

1.    Scope: A likely source of price differences comes from differences in scope.

Proportion of the full Job: When you get a quote that excludes portions of the full scope, you can’t evaluate that estimate until you also get estimates for all the work excluded.  Plus you need to think about whether you want to be in the position of construction management where you need to hire multiple trades and determine the appropriate sequence of work.

Construction Approach: Sometimes contractors will go about building the same thing differently.  I built a “stone” patio for a client where I used an underlayment to separate the movement of the deck from the stone tile.  I also “overbuilt” the deck to limit the amount of movement.  Another contractor could have produced the same look with less caution about making sure the stone tile didn’t crack.   My approach took more time and materials and therefore more money than another contractor might have charged.

You may need to ask sufficient questions about the construction process to identify that the approach is different and why each contractor is taking the approach they’re taking.  Ultimately, you’ll need to exercise judgment about whether the extra precautions taken by one contractor are “worth” the additional price.  Often the differences in construction approach are only noticeable in months or years as the work “wears” differently.

2.    Materials: Another source of price difference comes from either actual differences in material costs or assumed differences in material costs.

Allowances & Mark-ups:  Sometimes a contractor will include “builder grade” allowances for fixtures and materials in order to keep the estimate appearing low – even if they know that the client is likely to want to purchase more costly materials.  Material costs can add up to over 50% of the cost of the job.  So look closely at the contractors assumptions or allowances about material costs and how much the contractor “marks up” material costs.

Material Quality:  Most of us know that cedar decking costs more than pressure treated decking.  But there are lots of other less obvious material choices that can affect total price, maintenance, and longevity.  Staying with deck building, the price of galvanized hardware is considerably less than stainless steel hardware.  The price of azek bandboard is more expensive than pressure treated but requires less maintenance over time.

3.    Labor Rates & Business Model: If scope and materials are the same, the only other variable is labor.  Labor costs can differ either because one company charges more (or less) for the same work or because a company is also charging for additional supervisory or overhead time.  In my experience, there are 3 tiers in the remodeling business.  At the top are mid-sized construction or design/build companies.  Overall, their labor is often more expensive because the wage rate they charge for construction workers must also cover overhead and supervisory time.  On the other hand, they are often more able to respond quickly and can provide full-service including sourcing of materials and design assistance.  At the next tier are very small companies where management and labor is the same person – it’s one or two guys who quote the work, plan what to do, and perform the work.  These are US-born men or women who work for themselves and who are putting kids through college and saving toward retirement.  Their wage rate reflects a middle-class vision of themselves.    The next level are also very small firms but they are often foreign-born workers whose wage level keeps a roof over head and food on the table but who might not be saving for college or paying a mortgage.  All 3 models can produce identical work for differing costs.  However, the homeowner is sometimes required to know more and to take on more of the sourcing and management when using the the 2nd and 3rd business models described here.

I strongly advise homeowners when faced with widely divergent price bids to take the time to figure out what’s driving the difference.  If the difference is in scope or materials, you will either end up with something different than you expected or will end up paying more than the low quote implies.  Either result will be very frustrating.  If the difference is in labor rates and business model, then you need to consider what’s being expected of you in terms of sourcing or construction management and whether you’re prepared to undertake these additional burdens.

It’s absolutely true that you can find terrific workers who charge a fraction of what larger companies charge for the same work.  I routinely use a mason who does work for about 1/3 less than larger masonry companies.  In exchange for the less expensive – but exquisite – results, I have to secure the permits myself, to keep a flexible schedule since the owner is not good at communicating work schedule, and I often have to use hand-signals or find a friend who speaks Spanish to communicate nuances of what’s wanted.  The product though is as good as I’ve seen in this area.

Unfortunately, the answer isn’t always an easy one.

There are two different types of licenses in the jurisdictions in which I work.

Professional Licenses: Professional licenses provide assurance that a licensed individual has passed knowledge-based exams and has worked a certain number of years under a licensed professional.  Most jurisdictions require that electrical and plumbing work be performed by a licensed plumber or electrician.  A registered engineer or licensed architect, in addition to passing exams and having professional work experience must also finish certain degree programs.

Since I am not a licensed architect, I always use a registered structural engineer to approve certain types of structural changes.  Licensing says nothing about the quality of one’s designs or ability to work with and understand the needs of clients.  I am not comfortable designing a house from scratch, I would hire an architect to work with me on this.  However, because I’ve remodeled my own houses and am responsible for the construction aspects or remodeling for others, I’m in some ways better prepared than an architect to design and manage a remodeling design/build company.

I will also admit that I don’t always use licensed electricians and plumbers.  I always use a licensed professional for rough-in plumbing and for upgrades to electrical service.  In addition, I always get a permit which means an inspector will review the work to ensure it meets code.  But I don’t hesitate to use a handyman or other experienced contractor to change electrical or plumbing fixtures.  In fact, for remodeling my own homes, I’ve passed an electrical exam for homeowners and done my own wiring of lighting and outlets.  An inspector will inspect my work and this is comfortable for me.  Someone less familiar with construction might only be comfortable using a licensed professional for these tasks also.

Business Licenses: When a jurisdiction licenses a home improvement contractor, this is usually a business license and not a professional license.  The most basic protection that this type of license offers homeowners is the requirement for a certain level of general liability insurance – that level varies by jurisdiction.  In Maryland and the District of Columbia the amounts are $50,000 in property damage.  Both jurisdictions require that a company carry workers compensation insurance in case of worker injury.  In Maryland the license also requires a certain number of years of experience and passing an exam (which is testing knowledge of the laws and requirements not construction knowledge).  The District does not require this but does require copies of preprinted standard contracts.

So this home improvement business license basically assures the homeowner that the owner of the company has a basic level of business knowledge and a basic level of insurance.  But I carry far more insurance than is required for licensing and carry professional liability insurance as well as general and property liability insurance.

Importantly, Maryland also has a Guaranty Fund that can resolve claims made by homeowners should a licensed contractor fail to perform against a contract.

Conclusions: But licensing says nothing about the ease of working with a tradesman or how conscientious they are or about the neatness of their work.  A painting company large enough to go through the licensing process may also cost more and have an owner that only checks on work periodically instead of being on the job site working alongside his crew most of the day.  My favorite painter is not licensed.  But his work and that of his crew is the best I’ve seen.  Equally important to me and my clients, he is always on time, is neat, is easy to work with, has real pride in his work and has demonstrated that he can solve problems.

A decision about who to hire is much more complex than determining who is licensed.  Home improvement is like most everything else we do where we need to weigh risks and benefits in making a decision.  Just remember that a professional license does assure that a contractor has a certain level of training and knowledge (but the tested knowledge is a very small segment of the knowledge-based required for executing a complex remodel).  A business license assures a certain level of business knowledge and insurance.  Neither license says anything about whether that contractor is right for your job and for working with you.  In a previous article (link), I’ve offered guidance about what to ask references in hiring a contractor to help answer the questions about whether the contractor has the experience based required for your job and whether he’s a good match for you.  The questions are as relevant whether the contractor is a general contractor or a painter.

Remodeling In Progress

This is the first in a weekly series about working with contractors.  I welcome your questions about your own relationships with contractors and suggestions about future articles.

One of the most frequent questions I’m asked by clients and prospective clients is whether we really need to get a permit for the project.  The homeowner is usually asking about the risks and penalties of being caught.  But I think the more important consideration is the benefits of permitting home improvement work and the downstream risks of not doing so.

Almost anytime I get a question such as this, I have a very recent “horror” story about a homeowner who has recently become a client because they didn’t get a previous project permitted.  Here’s a recent one that cost the client $15,000 in re-work to fix a poorly done, unlicensed plumbing and HVAC work.

Our client called because he wanted to remodel his basement.  After we talked about what he wanted to do I asked if there were other problems we needed to fix.  Our client told me about a very slow drain in the basement sink (slow after being snaked twice) and an odor coming from the basement shower drain.  He also complained about always being cold on the first floor.  I learned he had remodeled the basement as well as the portions of the first floor and switched from hot water heat to forced air only 3 years ago.  He was so unhappy with the basement that he wanted to remodel it again plus he wanted several details on the first floor revised. 

His previous contractor came recommended by a work colleague.  He understood, at the start of the job, that the work had been permitted.  Only later – at the end of the project — did he discover that the contractor had failed to get a permit and also used unlicensed plumbers, electricians and HVAC tradesmen for the project.

Upon investigating, we found that waste from the basement toilet was flowing toward the shower drain instead of into the waste stack.  In addition, none of the plumbing fixtures in the basement except for the original washing machine was properly vented.  There were no air returns on either the basement or first floor levels so the HVAC equipment wasn’t cooling or heating properly. 

If the work had been permitted, it’s likely that none of these problems would have occurred:

• Plumbing Problems:  If a licensed plumber had been involved, the flow and venting would have been correct.  Plus, an inspector would have confirmed that the work was performed correctly.
• HVAC:  Code would require adequate air returns and an inspector would have confirmed that the work was performed correctly. 
• Style and Scope of Work:  Without a permit, the contractor could get away with verbally describing the work to be done.  He didn’t have to produce drawings of the work.  The process of making and reviewing drawings might have been sufficient to ensure that the scope and style met the client’s needs.

How much more would it have cost to get a permit for the previous work?  The answer is at least $1,000 and maybe as much as $8,000 including both the cost of the permit and the time for the contractor to develop and submit plans and permitting documents.  The reason for the big spread is that it’s hard to estimate how much the drawings would have cost.  However, the $15,000 in re-work was only to fix the plumbing and HVAC problems.  The additional work to remodel the basement and to modify details on the first floor was an additional $40,000.  All of this could have been saved if it was done correctly the first time.

The permitting process while at times cumbersome is almost always in the client’s interest.  Developing detailed drawings requires a thoughtful design process and complete specification of work to be done.  And no matter how much confidence you have in your contractors or how highly regarded they are by others, it’s invaluable to have an independent set of eye reviewing that the work performed meets building codes.

Are there ever times when it’s not to a homeowner’s advantage?  I’ve spoken with homeowners who want to add a bedroom to the basement but don’t want to spend the extra money to meet egress requirements.  Meeting egress might mean replacing a window in a basement bedroom with a larger window that opens fully and enlarging the window well.  My argument to the homeowner is that the egress requirement is based on safety.  If there is a fire and their child or guest cannot get out or be saved because the fireman can’t get through the window, it’s not money worth saving.  But there are a few other examples that are less clear: such as requiring a railing on a stairway designed to prevent a child’s head from slipping through (in a home where there are no children).  Another example might be finishing an attic where the headroom doesn’t meet the headroom requirement.  On the other hand, I can design very open-feeling railings that still meet code and the addition of a dormer to meet code will greatly increase a homeowner’s enjoyment of the attic room.

So in summary, yes getting a permit can add costs and time to the job.  However, it’s usually money well spent — if only for piece of mind.

Next Friday I’ll talk about 10 questions to ask when selecting a remodeling contractor.