The Keys to Any Successful Home Remodeling

The keys to any successful home remodel are planning, organization, and communication. The more time and energy you put into your project, both before and during the construction phase, the more time and money you will save in the long run when your job is completed as planned. The following is a step-by-step guide to the home improvement planning process. Familiarize yourself with the main issues of each section to help make your project a satisfying and successful experience.

Before You Start

Take the time to get yourself organized. All construction projects proceed in a certain order, usually with some logic attached. By keeping yourself and your records in order, you can stay abreast of each phase.

Dare to Dream
Gather as many different ideas as possible and talk to others before trying to define what you want in your project. It’s much cheaper to include a bay window in the plans than to add it after the project is completed. All ideas you find here can be saved right online. Look through magazines and clip items you like. Keep a journal of different ideas that come to you. Talk to others and get their feedback on whether something will work or not. All these concepts will help you formulate a master plan.

Prepare a Master Plan
Before you call an architect or contractor, sit down with paper and pencil and write down what you really want from the project. What do you want it to accomplish? Just more room or do you need a specific view from the addition or new house? In planning, think about your neighborhood and how planned changes will fit—or not—with the other houses. If some of your goals are hard to define, sketch out the concepts on paper. Later, the architect, designer or contractor will help you develop them.

Architects and Designers
How do you know if you need an architect or designer? What’s the difference? You probably need an architect or designer if the project requires extensive plans that must be submitted for review, or if you are not clear about what you want. Architects and designers are skilled at turning general concepts into reality-all within your budget. If you want, the architect or designer will oversee the whole project, including hiring the contractor.

Define the Project Scope
It’s easy to say, “I want this and I want that,” but unless you own half of Microsoft, it will likely put your budget out of sight. So the first step is to separate what you need from what you want. You need a new bathroom and you want it all to be in imported Italian marble. But what are the financial realities? The more desires you eliminate, the more manageable your budget will become. Once you refine your budget, add 20 percent to it to cover the inevitable unforeseen costs.

Create a Project File
Use folders to hold and organize all the paperwork that will be generated during the project. Keep the architect’s or designer’s plans there, along with the contracts, work schedules, pay schedules, warranties, change orders, punchlist forms, lien notices, and receipts. Keep phone numbers of everybody involved, from architects to subcontractors.

The Design Phase

The design phase consists of two parts: what you bring to the architect, architectural designer, or design/build contractor, and what you get in return. But first, do you need a design professional? Not by law in most cases, but check with your local building inspector’s office. For a simple project, such as removing a nonbearing wall to open up a kitchen, you may need nothing but a sketch.

Whether it’s a sketch or complete plans, the drawings must clearly show what will be done during the project and reflect all code requirements. Any engineering issues in the project will require proof that structure was checked and approved by a structural engineer or qualified design professional.

But apart from helping you clarify your plans and giving you new ideas, the design professional ensures that the drawings meet all required codes and specifications for safety and durability. The architect or designer will also help ensure that your project fits with the overall house scheme and within the neighborhood.

Do Your Homework
Before you seek design help, do some research. Collect a scrapbook of photos and sketches, and have in mind at least a general idea of what design concepts you want incorporated in the project. The architect or designer will help you refine your ideas. Also, when you visit a design professional, have a good understanding of what you can afford to spend on the project. No matter how you plan, it will be more expensive than you expect.

Do You Want an Architect or Designer?
Both architect or architectural designer may be equally talented, skilled, and full of great ideas. The architect, however, is a university graduate who has served a required apprenticeship with a licensed architect before obtaining his or her own state license. An architectural designer may have worked equally long in the trade but generally is not required to have a university degree and is not state licensed as an architect. Other types of designers, such as interior designers, may be required to be state licensed.

What Can They Do?
What can a design professional do for you that in most cases a general contractor does not? First, they prepare the plans that will be submitted to the buildings inspector’s office for review and approval before construction can start. They bring vision, experience and structural expertise to the job to make sure it fits your goals, your budget. They provide the plans and specifications for the contractor to follow. There are design/build contractors who offer design services, but the plans still go to an architect or designer. For less complex projects, an experienced contractor may see what must be done and carry it out.

What Do Architects and Designers Charge?
Architects and architectural designers provide professional services, not products. Their rates are usually based on the time spent on your project. They may charge an hourly rate or a percentage of the total construction costs, often in the 8% to 15% range. Discuss how they charge in advance and have it specified what you will receive in turn. Ask to see samples of their work and their list of references. Having clear plans in advance means that you are less likely to change your whole approach halfway through the job, which will increase your costs.

Hiring a Contractor

Finding a reliable and reputable contractor has always been a homeowner’s dilemma. You either heard about one from a friend or neighbor, or blindly picked one from the Yellow Pages. If the Creature from the Black Lagoon carrying a hammer showed up, you swallowed and hoped for the best.

How to Hire
Here are some basic steps to follow when hiring a contractor.

• References. Request several references, and then check them out. Inspect the work quality. Ask if the project came in on time, if the bid costs were close to the final cost, and if the contractor was easy to work with.
• Bids. Get at least three bids on your project. When the contractors look at the project, have in mind clearly what you want to do, but listen to their input. Experienced contractors can often point out overlooked and unforeseen problems.
• Options. Do not necessarily accept the lowest bid. Some contractors may bid the job low in hopes of increasing charges as they go. Others may bid it incorrectly and then cut corners on the job. Others may bid it right and still be low, which is what you want. But if someone is higher, consider that contractor’s quality, references and schedule.
• License. Ask for a copy of the contractor’s license. Some states may not require one, while others do.
• Insurance. Request copies of the contractor’s insurance coverage. Contractors must have general liability for themselves and worker’s compensation insurance for any of their employees.
• Schedule. Determine the schedule. There should be a firm start date. There is not normally a firm completion date because construction has so many variables. State when you would like the job finished, however, and discuss the likelihood of it happening.
• Presence. Ask if the contractor will be on the job every day or whether he or she will have someone else managing the work. If someone else, check that person out.

The Contract

A contract is a document that clearly states the expectations and responsibilities of the parties involved in a project and protects each party’s rights concerning the project. The signed contract is legally binding, but it should really be considered a statement of trust between contractor and homeowner.

Also understand that in virtually all cases you have three days during which you may reconsider and cancel a contract after signing it. If you do cancel, send the notice by registered mail with signed receipt requested from the contractor.

In any construction or remodeling project, both owner and contractor will follow their own agendas to some degree. All have different understandings of how the project should be carried out. The contract is an attempt to clarify everybody’s expectations and make them mutually acceptable.

Contracts are generally overly long and written in legalese that is difficult to understand. Before signing a contract, take it home and read it for a day or two. Whatever you don’t understand, find someone who can explain it to you You’ll receive a detailed analysis of the contract that points out sections needing clarification or items that are missing. The analysis is designed to identify and resolve potential problems before they develop.

Do not rely on oral agreements.

A contract should contain the following sections:

Scope of work. The contract should clearly define all work that is to be done. This includes the overall scope plus individual aspects such as foundation, framing, plumbing, electrical, roofing, and all finish work, down to the color, style and manufacturer of paint and carpets. If you have architectural plans, refer to them in the “scope of work.”

Materials and equipment. Make sure the contract identifies all materials and products by name, style, quality, weight, color, brand name, and any other pertinent facts. Identify all equipment that will be needed, such as scaffolding or cranes. Be specific about all details that concern you. If you expect 2-by-6 walls instead of 2-by-4, make sure they are specified.

Schedule. Clearly indicate the date the job will begin. State when workers should arrive each day and what time they should stop. The job completion date is not normally stated because of the numerous factors that can delay a project, such as weather, change orders, and unforeseen problems. Few contractors will agree to sign a contract with a late penalty clause. However, discuss with the contractor when the project will likely be finished and see if that meets your expectations. Contractors often work on more than one job at a time, so discuss what conflicts may arise with your project.

Insurance. The contract should state that the contractor will provide proof of all required insurance, particularly general liability and workers’ compensation for his or her employees. The contract should also require the contractor to verify that subcontractors have their own required insurance.

Warranties. Ask that all written warranties provided with any appliances, equipment, or materials used in the project be given to you.

Arbitration. All contracts should contain clauses specifying what form of arbitration should be conducted and by whom if disputes cannot be resolved between homeowner and contractor.

Paying Your Contractor
Because of the expense involved in construction projects, it is customary for contractors to request that a certain percentage be paid in advance. Contractors point out that they are not bankers and should not be expected to carry the entire cost of a project. On the other hand, homeowners are wary of paying out a large amount of money for uncompleted work.

Every contractor has his or her own policy regarding down payments. On jobs under $10,000, some are willing to front all the costs while expecting payment in full upon completion. Others routinely expect one-third down to start, one-third at the halfway point, and one-third on completion. For large jobs of $100,000 or more, the arrangement may be 10 percent down followed by regularly scheduled payments. Some states, including California, limit the down payment to 10 percent of the bid. Prior to any payments, however, confirm that the work has been completed to your satisfaction. Ten percent or more of the total owed may be held back until the final walk-through is complete and there is mutual agreement that the job is finished.

The real solution to down payment questions requires the homeowner and contractor to establish a mutual trust. The contractor should supply at least a half-dozen recent references, and the homeowner should check them out, inquiring about quality and ability to meet schedules.

The Nitty-Gritty
It’s those nitty-gritty little details that often spell the difference between a happy homeowner and one with continuing concerns. Here are some specific issues to consider addressing in the contract:

• Equipment on the lawn: Will heavy machinery tear up the grass?
• Broken, damaged household items: Who pays to fix or replace them?
• Radios: You have the right to tell them to turn it down, or off.
• Cleaning up after work: Clean up everything every day, including sweeping?
• Working hours: Do you mind if workers are there at 6 a.m.? Still there at 7 p.m.?
• Debris removal: Who is responsible for hauling away all debris? Is putting debris on the curb considered removal?
• Paint removal: If walks, fixtures or other items are spattered, they are to clean it.
• Toilets: Can workers use household toilets, or do you need portable toilets?
• Phone: Can workers use it?

Mechanics’ Liens

A mechanic’s lien has nothing to do with repairing your car. A mechanic, by law, is a tradesman, artist, or anyone who works with tools, including carpenters, electricians, plumbers, roofers, and a host of others. A lien is a legal claim to real property until a debt is paid.

If you employ a tradesperson or contractor to work on your home and then, following a dispute, refuse to pay, the worker has the right to file a lien. The lien is a claim on your real property, such as your house. Rather than just demanding payment from the homeowner, which might be ignored, the lien makes the property responsible for payment.

Why a Lien?
In some cases, you may receive a lien even though you have paid the general contractor in full. In this case, it is probable that the general contractor did not pay a subcontractor, such as a concrete company or roofer. Perhaps the general contractor was late making payments or, in a worst-case scenario, has gone bankrupt. Regardless, the tradesperson has a legal right to be paid and has filed claim on your property for the amount owed.

Having to pay twice for the work seems unfair. The lien law, however, is based on long-held presumptions that the homeowner, whose property value has been enhanced by the work performed, bears ultimate responsibility for all debts incurred.

If you have to pay twice-once to the general contractor and again to settle the lien—you then have the right to seek legal redress against that contractor. In most cases, however, liens are avoided by dealing with reputable contractors with good standing in the community.

Preliminary Notice
Before filing a lien on your property, the claimant, or person who has not been paid, must file a Preliminary Notice, also called a 20-Day Notice. This notice must be sent to the homeowner no more than 20 days after the claimant begins working on your property. If the subcontractor fails to do this, however, he or she can file a late notice and still go ahead with the lien.

It is important to realize, however, that receiving a Preliminary Notice normally does NOT mean someone is going to file a lien against you. Responsible contractors often use the Preliminary Notice as a legitimate means of protecting themselves and their subcontractors. If a lien must eventually be filed, the notice is in place.

Some general contractors have every subcontractor file a Preliminary Notice as soon as he or she comes on the job, and every 20 days thereafter, to keep a clear record of who is on the job. You, as homeowner, can also utilize these notices to your advantage. Before making the final payment to the general contractor, call all subs who submitted 20-day notices and confirm they have been paid in full. Write down who you called, the date, and their payment confirmation or lack thereof. Keep this note in your records.

Avoiding Mechanics’ Liens
To avoid a lien after the project is finished, ask the general contractor to provide you with either a Conditional Waiver and Release or an Unconditional Waiver and Release. In the first case, the contractor gives you a conditional release in exchange for payment in full by personal check. The release is conditional until the check is cashed, when it automatically becomes an unconditional release. In exchange for an Unconditional Waiver, you give the contractor a certified check for the work completed.

Change Orders and Punchlists

Change Orders. Virtually all projects change as they progress. If either you or the contractor feels something must be added or removed from the project, a change order should be filled out and signed by you and the contractor. Change orders initiated by you will likely increase the project’s cost, and the amount for time and materials should be stated. If the plans call for a 3-foot-wide window and you now want a 6-foot-wide window, that will require different framing. A change order is needed. Understand also that if you ask the contractor to fix something just because he or she is around, that is above and beyond the contract and you may be charged for it.

Punchlist. A punchlist is standard on all commercial construction and increasingly in residential construction. It is a checklist of every item that is incomplete, not done at all, or requires fixing or replacement. Homeowners should periodically walk through the project and keep notes on items needing repair or correction. Even if brought to the contractor’s attention immediately, they may not be corrected by the job’s end. Many things get overlooked during a project, some important, some cosmetic. Keep a record and then, when the job is nearly complete, take a walk-through with the contractor to check on items you have seen and look for others. If you have an architect, he or she should join you.

Communication and Conflict Resolution

Open communication is the surest means to a successful project. Don’t just assume that the other person knows what you are thinking, or how you want something done. Spell it out. In a communication vacuum, errors rush in.

If it appears that the contractor is not performing adequately, address the issue nonconfrontationally by explaining your concerns and requesting information. Give the contractor a chance to clarify the issue and if necessary, rectify the problem. When that is done, express appreciation.

Unaddressed misunderstandings can also lead to suspicions, and this may create a tense and less productive working environment. Calmly discussing issues, however, will often bring quick resolution, or a realization that it is not actually a problem.

Five-Step Problem Solver
Here are five steps for problem resolution:

1. Define the problem. This may be more complex than imagined because of overlapping issues. If a project is not proceeding on schedule, for instance, where does the problem really lie: weather, change orders, conflicts with other jobs, personnel problems, money? By discussing all possibilities, you can then narrow it down.
2. Summarize all causes and prioritize the root causes. Don’t try to solve the problem immediately because you may be overlooking deeper issues. Write down all possible causes, however small, and then determine which are the most urgent for you.
3. Identify all solutions and prioritize them. Brainstorming is a good way to find solutions. Talk openly with everyone directly involved in the dispute and encourage their feedback. Give as much time to listening as you do to talking.
4. Analyze the potential solution. Once you have identified and prioritized several problems, and done the same with solutions, you can narrow down the entire issue. Now it is becoming focused and thus manageable. Is this a problem that affects the cost or the schedule? Is it about cleaning up? Is it a personality conflict?
5. Select the best solution and act on it. Confirm that the agreement is acceptable to all sides, write it down, and note who will do what and by when. Be specific.

In undertaking problem resolution, follow these guidelines:

• Do not criticize one another.
• Only one person speaks at a time; the other listens.
• Allow freewheeling discussion.
• Encourage many ideas.
• Identify ideas that point toward solutions.
• Always seek mutual encouragement and understanding.

Consider Mediation
If a resolution cannot be reached, seek a mediator.

If you feel the project should not proceed any further, discuss with the contractor how it might be closed, and what payments or refunds remain outstanding.

When all else fails and the amount involved is less than $5,000, consider a small claims court. If you must hire a lawyer and sue, recognize that even if you win, it might cost you more than the planned project.

Review Your Insurance Coverage

Now may be a good time to review your existing insurance coverage and the protection you have, as home improvements most often increase your home’s value. In fact, your home’s value has probably been increasing since the day you bought it. Your existing insurance policy should reflect this increase in value.

To evaluate your insurance coverage, consider the value of your home and the value of the personal possessions in your home. To help you, make an inventory of your personal possessions before any construction begins.

Inventory
Both the number and the value of your possessions will probably amaze you. Be sure to write down all your valuables, including any serial numbers. Take photos of all valuables and put the photos in a safe deposit box. You may wonder if your property insurance policy gives you the coverage you need. The following summary will serve as a guide to help you determine whether your insurance coverage matches your needs.

If you find your present coverage deficient, now is the time to get the coverage you need. An insurance review with your agent can help you determine whether your home’s value has increased beyond the limits of your current coverage.