PLAN, DESIGN, BUILD

That’s the sequence. Inexperienced owners think that the first thing they should do is get a contractor to come to their home and give them an estimate … an estimate for what? Until you have defined every detail of the project, there’s nothing to estimate. The contractor’s job is to execute the design that you have worked out with your designer. When you stand in the living room describing what you’re dreaming about he has no idea what materials you might choose or whether or not you’re prone to changing your mind. He can’t possibly give you a reliable price without having all the details.

See the article called, Quick, Preliminary Cost Estimates. This information may help you put a price on your dream.

FINDING GREAT GENERAL CONTRACTORS

Once you’ve planned and designed your project, and you’ve worked out all the details and kow you can finance it, you should begin looking for a good general contractor.

You can find highly skilled craftsmen with long years of experience by contacting other professionals who use contractors’ services on a regular basis. Try calling bankers that make home equity loans, realtors and appraisers, property insurance companies, the Home Builders’ Association chapter in your area, or a few good designers. They’ll know who to recommend. After a little networking the same names will begin to come up over and over again. These are your best candidates.

CHECK REFERENCES

Find out how he got into the contracting business in the first place and who his favorite electrician is (if he can’t instantly name somebody, that’s a big red flag). Have him tell you about his last three jobs; were any of them similar to what you’re about to ask him to do? Get six references. He’ll put the best reference on the top of the list, so call number six first.

COMPETITIVE BIDDING

Narrow the field to three contractors, and bid the job to these three. A little competition will keep their prices tight, and you are not obligated to give the job to the lowest bidder. If you bid more than three, their odds of winning the project will be reduced to such a degree that the best contractors will drop out. You don’t want that. These contractors have other lucrative options and won’t be willing to spend time bidding when the odds of winning are too slim.

Invite all three bidders to your home at the same time. Yes. Give them each a set of design documents and a copy of the contract you’ll want them to sign, so they know what they’re getting into. Allow them time to look at every bit of the work that they’ll have to do, and time to ask questions. Make sure that they all leave the site with exactly the same information.

When the bids arrive, about 5-10 days later, compare them. If all the bids are within 15% of each other you’ll know that the design documents are good and tight and the contractors have all understood the project the same way. If the numbers are all over the map, return to your designer and ask for design revisions where the bid numbers were the wildest, and begin again.

NEGOTIATE AN ADVANTAGEOUS CONTRACT

If your favorite contractor has given you a price that’s higher than you can afford – higher than you planned for in your budget – call a meeting with him and your designer and discuss where you’re going to cut work to save money. He’s already cut his price in order to competitively bidding. If you ask him to cut it lower without offering to give something up, you will have given him permission to unilaterally determine where he’ll cut corners to make back that lost money.

FINALIZE THE CONTRACT

Once you’ve whittled the scope of work and the price down to meet your budget, sign a contract, set a start date, and secure your financing.

MORE INFORMATION

You’ll find lots more information about the home remodeling process in Managing a Renovation: Staying in Charge and Out of Trouble, our friendly and comprehensive homeowner’s guide to remodeling project management. Download the table of contents and a sample chapter, or go to the order form to purchase it.

We offer ready-to-use construction forms, including a complete remodeling contract, in our Bookstore, as well. Have a look.

And, you may want to look at our list of More Resources for some great design ideas.

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