In today’s market, determining if multiple construction project bids are truly apples to apples can be a daunting task.
There are contractors out there who will utilize every possible shortcut in order to come in as low bidder and you would never know it by examining their written estimates.
Often in remodel construction there are unknowns when determining what may or may not be hidden behind walls, buried in attics, or underneath slabs or landscape needing to be excavated and some contractors feel they are left with no choice but to bid the job as “worst case scenario” to avoid taking a loss. In effect, the contractor who is the highest bidder may be omitted from the selection even though he or she is the most qualified.
There is one alternative that can be advantageous to both the parties which is worthy of some serious consideration.
Here’s how a Demolition and Discovery Agreement works-
In order for the contractor to bring in his project bottom line at the lowest possible cost,
both parties can opt for an agreement to do enough minor demolition to reveal hidden conditions and to more precisely determine the actual scope of work needed to complete the project.
All work needed to assess these conditions would be done through a separate contract for an amount both parties agree to beforehand. As a condition of this agreement, the homeowner should not be obligated to award the job to the contractor performing the observation. This gives them the advantage of providing this information to other bidders in hopes of keeping the cost down. The contractor providing the assessment may opt to reimburse the expense to the homeowner if they are awarded the job. If the discovery determines that the job will be cost prohibitive, the contractor should be paid to repair all damages incurred from the demolition.
This also allows the contractor performing the work to be compensated for their services even if the job is awarded to someone else while at the same time providing the homeowner with some very useful information.
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With spring almost here many of us are contemplating home improvements to enhance outdoor living capabilities.
With so many options to choose from, getting past the conceptual design phase can be a daunting task.
I recently participated in a forum about how to achieve adequate attic ventilation/insulation to allow your attic to expel excessive heat buildup in the summer and I thought, with summer right around the corner, this would be a good time to share this information.
New energy codes require attic insulation to be min R-38 which is approx. 12” of batted or blown insulation. Most older homes built prior to 1980 have R-19, or 6” of insulation above the ceiling. Continue reading Reap the Rewards of Proper Attic Ventilation→
I‘ve been hearing a lot of debate lately about whether it is in Contractor’s, and Homeowner’s, best interest to forego lead based paint testing when remodeling a home built prior to 1978.
For those of you not familiar with the EPA’s new lead based paint requirements here’s a brief summary-
As of October 2010, the EPA requires all contractors who work on homes built prior to 1978 to become certified lead based paint renovators. This requires them to enroll in an 8 hour course that teaches us how to contain all areas where demolition is being done and how to dispose of construction demolition materials. Following completion and passing of the course an application is sent in to the EPA for approval Continue reading Lead Based Paint- To Test or Not To Test→
Survey’s in. Home starts are down and new home permits are at an ALL TIME LOW.
Many Home Builders are going to become Remodeling Contractors to supplement the workload. This will make Contractor selection for residential remodels a bit more challenging.
Although I have worked with and around many Home Builders turned Remodelers who were very qualified, I have also worked with and around many who were clueless when it came to things like how to blend in old siding, stucco, drywall, with new without obvious defects. There is a huge difference in starting from a clean slate and retrofitting new to old seamlessly. Continue reading Housing Bust may prove to be a breeding ground for Unqualified Remodelers.→
For those of you who have been holding off on your prospective remodels waiting for Contractor’s pricing to bottom out, you may have already missed the boat.
Although Contractor’s and Subs LABOR pricing has indeed hit rock bottom and will likely remain there for awhile, the rising price of construction materials across the board will at least offset the discounted labor and will continue to rise through the summer months. Rising fuel costs and the upcoming product demand for rebuilding Japan after the horrible earthquake/tsunami disaster will drive prices even higher. Continue reading Construction Costs On the Rise.→
40's Craftsman in East Sacramento
Sometimes you get lucky and stumble on some nice surprises during the course of a remodel. This particular kitchen remodel presented an unexpected treat. When we exposed the existing ceiling framing, we found that the ceiling had been dropped to 8 feet for some unknown reason and, for a very minimal expense, we were able to remove the dropped ceiling which left the client with a 9 foot ceiling height which, in my opinion, was one of the best enhancements of the remodel. Continue reading Nice Surprise!→
I always expend a little extra dialog with my prospective remodel clients to try to get a good feel for whether they are truly prepared for the endeavor which they are about to undertake. Over the years I’ve seen some pretty dramatic reactions by people who thought they were ready and when the work began they were completely overwhelmed and unprepared.
Sometimes I think people expect us to come to their homes and very quietly wave a magic wand and presto, the job is complete. Continue reading Preparing for Your Remodel→
I was just reading some comments from a group of Construction Business Owners on the topic of Time & Materials, (T&M Contracts) vs. the more common Fixed Cost Construction Contracts.
I’ll be very interested in hearing your comments on the concept both from the Contractor’s and the Consumer’s perspective.
For those of you who aren’t clear on the how this works, here’s a general description although there are some variations. Continue reading Cost Plus Contract vs. Fixed Price Contracts. Weigh In.→
