My 6 tips to starting a Renovation with construction contractors

As I said in my last post, we purchased a new beach home in mid-2017. The spot is beautiful with an expansive beach view from virtually every room of our unit. However, the interior was a bit dated and really needed to be renovated. Looking back, I wish we'd done it in phases instead of doing EVERYTHING, but we'll get it done someday.

The view from our livingroom

We went the normal route of hiring a contractor in July. It made my head hurt that I was "required" to hire a contractor (Fort Lauderdale basically requires you to hire a contractor for multi-dwelling renovations) instead of me managing the project myself and hiring professionals for each thing that needed to be done. Contractors basically charge you 40% of the actual cost for their project management "skills", which can be a hefty fee for something done poorly.

I suppose you can guess things didn't go well, or I wouldn't be writing about it. At 5 month into a 2-month renovation, we only had about 2 weeks of work completed. But there is a bright point because along the way I learned some things that may help others. Here is that list of renovation tips:

Disclaimer: All items below are based on my own experience and should not be used as legal or construction guidelines. I am not a lawyer or a construction professional. Rules in your area may be different.

• Instead of spending the high fees of architects to create the building plans you can hire a "designer". Then after the plans are done they can get them approved and stamped by an architect. This saved us a couple thousand and was faster. Plus getting changes done was easier and faster as well.

• Interview a BUNCH of contractors. If they communicate poorly now, it will only get worse, move on to the next one. I cannot emphasize this one enough. It is the first danger sign of a poor contractor. Remember, they are working for you. If they balk at questions or disappear for a day or two (or a week), it indicates they will simply ignore you later.

• Do not settle for quotes from too high a viewpoint. Often contractors do not include details, typically because they may not be sure themselves. (Ex. - "Renovate bathroom = $8,000") Instead, insist that they provide bullet points of each thing to be done. This will ensure there are no surprises later. Often an overview will result in added charges later, or cause you to complain when something is not done as expected. I found it helpful to create a list of my own and present it to contractors. Then update the list as potentially missing items are mentioned. (people like pointing out ommissions)

• Critically look at "progress payments" carefully to ensure they are not too close together. Don't base them on dates, but instead base them on work completed with a clear definition. (Don't assume that "kitchen completed" also means drywall has been applied to soffit frames in another room.) I found that many contractors ask for a 25% payment up front to mobilize, then another 25% after permits. This means you have already paid 50% and no physical work has actually started, removing the need for a contractor to get the work done quickly, as they've already been paid half of the money. Make sure the final payment is large enough to push them a bit to get done. In some states, there are rules that the initial payment can't be larger than 10%.

• Do not settle for a minimal agreement used by many contractors. Make sure you are as protected as they are. Most states have online resources highlighting what "should" be in an agreement, and don't be afraid to ask for more. Ensure there is a cancelation clause, a timeline, details of work to be done (see a previous point), and clearly defined progress payments. Also, make sure to include a clause stating progress payments will not be made until the previous work is satisfactory.

• Avoid large fees for the contractor to obtain permits that do not even include the permit fees. It only takes about an hour for them to complete the paperwork, and they usually hire a cheap "runner" to take the paperwork to the city. Why would you pay $700 to $1,000 for an hour of work? This is not rocket science, it is a permit application, fill in the blanks and turn it in.

So, there you have it, my top 6 tips to starting a renovation task with a contractor. If you like this I'll post more as our renovation adventure continues.