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.
Great advice, coming from a contractors stand point. I like when the homeowner does their research. I got to admit the # 1 rule is awesome I never even thought to go to a designer in the first place. usually in the trade its just Arch/engineer. get the stamp and move on.
Thanks for the post.
We weren't aware at first either. Didn't realize we needed the Arch signoff until afterwards. We were lucky a contractor friend sent us to the designer, though he didn't explain what he was doing.
Amen!
I had a contractor my Realtor recommended do work on my house after I bought it, before moving in. Very fast moving, to the point of not leaving me enough time to actually respond to things before he did work. (I had told him I had a tight turnaround, but to this day I have molding that is not at all what I would have selected if I'd had another 24 hours to actually look into it and respond to him.)
His electrician was also completely incompetent. I've never seen an electrician who didn't know the difference between an RJ45 connector and an RJ11. Or who didn't know the difference between Cat6 cable and coax cable. Or whose idea of "put a connector on these bare wires" was "cut them shorter by a foot and not actually cap them off." Yeah, seriously.
The most important point, though, is the itemized list. Adam's totally spot on on this one. I had an estimate from my contractor at the start, and periodic payments. At various checkin points I noticed additional things and asked "what would it cost to do X while you're at it?" He then went ahead and did them, then at the end send me a bill for the remainder that was several thousand dollars higher than the estimate. I asked him for an itemized list of what he had done, and he flipped out and started threatening me with legal action, with workers picketing the house, and with not fixing me up with a nice girl he found. (No, I'm not kidding. He really said that.) I kept asking for just the itemized list so I knew what I was even paying for, and he kept continually refusing and then sent me a revised bill for even more, with no explanation.
I eventually gave up, sent him a check for the remainder and a little bit (but not the full extra he was asking) and told him to get lost. He never did anything to me. I'm pretty sure he eventually went out of business. :-)
You can't have enough detail when dealing with 5-digit dollar figures and the place you live.
Thanks for the writeup, Adam!
Oh, my. That was a terrible ordeal you went through. And I thought mine was bad. I hope NOT to one up you. :-)
Yes, please, don't try to 1-up me on that. :-) Hope your place turns out great when it's done!
You have some great advices. I’ve had horrible experiences with contractors. They always talk a good game but never deliver quality work. Never thought about going via a designer to avoid architect fees. Thanks! Wonderful view btw. 🙂
Thanks for the comment. Sorry to hear you had troubles in the past. I hope my misfortune will help others through posts like this one.
Yeah, the view is my daily deep breath to keep calm. :)
Great stuff, Adam.
Ouch.
Also crazy you have to hire a contractor. Regulations trying to "help" I guess.
That view is beautiful.
Thanks Luke. Yeah, in multi-tenant dwellings it is good they enforce owners from hurting each other. There are stories in the past of folks not following the rules and causing fires or flooding by doing it wrong.
Wow. That would be terrible!
Great tips. And what an amazing view!
It is what keeps us sane during the insanity.