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Remodeling Your Second Home |
TAKING ON A MAJOR remodeling project can be a daunting task. Coordinating such a project from a distance can add frustration and cost to an already complex process. The real costs of a project can dwarf the estimates, forcing some difficult choices and straining family budgets.
When considering an addition or extensive remodeling job, its vitally important to have a preliminary evaluation done that addresses the condition of the existing structural, mechanical and electrical systems. This is especially true in older buildings. The older the building, the more likely it is that conditions exist that do not meet current codes or that may require preliminary repair and remediation at far greater cost than the same project done in a newer building.
In older structures it is sometimes referred to as the mushroom effect of remodeling. Ask anyone who has been through a major remodeling project on a vintage property. Better yet, ask a remodeling professional. Its the unknowns that seemingly appear out of nowhere that can cost the big bucks. It is the moment when your contractor takes a look inside the walls after gutting a space to be remodeled and says something akin to I didnt think it would be THAT bad. Not exactly a confidence building line.
Planning
Whatever the scope of the project and whether your property is new or old, owners of second homes, anticipating a major remodeling project, should take great care in planning the job in detail and seeking several quotes from several reputable contractors.
In order to develop the optimal set of plans and drawings, it is best to employ a design professional. A thorough planning process, coupled with accurate renderings is crucial to limit potential cost overruns and in achieving a desirable end result.
Stories are legion among contractors and homeowners about projects gone wrong. If the worst comes to pass, it can be an awful situation for all concerned, resulting in serious financial and sometimes legal disputes. Successful planning can significantly reduce the dreaded change orders which always result in raising the cost of a project.
Whether you engage an architect, work with a design-build firm, or do your own design work (the least desirable choice unless you or a member of your family are design pros), homeowners should invest in comprehensive planning before anyone picks up a hammer or wields a trowel. Build every detail on paper first.
If you choose to employ an architectural firm, its important to know their track record on earlier projects. Do they have a history of providing detailed plans on a timely basis? Another important quality in a design professional is the realist factor. Does the designer have a history of producing coherent, practical and buildable plans, with a minimum of complexities? And perhaps most important, how well does the designer work with area contracting firms from whom you will be seeking bids? For information on architectural firms in your area, you can access the database of the American Institute of Architects www.aia.org.
As an alternative to working with an architectural firm, you might find the design-build business model, in which an experienced construction firm employs in-house design experts to smooth the complex process of moving from the planning stage to the finished project. A good overview of the subject that includes a list of design build firms is available at www.dbia.org/index.html.
If you are computer savvy and would like to try your hand at doing some of your own design work, there are a number of online resources that offer a wide variety of tools to help in creating drawings and plans. There are also fee-for-service firms online that will do a professional rendering of your plans. One such firm is www.virtualarchitect.com.
Once the initial plan is completed, the next step is to study the plan exhaustively. With plan drawings in hand, do a walkthrough of the space to be remodeled. If you engage a design pro, make this walkthrough a part of the cost basis for their professional services. Check every detail. If anything appears to be out of order, or you have any questions about the plan, this is the least expensive time to make corrections. Take your time with this process. Its far better to overspend on the plans than to make changes during the construction phase. Remember, vague plans that overlook even relatively simple details can cause confusion when a project is in mid-course.
If you want to fully understand the true meaning of the term cost overrun, it is worth contemplating a project that is suspended because a defect in the building plans results in a conflict between the plumbing and electrical subcontractors (or the masonry contactor and the landscape architect, etc.). Every hour of delay in such a situation can result in hundreds of unbudgeted dollars being spent. Every omission and misunderstanding that occurs on your project will increase costs above the initial estimate adding the expense of time and materials that result from any changes. Missing details can easily increase your costs (in the affected part of the project) by 100-300 percent.
Remember, there is no such thing as a perfect plan. Even the most meticulous planning can be confounded by the unforeseen, particularly when working with older buildings. Its always prudent to add some padding to your budget to account for the unexpected. Even a project with plans that are 90 percent accurate can still end up costing more than the estimate. Remember, its more likely that your plan will be closer to 75 percent accurate.
If resale value of your second home is a concern, another aspect of planning that should be taken into consideration when remodeling relates to ROI, or return-on-investment. This factor is not always in the forefront when planning a remodeling project. For some, it may be no consideration at all. If you dont intend to maintain long-term ownership of the remodeled property after completion and ROI is a concern, it should be borne in mind that remodeling projects featuring the best returns involve ; re-siding, bathroom, and kitchen remodeling, in that order.
Selecting a Contractor
Friends and neighbors often provide a ready resource for the names of possible contractors. If you want to find licensed remodeler in your area, you can contact the National Association of the Remodeling Industry www.nari.org. Their site also provides useful tips on how to select the right remodeler for your job.
Whatever method you employ to decide which contracting firms to contact for bids on your project, its a good idea to check with the Better Business Bureau www.bbb.org and your States Attorney Generals office for any complaints that may be on file related to the contracting company. You should also ask that the bidding firms are properly licensed and carry adequate insurance to cover the scope of your anticipated project.
As a general rule, it is best to obtain at least three competing bids. Bids should include a list of products, materials, labor costs and a timetable. Material and product allowances should give prices and quantities.
The bids should be accompanied by multiple verifiable references. Ideally, the references provided by the bidding contractor should be relatively recent and should be based on projects of similar scale as your own. If it is possible to obtain a reference from an earlier customer, it can be useful to contact them to see how the contractors work has withstood the test of time.
Its important that you follow through on contacting one or more of the references Dont be satisfied that you have been provided names on a piece of paper. It is not out of order to ask if you can see one or more examples of the contractors prior work. Ask the references if their job was completed at or near budget, and if the contractor kept them well informed of progress during the project. Make certain that there are a number of dependable options available to keep in touch with the bidders, either through their full time office staff, or via e-mail, pager, cell phone or fax.
The bidding process is your first chance to evaluate an aspect of the work product of a potential contractor. If you approach a contractor for a bid and an estimate is not forthcoming in a timely fashion, move on to the next firm on your list. If a contractor is unable (or unwilling) to provide you a bid in a reasonable period of time, this may well reflect on how they may perform on a project and at the least raises questions about their ability to deliver a finished project on time and within budget. Positive responses to your inquiries of a referral can be an extremely useful tool in evaluating competing bids.
When you obtain bids, be aware that it is customary for the successful bidder to secure a deposit at the time the contract is signed. As a general rule, established firms that provide high quality work do not require large deposits up front. Deposits in the area of 15 percent of the agreed contract are common in the industry. Firms seeking a deposit that represents significantly more than 15 percent should be approached with some caution. Successful building firms ordinarily have enough established credit to finance project related materials and services in ongoing projects.
Beware of using price as the primary factor when selecting a contractor. It is a common error to select the lowest bid, only to find out that the contractor chosen was not the right company for your job. Remember that quality work commands a premium price.
The three bids you receive are apt to vary widely. If this is the case, you should ask for an explanation from the bidding firms to explain the discrepancies. Sometimes a low bidder has neglected to include one part or another of the project in his bid. Choosing the right contractor, based on a fair price and skills that mesh well with your needs will avoid the countless headaches caused by choosing the wrong company for the job. Excellent planning, mutual trust , and a willingness by both parties to keep open the lines of communication, will all reduce the chance of costly errors taking place.
Remember to use all of the tools of modern communication available to increase the efficiency and clarity of the give-and-take that takes place during the building process. E-mail, scanned or faxed documents, drawings and digital photos can provide an efficient means to keep abreast of what is happening on site and can save you repeated round trips to your property to keep an eye on the details of the ongoing work.
If you have any questions about your upcoming remodeling project, we will do our best to find answers for you. We are always interested in hearing stories about projects already completed for possible review in future articles on remodeling second homes. Good before and after pictures are especially useful. Contact us with any questions or story ideas you may have on this or related subjects.About AuthorSecond Home Buying. Tim Menk is a staff writer for 2nd home Journal, a highly successful quarterly digital magazine for owners prospective buyers sellers of vacation homes, residential, investment resort properties in the US and abroad. Visit 2nd home Journal's powerful web site, http://www.2ndhome.net
Source: ArticleTrader.com
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