 |  |  |  |  |  |
| Subscribe / Renew | Local Links | Worship Directory Info | Sales Positions | About Us | Contact Us | Terms & Conditions | Site Map |
| (C) 2007-2008 The Delaney Co., LLC. All rights reserved. The Homesteader - York & Lancaster Edition is published by The Delaney Co., LLC. Each edition of The Homesteader is independently owned and operated. Questions or concerns about this site should be directed to Webmaster -at- HomesteaderSC -dot- com. Key Words: York County, Lancaster County, South Carolina, SC, New Home, New House, Home, House, New Homeowner, Newcomer, The Homesteader |
What will it cost? This question is among the first that homeowners ask when they begin to think about a
remodeling project. It's a wise question, but there is not always a quick or easy answer. Every remodeling
job is unique to the site and its occupants, and every contractor and builder comes to the job with different
skills, background and overhead costs. It is, in fact, very common to have widely divergent cost estimates
on the same project when requested from a number of sources.
What goes into the estimate is essential -the design elements, the materials, the time frame and,
increasingly, the home's location. This includes both the region of the country your house is located in, as
well as your proximity to services and distribution centers.
The depth and breath of information that is provided to a potential contractor also figures prominently in
their ability to provide a realistic estimate. The more vague the specifications, the more wide open the
estimate needs to remain to ensure a fair profit for the contractor and a fair price to the homeowner. There
are two basic methods that contractors use for estimating - cost/plus, or a fixed price.
Cost/plus means the contractor will charge his cost of materials and labor, plus a fixed percentage. The
amount of the percentage will vary greatly, however, from builder to builder. If the builder is a large outfit,
with offices, carpenters and electricians and plumbers on staff, for instance, he will tend to charge a higher
percentage rate. But the work you receive from this type of business may be of a higher quality
and the scheduling of independent tasks such as dry walling, plastering, wiring, and plumbing will probably
go more smoothly than if outside subcontractors must be secured and scheduled only when they can
work your project into their schedule.
Cost/plus is a fair approach for a project that is open ended - a project in which the specifications and
details have not been nailed down prior to the job commencement. If, for instance, a builder cannot know
the cost of the plumbing fixtures a homeowner may choose, or whether they will be moving a wall and
rewiring to another, it is nearly impossible for them to provide a fixed cost on the project.
When good specifications are available, when an architect or designer has been brought in to design
and plan the project, then a fixed cost price is preferable so a homeowner can compare apples to apples
when assessing contractor bids. Fixed price bids usually include the specifications as an attachment to the
contract, and provide allowances for a variety of items, such as plumbing fixtures, flooring, cabinetry,
lighting fixtures, hardware and built-ins. Homeowners can keep on budget by staying within these
allowances. If they deviate, at least it's understood how and why the extra expenses were incurred.
On a recent project that I completed, the homeowner had a specific budget in mind. We received
estimates from various contractors for the project. However, when it came time to select the appliances for
her kitchen, the client went a bit overboard, exceeding the original budget for these items by about 30%. In
the end, she was not upset, because she fell in love with her new steam oven and coffee center, and she
knew that these decisions were the ones that sent the budget over the top.
Contractors these days are very cautious when providing fixed budget pricing. Their experience tells
them that clients often select items after the signing of the contract that will impact the budget. If the
contractor is not clear about what his price will cover, there will be bitter arguments when the bills come
due. Though I've seen estimates that fill no more than a page, I've also learned that these are the ones
where surprises will occur. In our complex and expensive world of remodeling, it is no longer sufficient to
give the handshake of approval, unless you relish the inevitable disagreements.
On a project some time ago I worked with a one-page estimate. Everything went smoothly and very few
changes were made. The client purchased many of the fixtures and finishes, so the contractor's price had
no reason to vary. On site however, the client did ask for a few extra items to be done in her home; but we
mentioned that we did not want any surprises at the end, and asked repeatedly for estimates on the
additional work, though these were never received.
When the final bill came the total was about 25% more than the original estimate. The additional
requests were noted as the culprit, but the homeowner argued, rightfully so, that they had not been advised
of the anticipated costs and felt they were extraordinary. They were. The costs of the additional items
appeared to be inflated to make up for costs the contractor had not anticipated on his end, costs that he
was attempting to hide in the extras. When questioned, he recoiled and asked them to pay what they
thought was fair, which turned out to be about 25% of his additional bill.
Lesson learned: insist on getting estimates along the way for any new requests or additional work.
Change orders should be filled out by the contractor and signed by the homeowner so no one is surprised
at the end of the project and both parties feel there is a fair and equitable relationship.
The best advice is to get the most detail you can in your estimates, bids, quotes, contracts - whatever
they may be titled for your project. It's all in the details from both a construction and pricing point of view. If
there are questionable elements going in, mark these clearly and come back to the contractor with your
preferences as soon as possible. Indecision on the part of the homeowner can delay progress and cost
you more. Homeowners must remember they are part of the process and the pricing structure and must
play their role responsibly, or else be ready to pay the price.
remodeling project. It's a wise question, but there is not always a quick or easy answer. Every remodeling
job is unique to the site and its occupants, and every contractor and builder comes to the job with different
skills, background and overhead costs. It is, in fact, very common to have widely divergent cost estimates
on the same project when requested from a number of sources.
What goes into the estimate is essential -the design elements, the materials, the time frame and,
increasingly, the home's location. This includes both the region of the country your house is located in, as
well as your proximity to services and distribution centers.
The depth and breath of information that is provided to a potential contractor also figures prominently in
their ability to provide a realistic estimate. The more vague the specifications, the more wide open the
estimate needs to remain to ensure a fair profit for the contractor and a fair price to the homeowner. There
are two basic methods that contractors use for estimating - cost/plus, or a fixed price.
Cost/plus means the contractor will charge his cost of materials and labor, plus a fixed percentage. The
amount of the percentage will vary greatly, however, from builder to builder. If the builder is a large outfit,
with offices, carpenters and electricians and plumbers on staff, for instance, he will tend to charge a higher
percentage rate. But the work you receive from this type of business may be of a higher quality
and the scheduling of independent tasks such as dry walling, plastering, wiring, and plumbing will probably
go more smoothly than if outside subcontractors must be secured and scheduled only when they can
work your project into their schedule.
Cost/plus is a fair approach for a project that is open ended - a project in which the specifications and
details have not been nailed down prior to the job commencement. If, for instance, a builder cannot know
the cost of the plumbing fixtures a homeowner may choose, or whether they will be moving a wall and
rewiring to another, it is nearly impossible for them to provide a fixed cost on the project.
When good specifications are available, when an architect or designer has been brought in to design
and plan the project, then a fixed cost price is preferable so a homeowner can compare apples to apples
when assessing contractor bids. Fixed price bids usually include the specifications as an attachment to the
contract, and provide allowances for a variety of items, such as plumbing fixtures, flooring, cabinetry,
lighting fixtures, hardware and built-ins. Homeowners can keep on budget by staying within these
allowances. If they deviate, at least it's understood how and why the extra expenses were incurred.
On a recent project that I completed, the homeowner had a specific budget in mind. We received
estimates from various contractors for the project. However, when it came time to select the appliances for
her kitchen, the client went a bit overboard, exceeding the original budget for these items by about 30%. In
the end, she was not upset, because she fell in love with her new steam oven and coffee center, and she
knew that these decisions were the ones that sent the budget over the top.
Contractors these days are very cautious when providing fixed budget pricing. Their experience tells
them that clients often select items after the signing of the contract that will impact the budget. If the
contractor is not clear about what his price will cover, there will be bitter arguments when the bills come
due. Though I've seen estimates that fill no more than a page, I've also learned that these are the ones
where surprises will occur. In our complex and expensive world of remodeling, it is no longer sufficient to
give the handshake of approval, unless you relish the inevitable disagreements.
On a project some time ago I worked with a one-page estimate. Everything went smoothly and very few
changes were made. The client purchased many of the fixtures and finishes, so the contractor's price had
no reason to vary. On site however, the client did ask for a few extra items to be done in her home; but we
mentioned that we did not want any surprises at the end, and asked repeatedly for estimates on the
additional work, though these were never received.
When the final bill came the total was about 25% more than the original estimate. The additional
requests were noted as the culprit, but the homeowner argued, rightfully so, that they had not been advised
of the anticipated costs and felt they were extraordinary. They were. The costs of the additional items
appeared to be inflated to make up for costs the contractor had not anticipated on his end, costs that he
was attempting to hide in the extras. When questioned, he recoiled and asked them to pay what they
thought was fair, which turned out to be about 25% of his additional bill.
Lesson learned: insist on getting estimates along the way for any new requests or additional work.
Change orders should be filled out by the contractor and signed by the homeowner so no one is surprised
at the end of the project and both parties feel there is a fair and equitable relationship.
The best advice is to get the most detail you can in your estimates, bids, quotes, contracts - whatever
they may be titled for your project. It's all in the details from both a construction and pricing point of view. If
there are questionable elements going in, mark these clearly and come back to the contractor with your
preferences as soon as possible. Indecision on the part of the homeowner can delay progress and cost
you more. Homeowners must remember they are part of the process and the pricing structure and must
play their role responsibly, or else be ready to pay the price.
| Written by Nicole Goldman. All Rights Reserved. Published September 2007 by The Homesteader - York County & Lancaster County, South Carolina, Edition. |
| Printable Version of This Article | E-mail Article to a Friend | SIGN-UP for Our FREE E-mail Newsletter |
| **Please use your browser's BACK button to return to the previous page.** |