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The mysterious world of renovations, remodels, additions and make-overs from the eye of a builder to the heart of an owner
Just like life, comparisons
of Fixed Price and Cost Plus contracts have no either/or equation. Without advantages and disadvantages to both,
the argument would have been put to rest a long time ago. It does not have to go on forever, however, when a little creativity
and education can lead to solutions that combine the best of both.
Time and material, or cost-plus contracts, first appear to
homeowners as a blank check for disaster when contemplating a remodel. Unknown conditions and unscrupulous
reputations create boogies that make any Halloween night seem tame.
As part of
the decision or after deciding on a builder, the next important bullet point is
the type of agreement that will set the tone for the relationship throughout
the course of the project and possibly far beyond. The consequences are potentially huge and indefinably
dynamic.
A time and
material contract shows every invoice for materials and sub-contracts, adds an
agreed upon percentage for the contractor's risk and warranty, and charges labor
at specific rates per hour. Bills are
presented weekly or twice monthly and due immediately, providing full
transparency and continuous opportunity to re-evaluate the relationship at each
juncture.
It is easy
to be swept up in a day of counting coffee breaks and judging production on the
basis of over-heard conversations. Idle stances may disguise industrious
calculations and a casual huddle may not show the hours saved in scaffold
building afterward. After two days of absence, the quality of doors painted in a dust
free environment is missed in the lack of apparent activity.
Programs
like Quickbooks, the industry standard, can easily tabulate every nail and hour
on or off the site. Microsoft Project
and other CPM software present a schedule and chart the deviations and
delays. A spreadsheet comparing the
estimate to the actual costs with projections to finish can keep anxiety under
control.
A major decision for home owners before embarking on a
renovation is whether to agree on a fixed price with a contractor or build the project
on a straight cost basis. The question, in one form or another, has been around as long as
carpenters have been competing for work.
For most projects, the most important and over-looked tool is the contract. Large or small, a clear agreement in writing and with signatures can avoid more damage ultimately than the shoddiest roof.
If we could just imagine our best dream home and blink it into being, life might be wonderful, but a significant segment of our workforce would need to learn another occupation. In the natural order of things, the planning stage of a renovation, often rushed, is just the start of a process, long or short, that can result in a home full of frustration or a work of joy, depending on how the details are approached.
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needing room to move |
under construction |
dream delivered |
No matter the degree of our comfort level, the world has become an unsettled place. Riots and revolutions, earthquakes, tsunamis, droughts, tornados and economic collapses can be seen as the apocalyptic precursors predicted and parodied to culminate in 2012.
The housing market that has been blamed for much of the downturn of the last few years still struggles to come back and is forever radically changed. Sub-prime mortgages have resulted in a banking industry too focused on profits to take a risk on the common family just wanting to buy a home. Stuck with an inventory, developers are hesitant to bulldoze fields into suburbs, making renovations to existing homes the most viable option for bettering our quality of life. In the good times, our culture tends to be mobile and impulsive. As an expression of success, the standard has been a bigger home in a better neighborhood easily accomplished by a quick move across town. Proceeds from the sale of one put the money down on another and payments remained largely the same. Assumptions that values would continue to rise made playing as easy as the game of checkers.
Sub-prime mortgages changed all that and it can no longer be the expectation that anyone who works hard enough can earn their own home. Real estate is accumulated by fewer and fewer people who rent it out to the many. Ownership is less a right than a pride and privilege.
Staying put and renovating to meet expanding needs for many reasons is a wonderful way to spend a lifetime. Deep roots, relationships with neighbors and the creation of traditions are just a few obvious reasons. Nothing better than a well-established home life can assuage the discomfort of global uncertainty.
On the local level, the decision to stay put and improve the home can be a terrifying prospect to those of us raised in a lifestyle that used houses as commodities so easily bought, sold and left behind. Often brand new, we have not stayed long enough to enjoy the shade of the trees we planted, nor shared the celebrations and sorrows from births to graduations to weddings of our neighbors' children who are friends with our own. Renovations are dusty, inconvenient and hugely stressful, lasting one or many months. The contractor and workers invade the castle, often becoming part of the family in that time, sometimes the enemy. He might turn the corner and catch you in your underwear or arrive at three AM to tighten the tarp in a rainstorm. Homework still has to be done; holidays arrive; visitors want to tour and advise.
Marriages are seriously tested living through remodels, often stripping and re-painting the relationship in unexpected colors for better or worse. At the design stage, one man's recreation room bar is the woman's whirlpool spa. The screaming saws of construction might sound like the pitter-pattering little feet to the other. Constant decisions as small as round or lever door handles create relentless strain when all he really wants to think about is a round of golf.
Despite it all, the process of transformation, with proper planning, care and room for breaks, can be a time of great joy, anticipation and satisfaction. Lives are changed by taking the wall out that has separated the kitchen from family. The extra bedroom can save a marriage or unite sisters who could not share the same space. Staying in the same school system avoids the traumatic disruption of having to make all new friends all over again.
In thirty years as a contractor, my best of many moments is easily identified in the eighth month of a year long project that doubled the size of the house and touched every room existing, centered upon a massive restructuring of the kitchen. With a two year old, she had been washing dishes in the bathtub, the heat was off for the day in February in Vermont. The entire first floor of furniture was crammed into one room with a tiny path to the computer where she huddled in a down jacket.
"I love it!" she exclaimed, mist on her breath.
Three and a half years ago, in a commitment to honor my passion for writing as well as run a construction business, I started this blog as a tool to market. Rumors surged on the internet that thousands of clicks could generate income as well as clients. It helped that some basic education about the working reality of the industry (kitchens are not renovated in a week!) could be useful. Simple logic, curiosity and desire justified the experiment. Changes in my personal life, the passion for writing from my heart and the closure of my construction business all combined to cement my focus on my other site, leaving this one long dormant. The ads were not generating the revenue anyway and the terms "SEO" and "back-links" were not yet common, so the effort was easy to lay aside.
More importantly, the transition to a life with pen instead of hammer was developing at a rapid pace. Fortunate to still have all my fingers and with rotator cuffs strained but functioning, I felt lucky. Twenty years earlier I had promised myself to not be carrying plywood at this age, but when it looked like I might continue accepting contracts, one day my scaffold suddenly collapsed, the choice no longer mine, landing me on the sofa to sit still until I reached the inevitable conclusion that I should not be working with my hands any more.
Once again, the need of some quick dollars in exchange for so many hours charged enticed me. Intuition was strong that morning to finish the essay I was writing, but integrity compelled me to go to the site and finish the work. In a safety harness earlier on the roof, after lunch, work at gutter height off of ladders with a plank in between seemed another easy dance I had been stepping for thirty years.
I always imagined, were I to fall, there would be time to jump away and go limp, roll to cushion the blow, but this was all much too quick. As the ladder slipped out, I immediately blacked out, an unconscious act of protection so intense I remember actually thinking I had died before landing hard on the pavement, straddling the extended prong of the ladder jack.
The chipped bone in my wrist was the over-riding pain, but ultimately nothing in my life compared to the ruptured urethra that forced me to live nearly two years with a catheter (a tube out of my belly into a plastic bag strapped to my leg) before it could be properly repaired. Added to the insult was the injury that by divorce my health insurance had terminated just a few days earlier, compounding the problems.
The details are well-documented at "Zen & the Art of the Midlife Crisis" and a forth-coming book tentatively entitled "The Peequel", while the most important fact is that after surgery this past June, I am well-healed and emotionally fit to take up my pen again (as well as being once again insured and more careful about the scaffolds upon which I choose to dance). Determined to earn my keep with more words than nails, but loaded with knowledge and experience of the construction business, logic dictates again that the two worlds should blend.Lately, my hands have gotten dirty with several projects for myself and others. In breaking out the tools and balanced gingerly on a ladder, pondering the low cost and high convenience of self-publishing, essays constructed here can easily be produced into ebooks. By a few simple key strokes, they can be readily available to the transformed demographics of this new generation of home owners who are comfortable with computers and less skilled with their own hands.
By economic necessity and less abundant resources, the expansive developments of new houses are dwindling and renovations of the huge inventory of existing homes become the attainable standard. Transformations of smaller capes into beautiful colonials are more easily financed than skipping about from neighborhood to neighborhood.
The need for education is profound and the internet has become the resource from which all else flows. People are more empowered than ever to make their own choices, but need impartial guidance to learn the way. In seeking a contractor or before taking a sledge hammer to their own walls, it will help to find information about the processes physical and emotional they may have to endure. With this site and ebooks to follow, I can weave some experience into a supply that can feed the demand.