How do I budget for my Remodel Project? – “Back into Your Project.” Don’t go headfirst

WHAT DO I MEAN BY THAT?

Most homeowners who contact an architect first are going into their project headfirst. Always establish a budget and stand by it. There are times that the money is not sufficient to the scope of work. It is better to know that before the drawings are completed and a builder prices the work and gives you the bad news. Architects don’t refund for overdraws. Get your builder involved at the design phase to make certain that your design phase does not end in disappointment and hard feelings.

Some round costs are these: a kitchen renovation can cost as little as $25,000.00 to $100,000.00. A hall bath generally runs about $14 to $16k. A master bath (not politically correct to say that anymore) is as varied as the kitchen pricing – and about the same costs.

We are going to discuss all the phases during your renovation. For our example project, let’s set our budget at $100,000.00. This is a typical number for a small to medium scope renovation project. Our scope is pretty straightforward and very common. We are going to renovate the kitchen, move some bearing walls to create an open concept space, remodel the primary bathroom, scrape some popcorn ceilings, texture and repaint, and replace windows. If we have the room in our budget, let’s repaint the exterior of the home for that nice gift wrapping on our beautiful interior renovation.

How Much Should You do Yourself to Save Remodel dollars?

Most homeowners who contact an architect first are going into their project headfirst. Always establish a budget and stand by it. There are times that the money is not sufficient to the scope of work. It is better to know that before the drawings are completed and a builder prices the work and gives you the bad news. Architects don’t refund for overdraws. Get your builder involved at the design phase to make certain that your design phase does not end in disappointment and hard feelings.

Some round costs are these: a kitchen renovation can cost as little as $25,000.00 to $100,000.00. A hall bath generally runs about $14 to $16k. A master bath (not politically correct to say that anymore) is as varied as the kitchen pricing – and about the same costs.

We are going to discuss all the phases during your renovation. For our example project, let’s set our budget at $100,000.00. This is a typical number for a small to medium scope renovation project. Our scope is pretty straightforward and very common. We are going to renovate the kitchen, move some bearing walls to create an open concept space, remodel the primary bathroom, scrape some popcorn ceilings, texture and repaint, and replace windows. If we have the room in our budget, let’s repaint the exterior of the home for that nice gift wrapping on our beautiful interior renovation.

Most homeowners, especially those on a tight budget offer to perform unskilled tasks on their own. Ostensibly, this is thought to save budget dollars on their project. When I talk about backing into your project, there are unseen criteria and a general philosophical mindset of which the homeowner should be aware. Let’s look at this free labor from two perspectives.

Unskilled Labor as it Applies to Your Project:

As builders, we look at your project as a timeline flow. Many tasks within that timeline are spread throughout that timeline. Demo, for instance, occurs from day one to nearly the end of the project. Electrical, Plumbing and HVAC occurs throughout the project. Part 1 of all these trades’ participation is permit and demo. Part 2 is rough-in. Part 3 is Top Out. Part 4 is Trim out. Carpentry occurs throughout, from demo and rough framing, through interior trim and cabinet installation. Most often perceived unskilled efforts are mixed with highly technical tasks. Having an inexperienced crew performing some of these tasks pose a safety issue and tend to slow the overall process.

The Savings of Performing Unskilled Tasks Yourself

The chief component of Backing into Your Project is to commit to your budget. Once established, lock in that number. In our example from part 1 our builder gave us a price of $100k. Commit to it from the start. The $100, $200, or $300 savings saves you nearly nothing. The builder cost for the same task is nominal and often low balled in his budget computations. The most expensive parts of your project are materials, skilled trades, and management.

Note: Buy the best quality materials you can afford. Your builder should provide you guidance on materials selections with allowance budgets and builder discounts with his established vendors.

Selecting a Builder to Assist Your Design Process

An interesting phenomenon occurs when a homeowner goes into a project headfirst and selects a builder without a design. In order to get an idea of a price for their project. Most people limit their gibbers to 3. There is no reason to pick 3 any more than a reason to select more than 3 builders. Still, most homeowners go in threes when they seek prices. The phenomena is how disparate the pricing will be if you actually get all 3 to bid. Many builders will not bid the project because they have no clue what to bid. They know that they are tossing a number against the wall hoping it will stick. If they are awarded the project, they suspect they underbid it and will lose money. This mindset accounts for why most homeowners tell me stories of how they asked for a bid then they never heard from the builder again.

Of those who do bid your project you will get 3 different pricing levels and each one tells you a lot about your prospective builder.
• The lowest price indicates desperation.
• The highest price indicates the builder may not be comfortable with how technical the project is or does not have the knowledge and experience to complete it.
• The middle price is generally the right one.

Note: This is only a general guideline meant to help you weed out risky builders. If you drew your builders from CraigsList, or some other classifieds type service, it is very likely none of the builders will work for you. If you drew from reputable, well-reviewed, experienced builders, this guideline will help.

And yes. Although these better tiered builders are more likely to be an appropriate builder for your project, remember that you are dealing in a largely unregulated industry which requires nothing in the way of qualifications, experience or knowledge of any kind to enter.

Why are your bids often so widely dissimilar in price? Some bids are double or triple the amount of the others. The first question I always ask is what were the builders bidding? What was the specific scope of work you had all of them bid? Was it in writing? Did you walk each through the job and talk them through what you wanted them to bid? This last is the most common method.

Remember this truth. If during your walk through told each builder that you wanted a new kitchen and appliances, you had 3 builders who saw three different kitchens built 3 different ways. One of them bid custom cabinets; one of them bid mid-level box cabinets; and one bid the cheapest all wood cabinets he could find.

Always have your builders bid a drawing. That means you have to hire an architect and as we agreed, architects have no clue what building costs are meaning that your drawing will may not fit your budget. Select your builder solely upon his or her experience and services brought to the table. You are creating a relationship with your builder. Date before you marry. Learn about your builder before you commit him or her to a price. If you learn that the builder is knowledgeable, experienced, easy to get along with, and urges you to have a good design, you may have found a winner. If you base the relationship upon the price you want…well you know what that kind of relationship is called.

Back into your project. Pick a builder who is a confidant, a consultant, an insider who knows the industry and brings that inside knowledge to the table as an asset for you and your project, not just for him and his bottom line. An experienced builder will have a good idea what your job will cost in round numbers. I complete 20 to 50 projects each year. I know what things cost. I always know where the budget will fall. Don’t settle for less in your project.

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Comments (3)

  • Craig Walker Reply

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    November 12, 2021 at 1:38 pm
    • Craig Walker Reply

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      November 12, 2021 at 1:38 pm
    • Craig Walker Reply

      Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam viverra euismod odio, gravida pellentesque urna varius vitae, gravida pellentesque urna varius vitae.

      November 12, 2021 at 1:38 pm
  • Craig Walker Reply

    Lorem ipsum dolor sit amet, consectetur adipiscing elit.

    November 12, 2021 at 1:38 pm
  • Craig Walker Reply

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    November 12, 20218 at 1:21 pm

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