Feeling Confused? Frustrated?

If you're feeling confused or frustrated about how to proceed with a renovation or any building project, you're in good company.

Without taking the time to prepare for the project you also include everyone who would like to help you too.

Forget Free Estimates, because they have an accuracy of plus or minus 120 percent.

Before contacting anyone to do anything, you need to:

• Identify your requirements
• Know your budget
• Be realistic with your expectations. 

Let's face it, building a house is expensive, and renovating an older home even more so. In order to properly move your project successfully from napkin scribbles to where nails are being driven, you need to spend time preparing an accurate scope of work.

Your scope of work identifies:

• The type of material used
• How the material is stored, handled, and installed
• Crew size required to do the work 
• How you will evaluate the work performed.

Your scope of work also forms the foundation of the agreement between you and your contractors. It provides everyone with a clear and concise set of expectations enabling you to get a price for work and materials you want rather than what people think you need.

Here is a high level outline you might find helpful as a framework to use to help you prepare for a renovation or construction project:

1. Do a feasibility study to see if: your zoning allows you to do what you want, your existing services are up to snuff, and the expectations for your project are realistic.

If all is good, then:

2. Identify your budget
3. Develop a design/plan to suit

Use the budget and plan to:

5. Determine costs for upgrades to your existing systems
6. Create a scope of work and set of specifications based on the design and/or plan
7. Solicit and pay for a detailed cost analysis based on the scope of work, specifications, and plan
8. Assess and adjust the budget and/or design and/or project scope of work to give you what you need
9. Go back to step 1 and repeat as often as required.

Only when your budget, pricing and plans all align do you go to the next step:

10. Tender your project for bids

Cost Versus Value - A Delicate Balance

As a homeowner you're probably curious what projects provide you with the best return on your investment (ROI). Or maybe you want to spruce up your home to help with its resale.

As an architectural professional, questions I'm often asked are: What are my options? Is this project worth the time? Is it worth the money?

Fortunately, there's information out there to help you understand what the costs and ROI will be for typical renovation projects.  It's often surprising to learn bigger is not often better.

Let's take a look at a kitchen renovation as an example.

A major kitchen remodel may cost you anywhere between $40K to $60K. A minor kitchen remodel will be in the price range of $10K to $20K, maximum. If you, the homeowner, are thinking the major kitchen remodel is going to give you a 100% ROI you're sorely mistaken. Same goes for the smaller kitchen remodel.

The ROI for the major kitchen remodel tops out at 74.2% and the ROI for the smaller kitchen makeover is 82.7%.  So if you're looking to add value to your home for resale, fixing up the kitchen may not be the best project to undertake.

Here's what I mean.

Let's say you're thinking of selling your home in the next year or two and your home renovation budget is $15K. Your goal is to make your home sell faster, since the time it spends on the market just eats into your profit margin.  Your second criteria is you want as high a ROI as possible.

What projects should you consider? 

For a budget of $15K, here are a couple of scenarios you may want to consider to help improve your home's curb appeal, saleability, and the ROI you will experience.


Scenario 1

• Entry Door Replacement (steel) 
• Your cost: $1,162 
• Your return: $1,122 
• Your ROI: 96.6% 

• Wooden Deck Addition
• Your cost: $9,539
• Your return: $8,334
• Your ROI: 87.4%

• Garage Door Replacement
• Your cost: $1,534
• Your return: $1,283
• Your ROI: 83.7%

This first scenario will cost you $12,235 and your ROI will be $10,739.  The difference is a loss of $1,496.

Scenario 2

If you want to switch things up a bit, consider what this scenario offers:

• Entry Door Replacement (steel) 
• Your cost: $1,162 
• Your return: $1,122 
• Your ROI: 96.6% 

• Window Replacement (vinyl)
• Your cost: $9,978
• Your return: $7,857
• Your ROI: 78.7%

• Garage Door Replacement
• Your cost: $1,534
• Your return: $1,283
• Your ROI: 83.7%

This second scenario will cost you $12,674 and your ROI will be $10,262.  The difference is a loss of $2,412.

Both home improvement scenarios are below the $15K margin, which is a good thing, because you give yourself some wiggle room for any unforeseen complications with the work.

Scenario 3

Let's compare these two scenarios to a bathroom remodel:

•  Bathroom Remodel
• Your cost: $16,128
• Your return: $11,688
• Your ROI: 72.5%

The bathroom remodel will cost you $16,128 and your ROI will be $11,688.  The difference is a loss of $4,440.

When we compare the bathroom remodel to Scenario 1 and Scenario 2, the bathroom remodel is over budget and provides you with much less return.  Not to mention the disruption and inconvenience you will encounter while the project is underway.

The conclusion is: pick your projects wisely. If you have a limited budget for your home improvements and want to maximize your return on your investment, going big is not always better.

Should You Buy That House?

Location, Location, Location

"Location, location, location..." is the mantra realtors often cite when talking about a desirable
neighbourhood.

The prospective buyer needs to be thinking "What if, what if, what if..." when looking at a home they are serious about purchasing.

As someone looking to purchase a home you need to wonder and ask yourself:

• Is the house safe?
• What renovations were done in the past without a permit?
• What is the first thing in need of replacing?
• What's the real cost of yearly maintenance?
• How difficult will it be to do what I have in mind?

Knowing the answers to these questions is something every prospective homeowner would like to have, and they rely on a Home Inspection to provide them with some insight. Both realtors and seasoned building professionals know the limitations and constraints applied to an inspector when they're conducting a Home Inspection.

Testing for the presence of hazardous materials, determining if a building conforms to municipal zoning by-laws, or if there are hidden deficiencies such as inadequate structural components or a persistent water problems hidden behind finished walls or stacked boxes in a basement corner are beyond the scope and mandate of a Home Inspection to find and report on.

Yet these are the conditions that result in many non-disclosure lawsuits against previous owners and realtors.

There are other limitations to the Home Inspection.  For example, as a prospective buyer the Home Inspection will not let you know how big an addition to the existing home can be, if the kitchen is in a good location or needs to be moved, if opening up the floor plan is out of the question or a feasible option, or determine how the house can be altered to suit your lifestyle.

The Home Inspection will provide you with insight about the various elements of the home and whether they have reached the end of their service life.  The Home Inspector will also be able to let you know what items are red-flagged when it comes to needing repair.  The Home Inspection provides you with a snap shot of the condition of the house as it is today.  You may be looking for a detailed scope of work outlining how the work will be done, pricing, or identifying the risks associated with purchasing the property when looked at from the context of a future project.

In other words, you need more information.

Whether your intent is to evaluate the existing conditions or challenges faced for the future growth and expansion of the house, what you may find you need are answers to describe how feasible your future plans for the home would be.  Your focus is more on the future of the house and how the current state of the house impacts those plans.

If you or your clients are looking for honest answers and clear, professional advice and direction for the evaluation of the structure and condition of the house, where pointing out both immediate and future concerns or limitations are needed, feel free to contact me.

A 10 minute conversation will allow us to determine if your requirements and this type of service make sense, and if it does, we'll both decide what the next steps will be.

Your Project's Scope Of Work

A project's Scope of Work has often been mentioned in my discussions and you may be asking yourself "Just what, exactly, is a Scope of Work and how it can help me with my project?"

You may also be wondering how big does a project need to be for a Scope of Work? Does the Scope of Work apply to really massive jobs as well as small jobs, like installing a new light fixture for example?

You bet it does. 

The Scope of Work concept is quite simple. It's used to accurately describe:

• Who is responsible for what work
• How will the work be done
• What is the work
• When is the work finished
• How will you measure the work's completeness

Most people have the strange concept that any contractor given a set of drawings or project will approach the work in essentially the same way to create the desired result.  This couldn't be further from the truth.

If you're a contractor you're probably thinking, "I don't have time to write out a Scope of Work for every project I bid on!"

You know what? You're right.  The responsibility for creating the Scope of Work rests with the owner of the project.

So how do you convince the project owner they need to provide you with a Scope of Work before you invest the time and effort to price out a project?  I mean, the typical homeowner is probably thinking the Free Estimate is a pretty good deal right about now.

No hassle, pick up the phone, call, someone comes over, and then a few days later appears with a polished proposal.  Who needs a Scope of Work?  Want the job, give me your price.

Well, times are changing, fortunately, and more homeowners are now beginning to understand the difference "quality" makes, and it all starts with the project documentation prepared for the project.

What A Scope of Work Describes

Imagine, as a homeowner, or a contractor, you have the means to describe milestones, reports, deliverables, and end products for every phase and aspect of the project. If there is a dispute about the trade not performing to speed, it's because that speed was defined and identified prior to.  If the documentation says the agreed to crew size is one lead carpenter, an apprentice, and a laborer and just the carpenter shows up Day 1, as the customer and contractor you know your project's milestones are not going to be met.

If you're a contractor, the days of yelling into your phone, throwing your hard hat around, and being an ass and expecting an increase in performance as a result of your temper tantrum are over.  Same goes for you, the homeowner, who's hired on trades to do the work.  You can change the rules and demand more but understand this, the expectation is everyone has to agree to the change, how to implement the change, and what the impact is on the project in terms of compensation, deliverables, and milestones.

What A Scope Of Work Includes

So, what should a complete Scope of Work include?

These are the recommended components:

• Glossary
• Problem Statement
• Goals of the Agreement
• Deliverables
• Administration
• Timelines

Kia Ricchi, a Blogger for Fine Homebuilding wrote an article about how to Create A Scope Of Work. Some of Kia's points "are the description is accurate, detailed, and includes all the work and materials you will provide. Excluded items and additional work that the homeowner might assume to be included should also be noted.  In summary, a good scope of work should tell a prospective client exactly what is, and what is not, included in your bid."

Read more at: http://www.finehomebuilding.com/item/17971/create-a-scope-of-work#ixzz2yz4349Sz and be sure to check out my comment under my username misturfyxit. The comments made by me and others back in 2011 are still as valid then as they are today.

Who Prepares the Scope of Work

If you're the project owner, it's your responsibility to prepare the Scope of Work. The problem is, the typical homeowner is unaware of how to prepare a Scope of Work or who they need to talk to do so.  If you're replacing light fixtures, building a deck, or a new home, the Scope of Work varies, as does the expertise needed.

The question now becomes, who do you get to write your Scope of Work? Are there resources out there for you to use?

Fortunately, the resources are out there.  It's just a matter of getting them to all mesh together.

How Accurate Is My Quote?

You've all learned why the Free Estimate needs to die.

With the Free Estimate gone, what fills the void vacated by all that Free Estimate foolishness?

A Quote or Price for the Project, that's what.

So what's the difference between a Free Estimate and an price or quote?

Well, to start with, creating a Price or Quote for a project requires you to work with someone who will spend time, use their expertise and understanding to assess the risks and challenges, and then determine the material and labor requirements required to make your project a success.  

Most customers are unaware of what the project costs are and would like to have the flexibility to adjust the scope so they can control the cost. Being able to move markers as the design progresses eliminates a condition called "Over Design" which occurs when the designer creates a product the customer is unable to afford.  

So how do you do that?  Price your project at intervals as the design process for your project matures.

Processes And Pricing

Your project documentation is used to define, clarify, and describe your project's scope, material requirements, and configuration.  Development of your project's documentation is a four step process and looks like this:

• Concept
• Schematic
• Design
• Construction Documents

You can have your project priced at each of these intervals realizing the accuracy of the pricing provided reflects the accuracy of the documentation provided for the stage of the process priced.

Process Pricing

To help you understand what I mean, refer to the Process Pricing image. The darker the color, the more precise the pricing provided.

For example, because more than one CONCEPT is prepared for your project, the prices here vary the most. Materials are guessed at as well as the scale and scope of the work. 

As you move from the CONCEPT to the SCHEMATIC, the pricing tightens up more as the scale and scope of the project become more defined.  Room sizes are known, some material decisions are made, and the location and size of doors and windows are provided.

The DESIGN stage of the process is quite a bit more accurate because you have cabinet layouts shown, flooring types identified, and elements such as trim and door style identified. (It's at this stage you typically sign a contract with a Design-Build firm to build your project)

The COMPLETED DOCUMENTATION process provides you with the more accurate pricing levels of all the processes because everything is specified, including how the work is to be performed. (It's a this stage where all the Change Orders are issued, before the project begins).

As you can see, as the your project's construction documentation increases in its level of detail, ambiguity, assumptions, and unknowns are removed. The accuracy of your pricing is directly tied into the completeness of the documentation you provide.