Intangible Resources

Go over every line item in your contract!         

The key to a good customer and contractor relationship is open communication. Contractors will set up a time to meet with you to go over the construction process and lay out all of the costs. This can be an excellent opportunity to save money and time! Sometimes, there are miscommunications and the contractors will assume you want things you don’t, and you can often find aspects  of the project that maybe you can do yourself, when you have more money on hand.

When you go item by item through your budget, don’t be shy about questioning or asking for further explanations on anything that you don’t understand. Your contractor may have assumed that you want crown molding in your renovated dining room space, for example. If you don’t care or would rather have something else than crown molding, you can save hundreds of dollars just by taking it off of the quote. Another also important example, is going over your selections. For example, different types of granite can range in price from $15 sq. ft to upwards of $85 a square ft. Every item matters when it comes to you getting the most amount of work at the best price.

Green is Good

Over the years the government has implemented multiple grants and programs to give   back for being Energy Star certified. You must remember it is not just the cost of construction, but also the cost of living after the work is complete, so take efficiency into account. If you can save money each month on energy and water bills, you can see a return on the up-front investment for things like double pane glass windows, divided light or energy rated insulation. For a home to be energy efficient, it goes beyond structural features. If you’re remodeling your kitchen, consider replacing your appliances with Energy Star and Water-Sense models.

For example, if you replace your old fridge and freezer from the early 90’s with an Energy Star model, you can save more than $100 per year in energy costs. It might seem small, but over time the small things add up. Even simple eco-friendly choices like water-efficient fixtures in the kitchen and bathroom can help you reduce your utility bills and make that construction project work for you. The upfront cost of the energy products will be more, but they hail in comparison to the overall savings over time.

Stay Organized

No matter what type of construction you are dealing with, unexpected things are going to arise and cost extra. The best way to combat those instances is by staying organized. If you’re sourcing or supplying any materials directly yourself for the contractor, have them on-site when your contractor needs them and on schedule.

Before you start the construction process the contractor should let you know which areas he will need to be cleared. Make sure you know what areas of your house need to be clear of furniture and debris, it is essential you take care of that before workers arrive. It’s not cost-effective to pay expensive workers to stand around while you clear dishes out of your kitchen so that they can cut a new window in the wall or wait while you move furniture to install your new wood floors.

For a larger renovation you may have to stay in a hotel during certain parts of the process. Book that room well in advance to save money. Also request a tentative time frame for your extended stay away from your home.

Keep track of any special requests that you made, any request after the construction process are known as change orders. You always want to have some form of written documentation stating the changes before the workers begin the work.

Build During the Off Season

The best time to start remodels or to receive bids for renovations is during the slow season of the winter month mid October to the end of January. Most contractors will give you lower quotes during the months due to the slow time.

“Like many industries, the construction business has busy and slow times each year. You can save between 4 and 5 percent by starting your project when contractors tend to be slow — right after Christmas [source: Glave]. On a more seasonal project, like a roof, you can save as much as 10 percent by doing the work in the winter [source: Gordon].”

There is a time to save and a time to spend. You pay for what you get.

Your home, project, renovation just like anything else in your life is an investment. You can’t expect a Lamborghini on a Honda Civic budget. Sometimes, saving a buck now will cost you in the future. A builder who gives you a lower cost per square foot may seem like a bargain, but majority of the time that can guarantee slow and shoddy work. Also just like the saying you can’t judge a book by it’s cover the same goes for construction.

For example, someone might build you an amazing home with stone on the outside, but they put all of your studs for the frame on 24″ instead of 16″ centers causing the structural integrity of your frame to drastically lessen. When you’re looking at quotes, it’s usually best to go with a middle of the road estimate from someone who has received complementary reviews. You can go with the lower quote now, but you will end up spending more money in the future when you have to go back and redo the work. You almost never want to go with someone who is door knocking or extremely pushy for work. There is a reason that person is pushing for your work.

Construction is not like most industries, it is still very old school in the sense of work is spread word of mouth. The truly good guys have been established or have support from people in the industry for years. If you can’t find any information about someone or reviews that is normally a tell all sign. You never want to over pay, but you never want to under pay either. The key is to find that tricky middle ground. If you don’t feel comfortable you can always hire an outside consultant for a few hundred dollars to review everything with you. That few hundred dollars might save you thousands in the long run.

-Cade Crowder, CEO Intangible Resources