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Negotiating with Remodeling Contractors- reducing uncertainties

in Home Remodeling

Homeowners who are pushing ahead with a major remodeling project are rare. So if you are among them, you are in a much better position to negotiate the price. We suggest several things you can do to enhance your bargaining position and make it a win win for both you and the contractor.

Review the Construction Drawings
This may seem like a no brainer. Many homeowners who work with an Architect don't take the time to review the construction drawings in great detail. Instead they rely on their architect or a junior architect. This can be a great disadvantage, because only you know what you want and are more likely to spot glaring errors. Besides that junior architect is probably juggling 10 projects and can't really be expected to remember all of your project's details.

Construction Drawings

Also and contrary to popular belief, not all construction drawings are equal. Some contractors complain over the lack of detail and frequently have to call the architect to fill in the gaps. That means delays, rework, and maybe a work around that compromises your entire project. It also means that the contractor has to put in more time to figure things out instead of just following the plans.

Here's an example. We were going to build a large Sun Room to use only a few months a year. The room was going to have at least 5 sliding doors. When we took a hard look at the drawings we realized that the architect had included heating and air conditioning into space. When we thought about it, we realized that for the same amount of money, we could replace the sliding doors with large double hung windows and utilize the space all year round. We also realized that the space would be dark so requested two skylights.

Reviewing construction plans is not fun, but it often leads to a better design and also conveys to a potential contractor that you know what you want. More important, it also sends a message that there will be fewer change orders or delays. On a lesser note, the architect will provide a better plan. Bottom line if you are too busy, get at least an interior designer to look things over. You'll be suprised what they uncover.

Also make copies of the drawings and make your changes on the drawings. This is expensive but well worth it as the architect and you can use them to discuss your concerns and check to see if the drawings have been revised properly.

Make Several lists
You will also be well served by selecting windows, roofing, appliances, plubming fixtures, electrical fixtures, tile, and flooring now. Be as specific as possible. Identify the brand, model number, color and features in separate lists. You can get a general idea of prices using the Internet and by asking local supplier to provide you prices. Always tell them that you will be working with a contractor. Generally contractors get deeper discounts than you can alone.

Plumbing and electrical fixtures requires a great deal of research. We found that the Hans Grohe, Grohe and Kohler websites were very helpful. Also there's no substitute for visting showrooms like Union Hardware, Fergerson and Porcelanosa to see things in person. 

Plumbing fixture list

Remember that your construction drawing will have separate schedules for Plumbing and Electrical Fixtures as well as Doors and Windows. Pay special attention to doors to make sure you get the right size and type. We specified 36 inch doors where possible for easy accessiblity. Also don't forget to consider pocket doors. They are very useful and can save you space.

We even specified the tiling in the bathrooms, i.e. flooring laid on diagonal with 1/16" grout and the kind of tile. Most of it is from Porcelanosa Tiles.

Once you have your lists, provide them to the contractor so that they can get a very firm handle on what the costs are. You'll also benefit from any discounts that the contractor can get for these items. We actually made lists of all of our items. We think it paid off. First and foremost, we threw away those ridiculous allowances (so did the contractor) and got independent estimates of the costs. Second, by being so specific, we have reduced the uncertainty of the entire project. In our case, the contractor can price the items and order the materials. They could also negotiate better with their subcontractors and specify exactly what the project entails.

Specifying Subcontractors
Renovations are not a "one size fits all activity." What may be acceptable to me would be unacceptable to you. Therefore, there may be times when you want to specify certain subcontractors in your contract. In our case, it is the hardwood floor company that installed and refinished floor for us over the last 25 years. Or in your case, it may be Gustav who is a master tiler. Make sure you write their name in the contract. We also advise you to do the same with other subcontractors if you suspect that the general contractor's subcontractors are not at the level you are seeking.

Bottom Line
A contractor may be more willing to work with you on pricing if they can "nail" down the specifics of the project and gain assurance that they can proceed without delay. Indecision and uncertainty or unreviewed and poor construction drawings can be your worst enemy.

Please feel free to provide us your thoughts on this article.

 

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