This begins with writing on the work of Bernard Maybeck and continues through other types of writing, including commercial.
( I was ghost writer for Gavin Newsom's article above.. )
Three part series published in a local newspaper...
In tough times there are some good reasons to take on remodeling or building projects. Prices are very competitive, especially for materials.
But there are also dangers. Many projects cost more then anticipated. Will your credit cover it? Setting aside some extra funds is common sense. But more important is controlling costs to begin with, and knowing what is a justified ‘extra,’ and what is not.
Form realistic expectations at the outset. Forge a detailed agreement with your contractor that anticipates needed cost increases, but wards off needless ones. Finally, make sure you get in writing what any “extras” are, and what their “install costs” are.
Today’s segment delivers the bad news first: what “justified” extras would be that the owner, not the contractor, should pay for.
Let’s say you want an item that you did not include at the outset. You may never be able to have it installed for a reasonable price again. First, obtain a realistic estimate for materials and installation, and keep a running total, however sketchy, on ALL your changes. Partial “totals” are dangerous. Track your bottom line.
Such an extra could be anything from a window, an appliance over your allowance, an added paint color. Be responsible, and don’t kid yourself into thinking that you can toss in extras that you won’t have to pay for in the end. It is not fair to think "I'm giving this contractor lots of work; it hardly costs him anything to include it."
Your project is a business arrangement. If the estimate is acceptable, tell your contractor to proceed. Or try horse trading, or talking him down on price. Don’t proceed without explicit agreement.
You are responsible for unforeseeable cost increases. Suppose the building department decides that they require slightly different construction. Maybe the soil is different than anticipated. This is something the owner has to allow for. If 1) it is necessary, 2) it is not part of normal construction and 3) it was not in the drawings, then it’s your project, you have to pay.
That is why developers need deep pockets. When taking on a building project the owners should see themselves in a small way as a developer. Risk and a few gray hairs come with the territory.
Was the added cost really unforeseeable? Was your contractor truly up-front about what it would take to build your project? If it is expensive, you may want to get a second opinion. A talented but shady contractor is a bad to have on the job site – so is one who, rightly, feels cheated.
If this seems like cold comfort for your high hopes for building, the good news is that sometimes an owner has no place paying for a change. Surprisingly, that can be the hardest thing for an owner to insist upon. Contractors can be very enjoyable to work with, and sometimes it’s tough taking a stand on what you have a right to, under your agreement. In my next installment we will look more closely at items that the contractor may have to pay for.
