Five Secrets to Building On-Budget

“I’ve got a contractor coming around to give me a price for a new bathroom.”

All too often, people identify their need to build, refurbish or extend and then rush to a contractor or sub-contractor for a price for the works. Whilst you might get an estimated cost, going in unprepared does not give you the time to frame your requirements.  First consider:

• What is the scope of the project? Consider what you might want to retain, restore or replace. Placing boundaries on the scope will allow you to reduce the number of assumptions, exclusions and caveats that your contractor will need to build into their price.
• What constraints does the project present? Place yourself in the contractor’s shoes and consider how they may carry out the work. Do you have easy access to the work area? Do you have sensitive neighbors? Do they have to work around kids and pets? If you can identify, remove or mitigate constraints on the construction process, your contractor will have less cause to add ‘annoyance’ factors to their price.

“The contractor seems trustworthy…”

He or she might, but then again, he or she might not. Leaving the success of your project to ‘the gods’ will inevitably leave you disappointed. Projects and people need to be driven to success. Construction should not be a gamble.

Remember, you are a customer buying a service.

The construction industry, like any other, has those who are keen to serve and provide a high-quality product, and a minority who appear preordained to disappoint. Hold people to their commitments – including yourself.

Just as contractors place parameters on their price, you must place reasonable parameters on the performance of their work. Setting out start and completion dates and conditions such as removal of waste, car parking and reasonable working hours will avoid some of the most common issues which arise on domestic and commercial projects.

“We don’t need to bother with a contract…do we?”

Contracts can often be seen as an over-formalization of a ‘simple’ transaction. However, even the smallest everyday purchase is subject to implied and expressed terms of contract. Construction and renovations can be among your single greatest capital investments. Whether it be your neighbor’s son or a national building company carrying out some tiling work for you, you owe it to yourself to protect your interests.

Remember, contracts are to protect both sides of the transaction. A commitment in writing will dramatically reduce the risk of dispute, be it a written quotation and return comments or a more formal contract form. A commitment by you and your contractor to reach consensus on expectations at outset will help smooth the path toward success.

We’ve all seen tears and tantrums on Flip or Flop, and whilst there is almost certainly some dramatic license used in these shows, the emotive nature of construction and renovations holds true in most projects. For whatever reason, we hold our projects close to our emotional being – and on this basis you must step back and not get carried away. You must go into your project with healthy skepticism.

Interrogate the asterisks, question what’s not included and remember to ask, “what’s in it for me?” and just as importantly “what’s in it for you?” No contractor, tradesman or organization is in business (or likely to remain in business) to work to your every whim. Remember, flexibility comes at a price.