Understanding the Process of Remodeling Your Home

Transcription

1 Understanding the Process of Remodeling Your Home Instructor Kevin J. Ahern President, Litchfield Builders, Inc. Past President, Home Builders Association of New Haven County

2 Why are you here? Thinking of remodeling? Need extra space? Family member moving back home? Why am I here? When I talk to prospective clients they often say.. I don t even know where to begin?? I m scared to think of what could happen if I hired the wrong person Raise the bar for professionalism

3 This class is geared towards anyone considering a home addition, renovation or remodeling project. The purpose of this class is to provide you with information and strategies to ensure your project is completed in the most timely and economical manner with a high level of quality. The major topics covered will include: How to find and select the right contractor for your project The importance of documentation and understanding of the scope of work Understanding the legal aspect of a proposal or contract

4 Can you guess the number of home Improvement Contractors that are registered in CT today? THERE ARE OVER 26,000 What are your odds of finding a good one? The average contractor looks fairly good compared to most because everyone else is so bad. News clippings: Alleged unlicensed contractor arrested after working on Winsted home Middletown Press WALLINGFORD Connecticut Better Business Bureau is warning consumers about some unscrupulous salesmen selling roofing repair services door to door. In complaints to BBB, consumers report they were pressured to sign a contract and write a check as soon as possible, and that the work was poorly executed Register Citizen Construction firms often make unrealistically low bids to get jobs but they can count on finding plenty of reasons later to jack the price up enough to allow for a profit. When the building is underway, it becomes prohibitively expensive to fire the contractor and start anew. The owner has become a hostage. Wall Street Journal, 12/05/07

5 How do I Hire the right contractor? Ask for multiple references and call them! Check out the references good/bad we had an issue and it was solved Look at past projects Licenses and Insurance required not minimums insurance / based on what the work is. Workmans compensation and the coverage dilemma. Understanding the contractor s abilities. What does the company specialize in? Whole house remodels or just kitchen box swaps? Do they train employees or is their attitude training is expensive? What is average length of time employees are with the company?

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7 State Licenses & Registrations

8 Understanding the level of service you want and need What is full service? Who actually does the work? Staffing How many people are on the company payroll to do the work? Use of subcontractors. Who will do what? Specialty subcontractors. Who will run your job? Daily communication? Schedule? What role will the key players have in the project: Who is decision maker (for client) and how? , cell? Job foreman as decision maker (for contractor) How much time is the foreman on site? Does everyone understand?

9 Always ask for references Why get 2 or 3 references ask for 10+! Always check the references Basic questions you will want to ask: Did they start when they said they would? Did they clean up daily? Was the price quoted what you paid? If not, why not? Were there any problems during the job...and how did they handle it? Would you or have you recommended them to someone else? Why did you choose them and not another builder?

10 Defining the scope of the work, choosing products and clarifying the budget Dream big Wish list Needs list Scope of work.. General idea of what you want to spend vs. what you are trying to accomplish. Break it down into pieces bath, kitchen, addition etc Bath 15K Kitchen 45K Addition 100K Project Budget 160K Potentially hold on bath during design

11 The manufacturer recommended installation methods or industry association guidelines as the basis of quality control. Example of Tile manufacturers association or Wood Floor Manufacturer Association.

12 Using third party specifications as the basis of the contract and performance guidelines. Above example of hardwood floor transition using a performance guideline set by a third party.

13 designing the project

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18 structuring contractual relationships Types of contractual relationships: Design Retainer Fixed Price Design build Cost plus a percentage for O&P Construction Management with a budget Contracts HIC in CT law is there to protect consumer Rules Lien Waiver and lien law

19 Differences in proposal. No start and completion date No notice of cancellation 50% deposit before work starts? No attached copies of license or insurance certificate

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21 Understanding the key components of an insurance certificate This image cannot currently be displayed.

22 Lien Law Subcontractor or supplier places a lien on your home because they were not paid by general contractor The "Lien Fund" Defense Perhaps the most common, and most dangerous, basis on which to attack a mechanic's lien is the "lien fund" defense. Connecticut, like many other eastern states, is a "subrogation theory" state. That means that the lien rights of all second tier subs and suppliers are theoretically derived through, and depend upon, the validity of the lien rights of the general contractor. Therefore, if the owner has fully paid the general for his work (resulting in his loss of lien rights), and the general fully pays his subs, and one of the subs fails to pay his supplier, that supplier has no lien rights unless he filed and served his lien before the owner fully paid the general! Under this scenario, the "lien fund," i.e. money remaining due to the G.C. when the lien is filed and served, is exhausted. The "lien fund" is also reduced by any costs incurred by the owner to complete the G.C.'s contract. If you pay your general contractor, you have nothing to worry about

23 Example of lien release This an example of a form often used You should consult an attorney for contract review and any concerns you have before signing a contract

24 EPA RRP Client must sign form if applicable This form is a part of the record keeping for the EPA RRP program. Owners sign it to recognize they have been notified that the work safe practices are being applied to their project. There are also record keeping requirements that are to be completed on site and kept by the contractor for a specified amount of time.

25 EPA RRP Company Certification WHO THIS APPLIES TO: Any contractor, including renovators, electricians, HVAC specialists, plumbers, painters and maintenance staff, who disrupts more than six square feet of lead paint in pre 1978 homes, schools, day care centers and other places where children spend time.

26 EPA RRP Foreman Certification WHAT IS IT: The Lead Based Paint Renovation, Repair and Painting (RRP) rule is a federal regulatory program affecting anyone who disturbs painted surfaces where lead may be present. The course certifies renovators for five years and teaches the required steps to contain the work area, minimize dust and thoroughly clean up every day.

27 OSHA Training

28 Links to important websites: CT Department of Consumer Protection web link: To verify a contractors license Check litigation history EPA Lead Safe Certification Program web link:

29 What I would like you to leave with: An understanding of the process and why not just anyone can do it well. An ability to purchase good quality service at a fair price and be very satisfied with the decision you made. We don t sell widgets we sell a process! A greater appreciation for the commitment a builder/remodeler has to make to do this as a professional! Knowledge is your best protection Do your homework Don't make decisions based on price, pay attention to value If you have to, don t be afraid to wait for a good contractor