Share Your Renovation Budget With Your Contractor

 Many a time I have been called to someones home or cottage and they tell me they are in need of renovations. Sometimes the renovations are major and sometimes the renovations are minor.

One of the questions that I ask these people is what is their budget for their project. I do this to help both of us,

1. It helps tell me if you can afford the renovations that you are proposing to me
2. It lets me guide the client to things that will fit in their budget.

Sometimes people will either ignore the question or tell me that they don't want to tell me their budget.

The reasons that they don't want to share this information varies widely but it does happen more often then it should.

When you don't share your budget with your contractor you might think that you are then getting a price that isn't set off the budget that you told them, its the same mentality that people use when talking to real estate agents. They tell the real estate agents that they want to spend a 1 million dollars on a home and the real estate agent proceeds to only show you houses that are between 1 million and 1.5 million dollars and never shows them the houses under a million dollars. 

Well that is not how it works in construction. In construction most contractors don't raise and lower the price depending on the budget. Most good contractors are estimating jobs all the time and don't have the time or the patience to make up new markups and prices for every single job that comes across their desks. They have figured out the cost of doing things and they know the mark up they need to charge to make a profit and pay the bills and that's how they price jobs.

Knowing that, what you need to understand is if you tell your contractor that you have a budget for $100,000 for renovations on your kitchens, bathrooms, living room and great room and they figure out the cost is $140,000 then they give you the choice of what you want to renovate for the $100,000. They don't ask you for more money they just help you renovate what you can for your budget. Its means that you might not get your basement renovated or maybe the kitchen. They adjust to fit your budget.

Contractors will work with your budget, they will help you spend your budget with the renovations that you can afford, if you decide that you don't want to spend the entire budget then they will adjust the renovations so that you save money. Maybe they recommend a less expensive tile in the bathrooms or the deletion of some cabinets to help you lower the budget.

Every contractor wants to do more work but they also want to get paid for their work, if they allow the project to go severally over budget they then risk you not having enough money to pay the final bill, nobody wants that.

When I meet with people for renovations I spend a lot of time talking them out of things that don't fit in their budget. I'm basically talking them out of giving me work, but they have shared their budget with me and that tells me if they can afford it or not. This happens a lot with people who want additions, they have underestimated what additions cost per square feet and they have asked for too large of an addition compared to their budget. A simple shrinking of the additions helps it fit in your budget.

As a contractor I try to make my clients happy, my clients won't be happy if they end up way over budget, so if you can change their minds and adjust their thinking about what they can afford and what they really need right from the starting line then the rest of the job will go a lot smoother and at the end everyone will be happy and paid!

So when you meet with your contractor for that first renovation talk don't be afraid to tell them what your budget is, it will be beneficial for all parties. The contractor will have a budget to work from and a clear direction to lead you too get the renovations you want (and renovations you require) while keeping you within the budget that you have specified.

Rob Abbott 

Know Your Remodeler

Know Your Remodeler

Many of our clients are anxious to learn all they can about the home remodeling process before embarking on their project. This is understandable and admirable. A remodeling project is exciting, can have a positive impact on a family’s quality of life, and is potentially an excellent financial investment.

A good place to begin the education process is with the remodeling contractor. Customers who understand the remodeler’s motivation and approach to the work will be better equipped to select a remodeler that suits their personality and project.

This is not a mysterious or complex undertaking—remodeling contractors are just business people. We possess skills that lend themselves to home improvement just as you apply your expertise to your chosen profession. Like many others, we want to earn a living doing something we’re good at and are passionate about, as well as leave some positive mark on the world.

As business people, we are interested in making money honestly by providing an excellent product for a fair price. Professional remodelers accomplish this goal by preparing business plans, understanding and adhering to client expectations, and establishing strong and reliable partnerships with suppliers, lenders, and subcontractors. We live in the communities in which we work, and therefore rely on our local reputations to sustain our business success.

As with any business, some remodeling contractors lack adequate business and communication skills to be successful, at least in the long term. Those human deficiencies—not intentional deceit—are the root of most horror stories about dissatisfied customers. Only a very small percentage of remodelers act badly, and they are often (and increasingly) ferreted out and exposed by various regulatory and industry certification standards that continue to improve the reputation and professionalism of the industry.

Professional remodelers—those with both the trade and the business management skills—work hard to avoid misunderstandings and miscommunication with their clients. That effort is sometimes challenging. Unlike other industries, construction work is exposed and open as it progresses, and takes place in the full view of the client. What may appear to be incomplete or a mistake might simply be an unfinished phase of the project.

As a homeowner and potential remodeling client, it is critical to remember that contractors are engaged in the remodeling process every day, year after year, developing a solid sense of daily progress and a vision for how the project will finish to their client’s satisfaction. Homeowners, on the other hand, may go through the remodeling process only once, and so don’t get to develop that long-term perspective.

Successful remodeling professionals recognize the difference between their experienced perspective and the untrained eyes of their clients. They bridge that gap by respecting a homeowner’s questions and providing clear and satisfactory answers. They understand the significant emotional investment and the financial risk undertaken by their clients, and they work hard to calm fears and debunk myths.

Informed homeowners, in turn, must understand that remodeling is all in a day’s work for a contractor. When both you and your remodeler respect each other’s role and approach to the project, it creates a greater opportunity to foster open communication, build trust, and achieve a successful and satisfying project.

Warm Regards,

Doug Abbott
Village Builders

This is an excerpt from a newsletter that is distributed to all former, current and future clients of Village Builders Inc.  If you would like to receive this newsletter feel free to email me at www.robabbott@villagebuilders.ca

Rob Abbott

Village Builders Inc