Cost Control
In today's
recovering economy, everyone is price conscious. Residential
remodeling is certainly no exception. As a professional remodeling
contractor, we understand how critical it is to establish and maintain
a budget that everyone can both agree and rely upon.
 When it comes to money, no one likes cost overruns or unpleasant
surprises.
Professional
remodelers are no exception. When a project's budget is busted, it's
unlikely that the contractor profits from it. More often than not,
it's a cost that the company shares with the homeowner. Going over
budget not only erodes a remodeler's profit, but his reputation and
potential for referrals as well.
As a
professional remodeler, we are diligent about establishing a budget
and actively managing that budget through construction. It is in
everyone's best interest to make sure it stays on track.
Here are some
methods we employ to accomplish that goal:
Value
engineering. Value engineering is the practice of optimizing
construction costs while maintaining (or ideally improving) housing
performance and durability. It requires that the remodeler be on the
project team from the outset, working with you and your design
professional to identify and make the best use of materials and refine
the construction costs of your remodel before construction
begins.
Negotiated subcontracts. The goal here is to
attract the most talented and highest quality trade partners at the
best possible price. The best remodelers have a stable of reliable and
professional trade contractors with whom they work on a regular
basis.
Rather than
focus on lowest price, and risk dropping his quality standards, a
professional remodeler will take the plans and specifications to his
best subs and negotiate a set cost for their work. After negotiations,
those numbers are added to the budget and the contractors are held to
their original estimates.
Price
guarantees. Similar to negotiating with their trade partners,
professional remodelers may seek to obtain guaranteed pricing from
their materials suppliers as early, and for as long, as possible.
Placing a pre-determined ceiling on prices is critical when material
costs, such as for lumber or copper, are volatile and likely to rise
even before construction begins.
Details, details. Costs are more easily kept
in check when every penny is tied to either a specific stage of the
process (such as rough framing or roofing) or materials or products
(such as a dishwasher or garage door). In this way, professional
remodelers are able to track specific costs to a detailed scope of
work and materials list.
Tracking costs. Professional remodelers
don't wait until the end of the job to find out if they are "on
budget". They set several key milestones during construction to make
sure costs match the amount of work that's been completed. Tracking
costs during the project allows discrepancies to be caught early,
frequently before they impact the overall budget.
Tracking changes. While change orders are a
part of virtually every remodeling project, they are the cause of most
cost overruns and time delays during a home improvement
job.
This is not an
area to leave to chance. Smart contractors plan for changes. They have
formal policies and procedures in place to manage change requests and
payments. These procedures make any changes to the scope of work as
efficient as possible, minimizing cost overruns and time
delays.
These
strategies go a long way to ensuring cost control on a remodeling
project, protecting everyone from an unpleasant experience and helping
ensure a high level of quality and customer satisfaction.
Warm
regards,
Austin Schmitt, John Schmitt, Mark Jackson, and
Elizabeth Mitchel
Kingston Design Remodeling
11515 Suburban Place
Fairfax Station VA 22039
(703) 323-6527 - phone
kingstonbuilders@cox.net
www.kingstonbuilders.com
c.
2006 All
rights reserved.
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