Building and/or Remodeling a home is a process of building hopes and dreams.
The team needs good home owners, good architectural design, good interior design, and a good builder to turn everyone's vision into a tangible product.
A builder must be able to communicate with the homeowner, the designer as well as the tradesmen. Each has a different understanding of the outcome. The builder gives symetry, a oneness, cohesion to the dreams and to the reality.
About Penny Construction
This Custom Home Remodel to the stair well created a more open feel
No simple task to this interior remodeling project:
Kitchen Remodel, Bellevue, WA. (after) DeWils cabinetry
Building Inspections and What They Mean
There is a belief by the public that Building Inspectors are there to make sure that quality is built in. Sorry, Wrong. Building inspectors do not inspect for quality and/or workmanship, only for Code. Code is the Minimum Requirement. Code does not imply quality. So when someone says, "It passed code!", what they really said was it passed as at least the minimum requirement. It does not mean that anything is necessarily right, or done the best. Quality, function or livability are not necessarily covered by code. Inspectors and Code are focused more around health and safety. Stairs have the legal tread and rise, handrails, smoke detectors, GFCIs in baths, kitchens and exterior. When you are working out in the yard and trip the GFCI that is located in the powder room is to Code, but has nothing to do with function or livability.
Deposits for Work
In 30 plus years of building and remodeling, when a homeowner gets "ripped off" by a Contractor, typically, they have made a "deposit"; they have paid money for future work. When was the last time you got paid at your job, before you actually did your job?
In most cases, there is no reason to make a deposit for work.
You have decided that you are going to have a project done, re-roof your house, a new kitchen, addition, deck, bath or landscape work. You agree to pay $15,000.00 plus sales tax for the work. The Contractor asks for a $5,000.00 deposit. You write the Contractor a check. The questions begins with; What expense has the Contractor incurred? What happens to your money if the Contractor does not show up?
The answers begin with; A small amount of time: You lost your money and good luck getting it back.
As a Customer, you should pay for what you have received.
If you do a $15,000 re-roof, the actual time people are working on that job is just a few days. If the roofer starts your project on Monday; he has a dumpster delivered for the debris, he sends a crew out to begin tearing off, he might have some sheathing and roofing paper delivered, he has the roofing material delivered, the workers install the sheathing and roofing, the dumpster is removed, final cleanup is done and the workers leave. It is now Thursday or Friday.
What money has the Contractor taken out of their pocket to this point. Pretty much, nothing. They have incurred financial liabilities.
Typically, the workers get paid on Friday, the dumpster company will bill the Contractor at the end of the month, the roofing supply company will bill the Contractor at the end of the month, and the payments for these services and supplies are typically due on or by the 15th of the following month.
In the re-roof example, it is fair to give the Contractor a few hundred dollars to "get in line" as well as to give them a guarantee that you have the ability to pay. It is fair that once the roofing material is actually stocked on the roof, that the Contractor get paid even 60% of the contract amount. It is fair when the job is completed to give full and final payment. With this kind of payment schedule, you can see that you really have paid for that which you have received. Also, final payment is made when the work is 100% complete and you are happy. Money is the leverage to make sure the work was completed to the terms of the original agreement.
If the Contractor does not have the financial wear-with-all to work this way, then maybe they won't be around after collecting that deposit.
On another project, you are going to do one that takes several months. It is acceptable to pay on a mutually acceptable schedule; when the drywall is nailed; when the cabinets are installed, X amount of money. Monthly billings work great when they are detailed and show actual expenses. The Customer is paying for what they have received.
Be careful of payment schedules where you end up paying weekly.
Be careful, Contractors have been known to heavily load the front end of payment schedules to get as much money earlier in the project than the actual costs incurred.
There are times when one must make deposits. When ordering cabinets, it is standard operating procedure, once the final design is approved that a 50 - 60% deposit must be made to actually place the order. When things are being custom made, specifically for your project, you are going to have to make that deposit for work.
Penny Construction typically bills monthly for labor performed, subcontracted work completed, and/or materials on the work site. Penny Construction does not get "deposits" from clients, except when required by a subcontractor or supplier.
It should be expected that by making a payment to the Contractor, that you are telling them that you are satisfied with what has happened to date. If not, you need to talk!
It should be expected that by NOT making payments per your agreement, that the Contractor will not perform to your expectations.
In most cases, there is no reason to make a deposit for work.
You have decided that you are going to have a project done, re-roof your house, a new kitchen, addition, deck, bath or landscape work. You agree to pay $15,000.00 plus sales tax for the work. The Contractor asks for a $5,000.00 deposit. You write the Contractor a check. The questions begins with; What expense has the Contractor incurred? What happens to your money if the Contractor does not show up?
The answers begin with; A small amount of time: You lost your money and good luck getting it back.
As a Customer, you should pay for what you have received.
If you do a $15,000 re-roof, the actual time people are working on that job is just a few days. If the roofer starts your project on Monday; he has a dumpster delivered for the debris, he sends a crew out to begin tearing off, he might have some sheathing and roofing paper delivered, he has the roofing material delivered, the workers install the sheathing and roofing, the dumpster is removed, final cleanup is done and the workers leave. It is now Thursday or Friday.
What money has the Contractor taken out of their pocket to this point. Pretty much, nothing. They have incurred financial liabilities.
Typically, the workers get paid on Friday, the dumpster company will bill the Contractor at the end of the month, the roofing supply company will bill the Contractor at the end of the month, and the payments for these services and supplies are typically due on or by the 15th of the following month.
In the re-roof example, it is fair to give the Contractor a few hundred dollars to "get in line" as well as to give them a guarantee that you have the ability to pay. It is fair that once the roofing material is actually stocked on the roof, that the Contractor get paid even 60% of the contract amount. It is fair when the job is completed to give full and final payment. With this kind of payment schedule, you can see that you really have paid for that which you have received. Also, final payment is made when the work is 100% complete and you are happy. Money is the leverage to make sure the work was completed to the terms of the original agreement.
If the Contractor does not have the financial wear-with-all to work this way, then maybe they won't be around after collecting that deposit.
On another project, you are going to do one that takes several months. It is acceptable to pay on a mutually acceptable schedule; when the drywall is nailed; when the cabinets are installed, X amount of money. Monthly billings work great when they are detailed and show actual expenses. The Customer is paying for what they have received.
Be careful of payment schedules where you end up paying weekly.
Be careful, Contractors have been known to heavily load the front end of payment schedules to get as much money earlier in the project than the actual costs incurred.
There are times when one must make deposits. When ordering cabinets, it is standard operating procedure, once the final design is approved that a 50 - 60% deposit must be made to actually place the order. When things are being custom made, specifically for your project, you are going to have to make that deposit for work.
Penny Construction typically bills monthly for labor performed, subcontracted work completed, and/or materials on the work site. Penny Construction does not get "deposits" from clients, except when required by a subcontractor or supplier.
It should be expected that by making a payment to the Contractor, that you are telling them that you are satisfied with what has happened to date. If not, you need to talk!
It should be expected that by NOT making payments per your agreement, that the Contractor will not perform to your expectations.
The Buillder - Anonomous
An elderly carpenter was ready to retire. He told his employer-contractor of his plans to leave the house building business and live a more leisurely life with his wife enjoying his extended family. He would miss the paycheck, but he needed to retire. They could get by.
The contractor was sorry to see his good worker go and asked if he could build just one more house as a personal favor. The carpenter said yes, but in time it was easy to see that his heart was not in his work. He resorted to shoddy workmanship and used inferior materials. It was an unfortunate way to end his career.
When the carpenter finished his work and the builder came to inspect the house, the contractor handed the front-door key to the carpenter. "This is your house," he said, "my gift to you."
What a shock! What a shame! If he had only known he was building his own house, he would have done it all so differently. Now he had to live in the home he had built none too well.
So it is with us. We build our lives in a distracted way, reacting rather than acting, willing to put up less than the best. At important points we do not give the job our best effort. Then with a shock we look at the situation we have created and find that we are now living in the house we have built. If we had realized, we would have done it differently.
Think of yourself as the carpenter. Think about your house. Each day you hammer a nail, place a board, or erect a wall. Build wisely. It is the only life you will ever build. Even if you live it for only one day more, that day deserves to be lived graciously and with dignity. The plaque on the wall says, "Life is a do-it-yourself project."
Who could say it more clearly? Your life today is the result of your attitudes and choices in the past. Your life tomorrow will be the result of your attitudes and the choices you make today.
Anonomous
The "know it all"
Beware the "guy" who knows it all and can do it all. A "self professed expert" professes to know the most, but most often knows the least. It is the quiet one who usually is the most knowledgable and skillful. "Know it alls" are often "bullies". The bully's actions are driven by ignorance and low self esteem. These experts will not listen but they will argue their truth "to their death", through volume, threats and intimidation.
It is impossible to come to any reasonable compromise when a discussion or argument is based on ignorance.
Bullies come in all ages. There are bullies in grade school and I know bullies who are in their 50s, 60s and 70s.
Beware the loud, fast talking, buddy buddy guy. Give credence to the calm and quiet "guy".
It is impossible to come to any reasonable compromise when a discussion or argument is based on ignorance.
Bullies come in all ages. There are bullies in grade school and I know bullies who are in their 50s, 60s and 70s.
Beware the loud, fast talking, buddy buddy guy. Give credence to the calm and quiet "guy".
The Paradox of Our Time - George Carlin
The paradox of our time in history is that we have taller buildings, but shorter tempers; wider freeways, but narrower view points.
We spend more, but have less; we buy more, but enjoy it less.
We have bigger houses and smaller families; more conveniences, but less time; we have more degrees, but less sense; more knowledge, but less judgment; more experts, but more problems; more medicine, but less wellness.
We drink too much, smoke too much, spend too recklessly, laugh too little, drive too fast, get too angry too quickly, stay up too late, get up too tired, read too seldom, watch TV too much, and pray too seldom.
We have multiplied our possessions, but reduced our values.
We talk too much, love too seldom, and hate too often.
We've learned how to make a living, but not a life; we've added years to life, not life to years.
We've been all the way to the moon and back, but have trouble crossing the street to meet the new neighbor.
We've conquered outer space, but not inner space.
We've done larger things, but not better things.
We've cleaned up the air, but polluted the soul.
We've split the atom, but not our prejudice.
We write more, but learn less.
We plan more, but accomplish less.
We've learned to rush, but not to wait.
We build more computers to hold more information to produce more copies than ever, but have less communication.
These are the times of fast foods and slow digestion; tall men, and short character; steep profits, and shallow relationships.
These are the times of world peace, but domestic warfare; more leisure, but less fun; more kinds of food, but less nutrition.
These are days of two incomes, but more divorce; of fancier houses, but broken homes.
These are days of quick trips, disposable diapers, throw away morality, one-night stands, overweight bodies, and pills that do everything from cheer to quiet, to kill.
It is a time when there is much in the show window and nothing in the stockroom; a time when technology can bring this letter to you, and a time when you can choose either to share this insight, or to just hit delete.
George Carlin
Here is a story of a project that was estimated/bid some 25 years ago.
The homeowner lived in Bellevue, Washington on an acre lot. Their entire property had recently been relandscaped. The house was about 30 years old and was in all different stages of it's life. The owners wanted to overhaul and add on to their home and spend around $150,000. They got 2 bids. The first bid came in at $225,000. The owners hemmed and hawed about what to do. They commented to the first Contractor, "We wanted to spend 150K, now we are at 225K. You can remodel our house for that amount, correct?" To that the Contractor responded, "If I did not think that I could not, I would not have given you that price!" To which the homeowner said, "Perfect!"
I gave the homeowner my estimate. My price was $360,000. The homeowner called me to express their concerns about the differential in price. We sat down and went through and compared each of our numbers. We looked at excavation; we both had excavation but only I had budgeted for some 250 yards of dirt export. What happened to his dirt? Expensive to remove from the site because it had to be done in single dump trucks and hauled some 25 miles away. Add $10,000. We both had about 500 yards of carpet, he had $10.00/yard installed and I had $30.00. Add $10,000.00. He had a $1,500 budget for lighting which was impossible, ours $7,500 which was possible. Add $6,000. Add for cabinets, drywall, electrical, tile, on and on. In 30 minutes we added 100,000 to the other price, at which time the owner cut off our discussion. He knew the job could not be done for $225,000, not even less than $325,000. They wanted to spend 150,000.
The first contractor's estimate/bid is what the architect and the owner had discussed with us. When there was discretion on price, say carpet, lighting, or cabinets, the other contractors price was always rock bottom. I had estimated/bid what I thought it would take to get the job complete with adequate budgets for the value of the house and what the owners might expect. Both Contractors estimates showed a 15% gross markup.
Here is the quandary; If the project had been started at the $225,000 level, the owner had moved out, the house torn apart and unlivable, and then the costs increase. Does this place the homeowner in a financial predicament? Would the project have ever started if the owner knew it would cost at least 300K?
I gave the homeowner my estimate. My price was $360,000. The homeowner called me to express their concerns about the differential in price. We sat down and went through and compared each of our numbers. We looked at excavation; we both had excavation but only I had budgeted for some 250 yards of dirt export. What happened to his dirt? Expensive to remove from the site because it had to be done in single dump trucks and hauled some 25 miles away. Add $10,000. We both had about 500 yards of carpet, he had $10.00/yard installed and I had $30.00. Add $10,000.00. He had a $1,500 budget for lighting which was impossible, ours $7,500 which was possible. Add $6,000. Add for cabinets, drywall, electrical, tile, on and on. In 30 minutes we added 100,000 to the other price, at which time the owner cut off our discussion. He knew the job could not be done for $225,000, not even less than $325,000. They wanted to spend 150,000.
The first contractor's estimate/bid is what the architect and the owner had discussed with us. When there was discretion on price, say carpet, lighting, or cabinets, the other contractors price was always rock bottom. I had estimated/bid what I thought it would take to get the job complete with adequate budgets for the value of the house and what the owners might expect. Both Contractors estimates showed a 15% gross markup.
Here is the quandary; If the project had been started at the $225,000 level, the owner had moved out, the house torn apart and unlivable, and then the costs increase. Does this place the homeowner in a financial predicament? Would the project have ever started if the owner knew it would cost at least 300K?
Why do construction projects always cost more?
People do not want to hear the truth. When a homeowner gets bids to build or remodel their house, 99% of the time, the deciding factor on who gets the job is price. Who ever is cheapest, the old, "bottom line". It is assumed by the public that each contractor is equivalent in their quality, skill, knowledge, ability and thoroughness. The public assumes that no matter which contractor does the job it will be the same and so the basis of choice becomes price. In most cases, for a contractor to get the job, their quoted price has to be the lowest.
In this "bidding world", an honest builder cannot propose an honest price to do a project or they are out of the running.
The best qualified contractors know the ins and outs, the pitfalls, many of the "ifs, ands, and buts". The unqualified contractor simply does not know what it takes to do the job, they leave out details, so they are naturally lower priced.
When contractors bid plans produced by designers/architects and there are multiple bids being taken, the rule is; bid the plan/spec not what you know. If a contractor bids what he knows, their price will be higher than if they bid what is spec'd. Even if the contractor knows that items must be done, a successful bidder cannot add it to the quote.
Once a contractor is "awarded" the job, then any change, discussion of change, perception of change or addition will produce change orders to raise the price.
The "spec" (that which is specified) is never complete and the spec always changes, therefore the price will always go up. You cannot change the spec without paying for that change in bid type work.
A very old Contractors proverb about bidding construction projects is: "He who makes the most mistakes, Wins!" The more complete and thorough the estimate, the higher the price. The higher the price, the lower the probability of "Winning" the bid.
Another reason why projects escalate in price is a change in scope. The project got bigger. The owner added this or that. The architect added or changed something. The Contractor finds things that need to be done/fixed that were unforeseen.
The four most expensive words in the construction industry are: "While you are here."
In 35 plus years in the business, I have never met a contractor or carpenter that said that they could not "do it all" and that they did nothing but "quality work". It is not true. In these last 35 years I have only met and know a handful that could even come close to qualifying.
The best contractors should never be the lowest priced. The smartest homeowner should not take the lowest estimate. They should spend their time finding the best contractor who will do their best to estimate a fair, thorough and complete budget for their project.
In this "bidding world", an honest builder cannot propose an honest price to do a project or they are out of the running.
The best qualified contractors know the ins and outs, the pitfalls, many of the "ifs, ands, and buts". The unqualified contractor simply does not know what it takes to do the job, they leave out details, so they are naturally lower priced.
When contractors bid plans produced by designers/architects and there are multiple bids being taken, the rule is; bid the plan/spec not what you know. If a contractor bids what he knows, their price will be higher than if they bid what is spec'd. Even if the contractor knows that items must be done, a successful bidder cannot add it to the quote.
Once a contractor is "awarded" the job, then any change, discussion of change, perception of change or addition will produce change orders to raise the price.
The "spec" (that which is specified) is never complete and the spec always changes, therefore the price will always go up. You cannot change the spec without paying for that change in bid type work.
A very old Contractors proverb about bidding construction projects is: "He who makes the most mistakes, Wins!" The more complete and thorough the estimate, the higher the price. The higher the price, the lower the probability of "Winning" the bid.
Another reason why projects escalate in price is a change in scope. The project got bigger. The owner added this or that. The architect added or changed something. The Contractor finds things that need to be done/fixed that were unforeseen.
The four most expensive words in the construction industry are: "While you are here."
In 35 plus years in the business, I have never met a contractor or carpenter that said that they could not "do it all" and that they did nothing but "quality work". It is not true. In these last 35 years I have only met and know a handful that could even come close to qualifying.
The best contractors should never be the lowest priced. The smartest homeowner should not take the lowest estimate. They should spend their time finding the best contractor who will do their best to estimate a fair, thorough and complete budget for their project.
Misc thoughts
The choice of a Contractor to build or remodel your home should be less important than the choice of the person who will actually do the work on your job. You may like the demeanor of the Contractor, but when you meet the person/people who will be working/leading your job, you may simply not like them. Best advice, meet with the main "guy" you will be working/living with on a daily basis. If there is no main guy on the job everyday, and I mean whenever work is being done on your job, don't hire the Contractor. If you don't like the workers, don't hire the Contractor.
Quality is directly proportional to the Quality and the Quantity of Supervision.
For most Contractors, it is about how fast they can move, not the results.
Finding a builder to trust is like finding a good doctor, mechanic, dentist, accountant, even a friend. Hard to find, but once you do, savor that relationship. Trust in that relationship.
Quality is directly proportional to the Quality and the Quantity of Supervision.
For most Contractors, it is about how fast they can move, not the results.
Finding a builder to trust is like finding a good doctor, mechanic, dentist, accountant, even a friend. Hard to find, but once you do, savor that relationship. Trust in that relationship.
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