What’s All The Fuss About Establishing A Home Remodel Budget?

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What's All The Fuss About Establishing A Home Remodel Budget? 1

Have you ever heard this logic? “I won’t tell you how much money I have to spend on my project because you will spend all of it! Just tell me what it’s going to cost, and I’ll compare it with other bids.” Holding your cards close to the vest is good for poker, but it’s not conducive to planning a successful remodeling project.

THE DIFFERENCE BETWEEN THE TRADITIONAL BIDDING PROCESS AND THE DESIGN‐BUILD PROCESS WILL AFFECT YOUR COST, AND NOT IN THE WAY YOU MIGHT THINK…AND THAT’S IF YOU ACTUALLY EVER START CONSTRUCTION

The traditional process of comparing bids from three different contractors only works if all three contractors have the same complete set of plans, specifications and schedule of finishes and selections. Without this you simply cannot compare one contractor’s price to another because you will be comparing apples and oranges. Without those plans for example, in order to submit a competitive bid, a contractor might cut costs by using lower‐paid, less‐experienced labor or subcontractors, or by selecting lower‐quality or inferior building materials and fixtures. And you won’t know until that contractor tells you that the faucet you want is a $500 change order, because in his price, he included the same plastic‐handled faucet you had before. To avoid this in the traditional process, you hire an architect to plan everything out and draw it all up. Unfortunately, many projects planned in this manner never get built because the architect’s design far exceeds the homeowner’s budget.

With the design‐build process, however, we design to your budget using a process that allocates more funds to your top priorities while allocating less to the items for which you are willing to compromise. Being candid about your budget allows us to design a space that fits your needs and your budget. We can come up with an amazing design for your project, but we’ll be wasting your time and ours if your budget doesn’t meet those great ideas.

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HOW TO ESTABLISH YOUR BUDGET

1. Estimate The Cost: The key point here is to get a rough idea of what you can reasonably expect a remodeling project like yours to cost. Our Pricing Guide is intended to give you some insight into the costs for kitchens and baths. Also, every year Remodeling Magazine publishes their Cost vs Value Report, which is a great tool to help with estimating the most popular home remodel projects. The cost for your project will ultimately depend on the structural changes necessary and the quality of the materials, fixtures and finishes that we collaboratively select during our design phase.

2. Decide How Much To Spend: This is a very personal decision for every homeowner and there is no right answer. Some people are very concerned about resale value while others have decided that they are in their “forever” home and want it the way they want it regardless of cost or resale value. Wherever you fall on the spectrum, have your plan to pay for it ready. Whether paying cash or borrowing, your plan to pay for the project may influence your budget.

3. Establish Your Priorities: Make a list of your remodel priorities. What features are essential to the project, and where might you be able to make compromises or find alternate solutions without sacrificing your overall vision or your budget?

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