Taking on a renovation or construction project is one of the most exciting, scary, thrilling, awful, rewarding, anxiety-ridden and amazing things you can do.
It’s the real life adult version of the movie Inside Out. #Alloftheemotions
And without the right people or perspective to guide you through it you’ll feel a little like Tom Hanks/Shelley Long a-la The Money Pit.
We’ve lived through our own little renovation recently, where we gutted the entire house all the way back to the studs. And then rebuilt it to give it a beautiful new life. We’ve seen projects from the construction and designer side, and also from the perspective of the homeowner. And the journeys have a lot of similarities, but there’s a world of difference too. {Refresh if the slideshow isn’t loading}
We’re asked all the time by clients, lovely readers and friends that are considering a renovation or construction project, “What should I know before I get serious about this?”
We thought we’d address the issue here on the site because per classic 80’s TV, we do believe in the motto “The More You Know”.
We’re thrilled to say that we’re starting a new series today on our site. It’s here that we want to cover some of the most asked questions by people considering a renovation or a major construction project.
We’re calling it The FAQs on Renovation: Designers and Contractors 101
We’ll also throw in some other helpful information, and if we don’t address a question you have… leave it in the comment section and we will answer it in a future post.
So without further ado let’s dive in head first:
“I think I know what I want. Should I just tell a contractor my idea, or do I need to hire a designer?”
This all depends on how clear your vision is and how well you understand how spaces should flow together.
If you live and breathe design, we say go for it. Find your contractor (more on that in a minute) and get to work. However, we also caution people that spending a little extra on a designer to help bring your vision to life just might be the best money you ever spent. After all, you’re not simply buying a few pieces and returning the ones you don’t like.
Tile, hardwood and paint don’t have a good return policy once they’ve been installed and applied.
The advantage of hiring a designer is their understanding of relationships within the home.
For the over all final product of your home and how pieces will come together in your spaces. There are a ton of beautiful tiles out there, but that doesn’t mean they will all look good in your kitchen, paired with your living room and entry way. There’s a refinement that takes place in the design process, and a reason people help others with what they do. They’re educated in the process. They also have access to sources you may not even know about. The large home improvement store can be an option, but a designer will have access to many more options, and often times, at a cheaper price/better rate.
Are you seeing dollar signs yet? This can save you money and in some cases, even pay for the design fee depending on how your contract is worked out.
While it’s important to have a great contractor, most contractors don’t understand beautiful design the same way a designer will. There’s a reason the term “builder grade” popped up. That’s not to say that there isn’t a builder out there that isn’t fantastic in this area, but they are the exception… not the rule.
There’s simply no reason to spend the money on a renovation or construction project only to miss the mark and not be absolutely in love with your home. You shouldn’t have to settle after going through so much to get it there.
It’s also beneficial to have another person in your corner to communicate your vision. Someone who has experience dealing with the construction process, contractors and subcontractors. This can save you a ton of headache, second-guessing, wasted time, and expense.
{Of course… and we just have to mention this one here: The best of both words is finding a company that has an in-house design service paired with their contractor service. Similar to what we do here in the Nashville area. This format creates an even smoother flow in the construction process, and can often times reduce cost as well. Unfortunately, this model can sometimes be pretty hard to find in a lot of areas.}
“What comes first, the contractor or the designer?”
We think you’ll hear people make both arguments, and they’ll have valid points for both. We also generally find that the argument they make may be heavily influenced by their own bias. In other words, the contractor will tell you to hire the contractor first and then hire the designer, and the designer will tell you to hire the designer first, then the contractor. We’re left with a little bit of the chicken vs. the egg situation.
We are big believers in vision, and think a clear understanding of your vision will help you determine who you should hire first. And no two instances are alike. Here are a couple of examples.
Person “A” wants to add a master suite to their existing footprint, while person “B” wants to remodel their kitchen and living room, bedrooms and baths. Person “A” would be best served in beginning with a contractor, while person “B” would do best to start with a designer.
In the case of person “A”, there are structural and coding issues that need to be resolved to figure out if the project is even suitable for the property. A contractor can help you with the footprint design, to get you through this phase. Of course you may also need a few other players such as a structural engineer or architect. Once you have a handle on this, you can get the designer involved to tweak, and really work on making the project beautiful.
In the case of person “B” you should start with the designer, develop your vision and then take it to the contractor to be implemented.
Or in some cases DIY it, or act as your own contractor. However, if don’t feel comfortable in the construction world, I’d look into hiring a project manager. Every situation will be different.
“Please clear this up for me… How much do contractors and designers charge?”
There should be an average rate that contractors charge in your area. You can call around and find out what that percentage is. Here in Nashville, the current rate is 25-30% of total project cost depending on the scope of work. So if in Nashville you are doing a $100,000 renovation expect to pay the contractor $25,000-$30,000. (There are different ways contractors get this percentage and we will talk more about that below.)
That may seem like a large number. But you’re paying for expertise, experience, resources, management, and liability. If you hire right, your contractor will be worth every penny as he’ll handle the majority of headaches for you… and believe us, there are a ton. Dealing with the subs alone can be worth the fee, not to mention the codes and permitting departments.
And of course, there is the little issue of banks. Most banks will require you to work with a contractor if you’re taking out a loan to finance your project.
You can ask for bids from different contractors, but remember you’re not shopping for a good deal on a car. You’re looking to hire someone who will be in charge of bringing your vision to life and delivering the home you live in for years to come.
This is why we believe that if bidding is your main criteria for picking a contractor you’ll be utterly disappointed in the end. You’re not always comparing apples to apples in this kind of situation. (We’ll deal with how to pick a contractor below.)
The fees for a designer can vary. You can expect to pay anywhere from $50-$200 per hour for a great designer, depending on your location. A designer with a little less demand may only charge $35/hour. There is a large range for a variety of factors that come into play: location, scope of work, client demand or how popular the designer is along with a few other reasons.
However, just like with a contractor, not all designers are equal so don’t pick the cheapest one just because they’re cheap. You’ll end up spending money, only to be left unsatisfied with the final product.
“How should I pick a designer?”
You should pick your designer based on the following criteria:
• Word of mouth – Is this too obvious? Really, this is always a great starting point. To be able to hear others’ stories about working with someone is so valuable. Of course to be fair as is the game of all things business, consider who’s telling you and how rational they’re being.
I once had a friend tell me how horrible their designer was and lamented about how they wished we would have had the time to take on their project. When I inquired about the problem, the issue was that the designer had charged them for a trip they specifically made to pick up a product located two hours away because my friend didn’t want to go. So they were mad over a $350 charge that they could have prevented, and really was no fault of the designer. Obviously communication is key, but dig into the issue and be objective; most designers are honest people, who love what they do. Just like you, they can’t do their job for free.
With that said, don’t feel bad asking for an itemized hourly report and questioning anything that seems off.
• Style – If you are more farmhouse modern, you obviously don’t want to pick a designer who lives in the mid century modern world with lacquered finishes. Make sure to check out some of the past images of the designer’s look. If you love some of their work then they may be a good fit for you. That being said, they should also be able to take your style and vision and work with what you want, bringing it to life. Because that’s the very definition of design. You don’t have to love everything they’ve done, because remember every client wants something different. But you should love a good portion of their work.
• Personality – This is the second most important thing after style. If you can’t get along with your designer, then you’ll hate the experience… and probably the design. We’re not saying you need to be besties, but you need to feel like coffee at Starbucks would be fun. If you don’t click, you’re more than likely going to get their designs pushed on you instead of the designer hearing your style and creating the space around you. Not to mention you’ll be working with this designer for some time, so you want it to be pleasant. Personality matters. You’re not doing math problems… {though there’s some of that, too} you’re breathing life and personality into a space.
• Availability – Are they able to complete the work in the time you need it? If your project needs to begin in 2 months, but they’re not able to even look at yours for another month, is one month going to be enough time to have some back and forth over the design?
• Cost – Don’t exclude someone because of hourly rates. It might take someone charging $35/hour for 20 hours to complete a project, where it takes someone else charging $75/hour 10 hours to complete a project. Sometimes, they can give you a baseline price to work with since every situation is different. Also, keep in mind that designers who are charging on the higher end are extremely busy and use a higher price to find out how serious clients are. At the end of the day the saying is true, you get what you pay for. I suggest finding someone in the mid-range, that your budget can handle. Yes, it can end up being an additional line item, but it will truly help you achieve the space you want.
“How should I pick a contractor?”
• Again, word of mouth – But as with picking the designer, take into account the opinion you’re listening too. If you’re starting with a designer as mentioned above, lean on the designer for some advice here. There is a good chance they have worked with some great contractors and can point you in a good direction.
Social media, and apps like Next Door Neighbor are great for gathering names of contractors to work with as well.
• Once you have a list of contractors you want to use, give them a call and ask them if they’re taking new work. Here are the first basic questions you’ll need to ask to see if it’s worth their time and yours to talk more about the project.
- How soon are they available? Just because they’re taking new work doesn’t mean they are available to start on your job in the next two weeks.
- What is their rate? If they are within the average for your area by a few percent, then keep them on the list. (More on rates/contracts below)
- Who will oversee the project on a daily basis? Will it be the contractor or will there be a project manager? If a project manager, request that he come if you decide to meet about the project. This is simply because the project manager will be your day to day guy, not the contractor. In fact, you might only see the contractor every couple of weeks. So if the project manager isn’t someone you think you can work with, it’ll make for a miserable experience.
- What is his general type of contract?
- Lump sum – This is a contract in which the scope of the project is discussed and the contractor gives you a bid on cost. The work is to be completed based on this cost, regardless of the cost incurred by the contractor. These contracts are beneficial when a clear scope and a defined schedule has been reviewed and agreed upon. Generally, this contract transfers the “extra expense” risk to the builder. However, a contractor will include a percentage cost associated with carrying this risk. The costs are always hidden in the bid price. In the end, you could pay more with this type of contract.
- Cost plus – This contract is based on the actual cost of goods, materials, and labor plus a pre-negotiated rate. So if your actual building cost is $100,000 and your “plus” rate is 25% then your final building cost will be $125,000. These contracts are used when the scope of the work has not been clearly defined and are probably the most common in renovations, simply because of the unknowns that can be encountered. They can also require more attention from you to track expense, but they allow for easier change orders during the construction and finding ways to cut expense if needed. While the monetary risk lies more with the homeowner, the homeowner also has more ability to control extra expense, and there are no hidden fees.
- Time and Material – This is generally used on smaller jobs. This contract ensures that your project is worth the contractors time. You simply agree to an hourly rate and pay the contractor that rate times the hours it took to complete the project plus material cost. This is one of the easiest and most straightforward contracts. It’s similar to one used for a plumbing repair where you pay for parts, plus their stated service rate.
- Ask for references.
Just a few things to remember:
• Be realistic. I know people who bought the lie that ” I always finish on time and on budget.” We say… be skeptical of people who boast using the word “always”. The truth is most renovation projects will not finish on time and on budget. It’s the nature of the beast and we want to make sure people know that from a realistic perspective. There are simply too many variables. Do they ever? Yes, sometimes. So ask for an estimated time, and then a worst case scenerio time. If they insist they will finish on time and on budget and they always do, my guess is they aren’t honest, and I’d look elsewhere.
No one in the history of ever has “always” finished on time and on budget. It’s just impossible. We are human, after all.
• If you are able to narrow it down to someone you’d like to meet with about the project, invite them to the home and share your project with them. It could be a good idea to have your designer there as well to help explain the scope of the project. Get to know the contractor or project manager and make sure they seem like someone you want to work with. You’ll want a good relationship with them. Ask for them to give you a realistic estimated bid on the project.
• When it comes to the final choice, I always advise you to lean on your gut feeling. If you’ve vetted them and they are both good contractors, don’t let price be the deciding factor. You will enjoy the project more, probably get a better result and maybe keep a few years on your life if you pick the one that you “clicked” with the best. Renovations and building can be stressful, so consider who you want to go through that stress with. It’ll be worth a few extra dollars.
Hopefully, this has given you a great start to thinking through your project. We’re thrilled to start this new series! In the next post we will talk more about:
• Ironing out the contractors contract
• Paying the contractor
• Can I act as my own contractor?
• Subs
• And we’re happy to talk about any of your questions, so leave them in the comment sections (If they’re urgent, because you’re about to start, write ‘urgent’ and make sure to leave your email address in our comment form. We will email you an answer as soon as we can. Don’t worry the email addresses in the form – they only show to us, not publicly.)
(Head on over to the second post in this series.)
Have an inspired day thinking about creating the home you truly love!
Jenny B. says
This is great information! Thank you for sharing!
jamin says
Thanks, Jenny.
Michelle says
I work for a GC who specializes in high end/boutique hotels and we always at a minimum get 3 bids for each trade. It’s very important to compare the scope of work. We may get an electrical bid for 800k and another for $1.2 mil but if that 800k bid has a bad scope of work detailed, we’re going to go with the higher more qualified bid.
Great read for everyone! Nice job 🙂
jamin says
Thanks, Michelle and so true. As they say, you often get what you pay for.
BRITTANY THOMAS says
Can I just say thank you for this? So helpful. One of my dreams is to buy a fixer upper with my husband when we no longer have tiny babies. Currently his job is a project manager and he is first hand learning all the dealings with contractors. Spelling all this out for me though is so informative. Thanks!
jamin says
So fun Brittany! It’ll be a great journey building the home together. Let us know if there are any questions you want us to address and we’d love to have your husband chime in with some of his experience!