1. How can a renovation stay within budget with skyrocketing material costs? While all materials (and labor) have experienced inflation over the past 12 to 18 months, its lumber prices and supply have wreaked havoc on our industry.
There are several things a homeowner can consider in order to maintain a tight hold on the budget in the current market. The first is to reduce the scope of the project. This may mean delaying part of the project for a future phase, though it is important that the initial project design make full allowance for future work. Another option is to simplify the design. This may mean decreasing the complexity of the roof design or doing without aesthetic features such as vaulted or trayed ceilings, or accents such as interior shiplap siding. Stepping back a level on the countertop material or lowering the lighting fixture budget are some ready options for budget control. Remember, replacing a light fixture later is a fairly easy DIY project.
But don’t forget the impact of historically low-interest rates. It may be that the increased cost of the renovation amortized over twenty years at today’s incredible rates, will be less than the appreciation of the new living area.
2. What technology tools can contractors utilize to communicate with homeowners? There is no lack of technology in place today, but not all of it is suitable for a renovation or construction project team. Texts are highly unsuitable; they leave virtually no clear record of their history. Email is a better form of communicating information on a project, but it’s easy to forget to send the email to everyone who needs to be in the loop or remember to reply.
At AJH Renovations, we prefer an online “forum-based” communication system that enables individual discussion threads to be communicated to every team member whenever a contribution is made. The same platform contains the project calendar and the inventory control database, as well as the capability of uploading PDFs and photos. Accessibility from smartphones, iPad, and desktops/laptops makes an online forum a ready tool for communications between all team members.
How often should a contractor update a project schedule? In today’s market, a schedule is only accurate out four to six weeks, mostly due to material deliveries and labor both of which are very unstable due to a combination of the pandemic and our strong housing/construction market. Weather can be a factor, as are any scope changes or unforeseen circumstances during demolition. Homeowners should think of the project schedule as a look forward into the next four to six weeks of the project, with a tentative consideration of what lies beyond.
Updates to the project schedule are to be expected whenever there is a significant interruption, such as several days of inclement weather or an unexpected delay in deliverables such as cabinetry. Scope changes will necessitate not only a cost adjustment but also a schedule adjustment, especially if the change is made after that craft has completed work. Getting subcontractors back to the job is often harder than getting them in the first place.
On average, a schedule update twice a month would be a good average to plan on, with fewer updates as things move smoothly or more frequent updates if interruptions arise.
3. What is a ‘punch list and how should the last tasks get completed? Perhaps the best way to understand the ‘punch list is as a bold line in the project schedule that separates the construction and clean-up phase from the warranty period. A punch list is intended to catch all incomplete and sub-standard work under the scope of the original project. The warranty will cover defects that develop due to faulty craftsmanship and/or manufacturer’s defects after the project is completed.
In order to make this transition smooth and meaningful, a punch list should be a very thorough review of the substantially completed work and must be done prior to the homeowner moving into, or back into, the project work zone. This eliminates issues caused by movers or from the normal wear and tear. We develop a detailed punch list with the homeowner, to be signed by both parties once the punch list work is completed, a process that usually takes a couple of weeks due to the number of crafts involved.
This punch list completion releases the final project payment and starts the clock on the warranty period, which is usually designed to go through both a full heating and a full cooling cycle to fully expose the new construction to the annual temperature cycle of the home.
