The Construction Process
Often, I am asked by homeowners about the general flow of the home improvement construction process. Many people are in the formative stages, when they originally approach me, and need an overview of the process before they are comfortable diving in. This is especially the case with regard to remodels, additions and custom home construction. Knowledge is power and projects of such scope require substantial investment, in terms of both money and time, so it’s only natural that people would want to educate themselves about what to expect ahead of time.
As such, I thought I’d delve into what happens during a common home improvement process within our city of elderly structures. The formula will always vary, depending on scope, size, budget and particular situation, but generally speaking, there is a system with basic consistencies.
Approach
Homeowners approach projects in various ways, depending on comfort, their style of processing and budget. Some people like to begin by talking with potential contractors, since contractors know first-hand costs associated with building, and can act as an additional eye to keep design within a realistic budget. In this way, the early introduction of a contractor provides added insurance.
Other homeowners like to begin by talking with an architect. The more information you can take to the meeting, the better. Pictures from magazines, photos from the interior of houses, swatches and drawings of any kind are helpful. The architect takes the homeowner through a process that begins with simple, schematic design intended to reflect basic concepts (such as room size, relationships, single line drawings of systems, electrical risers, water mains, etc) and may show elevation studies of exterior and interior applications.
Next, the architect will draw definitive, detailed plans including sections and elevations, materials, finishes, surfaces, lighting and fixtures along with any special building elements, equipment and systems. These documents are developed into comprehensive construction drawings and specifications (specs) that can be used to secure a building permit. The specs break the drawings down into organized, technical sections. An architect typically provides onsite observations and changes to the plans, as needed. The project drawings and specifications are architectural documents. Architects can also consult about color, patterns and texture.
An alternate route is to consult with a design/build firm. This is an organization that provides an in-house architect (and possibly, engineer), in addition to the construction component. The theory is that communications are kept smooth during the process and any potential disconnect between the architect and contractor can be avoided. Both designer and contractor are on the same page, from the beginning, and have established a system where they work well with each other, practically and personally.
There are benefits and drawbacks to the design-build approach. The homeowner may be locked into the design style and aesthetic that the architect is capable of producing. In theory, an architect will be able to extract and understand what the homeowner wants and reflect that intent in appropriate, conscious, practical drawings, but that is not always the case. Architecture is an art form. Additionally, personal chemistry will always be an important factor.
A homeowner may also be more comfortable with one component of the design-build team more than the other. They may like working with the contractor, but not the architect, or vice versa. Many design-build firms offer the choice of working with either the architect or contractor independently, and understand homeowners may want to retain flexibility in staying connected for the entire construction process. Homeowners may enjoy the initial design component, but then want to look at options for construction, due to cost or chemistry.
It is of note that contractors typically have architects they are already comfortable working with, and with whom they have an established rapport and trust. The same is true for architects. Homeowners can choose to source the contractors independent of the architects, or they sometimes rely on the architects to bring in contractors to bid on the project they have designed. In this instance, the homeowner can either gain or lose a bit of control. Any good independent contractor and qualified independent architect should be able to work professionally with one another. A contractor who has a good working relationship with an architect that they introduce for projects is not an automatic design-build firm.
Some contractors are naturally comfortable with design. Through experience and with a good eye, they can provide design solutions and ideas to keep costs low. Other contractors are only comfortable working from clearly defined designs, as crafted by an architect, and would rather stick to their specialty- the building.
** Generally speaking, per the City of Seattle,professional drawings are not legally required for projects whose total valuation is less than $30,000 and that do not require significant structural modifications to the existing structure. A bathroom or kitchen remodel can be completed without architectural plans if they fall within the financial and physical constraints.
The term ‘designer’ is used interchangeably between architects, interior design professionals and color consultants. Roles of each can overlap, and the homeowner needs to distinguish between the three design types to be sure they understand intent, experience and qualifications. Homeowners may choose to consult with an interior designer to help with the interior architectural finishes, such as fabrics, lighting fixtures, appliances, appliance fixtures, color, materials, countertops, flooring and tile design and layout.
After plans are completed, an engineer is brought on board to spec out items such as beam sizes, flooring joists, etc. Engineers must put their stamp of approval on plans before the city will sign off on them. If the city finds flaw in the plans, and engineer will need to stamp the corrections, once made. A contractor or architect will be able to introduce an engineer.
Permitting
Permits are required for projects that cost $4,000, or more- within a 6-month project period, with special exemptions, and different types of permitting necessary, depending on scope, cost and nature of work to be completed. Some examples of projects that may not require permits are: insulation, windows, painting, roofing, siding (non-structural) and some concrete work. This is not a comprehensive list. Construction permits are valid for 18 months from the date of issuance.
Either the architect, contractor or homeowner can apply for permits, though it usually falls to the architect or contractor, who have established relationships with the city. If an architect is on board, they’ll be the likely candidate.
There are several basic types of permits that the city’s Department of Planning and Development (DPD) will require.
• Plan Reviewed Projects- this permit is typically for the more complex projects requiring significant structural and/or potential to impact the environment. Anything involving the alteration of load bearing walls will fall in this category, as well.
• Subject to Field Inspection (STFI)- this permit is required for smaller projects such as roof repair, some demo, foundation repair, various alterations and additions, such as a minor bathroom remodel.
• Over the Counter- most trade permits qualify for this type of permits. Some examples are plumbing, roofing, electrical, HVAC, side sewer, etc.
• Drop off Permits- those that don’t require an appointment for review (see DPD website for details).
Some decks and fences require permits, depending on height, whether or not they exceed the lot size and how the fence or deck is attached to the house. Homeowners need to make sure the fence is actually built on their legal property. To seek this information a person may need to get a survey or look at information stored at: www.seattle.gov/util/Engineering/Records_vault/Hours_&_Location/COS_001837.asp.
Contractor Selection
If the project is large is scope (such as a remodel or addition), the homeowner should contact 2-3 reputable contractors to consult with and provide estimates and timelines of work to be completed. Clear measures need to be established in identifying the scope of work and terms and conditions of construction. Sometimes homeowners do not have a solid understanding of what they want, the pieces that will come into play, decisions that will have to be made and questions that will need to be answered. Through meeting with contractors, and as discussions ensue, they will begin to grasp what is involved and will formulate a more clear picture of what they want and which contractor they are most comfortable with.
Chemistry is an important component of every project. I find that what works for one client, in terms of personality and communication style, does not necessarily work for another. The homeowner needs to pay attention to his or her instincts, since the contractor will interact often and about sensitive situations with the homeowner, throughout the project.
Before a contractor is hired, a homeowner needs to know that they are a registered contractor within the state and have current and appropriate bond and insurance. They must also be cleared for prior complaints or claims against them, with regard to current and prior business licenses. A general contractor must have a $12,000 bond and is only required by law to have a $300,000 insurance policy. However, this amount of coverage is inadequate, and at least a 1 million dollar policy is necessary. Electricians need a $4,000 bond and some sub contractors can carry an insurance policy for a lower amount.
Of equal importance in verifying reliability and qualification, is the need to reference check each contractor before a contract is signed. Our organization verifies all components of the required qualifications and administers a lengthy reference check on each contractor, including, but not limited to asking about keeping within budget, timeliness, cleanliness, use of change order forms, subcontractors, reliability, attitude, overall process and workmanship. A homeowner will be looking for competence, cost and personal connection.
The Process
From the beginning, the homeowner needs to be up front and clear about budget and timeframe. The more information the contractor has from the beginning, the better the communication should be.
Once the homeowner has selected a contractor, the contractor must present a written contract- a binding legal document- and subsequent invoice(s) for services provided. The contractor’s contract should base his price on the architect’s particular drawings and specs, if an architect is engaged. The contract should execute the contract under the same name as is registered with the Department of Labor and Industries. In addition, contractors typically issue a warranty for their work for one year (if remodel or addition) and/or furnish warranties of products such as roofing, HVAC systems, windows, etc.
Contractors have various types of approaches to contracts. Some contractors employ a simple, 1-page document, while others use a lengthy, multifaceted, very descriptive contract to describe expectation. The same can be said for types of compensation, though there are generally two types of payment for contractors:
1. Fixed Bid- A fixed price is established between the homeowner and contractor. This amount will include the contractor overhead (administrative, etc) and profit.
2. Cost-Plus basis- The contractor proceeds with the work and submits all of his bills and invoices to the homeowner. The owner reimburses the contractor for construction costs incurred by the contractor with additional fees for overhead, profit and supervision. Sometimes, cost-plus contracts have a ceiling- or a maximum price where the homeowner is not responsible for excess of that price.
On projects that don’t require a lengthy time commitment, the contractor collects a down payment w/ remainder due upon completion. Sometimes, it’s half down, half at completion. Many times, it’s one third down, one third partway into the project and the last third at completion. Smaller remodels, roofing, painting, etc typically fall into this category.
On larger, more lengthy projects (larger remodels, additions, custom construction), progress payments are made. These payments can be made weekly, bi-weekly or monthly, and they are not a reflection of percentage of project completed. Rather, the payments generally fluctuate greatly, and reflect actual work completed within a particular timeframe- some being a large percentage of the cost due and others collecting a more modest amount.
If the homeowner is financing the construction project with a loan, the lender will likely make on-site visits to determine progress, certify and calculate loan disbursements to the homeowner. The lender may, as needed, issue checks to the homeowner, who will then pay the contractor.
Changes often occur in the design of the work, as the process evolves and homeowners alter design function and aesthetic. Sometimes design changes are required by the city, but changes can also be requested by the contractor, architect or homeowner. Most often, the homeowner wants to tweak the original design, as functionality and style is more acutely addressed. There should be a provision in the contract for such occasions and change orders should be agreed upon in writing before contractors proceed with the work. The change orders usually impact price and schedule of the project.
Allowances are a portion of the contract price that constitutes what may be spent on a certain part of the project. Allowances are referenced when a homeowner has not determined exact items such as flooring, appliances, fixtures, countertops, lighting, etc. The allowance could be in the low, mid or high range, but it serves as a starting point to ensure the expense is taken into consideration, even if the specifics of the items are unknown, initially. Product material costs fluctuate greatly.
Home Stretch
Throughout the process, the homeowner will need to make sure to ask questions- many of them- and often. The homeowner needs to make sure they are clear on every detail of the process, from beginning to end. Good communication will be a required component of any successful project.
Priorities have to be identified, trade-offs incorporated, if necessary, and cost-benefit analysis will likely be implemented for the particulars that develop.
In the end of most projects, punch lists are gone through to make sure all lingering items are addressed, before final payment is made. The punch list organizes and states details that remain incomplete, broken lacking parts or requiring review.