The Real Estate Browser Volume 10, Issue 4 | Page 10

10 — Say you saw it in The Real Estate Browser of Lynchburg — Volume 10 Number 4
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Tips for
Smooth Renovation
By Drew Howard , President, HomePro, Inc.
Planning is the key to any successful proj-
ect. You also have to hire the right person
for the job. I have performed hundreds of
renovation projects, and it never fails that
when it is all complete I wish I had done 1
thing different, or added 1 more upgrade. I
always start with pen and paper in hand. I
brainstorm ideas for several days. I write out
the projected job cost, and estimated time of
completion for each phase. I then categorize
when each subcontractor will be brought into
the job.
After I have gotten all my thoughts, cost,
and time frame on paper I start making calls
to subcontractors. In most cases you will
want to hire a General Contractor (GC) to
complete your project. The GC should be
licensed with the state of Virginia. There are
3 license classifications; A, B, and C. Class A
contractors can perform any job. Class B are
limited to jobs that do not exceed $120,000.00
in cost and Class C is under $10,000.00. In
the Commonwealth of Virginia it is against
the law for a contractor to ask for money up
front. There are specialty items like kitchen
cabinets that are allowed for money up front.
Never give a contractor money up front to
start a project. Always work with a written
contract that spells out the work to be com-
pleted, items that are to be purchased, and
time of job from start to finish to include job
clean up.
If you are doing a construction loan you
will want to set up a draw payment sched-
ule. Most jobs should be complete within 6
months, and typically 3 to 5 draws will handle
any job. If you are not using a loan, I always
recommend hiring a third party to perform
draw inspections to estimate the percentage of
work that has been completed for each draw.
This can also help make sure that both parties
are satisfied with the quality, and time of work
being performed. I recommend with any job
establishing a contingency reserve to cover
change orders, material overages, and hidden
unknowns. The rule is 10-20% of the total
cost. I like to use 15% for the renovations I
perform.
Last make sure your GC obtains all the
proper permits for the job. Roofs, windows,
siding, and changing a like system for a new
like system do not require permits. Most
all electrical, plumbing, moving, removing,
or adding walls do require a permit. Also,
retaining walls over 3 feet in height. It is best
to let the GC hire all subs, and pay them.
That way there are no surprise liens placed
on the property. If you are about to remodel
your kitchen, bathroom, or gut your house I
hope you find my years of experience help-
ful to you. If you have any questions or want
to hire an independent 3rd party consultant
for your next project give me a call. Drew
Howard 434-660-3449
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