Fourteen Steps to a Successful Renovation
By Christopher L. Martin

1. Are you renovating to sell the house or do you plan to live in it for the next five years?                                                             
2. Is the renovation necessary (because of, e.g., leaking roof, broken appliances, some safety issue, etc.) or is it cosmetic? If the latter, maybe painting or minor repair is all you need.
3. If you’re renovating before selling, figure out the following (with the help of a realtor who really knows real estate values in your area):
   • How much can you get for the house now?
   • How much will the renovation cost (don’t forget to calculate contingency costs that always invariably add to your expected costs)?
   • How much can you get for the house after renovation? (Normally, only bath and kitchen renovations will give you a dollar for dollar return. New bedrooms, basements, sunrooms, painting, wallpapering, and new carpeting normally cost more than they will add to the sale price.)
   • If “c” is great than “a” plus “b,” renovate. If not, sell as is.
4. If you’re going to be living in the house for the next five to ten years, continue.
5. Prioritize parts of the house needing expansion or renovation and make a five-year development plan.
6. Before you decide to expand, consider realigning space. You may be able to give up a bedroom or dining room and, by removing walls, realign the space to add a bathroom or make a larger kitchen.
7. Prepare a budget. Even a simple kitchen “re-do” can cost from $20,000 to $100,000 or more, depending on the quality of cabinets, flooring, and appliances. Granite or silestone counters are highly recommended but expensive. Corean and other synthetic materials are cheaper but in many cases not as practical because of the risk of scorching or staining. An inexpensive alternative is to have the contractor install a plywood-shaped countertop and you can then install 4”x4” ceramic tiles yourself.
8. Bathrooms can cost $10,000 to $50,000, once again depending upon the cost of cabinets, hardware, and appliances.
9. There are some things you may be able to do yourself like tiling. Get yourself some “how to” magazines at Home Depot (Time-Life books are good). Do not, try, however, to do electrical or plumbing yourself unless you’re trained in those areas.
10. Get an architect and give him your budget requirements. Architectural fees vary from 7% to 10% of the construction cost. Get involved in the design process with your architect, from material selection to kitchen cabinet layout and selection. This is where costs add up. Be clear with the architect about your lifestyle and what you want. Don’t let the architect intimidate you. You know best what you want and you’re smarter than you think.
11. Decide if you’re going to be your own general contractor. If you are, continue. If not, find a general contractor in your area and get “lump sum” bids from at least three contractors. (Make sure you have a written list that includes all the requirements and specifications of your project so you are sure they are all bidding on the same thing.) Check references and sign on with the lowest responsible bidder with whom you feel comfortable.
12. Look for subcontractors in each of the trades – carpenters, plumbers, electricians, painters, tillers, etc. Get at least two bids for each trade. Once again, make sure they are all bidding on the same thing. For example, some flooring contractors might charge extra for baseboards and others might not. Some contractors may charge extra for getting any necessary building permits, or may expect you to get them. In order to accurately compare one bid to another, you need to be sure each bid includes all “hidden” costs.
13. Once you’ve selected each contractor with whom you feel comfortable, get them all together in a meeting, work out a schedule, and sign contracts with each one. Make sure you know how all building permits will be obtained. Most states have consumer protection laws that require contractors to include several things in their contracts, such as total price, completion date, guarantees, etc. Each state’s laws are different, however, so you’ll have to check those in your state. Your local librarian can help you do this. Don’t sign up with any contractor whose contract fails to include any of the items required by your state’s consumer protection laws, even if you are told this is the “standard” contract.
14. Hold periodic meetings with subcontractors and pay progress payments only when you are satisfied that the work has been satisfactorily completed. Always hold back enough of a “retainer” to allow you to have someone else complete unfinished work if your general contractor or your subs renege on their contract.

Christopher L. Martin has over 40 years experience in Civil/Structural Engineering and Project Management for both Allied-Signal (now Honeywell) in New Jersey and the federal government. In these positions, Chris has managed, planned and implemented numerous multi-million-dollar residential, industrial and commercial construction projects.

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