February 6, 2008

Your Home: Improvement and Remodeling tips

Comparing bids and contracts

By Jim Kabel
Special to the Times

Last month, we discussed how to find, qualify and select home-improvement contractors. Once you’ve found one or more trusted residential firms to do the work, your next move is to secure estimates or bids on your project, assuming it is well-defined.

What does “well-defined” mean? Let’s suppose that your project is a hallway bathroom remodel and your plan is to rearrange the “footprint” by taking some space from an adjoining hallway closet. You also want to move the toilet to a new location while the vanity sink and tub/shower remain in the same place. With a clear idea of the layout and the design materials (fixtures and surfaces), you are well on your way to getting prices and making comparisons. You’ve completed much of the design work, minimizing the uncertainties in price and change orders after the work begins.

On the other hand, perhaps you’ve defined your overall goals, but you need guidance to explore space layout options or materials. You want to examine the pros and cons of these options, including the cost tradeoffs. For example, what is the cost of using natural stone versus ceramic tile or converting to a ceiling mounted showerhead with a frameless glass enclosure? Is it possible to move the toilet based on new location of the drain?

Until these decisions are made, a remodeling contractor can only provide broad price ranges. If you need design assistance, you can hire an independent design professional before getting contractor bids. Or you can choose a full-service remodeler that offers design services and will adjust project costs as you design.

Either way, the investment can pay dividends in saved time and ensure you are committing to a project that fits your budget. I always recommend design guidance for larger remodeling projects such as kitchens, master bedroom and bath suites, or any project involving space additions or reconfigurations.

Once your design is defined, a good remodeling contractor can provide a tight budget range for the project. If you are comparing proposals, look for the following:

Clear scope of work: Make sure everything you expect the contractor to handle is included, from demolition and hauling of the existing materials to job site cleanup. It’s important to clarify assumptions about the type of materials to be supplied or used. Quantities should be specified including dimensions, such as square or linear feet of material and the planned locations of these materials. If building permits required, are they included in the price?

Clearly defined “allowances” with reasonable prices: At this point you may not have selected every fixture or surface but know the type and grade. If you want your remodeler to order and supply the fixtures, make sure there is a reasonable “allowance” determined in the contract and included in the total price. Some contractors will specify the lowest cost “builder’s grade” fixtures to keep their bids low. If you are comparing proposals, make sure these assumptions are spelled out.

Clearly defined exclusions (materials and labor): These exclusions may be related to features that will remain (a window for example), labor you may supply (painting or hanging a shower curtain) or finish materials (a light fixture) you’ve already purchased.

Other items to cover include an estimate of the schedule and warranty terms. A good proposal will communicate all information in homeowner terminology with minimal “trade talk.” Ask questions about anything that is not clear at this stage. The more details specified, the more comfortable you can feel about the bid and your ability to compare. Be wary of vague proposals from the low bidder.

It is important to not rush through the design and proposal stage. I suggest that clients allow a minimum of two to four weeks for small projects and up to eight to 12 weeks for much larger projects to ensure that a good plan is in place. When it comes time to sign the contract with your remodeler, here are some details to make sure are included:

Name, address, phone and license number of contractor

Detailed scope of work (allowances, exclusions)

Estimated schedule: California requires that an estimated start and finish date be included in a home improvement contract

Payment schedule (California law requires only a 10 percent deposit up to $1,000)

How change orders will be handled

Assumptions about home conditions and how hidden conditions will be handled

Three-day right of rescission (required by federal law if the contract is signed in your home)

Next month, I’ll cover which home improvement and remodeling projects provide the greatest return-on-investment from both an energy savings and market value perspective.

Jim Kabel is the owner and general manager of Case Handyman and Remodeling, a full-service, award-winning, residential re-modeling company based in San Jose. For questions or suggestions about future topics for this column, please contact by phone at (408) 323-5300; e-mail; jkabel@caseremodeling.com or online at www.caseremodeling.com.