Many of my real estate clients want to renovate or modify their homes to suit their preferences. Beyond being real estate experts, we also take pride in our deep knowledge of construction and design.
Starting a home renovation is a monumental task, especially if you’re not a construction expert. When you’re dealing with contractors, you might feel like you’re in a whole new world—they speak their own language, and understanding it is crucial to getting the best deal.
The key to a successful renovation is being informed about every detail of your project. In this series, we’re breaking down 5 Ways Construction Projects Go Wrong, starting with something that might seem simple but is incredibly important: securing a fair contract.
Get It in Writing: Know Your Rights
In California, state law protects you by capping upfront payments to contractors at 10% of the total construction costs or $1,000, whichever is lower. (This comes straight from the Contractors State License Board.) Some contractors might push for more, but it’s crucial to know your rights and ensure that your payment terms are clearly laid out in black and white.
While most contractors are reputable, there are some bad apples who might “take the money and run.” A common scam is when a contractor uses your funds to cover costs on another project. To avoid this, it’s smart to keep as much of your money in your pocket until the work is done. Make sure your contract specifies exactly when payments will be made.
It’s All in the Details
When it comes to your contract, the devil is in the details. A contract that breaks down labor and material costs as much as possible is generally better for everyone involved. For instance, if you’re remodeling a bathroom, break down the project into specific tasks like demolition, plumbing, tiling, and installing fixtures. My designer and I often break down major renovation projects into over two hundred lines.
This level of detail makes it easier for both you and the contractor to agree on costs. Plus, if changes come up later, like adding tiled walls, you’ll have a clear understanding of how it affects the budget.
Without this detail, a contractor could easily inflate costs. For example, if your contract only lists a $25,000 budget without breaking it down, a contractor could pad it with an extra $5,000 for a minor change. However, with a detailed breakdown, it’s harder to pull that off. Insist on a line-by-line agreement about how your project funds will be spent, and be cautious of any contractor who resists this.
For instance, if your contract shows $1,000 for tiling 100 square feet of floor, you’ll know that adding another 50 square feet of wall tile should cost around $500 in labor, not $1,000. Without that breakdown, you might be overcharged.
Know What You’re Paying For
Just like you wouldn’t go grocery shopping without paying attention to prices, you shouldn’t agree to a construction project without understanding how each item affects your bottom line. This applies to both labor and materials.
A detailed breakdown of costs allows you to make informed decisions about which features are worth the investment. Maybe you’ve always dreamed of a large walk-in shower with multiple shower heads and a glass wall. Seeing the breakdown of material and labor costs might make you reconsider—or at least prepare you for the expense.
In Conclusion
When it comes to renovations, having the right team by your side can make all the difference. The Cal Agents isn’t just about buying and selling homes—we’re here to help you navigate the complexities of home renovations too. From securing a detailed contract to understanding your rights as a homeowner, we’ve got the expertise you need to avoid common pitfalls.
Whether you’re planning a home remodel in California or tackling a bathroom renovation in Berkeley, The Cal Agents can connect you with trustworthy contractors and guide you through every step of the process. Don’t let your renovation dreams turn into a nightmare—let us help you make informed decisions that protect your investment and bring your vision to life.
Ready to get started? Contact The Cal Agents today, and let’s turn your renovation plans into reality.
