Permitting issues can be put to rest before the project starts. Obviously you shouldn’t start a job until permits have been issued, we always explain the process to the homeowner and give them an approximate time frame for permitting. Depending on the City, it could be between 3 & 8 weeks to get a permit. We have found that as long as the owner knows up front, there will be no issues. Additional project time is usually taken care of by a live schedule, meaning we use a live schedule that owners can see real time. They can see if something got pushed and why it was pushed, rain for example. As long as owners are updated regularly they don’t seem to have a problem, if it is something you wait until last minute to tell them, well then you could have an issue. Additional costs are only due to two factors: 1) The owner decides to change something, or 2) something pops up that was unforeseen, if this occurs then we discuss the change with the owner and come to an agreement on costs & time change.
The main thing is communication. Make addendums to your contract as things changes so both parties have the agreement laid out in writing. If something is going to cost significantly more explain it to the home owner and discuss the options with your client. If you will need more time to complete let the homeowner know
Unforeseen problems arise in every job, so don’t consider them as unforeseen. Delineate a 10% contingency line item in your budget (yes at least 10% of the entire job) Clearly explain to the client that this may not be used, however you’d be irresponsible not to prepare them for some unforeseen items.
Permitting often determines whether or not a job can go thru. If a client wants to be legal, then sometimes they just cant get what they want. (The more time you spend at the township building, the easier it gets, officials become more like friends, your face gets recognized and is accepted etc.) I am currently on a job that the DEP would not let pass because of a septic situation in the Delaware River basin, the Sewage Enforcement Officer basically told me that every avenue had been exhausted and that the project was a no-go. A conversation with the building code official however, enlightened me that adding an interior door thru a partition wall would change the classification of the house, altering the strict septic requirement. In the event that the client wants to do the project without any permitting, then put it in writing that all permitting is the responsibility of the client.
Apart from the contingency costs, keep cost overruns and out of budget expenses open and explained to the client as quickly as possible. Don’t bury them until the end, when you have to ask for additional money.
Problems will pop up and only thing you can do is be patient and deal with them .
Have not had Permit problems except some townships taking time okaying them . But we don’t pick up or pay for permits , we leave that up to homeowner so they are aware of how long it is taking and why .
Some jobs will take longer than planned and most time the home owner is understandable about this if you explain why in advance .
We let Homeowner know in advance that there may be additional costs but we will inform them of this before any more work is done so there is no surprise . Sometimes stuff happens =)
Any contractor that you deal with, should automatically know what permits are needed to get the job completed. You as the client is probably not aware of exactly what permits are needed. That’s when it come to the honesty of the general contractor, plumber, roofer or electrician to inform you of what permits are needed, so you’ll can secure them before the job even begins. You could also do research to see what permits are needed for the project that your looking to get done. As far as additional problems coming up during the original project, that wasn’t in the scope of work. A clause is usually put in the contract to if unforeseen problems was to occur. That the original price will be renegotiated/increased, due to the new problems that wasn’t originally in the scope of work. A reasonable change in price will be negotiated between you and the contractor. Hope this was helpful!!
In remodeling, we are often referred to as “Controlled Chaos Managers”, so curveballs are too be expected. All three issues noted above are sometimes out of the contractors control. This doesn’t mean its the customers problem, after all, they come to the contractor as the professional… right.
As the professional, these and other “surprises” need to be explained to the customers up-front. This should be in your contract as well as explained to the customer in advance. If you live in an area that the building standards are able to interpreter the regulations and requirements, you need to let the customer know this type issue can possibly come up. You also need to let them know how you will deal with those issues if they do arise on their project.
If additional costs or arise, you should be able to point your customer back to your agreement and review what exactly what you agreed to do and for what cost. If you cant show them exactly, you didn’t provide enough information for them to understand why they are responsible for the overages.
The client should be aware that you cant possible understand what all these type issues could be, and they need to accept that ovaries are not always in the control of the contractor.
Being in the remodeling industry for over 40 years I have found that informed and educated customer are typical great clients. Just as the customer interviews contracts, you should also be interviewing your clients. If its not a good fit, don’t take the job. That will be the best thing for the customer and you.
Feel free to call me directly with other questions and I’m also happy to help and share from my experenecs.
Joe Balich
President
Meridian DesignBuild, Ltd.
Charlotte, NC
(704) 573-2626
Have a contingency budget for this kind of events
I throw no curve balls to customers. There are a few things that may come up in tile installation, and those things I mention before hand, before even starting the job so that there are no surprises later.
There are always curveballs in construction. I would take a deep breath and approach each situation one step at a time. Permitting issues can be fixed with the city, find someone nice that would be willing to help. If you need to spend more time, than you need to spend more time. Perfection is key to making sure your customer is happy. Its better to take a bit more time and make the project look incredible for the customer rather than doing a half fast job.
The best thing to do is have all your permits in order before starting a project. The number of fixtures, gas openings, water heater counts, ect. This will ensure no snags for the project during grounds, rough in, and final inspections after trim.
We will let the client/home owner know that project will need days/ hours added for change order right away when "trouble: arises.
Additional costs added to the job, just be up front with home owner. Submit a change order and have all parties sign off so there are no hidden surprises for anyone.
All problems are discussed before contract is signed: this way customer knows what to expect, no surprises.
make sure u leave room enough for problems…always expect that…communicate and work together on the project. two minds are betetr than 1. always be kind and cooorperative …that goes along way
My experience allows me to anticipate some of the possible unforeseen items that could come up but in my contract those are taken care of on a case by case basis and at extra cost to you the homeowner.
For Permits those are obtained after the contract is accepted by all and the design work and specification have been agreed upon by all. Most of the time the building code officials will work with us so the project can be completed to current codes with minimum delays.
Our profit margin allows some flexibility, but changes orders and unforeseen are handled and paid for by the homeowner when and if they occur.
By not rushing into the project but thoroughly discussing and examining the issues that might be encountered with the scope of the project, things tend to work out smoother. Fast Tracked Residential Projects Are Almost Always Disasters…take your time to plan and discuss. Pay for the contractors time during this period.
#1 Work to resolve the issue with the building authority, enlist the assistance of engineers and architects if necessary.
#2 Minor problems would be just dealt with, more significant problems would require discussion and planning with the client.
#3 Significant unforeseen problems would require the discussion of additional cost and agreed upon in writing.
When a project requires permit and inspections we pull them. In some instances they are not needed but we rather pull all proper permits so the client can feel at ease that all inspection were completed and there project is safe.
As for a change order we usually have a small contingency on each project to deal with items like this,but if its a serious problem we would bring this to clients attention and address accordingly with them. We try not to have any change order on our projects.
As explained above we have a small contingency on each project for these reasons.
Permitting issues: Sometimes when you open a floor or wall you find hidden structural issues that can lead to unforeseen costs for engineering and remedies. In the past these situations have occurred and i offer a price to do the work so the process can continue. This is done by adding a contingency to the bid (5-10%) stated in the contract as such for the very circumstances as unanticipated cost. Permitting issues can be mitigated by understanding the work being done. Experience counts and knowing what is required under International Building codes, Residential building codes published by the ICC (international code counsel) is difference in your contractors. Even if they are not required to be licensed in the state they should know what is in the code. Knowing these things up front will make all the difference in the project. Chances are things can go great without any issues but then again its best to have a plan if things do not go according to plan. This comes down to who you hire and how knowledgeable they are in what they do.
SPP
If there are unforeseen problems that pop-up it is important to identify them as soon as possible and talk with the client about them honestly and thoroughly so everyone is on the same page with what the issue is. If there is a permitting issue let the client know what it is and have a solution or options. Don’t just come to the conversation with issues.
If something happens that requires more time than originally estimated it depends on what the contracts is and how much time was additional and why it was caused. Would need to identify the issue.
If there is additional costs that may come up a Change Order is made identifying what the Change is and the costs associated with it. There is sometimes different options to solve the problem that may result in less costs or may find solutions that won’t cost anymore money.
-Backhaus Industries
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If there are permitting issues-- identify the issue with the building inspector and see whether if the issue arose due to the contractor not being properly license or insured or because an issue was found with the work or something major needs to be corrected before moving forward with work. If it is an issue with your contractors license, then hire a contractor with the appropriate licensure and terminate the relationship with the present one and cease any further payments. If it is the latter, then have the professional calculate the cost to repair damages or concerns and see if your contractor offers financing solutions for when such events occur.
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If you are using a professional and experienced General Contractor, then timing should be very accurate (plus or minus 3 days). Especially with the estimating systems/software used, which gives the labor hours. Also with experience there should be a good estimate of how long these projects should take. In other words, timing should never be an issue with the right professional. If you are spending more time than originally anticipated, techniques, tactics, and budgets need to reevaluated to bring the project up to speed.
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Homeowners who perform large remodels need to properly set aside two budgets. The first budget is what will be given to the contractor and the second budget will be a smaller portion devoted to any surprises that occur or arise. For example, a homeowner has 50K saved to remodel his home. He should project and attempt to use just 40K for the remodel and save 10K for the unexpected. If the 10K ends up not being used then it can go towards things that you did not get a chance to remodel or improve.
If there is ever a concern or question regarding your project contact the owner David Contorno directly. He can be reached at [email protected] or 708-231-0400.
In the unlikely event that problems crop up which would require us to spend more time than originally anticipated, the client would be notified immediately and all concerns address professionally, accurately and in a timely manner.
All clients are aware of project costs. If something unique comes up, together we will develop a accurate and fair resolution.
Permitting issues are, unfortunately" part of life when you’re a contractor. My advice is this, "Take your time, talk with code enforcement about the problem, make SURE you have a good grasp of the situation, then tackle it one step at a time.
Again, unforeseen problems are part of life for contractors. Make sure you go over the problem thoroughly and then talk to the client about it BEFORE you start working on the problem. Communications is always key. And this part holds true with the cost portion of your question.