Usually additional costs in this respect unbeknownst to the inspector, contractor or home owner would have to be agreed upon as an extraneous no fault cost under a contractual agreement, before the Job starts.
the best thing you can do is be honest and fully explain everything in detail and apologize for the complications
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have open communication with the client and have flexibility cost of the job when unforeseen problems comes up.
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Make sure you get as much info from your contractor as possible before you start about were he thinks there might be some unforeseen costs and problems. 90 % of curve balls happen in structure because you just never know what you are up against or the conditions of the existing structure till you open it up and see whats going on. If YOU and your CONTRACTOR are HONEST with each other you should have a rough idea based on your house and your proposed plans as to where there might be some issues. As for permit issues you just should not have them,if you have plans then between your architect and contractor they should know what they need to get a permit. if itās a smaller project and you donāt have plans and are a bit unsure if you need them, then i always call or drop by the city permit office.In small projects some times you can get an over the counter permit or you might need a stamped drawing from an architect depending on your project conditions.The rule of thumb is if you are moving any walls or structure you 100% need a drawing or adding more the 10% of electric then you already have. The more details and facts you have will always make it easier
We are always upfront and give options of solutions to customers.
Work it out with the home owner or client the best you can to satisfy their needs 100%
I tend to have very few surprises during a remodel, but thatās due to having a clear contract and policy regarding how unforseen problems are approached.
We usually confer with local building officials about questionable elements of a project prior to signing contract. It tends to avert larger problems.
In the circumstance where weāve stumbled onto a permitting issue, we immediately contact building department for guidance.
If unforeseen issues will delay a project and extend our schedule we note that on our project change order form so the client is fully aware of that time adjustment.
With few exceptions, additional costs that arise due to an estimating error are assumed by company. We never expect client to compensate for our errors.
Our contract price is THE cost of a particular project. The only time it changes is if hidden damage / structural issues are uncovered, or customer makes changes to plan.
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From the first meeting, make sure you are comfortable with your contractor. Ask them, how THEY will deal with curveballs. A licensed, professional contractor, understands that the homeowner will be displaced during the renovation. The contract knows how to make things run smooth for the client and they know how to deal with situations that come up. In order to make the homeowner feel at ease, talking about this prior to work beginning, will be most helpful!!!
change orders and discuss with homeowners always in contact with homeowners and be present on job site
Permitting Issues are usually dealt with head on.
More time is either a change order or just part of the project that was required to complete it.
Additional costs are executed as a change to the original budget and depending on the size of the change a 50% charge may be needed to begin it.
The key to handling unforeseen problems begins long before unforeseen problems arise. We communicate the process and timeline for our projects with the customer throughout the entire process. We provide diagrams to the client that show a detailed list of all the tasks of the remodeling project and the number of days to complete each task. At the end of each week, the client receives an email update with the same diagram showing what has been completed. If there are delays, these are highlighted on the diagram and an explanation is provided. When tasks are completed on schedule or ahead of schedule, these are mentioned as well. In this way, the client is involved in the process, and when an unforeseen issue arises, you simply provide an explanation. The simple act of communicating with the client on a consistent basis will work wonders in the client understanding when issues come up. When you let the client know about reaching target goals on time, this offsets any negative feelings about delayed targets. Communication is the key.
This happens often. The best way to deal with these things is to be open and honest with the client. We can usually resolve all issues with a face to face conversation about what has to happen, or what might happen, as well as how much more it will cost the client before the work commences.
We handle all permitting issues prior to submittal so that there are no āSurprisesā in the review process.
The most important thing to make clear before you even start the project is that this can happen, and do they have addition funds in the budget to account for these possible costs, and time issues. As long as you make it clear before you start demo, and put it in your contract for them to sign all should be ok.
Whenever there is an unforeseen circumstance we first show and discuss the situation with the client. In case there is additional work to be performed a āChange Orderā is then processed with the cost factor which is later to be either approved or denied by the customer. In our field of glazing the most common factor is dry-rot due to leaks. The presence of dry-rot is difficult to detect until certain windows such as vinyl or aluminum are removed. All additional labor and costs are first discussed with the client before approving a āChange Order.ā
When unforeseen problems pop-up i make sure to document everything with pictures and write ups. Second is to either have the homeowner come take a look at the issue if they are available and the problem could wait. But if the problem is something that can not wait and your client is unavailable i call them explain to them the issue and provide pictures with explanations to what the issue is and how it will be resolved and the price for the fix. With permitting issues i try to set up a meeting with the township to find out what we can do to help answer any problems.
Hopefully you area able to get a quote from a contractor that is inclusive of most of these issues. The most important item regarding addressing these? Have an agreement with the contractor prior to work beginning. A simple document with everything in writing and signed off on is a really easy place to reference for all parties.
To address the permitting issue first, I would suggest calling your city office and asking the question to them. Most of the time you can find a FAQ page that specifies if a permit is needed or not needed. They can also answer who is able to physically get the permit, as in some jurisdictions a homeowner can pull it, or the contractor has to pull it. Sometimes you can get an authorization form to pull a permit on behalf of the contractor which will save you money by not having to have them go get it themselves, costing you an additional charge.
The second issue of unanticipated problems coming up can be as simple as asking for a time and materials rate from the contractor. This is usually a simple hourly charge for labor and +20% on materials to cover the time to purchase them. They would of course need to accurately log the additional hours required to correct a problem to be able to charge for it. Sometimes they will just give you a flat rate to address it as well. It is up to you to determine which is best. Of course, if it is simply an issue of the contractor overlooking something (say an extra layer of roofing shingles they need to tear off, or misreading plans), that should be on them. Never let somebody give you a number without looking at the project directly, it is always a red flag in my book. Any changes can be documented as well to provide clarity. The major reason for something taking more time than originally planned for? Weather, supplier delays, and conflicts with other contractors trying to get their work done too. That is where planning for the worst (weather) and hoping for the best comes into play. If somebody says 4 weeks for work outside, expect 5-6, and you will avoid a lot of headaches when overlapping contractors.
Lastly, additional costs on a project would fall into the previous question, unless the additional work/change in materials is specified by you. For example, say you had somebody there to pour a concrete sidewalk, but you also wanted some concrete pavers for stepping stones. The cost of the additional work is on you. Once again, if it is an oversight by the contractor, it is there issue. It is a frequent issue for the record, which is why there is always a buffer built in (i.e. profit). Asking your contractor to do additional work like lifting heavy furniture, or taking your hedge trimmings to the dump with their material may be ok, but I feel like is in bad taste by the homeowner. You contracted them to do a specified task, and they need to be allowed to do so without distractions or pestering. If they offer, then it is a different story. Be aware that prices do go up on materials over time, as well as work that is impacted by certain seasons (excavation+rainy season= no no). Make sure you donāt max your budget from day one before you get started. Live within your budgets. Good luck.
As a professional you should see all the way trough , in Areas when you are
unable to predict such as underground you should let the client know of all
the blind spots that you have from the beginning.
You have to let the client know in what areas he / she should expect a change
Honesty means a lot.
Q: What do you do if there are permitting issues?
A: We havenāt run into any permitting issues from our end due to our licensing. However, we have run into issues with setbacks, incomplete plans, and other problems that have shown themselves during the permit process. We try to work with the client to resolve these issues in an efficient manner.
Q: What happens if problems crop up that require you to spend more time than originally anticipated?
A: We communicate with the client what is going on and why. We hope they are understanding and we work hard to resolve the delays as quickly as possible.
Q: How do you deal with additional costs that may crop up during a project?
A: If the additional cost is because of something we missed and is outlined in the scope of work or is something we bid too little on then we donāt charge the client for the additional costs. If the client wants to make changes we do so through a Change Order which allows us to adjust the costs up or down according to the needs of the client and project.
These things should never happen. We go through everything at the onset. There should never be any permitting issues.