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Price
Is
the price negotiable?
From time to time a client may ask, "If
the price is higher than we're comfortable with, will you work
with us to help us get it down?" The answer here is "Yes."
We begin the Project Development Process with an eye toward
meeting all our clients' needs including budget. It is our obligation
as a Design/Build firm to show the client what is possible in
their remodeling/addition project. If, after roughing out
a design, we determine that the cost of building that project
is more than our client wants to invest, we can offer suggestions
to help bring the budget back into line.
Solutions can be as simple as selecting different products or
finishes or as all-encompassing as simplifying the design by
re-addressing the primary goals for the project. It's important
for all clients to determine what their goals are (design/function
vs. practical) and develop a clear budgetary range to communicate
to Creative Contracting.
Sometimes, our clients will ask a similar question meaning,
"Will you sell this project to me for a lower price because
I asked?" The answer is, "No." Creative Contracting
believes in fair and honest pricing for every client. The only
way we could reduce the price of one client's project would
be to raise the price of another client's and that is not in
line with Creative Contractings philosophy.
How much per square foot?
Every year, a variety of construction-oriented
periodicals publish the per-square-foot price of building a
new home of a specific caliber in a specific region. With prices
ranging from $200--$500 per square foot, it's easy for the owners
of existing homes to translate that equation to their own remodeling
job and think, "Well, my bathroom is only 35 square feet
so that means I should be able to remodel it for between $7,000
and $17,500.00." In reality, per-square-foot pricing
is not a relevant benchmark for remodeling because it does not
take three very important factors into consideration:
Demolition and rubbish removal-not necessary in new construction-costs
money. Before beginning the project, the existing space
must be stripped of all the fittings, fixtures, sheetrock, insulation,
flooring, etc. Those materials must then be removed from the
home (taking care not to dirty or damage the walls and floors
of adjacent, uninvolved room) and disposed of.
Working in an existing space is more labor-intensive than
starting from scratch. Imagine an electrician installing
recessed lights in a house that is currently under construction-all
of the joists are visible and wiring is simply stapled up in
clean straight runs to the electrical panel which is completely
accessible. Compare this to installing the same lights in a
pre-existing, plastered ceiling-to place a light, a hole is
cut in the plaster. If a joist is revealed, a new hole must
be cut and the other hole patched over. Wires must be "fished"
across closed ceilings and down sheet rocked walls to reach
the electrical panel. This comparison holds true for almost
every phase of a remodeling project from excavation to pouring
a foundation to framing to flooring to painting.
In new construction items like plumbing and electrical are
averaged over the square footage of the entire house. The
plumbing for a kitchen and two and a half bathrooms is very
expensive but is averaged over 2500 square feet. When a home
is being remodeled that same work is often averaged over only
a tenth of the square footage.
I've heard you're expensive...
Deciding to invest in a remodeling project
is difficult because it's impossible to compare apples to apples.
Even if an estimate appears to have all the same components,
how can a client be sure that the jobs will be executed with
the same attention to detail, the same level of craftsmanship?
Here's an example:
A bare-bones estimate from another contractor might include
a line-item for the kitchen electrical work that says, "lighting,
switching and outlets for kitchen." During construction,
the client might ask, "Will there be two recessed lights
over my sink or just one?" The contractor then raises his
eyebrows and says, "Well-actually-none. Your lighting allowance
includes one surface mount light in the middle of the kitchen
and one over the sink. I can do recessed lighting for you but
that's going to be at an added cost."
All NARI (National Association of the Remodeling Industry)
professionals deliver quality craftsmanship. That's the
status-quo. On top of that, Creative Contracting provides a
process that is refined, streamlined and stress-minimalizing;
allowing the client to feel well taken care of and valued. We
provide accurate, up front pricing reflecting what the client
has communicated as their expectations regarding quality, style
and functionality. We discuss various design options with clients
up front and take the time to fully understand what the client
is looking for in their remodeling project.
Am I paying for your overhead?
No. Our overhead is supported by several
jobs at a time; not just one. Creative Contracting works
efficiently, and provides superior quality and service by having
each employee work in their area of expertise; doing what they
do best.
Can you break this quote down line-item by line-item?
Investing in a Design/Build project is
more like buying a car than a list of groceries. When you
buy a car, the "base-price" includes everything you
need to be able to drive it off the lot and operate it safely.
You do not have separate prices for the engine, the rearview
mirror, the windshield, etc. You may, however, select "packages"
to upgrade the vehicle in a variety of ways-special rims, sound
systems, leather trim, etc.
We handle the design of our clients' projects much the same
way. If we're developing a kitchen project we will come
back to the client with a "base-price" for the kitchen-all
the demolition, rubbish-removal, framing, plumbing, electrical
work, HVAC work, insulation, sheetrock, flooring, cabinetry,
countertops
(the list goes on and on) required to
create a beautiful, functional kitchen that will meet the needs
identified by the client during our initial assessment. Then,
if our clients want to know, "How much more would it
be if we went to cherry cabinets instead of maple?"
or "How much would we save if don't replace the window?"
those options are priced out as alternatives.
What's your mark-up?
Creative Contracting prices its projects
to produce 10% net profit which is used to grow the company
and continue providing clients with the superior service we
have for over 20 years.
Is my project going to cost me more than what the contract says?
There are two circumstances under which
a client may end up paying more for their project than is listed
in their contract:
Client-driven change orders - the single biggest contributor
to projects costing more than originally anticipated. "While
they're here, maybe we should have them change out that window
in the bathroom
" We get a lot of those.
Unforeseen conditions - We go the extra mile to attempt
to identify any potential conditions that may affect the cost
but unfortunately we do not have x-ray vision. Until a space
is gutted we cannot know about a rotted sill or the termite
infestation or an improperly vented drain-line. When we discover
things like this, it is our legal obligation to bring them to
the attention of our clients. If additional work is needed to
correct the situation, a change order will be written and presented
to the client for consideration before proceeding.
With
the exception of the aforementioned items, Creative Contracting
firmly holds to its quoted pricing and assumes responsibility
for an accurate and thoughtful assessment of every project from
its inception to its completion.
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