The Do It Yourself Coach, D.I.Y

By Jerry R. Spumberg
The DIY Coach 

If you read the previous articles, you know  that it is important to define the scope of the project in as much detail possible. Investigate our web site thediycoachusa.com for a fundamental understanding of the subject, the process, and some of the reasons why you would proceed in constructing your project with a Coach’s assistance.  You will then be able to determine what you expect and need from a DIY Coach.  Put it all in writing and then you will be prepared to start your search.

The first thing you may learn is there are not many people that will meet the standards that I have set for my own company.  A person designated as a Do It Yourself Coach for a project that involves multiple trades or can have an impact on other aspects of the home, in my book, should be the complete builder with hands-on trade skills.  Simple one trade or two trade projects such as painting or tiling a foyer may be handled with an experienced specialist.  People with the knowledge and talent for being a Coach can make more money as a General Contractor, so you will be looking for a person where it’s not all about money.   Previous articles went over this in detail and there is no need to repeat this information.

I invite you to contribute to this article and tell us your ideas on this subject or any other article.

Ways to find a Coach:    

• Most of our clients came to us through referrals from past customers.  Ask friends and neighbors for recommendations. 
• Our recent web site, which is dedicated to informing property owners about the How of doing it yourself, has brought us inquires and a few new customers.  Use the internet wisely.  Be careful of companies that don’t offer side-by-side working relationships and Coaches unwilling to supply most of their own tools.  Beware of offers to complete work that is unfinished where the contractual relationship can be changed from Coach to contractor.  We never change the relationship.  Our contractual relationship is always most similar to you being the boss and us being a trusted employee.
• Talk to family and friends, if they have the qualifications, and see if they have the time to help you with the project.  (They may be retired from the industry.)  Let them know that you will be glad to pay them for their help.
• If you know people in the construction industry, ask them who they know.
• Two of our recent referrals came from lumber yards when DIYers needed help.
• Call building departments in your town and the surrounding area.
• Things are slow.  You may be able to place an ad under part time employment.  This relationship is a little more difficult because of government regulations, unless they have an existing business.
• Talk to general contractors who will be willing to engage in a coaching relationship.

The housing market and the economy is creating the need for new business models in the construction industry.  People are living longer and want to supplement their income by working longer before or during retirement.  Highly experienced and capable individuals, who love what they do, provide a labor pool for my company.  All this taken together is generating a demand for “The Do It Yourself Coach” approach.  It’s on television, driving the big box stores, and just getting started for you, the homeowner.

Please tell us how you found your Remodeling or Building Coach by contributing to our Blog.  We want your input and questions!  They may become future articles.

Coming soon: How one family reconfigured and expanded their present house into their dream home and increased their wealth.

May The Coach Be With You,
Coach Jerry 

By Jerry R. Spumberg
The DIY Coach 

If you read Part III (”The Relationship”) you understand that a Coach is your personal teacher as it specifically relates to your project.  The items that are listed below are general in nature and apply to most projects that a Do It Yourself Remodeler can tackle.  It is important that you understand setting goals and objectives; I strongly suggest that you go to our web site thediycoachusa.com and read the material on that subject.

What a Coach should be able to do for you:

·       Developers know that not all projects that are conceived get built. The first step is to do a feasibility study or determination. This process is worthless unless a predetermination is made about what it is we wish to accomplish under set guidelines. A Coach should be able to guide you through this process.

·       A Coach should be able to help the client in setting and maintaining realistic expectations through the planning, construction, and final stages of their project.

·       A Coach should be able to teach you during the planning stage that developing optional approaches can be done concurrently.  For example: Do we rearrange and expand an existing house as opposed to  the house be demolished completely and built from scratch?  In both situations, the final product may be indistinguishable from each other.

·       A Coach should be able to help you understand the determining factors as they relate to your goals and objectives in reaching your decision.  For example: Do we restore this one hundred year old house to its former glory because we want it to be preserved?  Has it deteriorated to the point that the costs are beyond our means?  If we build a reproduction of the old with modern conveniences for less money, will that make more sense?

·       A Coach should be able to teach you that everybody’s right answer is different.  He should help you find your right answer.

·       A Coach’s experience and expertise should take you through the planning stage and requests for proposals. You should, with his help, be able to obtain reasonable and believable costs in developing a budget.

·       A Coach should do everything in his power to stop you from beginning a project until you have a completed budget that is acceptable to you.

·       A Coach should be your adviser during the purchasing process and awarding of contracts.  During this period, he should be willing to expose you to his business methods that he has used in the past that protected him from unscrupulous vendor and trades people.

·       All that has been previously talked about in the blog articles should be initiated by a Coach.

·       At your direction and as your agent, he should be willing to take on the responsibilities of those duties that you have assigned to him.  The Coach should keep you up to date as things progress, informing you of issues and day to day activities.

·       He should be able to help you resolve disputes.

·       He should be experienced and knowledgeable enough to direct day to day operations and able to work with you on aspects of the project that you would like to take on.

·       He should be willing to perform manual labor when necessary and cost effective.  He should supply the tools he needs to perform his work. 

·       He should be willing to teach and work with you when you wish to participate in a phase that the coach has expertise in.

·       From beginning to end, a Coach should give you the confidence that you have taken the time to plan, evaluate, and make the best decisions for you.  The results should be a great project with as few surprises as possible.

The main difference between a Coach and a builder or general contractor are significant. Builders, general contractors, subcontractors, and vendors are driven by a profit motive that is based on how much his contract is worth.  The bigger the dollars and higher the margins the more money they make.  Their contracts can limit the flexibility a client has in choosing who is to perform a correction if there is a hidden defect that may require additional cost.  In most cases, contractor’s direct costs are not transparent.

When working with a Coach, the direct costs for a project from each vendor or trade’s contractor are transparent. The  goal of a Coach should be to help you develop plans and specifications that are as complete as possible for the biding and budget development process. The objective is to eliminate surprises to you by inclusion of everything that is foreseeable.     He is paid for his time as needed on an hourly basis. There are no mark-ups on your other costs.  You make all the decisions throughout the project. The Coach works for you, similar to a trusted employee, with your benefit as the governing factor.

When working with a contractor, you will still need to develop a set a plans and specifications. Depending on the project, you may be required to hire an architect or designer (at your expense) to be able to obtain pricing.  In most cases, specifications are set by the bidder and when they are not specific are given as dollar allowances.  The difficulty with this is that allowances may not cover the items in the contract, some items may not be included, and the specifications may not meet your objectives. You and the Coach should work together to eliminate the unknowns as much as practical. 

In either case above, you will pay for plans.  In the case of using a contractor, you do not have an independent professional looking out for your interests through the most important part of any project - planning.  When contracts do not have a transparent method  for the unforeseen or changes, clients become uneasy.  Most clients have heard stories that tell of unscrupulous  contractor’s overcharging for items not clearly specified.  Clients have good reason to be cautious and concerned over executed change orders that may be extremely profitable for the contractor.  This can cause extreme project cost overruns.  To understand the costs added on for mark-ups, go to our web site and use the links to trade publications that discuss this subject.

Developers and builders understand the cost of a project manager as it relates to a project. When he is assigned a project, he receives his job responsibilities in writing. When a property owner who is not a professional in the construction industry takes on the role of developer and administrator, there is a learning curve to determine a range or allowance for project management supervision. The builder understands that this is somewhat indeterminate and adds a contingency amount to his best guess.

For a few of my past clients, the lack of an exact cost for the Coach is the most uncomfortable part of using a Coach. The cost of the Coach is based on the time required to meet the client’s specific needs, goals, and objectives.  As it is with the builder’s project manager, the costing is not an exact science.

To put my clients at ease, I explain that builders have a salaried person running projects and that is included as a indeterminate direct cost before mark up.  When using a small building company, the owner may also be the project manager; they pay themselves a salary (as above) and it is charged to the project.  Builders always add into a project a guesstimate as well as a contingency dollar amount for additional supervision, something they missed, or price increases.  The cost of a Coach should be similar to what a salaried employee with the same responsibilities cost a builder, but you don’t pay a mark up or profit on the project.

In discussions with prospective clients, I verbally give them cost ranges from past similar projects.  I also explain that no two projects are ever the same and costs for our services vary. Our web site is a learning site to help them and you make the best choices.  We encourage people to use it.  It’s our pay forward to everyone who is a Do It Yourselfer.  A Coach’s contract should allow the client to terminate at anytime.  A Coach needs to earn the client’s respect and trust every day. Owners usually understand the value of their own time.  A qualified Coach, in most aspects of your project, should save you time and money when compared to the less experienced owner running a project alone.

To sum it all up: A Coach should be able to help his client, the team manager and owner, build the right team for a winning project. 

With the series conclusion of Part V- Finding A Coach (due in December), I will be publishing a true story about a client’s project that transformed a small home into their dream house.  The project included the reconfiguration of their existing home and its expansion.  It is my hope that these articles, our web site, and this story will have you explore doing your next home improvement project with a  Coach.

Remember that: 

You can do it for yourself, but you don’t have to do it by yourself. 

You can have more value added to your home then you spend.

May The Coach Be With You,

      Coach Jerry

By Jerry R. Spumberg
The DIY Coach

If you read the previous articles of this series, you will remember my mentioning of Mike Holmes, Tom Silver, and Norm Abrams, their years of experience, and their desire to share their knowledge with others. The word teacher comes to mind.  One of my woodworking teachers was a gentlemen by the name of Ernie Conover.  He said to me one day that he has been a good woodworker for many years, but it is only after twenty years of teaching that he has become a good teacher.  He was being modest.  He is a great teacher!   And I completely agree with what he said.

Teaching requires experience, desire and patience.  It most importantly requires the understanding that sometimes you have no choice but to let the apprentice make mistakes.  The teacher’s responsibility is to teach the Why and How, to advise what he thinks best for the client, and to encourage the client to research a decision with diligence. The final decisions should be made by the client. This is why I like the descriptive term Coach.  This is the first part of the relationship.

The next part is sometimes difficult or at lest humbling for a successful builder or contractor who has had the final word when he ran his own company.  A Coach must accept that part of this relationship is more similar to that of an employee (the coach) and employer (the client).  It is important for the client to accept his responsibilities as owner.  In return, the Coach, as his employee, must be committed to a work ethic and the moral responsibility of what is in the best interest of the client.

It is my personal belief that without having an on-site presence, as needed during the construction, design and costing process, I would be delinquent in carrying out my duties.  Unless a client has a professional building background, it would be difficult, if not impossible, to have a successful project without the availability of a coach’s support from beginning to end.  I don’t believe in coaching from the distance or over the internet as a viable alternative to working side-by-side with a client as needed.  As a builder who had supervisors working for me, I still went to each project, inspecting and offering help as well as doing everything possible to facilitate a successful and timely completion.  Availability  by both parties is important to the relationship.     

Throughout the design stage, the coach’s responsibility is to advise the client so they define and set achievable goals that become plans and specifications for their project.  Some used to call this “value engineering”.  I rather think of it as a custom suit that fits right.  The next step is for the Coach, with any resources the client may have, to request proposals for the project from trades people and vendors to develop the preliminary budget.  If the project is within budget or slightly above, additional bidding and negotiating takes place to achieve a quality project at the right price point.  If the project is substantially above what the client wishes to spend, specifications may have to be adjusted as well as the plans.  One way of speeding up this process is to develop alternate specifications and plans and have options that are priced separately during the early design stage.

Throughout the above process (or shortly after it has been completed), the client and the Coach must discuss the construction process and how responsibilities will be divided.  In my experience, the client has almost always assumed the administration work that includes bookkeeping, purchasing, payments and entering into contracts.  I advised them on the methods I used for myself for the above and how and why I did so. They decided what would best work for them.

The day-to-day activities on site are usually my responsibility, with some assistance from the client.  The client and I also decide what labor I will perform and that which they will assist with or perform themselves.  Depending on the project, the availability of the client, volunteer help from family and friends, and the desire of the client to perform work, the amount of physical labor the client contributes to the project can be labeled as being “fully immersed”, “specific aspects only”, or “mostly administrative”.  I have worked on projects where the client and myself preformed almost all the work.  I have also supervised projects where almost all of the work was performed by subcontractors and others that lie in the middle.  The most important point for many clients is the final cost.  Remember, by eliminating a general contractor or builder, you are eliminating their markup for overhead and profit.  Go to our web site thediycoachusa.com and click onto the links to trade publications that discuss this cost to find out how much this is.

One of the prerequisite for performing any specific aspect is the equipment required.  In addition, the consideration of the client’s skill or the ability of learning the skill to perform the work required is discussed as well as how long it will take.  All costs are then developed and compared with the use of a trade-specific subcontractor.  I then help the client examine his objectives and goals, voice my opinion, and let him give me direction on how to proceed.  Any problem or issue with any subcontractor or vender is dealt with the same way.

I’ve tried to talk about how things generally work between Coaches and clients.  However, I have not talk about what a successful relationship is.  First of all, it is one of mutual respect.  I would expect that a client would not hire a person they did not respect.  I’m sure an ethical Coach would not work for anyone for the same reason.  The client should respect the Coach for his qualifications and people skills.  The Coach needs to respect his clients for their moral integrity and recognize that they are really the only ones who know what they want to accomplish.  A coach must understand that it is the client’s money being spent.

I don’t start out by saying either party should be looking to become friends.  However I do say that it’s extremely difficult not to like someone that you work with when there is mutual respect and commitment.  When working side by side, people very often have no choice at the end of the project but to be a little sad that it’s ended.  Friendship sometimes just happens.  So what should a Coach be in their relationship with you?  Should they be your home improvement teacher, master builder and carpenter, project manager, scheduler and coordinator, purchasing agent, construction adviser, building inspector/permit expediter?  Yes they should.  However, it is equally as important that you have confidence in them as your trusted advisor and for them to trust you to be straight forward with them.  The right relationship with the right Coach will give you a well-managed successful project that meets your goals, expectations and objectives.        

May The Coach Be With You,                                                                                     Coach Jerry

By Jerry R. Spumberg
The DIY Coach 

By Jerry R. Spumberg
The DIY Coach

Lets first talk about a Master Builder in the terms of some of those on TV that I most respect, Mike Holmes, Tom Silver, and Norm Abrams. They have years of experience working in the industry in a family business before they owned their own. Besides the hands on experience, they have a scholarly knowledge of building that is up to date. They have developed many additional skills that they perform, thus qualifying them to be called professionals. To them, TV is just a media to share their knowledge with others.

The most import thing is that they understand that a building is made up of many components, some of them complex. They know the assembly order of the components, how they relate, and how they must fit together. They use the best methods to do this and call it building. They have also learned and developed techniques that are extremely effective in producing quality results. They efficiently use time as a precious resource not to be wasted. Finally, they have practiced and refined their methods over many years, first as apprentices under watchful eyes, then journeymen, and now as masters. They continue to improve their skills as they practice and teach by learning new techniques and sharing them with others. These are true builders.

With their background, they know what can go wrong. They have the ability to recognize an existing problem and implement a solution before it becomes a catastrophe or a defect that requires a costly remediation at a later date. You might think I’m talking about a major remodeling project. I’m not. It could be as simple (or not so simple) as picking the best method for installing ceramic tile and correcting any deficiencies in the underlying floors or walls.

To determine whether you need professional guidance is to ask several questions. Do you want professional results? Do you have the knowledge to pick the right materials and methods needed? Do you have sources to buy at the right price? Watch out for seconds, low grade, or surplus materials, and prices too cheap to be real. Can you tell the difference? Do you have the knowledge to recognize and correct underlining problems that will affect the visual and longevity of the project as well as its performance? Do you own or are willing to rent the professional tools that you will need to get good results? Do you have the time to be patient with yourself, realizing it will take you much longer then a professional? Have you developed the skill and techniques? If you have never done this work before by working with an expert, you will have to go through a learning curve - are you willing to due this? Are you qualified?

If you answered yes to the above questions and you think the project is something you will enjoy, go forward. If you’re not sure, you need professional advice, a person with years of experience, to look at your choices and risks. A Do It Yourself Coach will cut the learning curve to a fraction of what it takes to teach yourself and will help you decide the best direction to take. He may even suggest subcontracting parts of the project out and will teach you how to do that. A Coach is a qualified person that could be a relative, a friend, or a professional that you hire. A person like myself, with years of diversified experience in building, can save you from making costly mistakes and even make you money ensuring you achieve professional results. Remember that most television DIY shows show a professional guiding or assisting the do it yourselfer. Visit our teaching web site thediycoachusa.com to learn more about saving money and achieving professional results.

I could spend the rest of the article telling you about a couple who claimed to be great do it yourselfers on a social internet site. They remodeled their bathroom to include a platform whirlpool tub that had a glass enclosure for showering. They bought a closeout whirlpool at one of the big box retailers. The pump was in the wrong location, thus there was no access to it. It did not have a ground fault circuit breaker or wasn’t on a separate correctly-sized electric line as required by code. The corner unit was such that it could not be installed in such a way that the water from showering or just splashing from the tub could be prevented from leaking below into the ceiling of the dining area below. The solution will be to remodel the entire bathroom over.

Here’s the kicker! I was brought in to diagnose the problems not by the couple that performed the work, but the recent purchaser of the home. They found out that no building permits were taken or inspections were made; they have hired an attorney to take legal action against the previous owner.

A coach can do it for you or with you. He can educate the How and explain the Why. He can make sure you comply with building regulations so you don’t face the consequences later. He can make you money by adding more value to you home than you spend. He can integrate his resources with yours so that you can find the best materials and subcontractors at the right price point for your project. He can teach you to legally protect yourself through the use of your own agreements with venders and trades people. He can ensure that you end up with a project that meets your expectations. He puts you in control.

There are many Do It Yourselfers who have developed the skills to handle projects without a coach. I admire them. In many cases, they have a friend or family member who are Master Builders that they can lean on and may have worked for or with them from time to time. If you wish to add more value to your home then you spend, then being involved is the only way to go. When you use a general contractor, you will usually add 60 to 80% of value for every dollar you spend. You don’t make money. Please go to our web site thediycoachusa.com to learn the How and Why to do it better. Visit the links to trade articles about value vs. cost and mark-ups. If this isn’t important to you then hire the best general contractor you can find - not the cheapest.

I believe if you are willing to put in some time and effort, you can tackle any size Home Improvement Project with a little help.

May The Coach Be With You,
Coach Jerry

The Interrelationship of budgets and schedules for a Do It Yourself Project
Article: September 10,2009
by Jerry R. Spumberg,
The DIY Coach NJ

If you go to our web site (TheDIYcoachUSA.com), you will find information about “Determine Needs, Objectives and Goals” for projects and “Define & Write Financial Objectives”. In a later article, I will try to give you greater insight into these related but separate topics. Once having determined the before mentioned, you are ready to determine if the building, renovation, or remodeling project you are considering is financially viable under the conditions you have set.

I personally do not believe in estimating a project through the use of software or conventional manuals, except as guide lines. Because they use the supposedly gathered cost information of others, I could use them as an early indicator of the project’s financial feasibility. In most cases to establish a start point, I used my years of experience as well as past projects to ball park the cost of a project for discussion purposes. If the client’s objectives seem realistic, we can then determine if it’s worth going through the time, cost, and effort to develop accurate specifications, costs (by doing take offs of materials), and obtaining bids from trades and vendors.

Methods that can cause the under estimating of costs have proven to be inaccurate enough to make some projects a financial disaster, driving professionals and Do It Yourselfer’s into desperation. Over estimating of costs have led Do It Yourselfer’s to abandon perfectly viable projects that could have added more value to their home then they spent and enriched their life. When projects are for impatient clients, who rush to begin without having most costs nailed down, the realization during the project that it will run over budget is at the very least a strong possibility. Even when they can afford the additional cost, it often results in buyers regret and dissatisfaction, no matter how well the project turned out.

For discussion purposes, I will be targeting projects that are more then a few thousand dollars in cost, somewhat complex, and require multiple trades and phases to complete. The project should be defined (in writing) to include a description and the objectives of the project. You then have to determine to what extent you will need drawings or professional plans and engineering. I would eventually break the plans or drawings down to a list of components with specifications and alternates after the next step or in conjunction with it.

My approach is to develop a list of purchasing and construction activities. I then arrange them into their start to finish order during construction. Over the years, this ordering of things becomes imbedded into a builder’s mind. But for those who this isn’t second nature to them, you will need to develop this activities list. I suggest you check out a book similar to “Bar Chart Scheduling for Residential Construction” by Thomas A. Love from the NAHB Home Builders Press. Within the book you will find charts for the on-site activities for building a residential home from the ground up. You can then apply this order of events to your project activities by eliminating those that do not apply. I then develop specifications for the project as I go through each phase. I roughly follow this order, but some times place some of the more complex items earlier in the scheme.

You then need to determine what materials you will supply for the project and what materials shall be supplied by the subcontractors. For example: the electrician will supply all of the wire and devices as part of his contract and you will supply all of the electric lighting fixtures and appliances. The electrician, as part of his contract, shall be required to install the items that you are supplying. Another common example is lumber and windows that you will supply to the framing carpenter. Because you are supplying these items, you will need to know what they will cost. In addition, you will need to find out how much time in advance of delivery you will need to place your order so that the materials can arrive in time for their scheduled installation. We can now add ordering activities to the list. This is still a list of activities and not a schedule.

The above method accomplishes several things. It sets a priority of what needs to be priced in the order necessary to complete the project. During the time that we submit material lists with quantities for pricing to suppliers (“request for proposals”), we should inquire the amount of lead time needed to get the materials to the site. When we are talking with trade contractors, we can ask them for the amount of advance notice they need to start a phase, an estimate of how much time they need for each phase, and how many workers they will have working to meet their time estimate. I’m sure you can see how this information will help us refine and adjust our list of activities into a schedule, as well as it’s value when managing the actual project.

Upon the first round of acquiring pricing from at lest one or more competitors, we have a starting point to develop a cost for the project. In addition, because we organized the book keeping to reflect the construction schedule, we also know the cash flow needs of the project. Remember to include an allowance costs for unforeseen contingencies, even when you’ve done some destructive investigations. If the project is within the cost framework for the project, we can go forward to use competitive biding to refine our project cost. We can also consider equal but possibly more cost effective products. Clients may even be able to financially entertain the upgrades or expansion of a project.

If the project is over budget we can continue with the biding process to lower costs, change specifications, or possible redesign certain aspects. The point is this: we know where we are with cost because we did the work to nail them down ahead of time. This reduces the risk of cost overruns during the project.

In Summary

Both you and I know that I’m not talking about a simple upgrade project such as replacing a toilet, vanity, and sink for an existing bathroom. If we were to demo the bathroom to the framing, maybe enlarge it by taking space from another room, tile all walls to the ceiling, relocate the plumbing fixture, include a spare bath unit, and use designer faucets and fixtures, the method that I’ve given you should keep you close to you budget. The above method may sound complicated but it isn’t. It’s just detailed and requires time. It is just good project management. However there is no doubt in my mind that understanding the interrelationship of budgets, schedules, and cash flow are as extremely important for a Do It Yourselfer as they are for a professional. Projects that involve several phases and that are somewhat complex (even if the client has the skills to do some or all of the work) must have a sound and accurate financial foundation.
I realize that many Do It Yourselfers enjoy the work. After five decades, I still enjoy it as a professional when working on my own home. I enjoy the satisfaction I get after completing a well done projects that adds to my family’s enjoyment and well being. It also gives me a kick in the pants to know I’ve increased our financial net worth by spending less than the selling value I’ve added onto my house. I hope this helps you on your next project.
The next article, “May The Coach Be With You”, will be in two parts:
• Why and When Do It Yourself Remodelers Need a Coach
• How To Work With and Qualify a Building, Remodeling, or Specialty Trade Coach

Please send your comments and suggestion for myself and others to consider.

Visit The DIY Coach Website

What a Do It Yourselfer Needs to Know about Purchasing
Purchasing for your next Do It Yourself Project.
What you need to know to purchase like a remodeler or builder.
by Jerry R. Spumberg,
- The DIY Coach NJ

It may be a kitchen with new cabinets, a bathroom renovation, finishing a basement, family room or sun room addition, expanding the house or garage, or building a deck, but it all starts off with a good plan and buying right.

Do It Yourselfers are at a considerable disadvantage purchasing goods and services when compared to a General Contractor or Builder. This article is to demystify the How and to negate some of the disadvantage that DIYers have.

The first advantage a builder or remodeler has is the experience of being the purchasing agent for many projects over years. This allows him (or her) to select products and services that relate to the price point and market characteristics of the project. The builders and remodelers then develop plans (if needed), written specifications for each item, as well as alternatives before seeking prices from several venders in each category.

Manufactures and distributors (thru trade shows, industry publications, and direct contact) continually update the builder on new products and methods for building. Suppliers update him on prices. To be successful in the industry, builders continue their education thru seminars to keep up with the changing products. They research independent product testing and rating companies to select the best products for the price. Successful professionals make sure that they have greater knowledge and are exposed to more products than their competition. This is a must if they want to stay ahead of their competition and win more construction projects by offering a higher value project at a lower price. Simply put, they need to be at the cutting edge.

The second advantage is the builder’s reputation in the industry and his rolodex of wholesale distributors and trades people. This rolodex, which often represents personal relationships, has more then one vendor in each category. In addition, if his reputation is established and exceptional, there are new companies that are looking to win the builder’s business. Those who have established business relationships with him in the past compete against each other as well as those looking to establish him as a new customer. This competition between competent contractors and suppliers drive overall project costs down.

The third advantage builders have over Do It Yourselfers is the use of specifications to solicit competitive proposals. Builders create specifications with plans when needed as part of a request for a proposal. This requires all bidders to price the same things. A bidder may offer an alternate but equal product, but must specify it as such. Builders, when hiring trades or doing business with vendors, use their own contracts to supercede the vendor’s attached proposal. This override of the vendor’s proposal is to protect the builder’s and client’s interests. It insures that the agreement between parties meet all of the builder’s performance requirements of the vender or trade.

The fourth advantage builders have is that they spend the time in the details that include checking references and holding parties accountable in the trade contract. The supplier or trade contractor gives professional builders better prices because they expect the project to be managed properly and efficiently. This means coordinating trades that can be in conflict with others, thus resolving things before they become issues. Issues that are not resolved quickly can cost time and money for everyone. The project manager makes sure that everything is ready for the trades and suppliers as scheduled, updates them as the job progresses, and confirms with each their delivery or start dates. Builders and Remodelers that meet or exceed their financial obligation to their trades and suppliers usually get the best prices and the most cooperation from those they do business with.

The Do It Yourselfers Cost Advantage When Remodeling or Building

Your advantage as a Do It Yourselfer is that you can eliminate the overhead and profit that general contractors charge (see what those costs can be in other areas of our web site) by handling the administrative aspects of your project with some good advice. You can research products and select them based on performance and value. You can package together materials to create bulk orders so that the bidder will offer quantity discounts. You will need to learn where you can buy best and when it pays or doesn’t pay to spend the time shopping. Being a good payer, while protecting yourself, can be leveraged for better prices. It is important to understanding that the lowest price may sometimes be more costly, when quality and service are factored in. This is a painful lesson that a lot of Do It Yourselfers learn the hard way and can be avoided.

You should avoid paying 100% up front (for products such as kitchen cabinets as required by big box stores and retailers) until the product is delivered. For your information, in most cases, builders rarely pay anything up front. When they do, it’s as little as possible for products that require special ordering and have a lead time (not readily available or in stock). In most cases, they pay upon invoicing or on delivery. Trade Contractors should never be paid a substantial payment upon the execution of a contract. They may be paid for material delivered to the site that becomes the property of the owner and progress payments based on contractual requirements. You should use your contract to protect your interests.

Don’t be taken in by the hype of buying clubs that you might see on television. A non profit independent consumer magazine’s news letter of September 2007 wrote about one and I quote, “The lack of price transparency makes it hard to evaluate whether you’ll save by joining…”. Make sure you understand all of the add-on costs before you join a club. Ask yourself how much would you have to buy before you covered the joining cost and ask them what is their return policy. In many cases, you can buy from the same wholesale distributors as they do, without the cost of joining plus service charges and receive better service, delivery and return terms.

Purchasing (sometime called the buy out) makes the bidding process an important part of developing the budget. Cost can also be dependent on planning, scheduling, and day to day management. All of the above makes building and remodeling a profession that requires very specific technical knowledge, business expertise, and dedication. If you don’t have these, you will need to develop them with an expert and experienced teacher. Reading about these are helpful, but there is no substitute for experience. By doing this, you will have a project that is successful in meeting your needs and could add more value to your home then you spend on the project.

Real Estate investors and Professional building companies assign a highly experienced project manager from the beginning to the end of a project. His responsibility is to manage and oversee everything that is required to run and complete a successful project, including quality. His first and most important responsibility to his client or employer takes place when the first round of bids are obtained. He then works with the client to accomplish several goals. Analyze the cost verse value ratio when that’s an objective; is the return at sale greater then what is spent?

If cost reduction is required because the project is greater than what the client wishes to spend, the employer or client with the project manager will need to trim the budget. The strategy to reduce cost should consider other products that could be substituted, items that if eliminated would make a minimum impact, and areas that may require some redesign. The underlining goal of the strategy is to maintain or increase the cost to value ratio while meeting the budget. The project is then re-bided in all categories from several companies as well as the original bidders. The alternatives are priced as separate costs. The final bidding takes place even if the first round is in budget, Vendors are selected, and the final budget is developed. Except in rare instances, it is important to have as much of the costs obtained as possible before beginning a project. With a little guidance, you can handle the administrative side of any project. The rewarding part is not that you will know what things cost because of the transparency your involvement, but that you will be able to control them to meet your goals.

The difference between a Master Builder and a project manager is the depth of knowledge in the business of construction, the How To as well as the hands on experience. If you have a trusted friend or relative in the construction industry, they can help. They will need the proper experience and be willing to volunteer the substantial time needed from beginning to end. By using the above information you can take on the administrative roll and buy right.

I have used these methods throughout New Jersey during my four decade career as my father did before me. I still use them today coaching clients in Southern Middlesex County, Monmouth County, and Ocean County, New Jersey. With a little effort, you can too. We wish you good luck on your next project.

Our next article will discuss how budgets, contingences, and the schedule of activities are interconnected. If you wish more information, please visit our wed site TheDIYcoachNJ.com.

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