Home renovation FAQs

Figuring out what a project will cost can be difficult and takes substantial time to complete. There are many ways to estimate a job, and because every job is different in one way or another, it can take hours, days, or even weeks to put together an accurate proposal. If the project is large, such as a kitchen, basement, full renovation, or an addition, the chances of missing something can become a very real possibility.

The task of creating an accurate proposal for a project not only includes accounting for all the materials and labor to build the job, and overhead costs such as insurance, rent, equipment and tools, the scope of work also needs to adhere to the residential building codes. These codes dictate how a project will be built, and if any work specified doesn’t meet these requirements, it can result in extra costs to the homeowner if they aren’t dealt with while the contractor is creating the proposal.

And don’t forget about design work. Most homeowners need help to select the right materials, colors, layouts, and design themes for their project. There are many decisions to be made before a proposal can be given to a homeowner. There can be as many as 150 different materials to be installed even for a small project such as a 2nd bathroom renovation, and each material requires a decision from someone on how it will be installed.

When you consider all of the things that need to be addressed to provide an accurate proposal, how reasonable is it for a homeowner to expect a general contractor to deliver his proposal within a week? Here’s how it will happen: the general contractor hopefully has been in business for a while and has completed similar projects, so he or she will go through the estimates for those completed projects and use those numbers to create your estimate, making sure to adjust quantities, square footage, and hopefully account for hidden or unique conditions that might be present in your project. He will do this at his desk and most likely will not call any of his trade contractors for input, and worse, he’s creating this estimate based only on the notes and crude sketches he made during the initial visit. This estimate is not a fixed price proposal, and it should be.

What’s wrong with this process?

Construction plans were not created. These are essential for a trade contractor to be able to correctly bid the job.

The full scope of work was not listed. How can anyone create an accurate estimate if every detail isn’t accounted for?

The design work was not completed. The design and layout of materials can increase the labor cost depending on how those materials will be installed.

Materials were not selected. The general contractor is going to provide allowances for the major materials, and he may go low on these to make his estimate look better (lower). And, what if his quantities and measurements are wrong?

And most importantly, the trade contractors did not visit the house to do their own inspections to find hidden conditions, they never received construction drawings, and they have no idea what materials they will be installing.

What will happen when this incomplete estimate is delivered to the homeowner?

Their budget and project is probably doomed right from the beginning.

The project may not get finished because the money will run out.

rade contractors may not get paid for their work, and they might file liens on the property.

The homeowner is going to blame the general contractor, and rightfully so.

The contractor will have to deal with an unhappy client.

The contractor most likely will receive a negative review online.

The contractor will take a very hard hit to his business because he didn’t make any money on the job.

The contractor will have to charge more on the next several jobs to make up for the loss on this one.

And – nobody wins. It’s a losing proposition for everyone involved.

And who’s fault is this? Both the general contractor AND the homeowner.

The definition of an estimate is: to roughly calculate or judge the value, number, quantity, or extent of something. An estimate is ok to use for providing a low and high ballpark figure for a project during the initial visit; it is not ok to put in a contract. When contractors provide rough estimates and say those estimates will be the actual cost of a project, they are setting themselves and the homeowners up for failure.

General contractors roughly pay the same for all materials and labor, and have about the same amount of overhead. So how is it possible for a homeowner to get multiple estimates that vary widely in price? There are many reasons, but the main ones are: the contractors didn’t account for all the materials and labor to build the job, they don’t know how to price their services, meaning they have no idea what their markup should be, and – this is the big one – they are guessing at what their overhead and profit should be, and are only focused on being competitive to get the job. They don’t have the business skills to properly run their business, they don’t know how to budget, and they don’t know the difference between gross profit and net profit.

The definition of a contract is: a business arrangement for the supply of goods or services at a fixed price, that is legally enforceable. If you think that an estimate will be the same as a fixed price quote, think again.

Why would a homeowner accept an estimate as the correct price for their renovation project? The homeowner is investing their hard-earned money into their home, so they must know what the total and correct cost will be to complete their project, and it’s the contractor’s job to provide this.

If the contractor and homeowner take the time to develop a complete, fixed price proposal, the homeowner will know exactly what the job will cost, before construction begins. And, the contractor will know what he’ll be paid and when. Yes, the fixed price proposal could be more than the rough estimate (ballpark figure), but most importantly, it will be an accurate cost of the project, which the homeowner must know in order to make the right decision to do the job or not. The general contractor owes it to the homeowner to give the right price, no more and no less. The homeowner owes it to the contractor to pay the right price for the job, so that the general contractor can stay in business and continue serving others.

Our policy is to enter into a planning phase contract with our clients for any project costing more than $15,000, which we charge for because it takes time and resources to complete the process. The time spent in the beginning to develop plans and a scope of work, select materials, and have the trade contractors do their own site visit to get familiar with the project and the client, will most likely result in a great relationship where an accurate proposal is delivered, the project gets completed within budget, value is added to the home, and trust is built. Everyone wins!

The construction industry doesn’t have the best reputation because general contractors won’t take the time to properly estimate a job (and learn how to operate their business), and because homeowners mistakenly assume an estimate is going to be the actual cost to complete their project. If all general contractors would use planning phases, homeowners would find that getting multiple proposals for their project will result in very close quotes instead of wide variances in prices that we see all too often. Then the homeowner will have an easier decision making process in selecting their general contractor because the decision will be based on reputation, knowledge, and integrity, and not price.

You’re asking for future headaches if you hire a general contractor who doesn’t pull permits. For example, if you’ve hired one who says that a finished basement doesn’t require any permits, chances are he’s one of those low bidders who isn’t willing to pay the $1,000+ in permit fees. He might also be hiding the fact that he’s not licensed in that city or county, which may mean his trade partners aren’t either. And most importantly, without a permit you aren’t guaranteed that the work will adhere to codes. Not only is that potentially dangerous, but you may have difficulty if you try to sell your home in the future. Smart buyers will hire an inspector before purchasing any home, and that inspector will likely find expensive problems you’ll have to fix before closing the deal. But since our goal is to do the job the right way the first time, we will always pull all the necessary permits for any project. Doing so ensures we and our trade partners are licensed in your area and will complete their duties according to building codes.

Material suppliers don’t lend credit to general contractors like they used to in decades past, and we can’t finance your project. Instead, these days we have to pay for materials as purchased, which is why we ask for progress payments up front. Typically for a small job—approximately $5,000 or less—that means securing about a 50 percent deposit, and about 30 percent for larger jobs. (For extensive projects that span several months, expect progress payments every two to three weeks.) Those initial payments allow us to pull permits, purchase prepping supplies like floor coverings and dust barriers, rent dumpsters, order materials and cover some of our overhead. Basically, progress payments are essential in keeping the project on schedule.

By Colorado law, general contractors must offer a one-year warranty on all workmanship and materials. But we offer a THREE-year warranty because we adhere to a higher quality level than typical construction standards and know our end product will be defect-free for a longer period of time. We trust our trade partners to do the highest-quality of work on every project and will stand by that workmanship. Once your QR project is completed, you will receive a signed certificate of completion and warranty letter from us. From that point on, the homeowner can expect to be contacted at intervals during that THREE-year warranty period to ensure that everything is working properly and address any issues. If anything goes wrong during those three years, our clients know that all they have to do is make one phone call and we will take care of the issue immediately.

The short answer is: That depends. If you’re a homeowner who has successfully coordinated color and décor in the past, you may feel comfortable selecting project materials with little guidance. And if a general contractor can offer help, it’s important that you view photos of their finished work to assess whether that style fits your needs. On the flip side, you may not have the first clue about basic design concepts or simply don’t want the hassle of managing design decisions on your own. About 50 percent of QR clients prefer professional help to get a project steered in the right direction, which we can offer for any type of job. Whether it’s a kitchen, basement or anything in between, we work with certified designers who will meet your budget parameters. We charge for design services because the time put into it can be as much as 20-30 hours of work or even more for large projects. A design contract takes you through the planning phase which includes design meetings, on site visits to document the existing conditions and layout with pictures and measurements, on site visits by our trade contractors so they can provide us with fixed bids for their work, and of course the estimating and bidding to produce our fixed price quote.

Design contracts are not additional costs to you; they are a standard cost of any project. General contractors who don’t use design contracts still put these costs into their quote, so although they may tell you that producing their quote is free to you, make no mistake – they are putting this time into their quote somewhere. A design contract simply means you are paying for services to draw plans, specifications, and develop the scope of work to create a realistic investment for the job, and you are paying for these costs as the design is created. Our design fees typically start at $500 for small projects and can be up to $3000 for large projects. We request a 50% deposit upon signing the design contract and the remainder is due when we deliver the plans, specifications, scope of work, and our quote. Bottom line: Yes, you pay for design services. This is the only way to determine the true cost of your project.

We can provide in-house drafting and engineering services for most clients’ projects. However, if the project is more complex and demands more than our scope of expertise, we will collaborate with an architect who can work within your budget.

It will take as long as it takes to finish the project the right way and to show our quality workmanship. And that’s exactly why we begin the process with a realistic bid and time frame. When we develop a schedule, we allow for down days—such as inclement-weather days where exterior work stops—and coordinate our trade partners’ schedules so they can complete work both effectively and efficiently. In other words, we are going to provide a realistic schedule that allows every trade partner to complete their work and still adhere to our quality standards, even if that takes a bit longer than other general contractors.

Obviously, there will always be some dust and dirt with any home-improvement project. But we perform daily interior and exterior cleanups, managed with actual checklists and processes. We do not leave materials or tools lying around the work area, instead storing them out of high-traffic areas and/or locations approved by the homeowner. Finally, at the end of the job, we will leave the work site as clean as when it started.

We will purchase all materials for you from our preferred vendors. And we do that because we want all of your selections—granite, tile, flooring, for example—to be covered under our warranty. If you have a specific material in mind, let us know so we can try to source it from one of those trusted vendors.

We offer a consultation and provide a fixed-price quote within two weeks of our first meeting. If a design contract is required, (also called a planning phase), the process can take 4 – 8 weeks to complete. Contact us today to schedule a meeting.