Chances are that something may go wrong with your next home improvement project.  According to Consumer Reports, out of 17,129 readers asked about their experiences with 18 common projects ranging from painting a room to building an addition, 44% had at least one problem. 

 

For Carmel and Fishers residents, the best way to avoid similar problems is with extra planning and patience. 

 

Take the time to consider all costs.  Unexpected incidentals, purchasing the incorrect products, and surprises such as delivery costs and trash removal fees can increase your expenses.  More than 25% of people asked said they paid for poor planning by a median of $625.  Even projects perceived as simple like interior painting have cost readers a median of $280 extra due to unforeseen issues.

 

Make a plan and stick to it.  One in 10 people asked said they changed their minds during remodeling.  37% of those who made changes spent a median of $2,000 extra.  For people doing big additions, that number ballooned to $10,000.

 

Hire a realistic contractor.  Nearly one in 10 readers went over budget because their contractor underestimated expenses, did poor work, or failed to anticipate code requirements.  In today’s environment in Carmel and Fishers Indiana, lowball bids are more common, especially in competitive markets.  According to Bruce Irving, a home renovation consultant in Cambridge, Mass., “In today’s climate contactors are loath to lose a job by being too gloomy about a project.  If a guy underbids, chances are he’ll look to make up the difference.  Watch out for estimates with several open-ended amounts for products. 

 

Check references.  Make sure your contractor has insurance, including workers’ comp, and an up-to-date license.  Scrutinize the contract closely.  It should list each product down to the model number.  If this seems too picky, consider that the survey revealed more than 1,600 complaints of unexpected incidentals costing an additional $200, such as hardware and finishes.

 

Do some investigating.  Unexpected surprises such as rotting joists, rusted pipes, and frayed wiring were experienced by 16% of the respondents and cost a median of $1000 to fix.  A good contractor will check for potential problems.  Wisconsin based contractor, Dean Herriges, says “during the planning stage, we’ll do some exploratory work to see what’s going on behind those walls.  Telltale signs include water-stained walls (leaky roof) and sawdust along the baseboards (termites).  Your contract should include a clause for unforeseen conditions. 

 

Examine the financial details.  Unexpected closing costs and extended interest payments costing a median of $1,900 were incurred by readers who refinanced a project.  If needed, be sure the work has permits and conforms to local codes.  Greg Johnson, a building inspector in St. Paul, Minnesota, says a contractor who asks customers to get their own permits “is always a red flag” and “there is a good chance he’s ducking a licensing requirement.”

 

Below are examples of the hidden costs of home improvement.  These show median overall cost overruns based on a survey conducted by Consumer Reports for eight popular projects:

 

Bathroom remodel:  60% went over budget, overrun:  $600, main causes:  changed plans, needed to upgrade systems and structural problems. 

 

Kitchen remodel:  56% went over budget, overrun:  $1200, main causes:  changed plans, contractor underbid labor, and needed to upgrade systems (plumbing, wiring, etc.).

 

Deck addition:  45% went over budget, overrun:  $700, main causes:  changed plans, cost of materials increased and needed special tools.

 

Room addition:  55% went over budget, overrun:  $2000, main causes:  changed plans, contractor underestimated labor, and cost of materials increased. 

 

Basement finishing:  56% went over budget, overrun:  $1350, main causes:  changed plans, needed to upgrade systems, and needed special tools.

 

New windows:  33% went over budget, overrun:  $600, main causes:  changed plans, structural problems, and water damage.

 

Interior painting:  31% went over budget, overrun:  $280

 

Major landscaping:  45% went over budget, overrun:  $735, main causes:  changed plans, increase in cost of materials and needed special tools. 

 

 

Source:  Consumer Reports May 2009 Issue

 

 

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