Financing a remodel. Information for home improvement and remodeling.

Budget Busters 1-5

1. Having fuzzy goals for your new space.
No contractor can accurately predict the cost of a vaguely defined project. To avoid delays, false starts, and costly changes, plan the job thoroughly before work begins. Research products and pricing, and collect examples of what you want to happen.

2. Failing to get advice on products, prices, and quality.
Professionals can help you define your project early on and help you identify which improvements you can afford. They also can help you get the best results for the money you have to spend. Design-build firms usually charge 1-1/2 to 3 percent of a project cost (or a flat fee), while architects generally charge 7-12 percent of total costs.

3. Not checking contractor references.
Bad contractors miss deadlines and communicate poorly, resulting in inflated bills and bad experiences. Always ask references about a contractor's communication skills, follow-through, and adherence to deadlines. For a free brochure on hiring professionals, call the National Association of the Remodeling Industry at 800/611-6274.

4. Giving bidding contractors few specifics.
To ensure your project's final price tag is as close as possible to the bid, give potential contractors detailed information, such as a house plan, landscape plan, and pictures showing what you want to do. Knowing at least what materials you want, such as hardwood floors instead of laminate, makes for more accurate allowances.

5. Hurrying bids.
A good bid is a plan for a specific job, not a ballpark estimate based on past projects. Contractors should visit the home to examine its condition. Job proposals should include work schedules, details about work and costs not covered, plans for dust control and makeshift baths and kitchens, and information about follow-up maintenance and warranty repairs.

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