How To Sellect Budgets On Remodels And New Homes

Posted on Feb 6th, 2012 by Don

Most all cost breakdowns have budgets for finish products, i.e. carpet, tile, stone, cabinets, hardwood, appliances, lighting, plumbing fixtures and ect.  You can budget these many different ways.  The most common way is for a contractor to allow enough money to do the job adequately after talking to the client about quality and style of products.  The problem with this is that the client sees no product in the making up of the budget, which does not reflect and accurate budget and worse the total cost of the project.

I was once asked by an attorney why cost overages are such a common problem in our industry.  The above description of setting the budget is the main problem, both in remodels and new construction.

So what is the answer to this huge problem? After 25 years of setting budgets for clients I have learned that showing the client the list of products mentioned above is the "only way" to set an accurate budget at Design Works because we have most of these products in our showroom. We can do this efficiently and effectively.

For example carpet comes in many different styles, color, and quality. So we show the client a $15 per yard carpet, a $20 a yard carpet, a $25 a yard carpet and so on, while explaining the function, life expectancy, which is subject mostly because of the twist of on the yarn , the quality of the yarn and the density of the carpet.  All this plays a part in the quality.  Then there is the style of the carpet that also sets the price. So now if a contractor sets a budget for $18 a yard carpet, which is adequate for the job, and after looking at carpet you want a carpet that is perfect for your function and style and its priced at $32 a yard you see how fast this adds up. Now you do the same for hardwood, tile, lighting fixtures, appliances, ect. and you can see what a problem you have with cost overages.  This is really tragic when this could have all been avoided up front when budgets are being set for your project.

At Design Works the way we set a budget is showing you these products first.  We are very fast at it because we do them on a daily basis.  For a large home or remodel it only takes about and hour and a half to do this process and now the total cost of your project is more accurate made from well informed information and skilled designers.  In fact it is so accurate when we did alot   of new homes I would guarantee the client if they want the process I just described, there cost would be within 5% as long as they did not make a change.  For example originally selecting laminate and changing to Corian counter tops. Now with accurate numbers for both the budgets and the total cost of the project you can now decide on what stays and goes and what to cut back on. In stead of being at the end of the project short of money. When contractors take us up on this service we sell you over the competion because your competion is not doing this to this extent.

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