Ways to Structure Remodel Cost

Gauging the cost of a home remodel project can be daunting. Why is that? Well, determining the cost of a home remodel can be likened to forensics. You really don’t know exactly what you’re dealing with until the layers get peeled back. For home remodels, it’s all about what’s behind the walls, under the floors, and even under the foundation. Be wary of a remodel contractor that gives you a quick bid. A skilled, ethical contractor will spend the time consulting with you by doing an extensive walk-through of your home, examining architectural plans, and discussing your ideas to help arrive at the best way to structure the remodel cost.

Typically, with older homes in Florida, the structural integrity can be compromised due to dangerous mold from open cavities, water intrusion, or previous modifications that were executed incorrectly and not inspected or properly permitted. The only way to know exactly what you’re dealing with is AFTER the demolition phase of the remodel. That’s when the true assessment of the project scope can happen. One model is to include a flat fee for the demolition, followed by a fixed, firm price for the scope of the work after all corrections and mitigation measures are properly determined.

Another way to structure the cost is to have the contractor charge a project management fee to ensure the full scope of work is executed correctly, while the client pays subcontractors and vendors directly or through the contractor after acquiring materials at a lower cost. This can really be a big cost savings for the client. If the project is smaller in scope, going time-and-materials is also an option. In this case, the contractor charges by the hour, and the client assumes the cost for materials directly or at a modest markup fee to cover handling and management.

You can be sure the contractor that provides a firm, fixed price without conducting the forensics has “padded” it well beyond what you might typically pay if you go through the proper steps. Many of those same contractors get into the job, discover the unknowns, and charge exorbitantly beyond their initial bid price or, in some cases, abandon the job altogether, leaving you high and dry. Your home is your sanctuary, so take the time to vet the contractor, ensuring the proper research is done beforehand, resulting in a well-executed project.