Signature Kitchens and Baths Magazine

Planning a Remodeling;
What Do I Do?

by Kenneth W. Peterson, CKD
copyright © 2003

This article is protected by copyright law and may not reproduced without written consent from its author.

So you have finally decided to take that little-used screen porch and annex the space for a “Great Room Kitchen.” You have visions of having your family gathered around a large, center island, each involved in the preparation of a holiday feast. Or entertaining your closest friends in the informal ambiance of the new room while still putting the finishing touches on the dinner being cooked. Now you are faced with the very real challenge of making it happen ... what do you do? Here are the 5 critical steps to take that will make your dream a wonderful reality.

1. Collect Ideas And Information.

Use magazines like this one to cut out pictures of projects that appeal to you. Share them with other family members to understand their preferences. Pay attention to layouts, functional features like interior cabinet accessories, architectural features, and the mix of materials and finishes. It’s the little details, when taken together, that can deliver a big impact and make a room special. Send away for Product Catalogs and Educational Booklets. And download information from industry web sites.

After creating a large Idea File, start screening out the least appealing photos and ideas. Then make two lists: entitle them a (1) Needs List and a (2) Wish List. Be as specific as you can be and make the lists as long as necessary. Then, with the assistance of your family, prioritize each list. These photos and lists will come in handy later when you need to communicate what you want to remodeling professionals.

2. Get Recommendations of Remodelers.

This is the easy part. Some of your friends probably have done a major remodeling in the last 5 years. Create a checklist and ask them a whole host of questions. Did they listen to your ideas and incorporate your needs and wishes into the design? Did their contractor produce the project on time and on budget? Was it easy and fun to work with them? Did they respond quickly and effectively when a problem developed on the job? How do you feel about the quality of their workmanship? Did they stand behind the job if you discovered something was wrong months, or years, later? Would you rehire them for another project? Is there anything they would do differently? With really close friends, it also may be possible to ask them what kind of a remodeling budget you may need to consider. They may even share some of the component costs of their projects.

Once you secure a few recommendations, check them out with the local Better Business Bureau, the State Consumer Affairs Department, and national trade associations for any complaints. This is a wise move because things change; management, personnel, or subcontractor turnover in recent months could dramatically affect company performance and, hence, customer satisfaction. Indeed, the brand name products that go into a remodeling project are only as good as the people who design, order, manage, and install them.

3. Create A Budget.

This may be the most difficult step for some people. But it’s an important one that deserves your attention for two reasons: (1) it will prevent you from over-spending and (2) it will enable remodeling professionals to engineer the greatest value into your project for what you are willing to invest. There are some excellent consumer and industry magazine articles available that will furnish good guidelines for you. For example, real estate professionals generally agree that up to 12-15% of a home’s market value should be invested in a kitchen remodeling. Why? Because it is the most expensive room in the house to equip and, if done well, it is the room that most often helps sell a house at the asking price.

Indeed, a kitchen remodeling is considered an excellent financial investment. If done well, it has been reported by Remodeling Magazine that between 80-120% of the kitchen investment has historically been returned upon immediate completion. In other words, if you invested $50,000 on a kitchen project, and your husband was transferred a month after the job was completed, you are likely to get $40-$60,000 more than what the house was worth before the kitchen was remodeled. Even in the late 1990s heyday of the stock market, you could not expect nearly as good a return in such a short period of time!

With the interest rates at a 40-year low, most people today are using the equity in their homes to finance a major remodeling. Check with your banker to determine (1) whether a total refinancing or a Home Equity Line of Credit best serves your purpose and (2) how many dollars you will be able to “cash out”.

When you have your financing in place, you can finalize your budget. From the reading and research you have done, you have no doubt learned that there is a wide range of quality in both products and services - and that the design and installation services of a professional can make a night-and-day difference in your satisfaction with the finished project. (One handy resource is a booklet my firm produces entitled Buying A New Kitchen). Make a list of projected costs for each major category as best you can. Then add a 15% contingency. Here is an example for a kitchen remodeling:

At first blush, your remodeling budget may seem quite costly .... even extravagant. But remember, the kitchen is a room that will get daily use by all your family members, giving you functional convenience, enjoyment, and pride of ownership for many years to come. There is no substitute for good design, quality products, and a superior “fit and finish.” Together, they will provide a high level of satisfaction and insurance that your investment will look just as good 20 years from now. Think about this way: if the next car you bought had to last 20 years or more, isn’t it likely that you would spend a lot more money than normal to be assured of its continued operational performance, structural durability, comfort, and pleasing appearance?

4. Interview A Few Remodeling Professionals.

Go to their places of business to learn about them. This is “Show ‘N Tell” time for them. First, focus your attention on their business approach. How comprehensively do they demonstrate the way they develop a design, estimate, and contract? What do their sketches, budgets, plans, specifications, and contracts look like? Are they just as detailed with the steps involved in the ordering, scheduling, supervising, and production of their projects? What kind of Management Systems, Forms, or Software do they use to control the details? Those that furnish the most visual proof of the design and production process are likely to be the most organized. You should look for a company that takes an educational approach, informs you of the entire process, wants your input as a true partner in the project, discusses with you the pros and cons of each product application or design concept so you can make the right decision for yourself, demonstrates flexibility by offering Cost Options as a standard practice, and uses extensive documentation, systems, and services to deliver a superior level of attention to detail.

Second, carefully evaluate the expertise and personality of the Design Consultant or Salesperson that will be your primary contact. Is this somebody that you feel would be an effective teacher and facilitator ... not just somebody in a rush to sell a job? How many years of experience have they have had in the industry? What proof of schooling or training do they offer? How long have they been employed by the firm? What kind of an annual continuing education program are they pursuing? What will be their specific responsibilities for your project? Do you sense that there will be a good chemistry between you? After all, this is someone who will be orchestrating your project through many months of development. You want to associate yourself with a skilled, reliable, dedicated, and confident professional who is also a pleasure to have around. It is the talent and character of the people you have on the job - and the services they perform - that will become the single, most important ingredient in its successful completion, function, and beauty.

Third, study the range and quality of the products the firm handles. How well are the products displayed in their showrooms or studios? (Displays will also give you considerable insight into the firm’s design capabilities and craftsmanship). How well do the products fit your needs for function, styling, and finish? Is there enough of a selection in each product category - cabinetry, countertops, appliances, plumbing fixtures, etc - to offer a relativity wide range of pricing. Do they make it easy to compare the relative quality and price points of various products so you can make intelligent investment decisions? Do the remodeling firms belong to a national buying group so you are assured of the best pricing possible? You want a company that offers an appealing selection of good quality products at an excellent value.

Finally, assess the firms’ business integrity. Ask for evidence that they regularly bring costs in on budget and meet production timetables. Ask for a copy of their warranty. Is it one year or longer and what does it cover? Do they routinely mail out Performance Evaluations to learn their clients’ level of satisfaction with various aspects of the job? What do their clients say about the company? Can they show letters from clients that prove that the company does what they say they will do - in design, contractual cost, installation, and service? Will they willingly and routinely offer a Recent Client List (within the last 3 months) and encourage you to call several clients for direct feedback? How confident are you that they will be able to produce a design you will love, with products you prefer, at a budget you can afford? When remodeling projects are as complex as they are - involving myriad products, details, services, and trades - most of all you want a firm you can trust.

5. Make A Commitment To The Most Professional Firm.

Up until this point, some firms may have given you some semblance of a preliminary concept and possibly a cost projection. If you have performed your “due diligence” well, one firm will likely stand out among the rest. In order for a company to commit its time, staff, and resources and really go to work for you, they will need a commitment in the form of a retainer check. They will have many hours of design development, materials research, estimate preparation, and multiple consultations ahead of them. Depending upon the firm and the scope of the project, the size of this initial check may vary from $500 to $10,000. These dollars are generally credited to the project and the plans are released when the final agreement is signed so the products can be ordered. Most firms will require a 50% payment then, 40% upon the delivery of the cabinetry, and the 10% balance upon substantial completion (when you can move in and begin using the room).

You will need to share your core budget with the chosen company. Just like an architect can take a lot and either put a $200,000 or $2,000,000 house on it, so too can a designer plan a $20,000 or $200,000 kitchen remodeling in the space allotted. It’s in your best interests to empower the selected firm to design in as many of your needs and desires for the targeted investment amount. However, you may wish to withhold the 15% contingency figure to provide yourself with some “add-on” or “wiggle” room when final presentation is made.

Follow these five steps and I am confident you will have a positive, satisfying remodeling experience and a fabulous new room to excite you for decades.

BACK TO THE TOP

Seven Selection Criteria to Help You Identify Firms with the Greatest Customer Value How to Choose the Right Cabinetry What a Professional Design Firm Does How to Select a Designer That's Right for You How Much Should a New Kitchen Cost?