Setting a realistic budget.

 Everyone planning to remodel would like rules of thumb for what projects tend to cost. With guidelines, establishing a planning budget is simply a matter of multiplying your room's size by the average cost per square foot. In reality, however, creating a realistic project budget is much more elusive.

A planned project should begin with a plan or a budget. A detailed plan can determine a detailed budget and a budget will determine the limits of the plan. 

From my 35+ years experience, a majority of homeowners contribute to the confusion of the elusive "what will it cost?" dilemma by not having a plan or a budget prior to meeting with contractors. Most feel they have a plan until they begin to be questioned about the many parts and pieces of a project. Many homeowners feel that if they disclose their true budget, they place themselves in a vulnerable position with a contractor.

A plan can be something as simple as a "scope of work" that can be presented to each of the contractors bidding on a job. This allows the homeowner to compare 'apples to apples' when reviewing estimates. A fairly comprehensive "scope of work" will usually enable a homeowner to obtain a Ball Park Estimate of what the project may cost. You should realize a ballpark estimate can vary higher or lower than the actual final cost, but can help you determine if the project you are considering is economically feasible.

If a detailed plan is presented, homeowners will still receive estimates that differ greatly in costs. The cost of products specified and the numbers of man hours required to complete the project are generally the same for most contractors. So you ask "why the great difference in estimates?" As I stated earlier there is no "going rate" in remodeling. The difference in estimate pricing is determined by the contractor's cost of doing business, or overhead. Some contractors have showrooms or offices and some do not. Some contractors use in-house hourly employees and some use sub contractors. Some contractors have late model vehicles and employees dressed in company uniforms, and some do not.

There are many other differences between contractors. The higher priced contractor does not mean you are being over charged, or 'ripped off'. It also does not mean that the lower priced contractor can not offer the identical quality project. I feel that it comes down to a comfort level between the homeowner and the contractor and the home owner's perceived value of the project being proposed by the contractor.

I have added a costs vs. value report found in Remodeling™ magazine that should help you determine the cost of your proposed project. Only specific estimates from local professionals provide an accurate picture, but the average costs listed here give a rough idea of the price level various projects represent. National averages can't account for problem plumbing setups or your taste for exotic counter tops, but they can tell you that it's unrealistic to plan on remodeling a whole kitchen for $7,000.

Once you get an estimate, plan on a budget overrun of 5 to 15 percent. Deciding how to handle overruns up front can go a long way toward keeping you happier when the final bills arrive.

Remodeling™ Magazine's 2008-2009 Cost vs. Value

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Each home remodeling project we undertake is unique and requires special attention. By providing personalized services, Premier Kitchen & Bath can gain a complete understanding of you and your goals and expectations. Our staff realizes that there are many competitors, which is why we are committed to providing you with a positive experience by delivering a finished product that is a step above all other competition in the industry.

Pricing

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