“To Build Out or To Build Up… that is the question?” (Additions & Extensions)

I am often asked by people who are looking to add square footage to their existing home if it is less expensive to Build Out (Addition) or to Build Up (Second+ Story).

My answer: It is always less expensive and there are a lot less issues when Building Out. Prior to building out you will need to check your local municipality’s Setback Requirements. These requirements dictate how closely your are able to build to your property line. Some municpalities do allow you to get a variance (special permission) to construct outside your setbacks. If you are unable to build out due to your current foundation plan, maximizing your setbacks, then you will have to build up. The costs to Build Out are less expensivie due to the project usually being more straight forward and issues connecting the two structures are minimal. An Architect may charge you more for Building Up due to the extra labor required for them to engineer (Structural Engineering) a new structure on top of the existing. There may be extra costs to strengthen the existing footers for the additional load of the new structure or new reinforced support posts and beams may need to be added. The Contractor is definitely going to charge more and probably “pad” their estimate due to the “unforeseen” issues that may exist. There may also be an “unforeseen” clause in their estimate and as a result the project could cost a lot more than the original agreed upon cost for the project. Most likely this can be expected until the industry develps “X-Ray Glasses” to see into the existing walls and roof. You may have the additional costs of storing the furniture located in the rooms below the new structure and due to the size of the project you may need to temporarily move out. Other “natural” factors may affect the construction costs of the project when Building Up. It is often very difficult to protect the open area of construction from weather conditions and rain/water damage can occur. You will always want to have a clause in your Construction Agreement dictating the terms as to which party is to cover such issues.

Build out whenever possible… less expensive & less “headaches!”

Homeowner Supplied Products

I often tell people that if you want your project completed efficiently and as “stress free” as possible, let your Contractor be responsible for the entire project. However, with the current state of the economy, many people want to supply their own products and materials to their project thinking that this process will save them money. Unfortunately, though it may save a few bucks, more often it extends the project’s duration and causes many “headaches” for the Contractor and the Client. This process can often put additional stress on the Client along with creating a lot of additional tension between the Contractor and the Client. The Client usually only thinks of the “savings” and does not realize the additional work and effort it takes to ensure that the product is ordered in a timely manner as to not hold up the project. They also don’t realize that it is often their responsibility to have the product on the jobsite when it is needed by the Contractor. This means that the Client is responsible for either the pickup or the delivery of the product. If their is a defect with the product, most often the Client is responsible for deterimining the defect and the replacement of the product. If the Client has a busy schedule they often don’t have the time to make the necessary arrangements promptly. The ordering, delivery and return of products with defects is often where project durations get extended by weeks. This is also where strains are placed on the Contractor/Client relationship as to the responsibilities of each party.

For example: The Client is responsible to order the Vanity for their Bathroom Renovation. Due to the Client’s own personal work schedule, the ordering is put off. The Contractor has already started remodeling the project and is getting close to installing the vanity. The Client, finally has the time to order the vanity and realizes that it is going to take three weeks for the vanity to arrive to the supplier. Even after the vanity arrives to the supplier, the Client must find time to pick up the vanity and deliver it to the jobsite. Often, the Client only has time to do this on the weekend and thus prolongs the project’s duration. The Contractor arranges to install the vanity during the beginning of the week only to determine when he opens the box that the vanity is damaged. The Client then has to make arrangements to return the vanity to the supplier with this again taking place over the weekend. As a result, of all these delays, relationships between the Contractor and Client get strained along with between the Contractor and his Subcontractors. Work schedules have to be constantly changed to reflect all of the delays and potentially the schedules of additional materials to complete the project.

Another example: The Client wants to order and supply their own shower valve and trim for their Bathroom Renovation. The Client is very organized and orders the valve and trim promptly. The valve is shipped directly to the Clients house to save time and upon its arrival the plumber installs the valve. The Contractor installs the tile backer board and the tile is installed/grouted promptly. The plumber comes back to install the trim, handle and shower head only to realize that there is an issue with the valve that could not be predetermined. Now the issue arises as to who’s problem it is and fingers start to point. The plumber claims, it is not my fault, I installed the valve according to the manufacturer’s specifications. The Contractor states, it is not my fault, as I had nothing to do with the ordering of the product or its installation and the Client exclaims, it is not my fault as my job was to order the valve and ensure it arrived in a timely manner. Now the project gets held up due to no one wanting to take the blaim and relationships gets strained. However, if the Contractor and Plumber supplied the valve the entire responsiblilty would be on the Contractor and the Plumber. They would be required to remove the valve and see to it that everything was replaced. I have often seen, that the issue with the valve was a manufacturing issue, where the Client was charged for all removal and reinstallation costs. As a result of the Client’s defective supplied valve, the replacement costs far exceeded any savings that the Client would have received by supplying the product themselves.

Both of these examples may be extreme, but I have seen and heard about these issues. Please keep in mind, some Contractors will not allow their Clients to supply their own materials due to the potential issues that can arise from this arrangement. Clients should expect to see the following language in their Construction Agreement, when it is deemed that are able to supply their own materials.

“For any Homeowner supplied materials, the Homeowner is responsible for the ordering and delivery of the materials. The Homeowner is responsible for all accurate measurements of Homeowner supplied items. All installation instructions must be provided by the Homeowner. All fixtures must be on the jobsite several days prior to the fixtures estimated date of installation. We are not responsible for any delays in the project due to waiting for Homeowner supplied Fixtures to arrive on the project. A Homeowner supplied fixture can not hold up the predetermined payment schedule and prompt payment must still be made.”