A Realistic Solid guide to Planning and starting a Remodeling Project In MN. Also at the end, some honest advice on how to select a PM or contractor.
Not All Contractors, Builders, and Remodelers are the same. Neither are homeowners for that matter, as everyone is different and has their own goals and vision in mind. But when it comes to signing with a project management service or construction company it's good to have a solid foundation to start things on, pun intended...
Let's get down to how things work.... or used to, It all starts with a solid framework, and how the company is set up and managed. If you want to do a large project like and addition or major remodel then you will need a company that can handle the challenge. Small projects do not need as much effort, but still need a good plan and system in place to finish right. There are many construction companies that operate with a loose framework and do great work because of their skill, knowledge, and care for the customer. But it does help to have a solid system in place to guide the project along. Let's look at some common systems.
A design build is a construction company that has a GC license and is an all around system for designing, building, and finishing your project. These companies will be more expensive as they are an all in one model. They are traditional in their costs and methods. They tend to have good management and a system for project management.
A Common General Contractor or builder is a construction or remodeling company that has a GC license and will attempt to give you whatever their company can support. They usually will not have a designer on staff and management can vary based on the size and organization level of the company. You could be dealing with an owner operator, a small team, or a large well organized team. These companies vary and are based off of the traditional construction model and will vary in capabilities drastically, good or bad.
The PM Network! is a remodeling and project management company of the future. We believe that there is a better way to remodel. The way clients interact with construction companies needs to change... for the better. We are based off of a project management model that changes the way clients interact with their projects, tradesmen, and project managers. We do not play the money game of hiding info and protecting ourselves. This shouldn't be a struggle, and is a team effort. What really makes us different is our management system, our fee structure, and protection that we provide when tradesmen are paid; all in the effort to make the Client First.
We do NOT hold all of your money, we distribute it in an organized way
We are 100% transparent (materials, labor, and management)
We protect you with our system of preparation and sign offs with tradesmen before any payments.
We communicate like no other! with teams calls weekly and or cutting edge project management software
Our PM Software will not allow us to miss needed items in the planning phase so we avoid major mistakes. We have your back!
We save our clients 20-40% on average with our model where you are the GC and we manage the project from start to finish with excellence that other companies cant match because their models are just outdated because of rising costs and new tech.
Traditional Design Build Model
Phase 1 - Preparation
Meet with home owners: Discuss vision, budget, and realistic expectations
Proposal: Give rough proposal for pricing and agree on a budget going forward
Job Site Analysis: Do all measurements, and get photos of site
Job Site Survey: Order to determine boundaries or % of land that you can build on
Job Site Variance: Order to determine if we need more space to build on land Design
Design phase: Determine if you will need plans and discuss payment plan for design option ($500 - $10,000 depending on extent of floor plan design or If we do 3D Concept Designs)
BluePrints: If we need a draftsman to draw blueprints ($500 down and up to 1,500)
Structural Engineering: If you need Structural Engineering done for permitting, engineer can vary around (400-2,500 or so depending)
Architectural Plans: If you wold like to use an architect to design the plans or say a new home then this could cost anywhere up to 25,000 to 50,000 depending... or they may charge a percentage of the build (8-10% or so).
Phase 2 - Contract Signing
Meet: Meet at your home, project site to Discuss Details and Contract
Project Details: Discuss exact project scope, and discuss material and labor needed
Numbers: Determined project labor, material, and Management Costs and Give Updated Estimate or final estimate numbers (material costs can fluctuate)
Dates: Determine possible start and projected finish date
Signing: Should sign two copies of the contract that will have estimate details amended
Schedule: Once the signing has taken place, you will be put on the calendar
Loan or Financing Finalization: This could take time or closings depending on the type of financing options.
Money Down: We will receive a check for Ernest money down (5-25% for immediate start or 2% for planning Phase if the project will take time to develop)
Permiting: Talk to the City about Permiting and approval for project (Key factor)
Phase 3 - Specs, Finishes, and Finalize Design
Finalize Measurements: Do all finals on all aspects of materials and areas
Finalize Finishes: Pick all Exact Materials, styles, colors, and finishes on everything new
Finalize design: Go over all design and have all styles or drawing signed off on
BluePrints or Material Package: Work up final numbers for these (like cabinet plans)
Order all materials: We will need money down to order materials for project as needed
Phase 4 - Begin Build Phase
Get Keys or codes to property (set up lock box if needed)
Talk to management company or HOA if needed
Pull Permits or submit all documentation needed by the city to begin
Then the construction phase begins! - Job is passed off to the project managers.
A Word: There might be issues or unforeseen things that come up on any project, but we will account for contingencies and work as a team with you to address concerns.
Important Note:
With these models you pay the contractor all of the funds for the project and they have to purchase materials, pay all trades, then try and make a profit. This can create issues with material orders and tradesmen being paid on time because the contractor has to juggle being the bank and may have multiple other jobs being funded by your payments. This can lead to major issues and delays on projects. There a great companies out there that do not have these issues and are great with managing your money, but many are not so good.
We have a better way, see below why we are the premier local home remodeling company in the Twin Cities!
Is There A Better Way? Yes - The PM Network Model
First Steps (with Remodeler's Edge)
Let's Meet: Discuss vision, budget, and realistic expectations
Let's Start: Job site analysis is done and rough estimate proposal is given. If you like what you see then we
sign our retainer and get moving on building your REAL job costs.
Our retainer is 10% of the PM Fee and any additional costs (first steps and design)
We implement First Steps: We talk with the city planner and permitting office to determine what you need before you put funds into design so you know if you can do what you want to do. (these items include your property's non permeable space, site surveys, variances, city permitting rules, easements, this will all. be in our First Step Report)
Design Phase: Determine if you will need plans and discuss payment plan for design option ($500 - $10,000 depending on extent of floor plan design or If we do 3D Concept Designs). We include everything in the design that is needed for permitting and design like blueprints and elevations.
Structural Engineering: If you need Structural Engineering done for permitting, engineer can vary around (400-2,500 or so depending). We will refer a couple and you can pay them directly for the plans.
Architectural Plans: If you wold like to use an architect to design the plans or say a new home then this could cost anywhere up to 25,000 to 50,000 depending... or they may charge a percentage of the build (8-10% or so). In most cases you will not need an architect, but it is up to you if you want to go this route.
Job Cost Numbers and Contract Signing
Tradesmen Meetings and Numbers: Meet at your project site with all tradesmen and populate the real numbers for your project with bids from 2-3 companies per trade so you can determine who is best for your project based on cost and trust.
Material Selections and Numbers: Discuss exact material scope, and and populate real material costs and delivery time estimates.
Contract Signing: We iron out all the details of every cost and sign our project management contract with all numbers being 100% transparent and easy to understand.
Set Up our Software Onboarding: This is one of the things that sets us apart. We set you up on our simple to use cutting edge software that allows you to see everything on your project on ONE page. You can also communicate with us on every line item as well.
Set Up The Schedule: Determine possible start and projected finish date
Loan or Financing Finalization: This could take time or closings depending on the type of financing options.
Money Down: We will receive a check for 50% of the PM Fee when we START to project.
Permiting: We continue to work with the city in a timely and respectful manor to bring plans up to code for approval. We provide all of the information for permitting to the you the client for submittal.
Project Management Set Up
Finalize Measurements: Do all finals on all aspects of materials and areas
Finalize Finishes: Pick all Exact Materials, styles, colors, and finishes on everything new
Finalize design: Go over all design and build plans, and have all styles or drawing signed off on before orders and finalized tradesmen bids.
Material Package: Work up final numbers for these (like cabinet plans) and order ahead of time.
Tradesmen Selections: We decide together who will be the best fit for your project and then we send out acceptance or declined letters.
Set Up the Labor Schedule in our cutting edge software program, set up our tradesmen communication portal, and send out our required insurance and lien paperwork to all trades.
We have all of the tradesmen add us as an additional insured.
We have all of the tradesmen sign a conditional lien waiver before they recieve any payment so you are protected.
Phase 4 - Begin Build Phase
Get Keys or codes to property (set up lock box if needed)
Talk to management company or HOA if needed
Pull Permits or submit all documentation needed by the city to begin
Then the construction phase begins! - Job is passed off to the project managers.
Here is where things get Way Better - Communication!
We have weekly OAC teams video calls to go over the weekly project schedule and details
We take notes on the OAC calls so we always have a record of what was determined for everyones reference.
We upload all plans, permits, and designs in our software PM page for you to see
We upload progress pictures of all trades as they are working through their trade.
You can communicate with us through every line item on our program with comments and files if needed.
We check off all tradesmen work before they are able to submit their conditional lien waiver to be paid
A Word: There might be issues or unforeseen things that come up on any project, but we will account for contingencies and work as a team with you to address concerns.
- A Word of advice... on how to work with a contractor on a professional level
Give the contractor that you want to work with a chance to prove that they are trustworthy and honest. I know that you do not want to be taken advantage of, no one wants that. So how to be wise without operating in fear? A good working relationship needs to be a team atmosphere and that only comes by trust with verification. If the company is professional with these queries or observations then you can probably trust them.
First, look the company up on the states website to see if their LLC or Corporation is still valid. Here is a link for that in MN - https://mblsportal.sos.state.mn.us/Business/Search
You can ask them for their Liability insurance and workman's comp information. A great company should have no problem getting over to you asap. They need to have both of these to keep their license current.
Ask for referrals! It is great to talk to past clients and get their perspective. If a company can give you a few good referrals they are doing something right.
Observe whether the contractor will put in the time to help you get started, if they have time for this... then they should have time to do your project.
Character absolutely matters. Observe if they are honest about things. Never work with someone who will stretch the truth for a sale. Work with someone who will tell you the truth, even if it doesn't benefit them financially.
If they are pushy in the sales process then beware. High pressure sales in my opinion are manipulative. Patience is the key to a great remodel or build. The sales process should be done with the client's goals and situation in mind first. Also, not all remodels are justified even if you have the money to do it. Do they care for your families situation? Or is it just business and overcoming objections?
Work with a contractor that insists on pulling permits. I get that some people may want to avoid the city sticking their nose into things. But, there are a few reasons why permits matter. If a contractor only does things by the book then you will have some justification to trust them because their work will have to be inspected. Sometimes this has to do with integrity. Saving money on permits can lead to major problems later.
Observe if the contractor will push you into things or work with you to accomplish your goals. Are they willing to listen?
Have them explain exactly how they will accomplish your project and check it with the city inspector, city codes, universal code, or other trusted sources if you have questions or concerns.
Oh yeah, and do they have a Solid Project Plan in Place to guide the project along like our Master Project Plan?
One more thing... Patience and perseverance! Once you have signed with a good contractor or Project Management company like us... and started your project, You must realize that you are now in it for the long haul. When the project is 3/4 done and it's hard to handle other people in your own space... it can be easy to try and rush the project along, but that will never lead to a great project. Crunch time is where everything comes together!
It's all about a good foundation and building trust between the contractor and the Client. It's a two way street, so the contractor and client need to be willing to work as a team to accomplish a project Together. If you can work as a team in the beginning phases then you can build a good framework for a great project and overcome hurdles later that could ruin a project without a good foundation. ~James (651-325-6834) - james@yourpmnetwork.com
or your can find me at contact@remodelersedgemn.com