Considering that Americans will spend an estimated half-billion  dollars remodeling their homes this year, you too may be ready to add comfort, convenience, space and, ultimately, value to your home.     

However, home-improvement projects rarely have a clear-cut beginning, middle and end. This is especially true with larger endeavors, such as remodeling or building a new home. The remodeling process begins before anyone drives the first nail and continues long after the crews pack up to leave. Understanding the ins and outs of remodeling will make the process easier than anticipated. This guide will help you avoid common problems and prepare you and your home for a successful makeover.  

Getting Started    

The first step, of course, is to dream a little. Develop a loose design idea and prioritize your “must haves.” Figure out your finances. Set your budget, then add 20 to 30 percent. Changes are expensive, but they happen. Talk to lenders and find out how much you can borrow.

As we always say, style is subjective. Make your vision as objective as possible. Collect magazine pages and swatches of design ideas, colors and textures that you like and dislike. 

Go with a Pro    

Once ideas, scope and priorities are decided, it’s time to hire a professional architect, general contractor and/or designer. He or she can help you narrow down options, and decide what is feasible in terms of budget, property lines and existing structures.

Be sure to hire a design professional who is experienced with your type of project. Just as importantly, you need a professional who will enthusiastically share your dream.

Check with both the State Department of Commerce and Consumer Affairs and the Better Business Bureau to see if they have received any complaints against the company. Plus, verify that the company has the appropriate license(s) prior to hiring.

Selecting a Contractor

Hiring a contractor is by far one of the most important steps in a successful remodeling project. Everyone knows this, yet many don’t take the time to do it right.

Unlicensed contractors—those who operate without workers’ compensation, liability insurance or a Hawaii state government-issued license—comprise as much as 20 percent of the construction activity in Hawaii. But, simply having a General Excise Tax license and making a low bid doesn’t qualify a contractor to handle your job.

This is why:

• Licensed contractors are evaluated by the State of Hawaii Contractor’s License Board, which ensures that they have the necessary training, experience and qualifications to hold a license.
• Licensed contractors carry worker’s compensation and liability insurance. This protects you if anyone is injured on site or if any items are damaged during the job. 
• Licensed contractors are able to obtain and sign building permits. Plus, only licensed electrical and plumbing contractors can sign building permits for their profession.
• You can do a background check on a licensed contractors through trade organizations and state departments.
• The Contractor’s Recovery Fund is available to you if anything goes wrong on your project. The Fund allows homeowners to recover up to $12,500 per contract if it’s judged that the contractor defaulted on an agreement.

References & Referrals:

    It’s a good head start if you can get a few referrals for contractors from people who you already know and trust. The next step is to ask the contractors for referrals from their last three jobs.

Most homeowners are willing to share information with their contractor’s future clients. Talk to the homeowners and inquire about their working relationships with the contractors.

• Since there are bound to be changes, ask how accommodating the contractor was toward modifications. There are always going to be little hiccups along the way, but it’s good to hear if the contractor got through them in the easiest possible way.
• Ask if the contractor was timely. Did he show up at the site as regularly as he had said he would? Find an opportunity to look at the contractor’s completed (and/or in-progress) work.
• Ask if his pricing was fair, and inquire about his general character.
• The last step is to document licensing and insurance, and ensure that the contractor’s firm has good records with consumer agencies. To hear a complaint history about a specific contractor, or to find out if the contractor is licensed, contact the Consumer Resource Center at 587-3222.

Now, since you are only talking to contractors who you’ve checked out thoroughly, you can switch your focus to issues such as price, compatibility and design ideas. Explain your ideas and see what the contractor thinks.

Get A Firm Bid

Before you make real comparisons based on price, it is very important to specify materials and set the same allowances for each contractor. This ensures that everyone is bidding apples to apples—it’s only fair.

Get a firm bid, with a payment plan in writing. Inevitably, quotes will vary among reliable firms. This is normal. You should put your prices in groupings. If you have bids from three different contractors and their prices are within 5 percent to 10 percent of each other, then you’re fairly safe taking the low price. The prices may vary due to how fast the contractors estimate they can get the work done, the crew size and choice of materials. However, don’t make the big mistake of tempting yourself with low-ball bids. If one bid is surprisingly low, don’t accept it.

Review Written Contract for the following:

• Lien rights of all parties involved
• Percentage of work to be subcontracted
• Contractor’s classification and license number
• Exact payment
• Begin and end project dates
• Materials to be used
• Statement of the risk of loss of any payments made to the contractor

Signing the Contact

If you still any concerns, consult an attorney to clear up any questions. And, if the job is big, consider a completion or performance bond, which guarantees that your job will be completed.

Permitting Process    

After you’ve created your house plans with your design team, take a trip to the Building Permit Department of the City and County of Honolulu, or visit the Department of Planning and Permitting’s Web site.

The department publishes a brochure called, “Do I Need a Building Permit?” It explains the permitting requirements and procedures. Copies are available at the department or at satellite city halls. Or visit: http://honoluludpp.org/downloadpdf/construction/plans.pdf. Building permits are required whenever any building or structure (including fences, retaining walls and swimming pools) is constructed or altered, plus any electrical or plumbing work or construction or alteration to any sidewalk, curb or driveway in public right-of-ways. The Building Permit Department also can advise if your property is in a flood hazard district. This will be important when you are purchasing insurance for the home.

Wherever you choose to build your dream home, follow the directions of your architect, general contractor and the building department. Set reasonable expectations and limits for the project. Be fair. Get enough sleep. Keep your sense of humor.