There's a common misconception that paying a contractor an hourly rate without an estimate or management budget will save money. This belief often arises when a potential contractor’s estimate, including a management fee, exceeds the homeowner’s stated budget. The initial impression is that money spent on management detracts from the design and construction. However, at Coons Construction, we always include a line item for project management in our estimates, and here's why.
You pay for project management whether it’s explicitly included as a separate fee in the estimate or not. Let’s break this down from a couple of perspectives. Your contractor should thoroughly review the design and related documents before starting the project. Without a management fee in the estimate, the contractor might only begin this planning when they show up to start the remodel. This lack of prior review often leads to rework, project delays due to waiting for materials, or slower productivity because the contractor must assess and plan for the next steps as work proceeds. While you might not see these costs in a specific line item, you end up paying for project planning through the contractor’s invoiced hours.
When management is included in the project budget, it indicates that your contractor understands the importance of off-site planning and communication for an efficient project. Management fees typically cover:
This approach translates into a more efficient remodel, saving on crew hours and decreasing the project completion timeline.
A management line item in the estimate shows that you are working with a transparent contractor who is not hiding planning costs in other expenses. It ensures that the contractor is accountable for the entire project process, from meticulous planning to effective execution.
This discussion is not about small decks or other minor projects, nor does it promote an unnecessarily large management budget for a modest $150,000.00 project. Instead, it advocates for contractors who do not hide their planning and necessary offsite activity costs in other line items. Transparent contractors provide an honest breakdown of the real costs associated with remodeling, including the often-overlooked planning phase.
A contractor who includes management in the budget accepts responsibility for planning your remodel, ensuring efficiency, and maintaining good communication throughout the project. How can homeowners identify such contractors? Look for a clear management budget in the estimate.
At Coons Construction, we pride ourselves on our transparency and commitment to detailed planning. Our "Built Green" certification by the Master Builder's Association further underscores our dedication to sustainable building practices and utilizing advanced building science in our projects. By including a management budget in our estimates, we ensure that every aspect of your remodel is meticulously planned and executed, resulting in a smoother, more efficient project.
Incorporating a management budget in your remodel estimate is not an added expense but an investment in the success of your project. It ensures that your contractor is fully accountable for planning and executing your remodel efficiently. At Coons Construction, we believe in providing our clients with clear, honest estimates that reflect the true cost of a high-quality remodel.
If you’re planning a remodel in 2024, contact Coons Construction today. Let us show you the benefits of a well-managed project from start to finish. With our expertise and commitment to transparency, we can help you achieve your remodeling goals while staying within your budget and timeline.
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