The logic presented here might be obvious to hard-core DIY types, but we're not all programmed that way. The basic idea, after you cash that check, is to look for ways to stretch your budget until it squeals. Given the fact that the main job of an insurance adjuster is pay out the absolute minimum, every detail must be examined closely. Put on your Sherlock Holmes hat.
Avoid Contractors as Much as Possible
Those of you that have never worn a hard hat or tool belt might not realize that in many cases, labor costs are about equal to what material costs are. Having been a journeyman carpenter for many years and the owner of a very small remodeling company, I can assure you that it's not greed. Think insurance, bonding costs, gasoline, tools, rain-outs, advertising, etc.
So it's best to do as much of the work as you can. This is the godfather of all budget-stretchers. Of course, you'll still have to hire a specialized building contractor where the code calls for it. For example, the typical electrical building code insists on a licensed electrician for some tasks. Just be sure that everyone you hire carries workers compensation insurance.
Here's an example: one day I pulled up into the driveway and saw water running out from below the front door and garage door. It was a real “uh-oh” moment. It turns out a bathroom sink hot water braided supply line had burst and unleashed the great flood. My homeowner's insurance policy money went a lot farther when I ripped out the carpet and took on the job to install the laminate flooring myself.
Register a DBA and Get Contractor Discounts
A DBA is a “Doing Business As” form; essentially this is registering a business name with the county or city. This makes you an official contractor which entitles you to building contractor discounts at many suppliers, and will get you in the door to establishments that only sell to builders.
Is this legal and ethical? Absolutely! There may be areas where the rules are absurdly strident, but I haven't heard of them. Anybody can be a professional painter, carpet cleaner, or window treatment installer. Just don't call yourself a plumber or electrician.
Negotiate With a Contractor
Not so long ago, my neighbor and I had to put our heads and wallets together after hurricane Ike took out the fence between our respective spreads (we can call it that in Texas). I would have rebuilt the fence myself but I had too many writing projects on my plate. We got a bid from another neighbor, which was acceptable once we negotiated. This was a case of the aforementioned labor cost equaling material cost.
It turned out his business model was to add about 50% to the material price for “transportation to the job site.” Well, the home improvement store is only 5 miles away and I drive the largest Toyota Tundra they make, so we let him have the labor piece of the pie, and the neighbor and I took care of acquiring and delivering the cement, fence posts, and pickets.
These are just 3 basic ways to make your renovation money go farther. Taking on work yourself makes sense, and even if you have to buy some small tools, you're still money ahead, and large tools can be rented. Just think out of the box.
Kelly Smith - Kelly has over 30 years experience as a journeyman carpenter and 20 as a freelance writer and photographer.
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