This week’s report takes a look at what homeowners mean when they talk about renovation nightmares.

"The home renovation industry is too often a floating crap game, where the homeowner is the poor sap who doesn't know he is playing with loaded dice." The Architect's Guide to Home Renovation

Simply stated, when homeowners talk about renovation nightmares, they’re talking about losing control. And the reason they lose it is, in most cases, because they never had control in the first place. In fact, they didn’t even realize they should be in control until far too late in the process... a point at which they’re forced to grin and bare it.

I’m sure you’ve been told to interview 3 or 4 architects/designers or contractors, in order to find one you’ll like working with. You’ve likely also been advised to tender your project to ensure the best deal... and to always check professional credentials.

So why is it, no matter how faithfully homeowners follow this advice, renovations always cost more than budgeted, take longer than expected and prove more stressful than anyone ever imagined?

You may think once you’ve hired professionals to look after your project, your role is to stand back and let them go to it. The truth is it doesn’t work that way!

First off, it’s not their role to control everything for you... and secondly, they couldn’t do it even if they tried. In fact I suggest ­ and strongly suggest ­ that it's this mistaken idea of "whose project it is" which is solely responsible for the countless thousands of nightmares associated with home renovations!

What you need to understand is that your architect, designer and contractor have a vested self-interest in your project... and no matter who you hire, this can’t help but be the case.

So when thinking about renovating, the first decision you need to make is who is going to be responsible for controlling the project... your architect, designer, your contractor or you? I strongly suggest it be you!

All too often, homeowners are embarrassed by their lack of knowledge. This simply means they’re uninformed. They might not have the data required to make decisions... or even know they have decisions to make. Very often they are afraid to commit to decisions, fearing they may be wrong.

Well, it’s not important to learn the proper way to frame a wall, install a window or design a kitchen, but it is important to gain enough knowledge to understand all the options available and the implications of one’s own decisions.

Homeowners can take control as soon as they understand well enough to organize. First, you need to know what decisions are required of you and when they are required. Architects and contractors need this direction to provide what you want at a price you’re willing to pay. It's not how much they care or how hard they try to please you; it's how well you communicate what it is you want them to do.

While having plans done by an architect can take some technical decisions out of your hands, your real role in the process is that of producer. Much like a movie producer, it’s not only you who hires the talent, it’s also your job to:

• Set the budget - selecting and rejecting the options available                                  
• Establish the program - your priorities, taste level, quality standards

Establishing all of these things will, of course, affect the later decisions you make... and it’s the decisions you make that drive the whole process. It doesn’t matter if your budget is in the thousands, tens of thousands or hundreds of thousands, the clearer you are about your decisions, the more confident you can be of the outcome.

A HOMEOWNER PROTECTION PLAN

Very often homeowners leave themselves open to financial risk when they don't obtain adequate protection during and after a home renovation.

You should review the following in detail with your renovator prior to signing a contract.

1. Holdbacks and Liens: Who is responsible to administer the holdbacks? What happens if a contractor, subcontractor or supplier places a lien on your propert?                             
2. Commencement of construction and delays in completion: What happens if the project is delayed in getting started? What happens if the project is delayed in completion? What are the penalties for delays?                   
3. Insurance: General liability, loss and damage to property, personal injury: What type of insurance coverage is being provided by the renovator? What type of coverage are you required to provide?  Are you and your assets adequately protected?                             
4. Changes and extras: What happens with changes and extras? How are they billed. and when are they paid for?                              
5. Warranty: What type of warranty are you getting and how long are you covered?                             
6. Payment: When are payments made, what control do you have over cash flow on your project?