Financing and Budgeting

The Bad News

First the bad news: There are no no two ways about it, renovating a house is expensive in both time and money. There are a huge number of variables in determining how much a specific project will cost in the end. It is therefore impossible to create a "rule of thumb" for cost estimating without individually inspecting the specific property.

Depending on the following conditions, gut renovations generally cost anywhere between $40 per square foot and $140 per square foot. The big variables are, in no particular order:

• General Condition - With some exceptions to the rule, the worse physical condition the property is in, the more it will cost to bring it up to a finished state.
  
• Sweat Equity – Hiring a contractor is more expensive than doing work yourself.
  
• Finish Level – Granite counters are more expensive than laminate. Tile is more expensive than vinyl flooring.
  
• Kitchens and Bathrooms – These are the most expensive spaces per square foot.
  
• Structural – Fire and water damaged structures are relatively expensive to repair.
  
• Masonry – Rebuilding walls and tuckpointing are relatively expensive.
  
• Siding - Worn vinyl siding is difficult to repair. Deteriorated siding should be replaced with like material. The more extensive the damage the more it will cost. At some point it makes sense to simply reside the whole structure.
  
• Custom Restoration – Historic features like carved wood handrails and plaster crown molding are difficult and expensive to restore or replicate.

The Good News

Here’s the good news: there are plenty of people out there who want to help you finance your project if you have decent to good credit. Banks continually improve their loan products to take advantage of the purchase-rehab market.

There are several banks and lending institutions in Des Moines that have renovation loan products. Neighborhood Finance Corporation targets certain geographic areas with forgivable repair loans and down payment assistance. These forgivable loans are not income tested - anyone who purchases a house in an eligible area may qualify.

A so-called "purchase-rehab" loan (a 203k loan is one example) may help bridge the gap between what a house is worth before renovation and what it is expected to be worth when the work is complete. The loan amount is based on the estimated after-improved value of the property. Money for renovation is put in an escrow account and released to contractors as they complete work. Some purchase-renovate loans require additional paperwork throughout the renovation process. Make sure you understand the inspection, paperwork, escrow, and payout requirements!

The Finer Points

Interest rates are typically higher on all types of construction loans. Renovators usually finance the renovation with a purchase-renovate loan or a construction loan and then refinance into a fixed or ARM with a lower interest rate. Often certain components of the renovation (a third floor for example) can be put off until after refinancing - the equity (hopefully) developed through the renovation can be leveraged to finance additional work.

If your property is located within a designated historic district, your project may qualify for historic tax credits. The tax credit application is certainly not rocket science, but it does require significant effort and may prove frustrating for people who are unfamiliar with the process. There are people who specialize in preparation of historic tax credit applications for a fee. Your architect or design professional may also provide this service.

Budgeting

Many lenders will require a professionally prepared set of architectural drawings as part of the loan-making process. These drawings help the lender establish the estimated after-improved value of the property and help the owner get comparable bids from contractors. See the section about Design Professionals for additional information.

You should by this time, through the lending qualification process, have a good understanding of your own finances and how much money you will have available to you for the renovation project. Some loan products will require the participation of an inspector to assess the building and your plans to put together a preliminary general budget.

If you are managing the project yourself (serving as your own general contractor) and getting a conventional construction loan, you will need to prepare a much more detailed budget. It helps to have a contractor available to bounce numbers off of. A design professional may also have some advice for this stage. The RenovateDSM construction estimate worksheet can assist you in tracking your budget numbers and helping to make sure you don't miss any major categories.

Make sure you include a healthy contingency number between 10 and 20 percent depending on the scope of the project and you own construction budgeting experience.

Finding the Right Building

Sources of Property

The primary sources for property acquisition are: private individuals, private corporations, city government, and the federal government. Private property is sometimes listed for sale through a licensed Realtor® and available for purchase by the general public. Many of these buildings, while requiring either renovation or updating, have been recently occupied and are in reasonably good physical condition. When purchasing a private individual residence, make sure that your purchase price accurately accounts for the money you will be investing in its renovation. Your bank will help ensure you don’t dump more money in than the house will be worth, but remember that they are also interested in selling you a loan. Don't be afraid to reject a building if the "numbers" don't work for you.

Sometimes, privately owned unoccupied property has been left abandoned for years and is in poor physical condition. These buildings are generally boarded up and not listed for sale by a Realtor®. The owners may also be difficult to track down, particularly in cases where he or she lives out of state or has moved repeatedly. The Polk County Assessor web site can help track down the owner of a particular building.

The Department of Housing and Urban Development may have property for sale. Teachers and police officers may purchase properties in specific zip codes at half price.

Owner Occupants

If you will be renovating the house to live in yourself, you should also spend some time and effort looking deeper into the "quality of life" in the surrounding neighborhood in addition to the economics of the project. Bottom line: is this a place you see yourself being happy living 24 hours a day? If you have children, you may be particularly interested in researching things like the neighborhood schools, parks, and nearby child-friendly restaurants.

Talk to members of the neighborhood association about the benefits and tradeoffs of living in the area.

Securing the Building

Expensive tools and supplies are often stored in buildings under renovation. The combination of an empty building, signs of renovation (such as a roll-off dumpster) and things of value stored inside can make renovations tempting targets for thieves. Additionally, some buildings in poor physical condition may be in danger of further deterioration unless effort is made immediately to deal with water infiltration or other structural damage.

Accordingly, the first thing you want to do after closing is to secure the building. Depending on the condition of the building you purchased, securing it can be a significant component of the project and can include the following:

• Structural stabilization – If the building has sustained fire or water damage, assess the stability of the structure. Stabilization may consist of building temporary interior walls to support damaged floor joists or rebuilding exterior brick walls that are bowing out. If you are unsure of the structural condition, seek the advice of an engineer.

• Keeping out the elements – Water is the enemy of renovation. Secure heavy-grade plastic over roof leaks and board up broken windows/doors.
• Security – Go directly from closing to the house and change the locks. You have no way of know who has keys to your new property, and you are now responsible for it.
• Make the property less desirable – The dumpster out front and the permit in the window will let everyone know that the property is under construction. Remove and store elements that may attract thieves such as mantles, light fixtures and appliances you want to retain. Do not store valuable tools on the premises. Make a show each evening of removing your tools. If you have electric power available, you may want to consider having an alarm company install a temporary alarm to help prevent break-ins.
• Insurance - If your homeowner’s insurance does not cover construction, obtain a temporary rider or separate policy to cover any catastrophic loss.

As part of the securing process, if the building does not have electric service, contract with an electrician to install either temporary service or upgrade the service and install a “construction” outlet on the breaker box. Having electricity available will allow for easier construction work as well as the installation of a temporary security system.

Renovation Design

If you intend on hiring a design professional to prepare drawings for your renovation project, you should hire this person as early in the process as possible. Some design professionals will be willing to assist in evaluating potential properties, but others prefer to wait until you have a property under contract before committing their time.

Not all renovation projects require professionally prepared drawings. However, a design professional provides more than just drafting skills. The design professinal’s job is to help you through the daunting and sometimes frustrating decision-making process by suggesting proposed solutions and providing insight into potential problems. This is why the one you select should be experienced in your type of renovation project - ask for references and a portfolio of similar projects. There are issues specific to renovation that an design professional who specializes in commercial construction will not necessarily be familiar with.

Your design professional's work is not done when the drawings are complete. He or she should be available to answer questions from contractors and sub-contractors during construction. You can also retain his or her professional services to assist in finish selection (faucets, paint colors, etc) and construction administration to help ensure that the project is built according to the plans and specifications.

Design services are generally divided into the following phases: pre-design, schematic design, design development, and construction documents. These phases, while somewhat fluid, proceed in a relatively straight line. Larger decisions and issues that affect the project as a whole are dealt with in the initial phases and grow increasingly detailed as it progresses.

For more information on the phases of the design process, visit the following RenovateDSM pages:

• Design process - This section goes into detail about what to expect from each of the phases in the design process.

• Construction documents - This page goes into greater detail about the drawings a design professional produces.
• Design professionals - This page discussion what a design professional does and how to work with one.

Contractors and Subs

At some point during the architectural design process, it will be time to start locating a general contractor and/or subcontractors to perform required work. By this time, you should have already decided whether you will serve as general contractor or hire a general contractor to manage the project. If you are hiring a general contractor, there are two approaches.

Selecting a Contractor

The first approach is to find a trusted general contractor to work with you through the design process. Allowing the general contractor to have input in the budgeting and design process and may lead to savings if he or she can suggest alternate materials and details early in the process. There will also be a time savings because you won't have to wait for multiple contractors to bid the project from the completed construction documents. However, you have to really trust the contractor to be fair in pricing. If the contractor knows your budget, it's likely that the project will end up costing that amount!

The second approach is to competitively bid the project to two or more contractors. This approach requires you to have a complete set of construction documents to ensure you are comparing equivalent scopes of work. If different contractors are making different assumptions, you will be unable to compare the bids side-by-side. It is not necessarily appropriate to take the lowest bid - you make sure that the bid you accept is including all the work you want done and that the quality of work will be acceptable.

Locating contractors and subcontractors involves:

1. Get recommendations from friends or other trusted sources.

2. Contact companies and arrange times to meet potential contractors at the house for a walkthrough. If you take a day to meet multiple contractors, schedule them with enough time so that contractors from the same trades do not overlap.
3. Compare bids side-by-side and ask for clarification if necessary. Be aware of vague language and get all dates in writing. Make sure you get along with the contractor and do not have any immediate communication problems.

Your architect can assist in the contractor selection process by providing preliminary drawings, evaluating bids, and answering questions.

License and Proof of Insurance, Please

Verify that all contractors you work with are licensed and insured for your project. Insurance covers injury to workers on site and damage to property caused by the contractor – your homeowner’s insurance policy may not appropriate coverage for construction. You may request that the contractor furnish you with a "certificate of insurance". This certificate should be faxed or mailed directly from the insurance company and reference your specific name and address. Do not accept any other proof of insurance.

Beware of Liens

A lien is a legal encumbrance on the deed to a property ensuring that it cannot change hands until the lien holder is paid. As you make payments to your contractors throughout the construction process, always request signed lien wavers. If you are working with a general contractor, ask for signed lien waivers from all subcontractors before releasing the final payment. The lien waiver ensures that you cannot be “double-billed” for services. For example, consider a draw payment submitted by the general contractor that includes the electrical rough-in. You pay the general contractor and assume that the electrician gets paid subsequently. However, if for some reason the electrician does not receive the money owed, he or she can place a lien against your property for that amount. In order to release the lien you could end up paying for the same work twice.

Selective Demolition

This phase encompasses the removal of all existing building materials that you intend to replace or that block access to other components of the project. If you are altering the building’s structure, it will be necessary to construct temporary supports to prevent damage to the remaining structure. Consult a professional if you are unsure of which elements are structural and which may be safely removed. Selective demolition drawings are required as part of the construction documents you present when you get your permit.

Before demolition starts, you or your contractor will need to contract with a private "roll-off" dumpster service – most dumpster services rent their dumpsters at a specific weekly rate and add either a collection fee or a “per ton” fee for dumping. Purchase a tarp to cover the dumpster and prevent rainwater from soaking the materials, which will add significant weight.

Demolition is one area of skills that is easy to acquire and will help you to gain a better understanding of the way your house is built. However, some demolition activities may require special preparation to reduce potential danger:

• Hazardous materials – It is important to have the building assessed for environmentally hazardous materials such as lead paint and asbestos. If these materials are found you may either have them professionally removed or “encapsulated”.

• Structural walls and beams - Your architectural drawings will indicate which walls are load bearing. Do not attempt to remove walls or cut beams without professional advice and/or assistance. Be particularly careful working with any wall that runs perpendicular to the joists above.
• Decks and porches - If you are removing a wood deck or porch, be very careful to prevent a collapse. Avoid standing on or under any destabilized structure as you are working.
• Damaged floors and joists - Pay particular attention to the floor structure (subfloor and joists). Water and fire can compromise the floor's structural integrity, adding to the danger for an inexperienced worker.
• Roof - The higher you are off the ground, the greater likelihood a fall will cause serious harm. Sloped roofs can be dangerous if shingles are in poor condition (slate roofs are even higher risk of failed connections and slippery situations). Leave the high-wire acts to the professionals.

The following demo activities fall within the skill range of most people.

• Carpet - Most carpet is attached to the floor beneath with a “tack strip” around the edges. Start at one corner and pry the edge of the carpet up from the tack strip. Once one corner is released, the rest should come up with a strong tug. Use a thin pry bar to remove the tack strips after the carpet is pulled. Use needle-nosed or "nail-biter" type pliers to remove any staples and carpet tacks.

• Trim, casing, and moldings - Use a thin pry-bar as a lever against the wall - try to pry where nails are located to minimize cracks and splits in the wood. Attempt to work slowly and evenly across the length of the piece rather than prying one side completely out before the other. Using pliers, pull nails out through the back of the wood. Store architectural woodwork in a dry, safe location during demolition and construction.
• Plaster - Plaster is held to the walls and ceilings on thin pieces of wood called lath. It is relatively difficult to remove small sections of plaster/lath without damaging the surrounding area. Large areas, however can be removed quickly using a few simple tools including a hammer, medium or large crowbar, and sledgehammer. Be careful of exposed nails in the lath that comes off the wall and always wear appropriate gloves, breathing masks, long sleeves, and long pants. Some plaster may contain asbestos fibers and paint may contain lead. If you suspect any hazardous materials, hire a licensed contractor to assess and remove them.
• Cabinets and fixtures - Permanent “furniture” such as kitchen cabinets can usually be easily removed using a cordless screwdriver and pry bar. Most fixtures such as toilets, sinks, and tubs can also be removed easily after shutting off the water supply. Cast iron tubs that are in unsalvageable condition can be broken up using a sledgehammer and removed in pieces (wear safety glasses and protective clothing to prevent injury from flying shards) - this is a good way to release some of your pent-up frustration over financing, permitting, and design.

Performing some of the demolition yourself can help ensure that items you want saved are protected appropriately. Participating in the selective demolition process can help give you a better understanding of historic construction practices. If you hire a demolition contractor, be very specific about the architectural features you want protected (windows, railings, trim, fixtures, doors, fireplace surrounds, etc.) and the walls to remain. You may want to build temporary protection out of plywood around large items to remain, such as a carved railing or a built-in stone fireplace surround.

Roofing

The roof serves as your home’s primary barrier to rain and snow - keeping water out of your home is particularly important during construction. Water is an enemy of most construction materials and trapped moisture can encourage growth of mold.

If possible plan for any future penetrations through the roof prior to installing or repairing an existing roof. It is always more work and less effective to retrofit penetrations through an existing shingle or membrane roofing installation. Some examples of potential penetrations include chimneys, flues, roof vents, plumbing stacks, and skylights.

Roof Types

There are three primary types of roofing found on homes in Des Moines: single-ply membrane (flat), built-up (flat), and the most common being shingle/tile (sloped). Some buildings have combination roofs with a sloped roof in front and a flat roof in the back.

Built-up roofing (BUR) is a generic term for any roof that is built with multiple layers on a flat roof. A BUR system typically has layers of “felt” or other membrane alternated with layers of tar/bitumen. The top layer is usually a stone aggregate spread over the entire surface. This roofing type is more typically found on commercial buildings.

A single-ply membrane (SPM) roofing system consists of a single layer of waterproof sheeting. The SPM material comes in large rolls, and can be fastened in a number of ways to the substrate on a flat roof. Its ease of installation makes SPM systems relatively inexpensive.

Asphalt shingles are the most common roofing system on sloped roofs. Shingles are mechanically fastened (nailed) to the roof’s substrate. A layer of roofing felt between the shingles and the substrate helps provide a waterproof barrier. In general, shingles may be installed over existing shingles up to three layers deep. All layers must be removed prior to the subsequent installation - this is also a good time to make any required repairs to the roof sheathing. If your building has existing slate shingles that cannot be repaired, they should be removed before installing asphalt shingles.

Insulation

Roof rafters and trusses must be insulated to prevent heat loss in the winter and heat gain in the hot Iowa summers. In fact, the roof is one of the primary means of heat transfer to and from your home. The two most common means of insulating the roof are fiberglass batts and blown insulation. Fiberglass batts come in either large rolls or pre-cut lengths that are placed between rafters or studs. Batts are typically installed before drywall and after electric rough-in. Blown insulation consists of fibers (often recycled material) and a fire retarder. It is spread evenly using a blower that may be rented. It is important to use enough to get the required thickness for the desired insulation value.

Resistance to heat flow is indicated with an “R-value”. The higher this number, the more insulation is provided. Insulating the roof to as much as possible will result in significant energy savings.

In some cases, if the underside of the roof sheathing is exposed, it is possible to install expanding foam insulation such as Icynene. This type of insulation is very efficient (high R-value) and serves double duty as a vapor barrier but requires professional installation.

Framing and Rough Carpentry

The building is now secured and watertight. All the required demolition has been accomplished. It is now time to take the next step towards your new home. Framing is the first of the “rough” stages in a renovation. The framing and rough carpentry set the stage for all subsequent work - this is the phase where new walls are built and any structural changes are implemented.

Since carpenters are relatively expensive per hour, you may want to minimize the “non-skilled” labor they perform. If you are serving as general contractor, you may be able to save some money by helping the carpenters distribute the supplies when they are delivered. Even a moderate renovation with some alteration of walls may require upwards of 200 2x4’x to be piled throughout the house. Particularly if the project involves furring out walls, distributing lumber will require a large amount of labor. Before the new walls can be built, it is important that all extraneous debris is cleared out of the building. You probably don’t want to pay a carpenter to move piles of lath and old carpet to the dumpster.

Framing and the Trades

The plumber and HVAC contractors must have space within the walls and ceilings to run the supply lines, return (drain) lines, ducts, and vents. Building codes and structural requirements restrict how and where they can install systems, so it may be necessary to build soffits and chases (false ceilings and walls) around drains or vents that protrude into living spaces. Careful planning and special construction methods can minimize the effects of soffits and chases. The carpenter may frame the soffits and chases before or after the building systems are installed. If they are framed before, you must carefully coordinate so there is enough space inside. Also be aware that if you are applying for historic tax credits, building soffits and chases may negatively impact application. Make sure to get approval from the reviewer prior to building any soffits or visible chases.

If you have removed the plaster on the ceilings and intend to finish with drywall, now is the time to assess the joists for any high or low points. If you find significant variation across several joists, your carpenter can attach 2x4’s, cut and bend the studs, or install shims to provide a level surface for drywall installation.

Building Systems

Heating/cooling (HVAC), electric, and plumbing are generally considered the "major" building systems. Related systems include, but are not limited to the following:

• HVAC
  • Whole house vacuum system

  • Humidifier and dehumidifier
  • Mechanical venting (attic vents, bathroom vents)
  • Radiant heating
  • Make-up air
• Electric
  • Security system

  • Backup generator
  • Solar cells
  • Low voltage systems (undercabinet lighting, telephone, intercom)
  • Cable/satellite
  • Speaker wiring
  • Structured wiring (Cat-5)
• Plumbing
  • Radiant heat

  • Water softener or water filter
  • Swimming pool
  • Irrigation

Systems installation usually starts after framing is substantially complete. In many cases outside utilities work (sewer, electric service upgrades, and water service) is completed while framing is underway.

It is vitally important to consider the order in which systems are installed - misfiguring could result in conflicts between the trades that require work to be torn out and redone. IN general, installation starts with HVAC, then plumbing, and finishes with electric. Some circumstances may result in this chain of events being altered.

Windows

Windows are important not just to let light in and keep out the weather, but also as a defining feature of your homes’ style. Windows are categorized by several characteristics: material, number of panes of glass, method of opening, and any unique features. For example a wood, arch-top, 2/2, double-hung window has the following characteristics: (1) the sashes and frame are constructed from wood, (2) the top sash is curved at the top, (3) each sash has two divided panes of glass, and (4) both sashes move up and down.

Repair, Replace, or Replicate

The key decision you will have to make is whether to repair or replace your windows. Historically speaking, repair is generally the preferred method. A tightly sealed, well-installed, high quality storm window installed over your repaired historic wood window will provide an acceptable barrier to the weather. Repairing a historic window may involve replicating deteriorated pieces of the frame or sill, reglazing the sashes, weatherstripping, stripping/painting, and rehanging the counterweights. Reglazing a window and rehanging the weights are skills that are easily learned by a novice. Replicating deteriorated wood pieces requires special tools and skills that may be better left to professionals or those with significant experience.

In the event that the sashes are beyond repair but the frames are still in good condition, a millwork shop may be able to create replacement sashes for much less cost than a full replacement window. They may also be able to re-mill your existing sashes to accept insulated glass if you want to upgrade the glazing.

Window Replacement

If you decide to replace the windows, you will be faced with a myriad of decisions regarding the cost, style, construction, and efficiency of the replacement windows. Within the bounds of this overview, only some of these decisions will be discussed. The four major types of modern window construction are wood, aluminum, clad, and vinyl.

• Wood windows are usually the most expensive. The window frame and sash are made of wood. Most often the wood used to build today's windows is not as high quality as that used when your home was built. In addition, the actual windows and mechanisms themselves are constructed differently. However, it is typically easier to get a wood replacement window that closely matches your existing windows than with other materials.

• Aluminum windows are constructed of extruded aluminum, usually with a factory finish selected from a small set of colors. Aluminum conducts heat, so it is important to have what is called a "thermal break" or gasket that prevents transfer of heat through the window frame. Materials and methods are advancing to the point where many historic window profiles can be created.
• Clad windows are typically wood with an aluminum "skin" on the exterior. The idea behind clad windows is to minimize required exterior maintenance (painting).
• Vinyl windows are the least expensive window option, but you get what you pay for. Vinyl windows come in a limited color palate will not last as long as well cared-for aluminum or wood windows.

Almost all new single-hung and double-hung windows are friction mounted – very few use a counterweight system. Of the four types, wood and clad are typically the most expensive but also the most historically accurate. Some aluminum windows can also replicate the general look of some historic windows, but the standard color selection is more limited and arch-tops may not be possible. Vinyl windows are the least expensive, the least historically accurate, and will generally have a shorter lifecycle (regardless of what the salesperson claims).

Some rules to follow:

1. Square pegs don't fit into round holes - never replace an arch-top window with a square top window. They look ridiculous and diminish property values.

2. If your house is located in a local historic district, never replace windows without the appropriate approvals.
3. Never install an undersized replacement window just because you were able to get a "deal". The sizes and shapes of your windows are a key component to the historic character of your home. In some cases it may be desirable to raise the sill (do so in a sensitive manner) in order to install new cabinets or make some other architectural change.
4. Match the muntin patterns of your existing windows.
5. Install shutters only in historically appropriate locations (fasteners, hinges, and different brick color may indicate that there were previously shutters on your house). If you do, make sure they are appropriately sized.
6. Storm window size and shape should reflect the window behind. Never install two storm windows over a larger double hung window - it changes the character of the elevation.

If your home is located in a local historic district, make sure you follow the City's requirements for permitting exterior work!

Energy Efficiency

A window’s energy efficiency is difficult to determine because the window is only one part of the entire “building envelope” system to keep out the elements. Window salespeople will, of course, try to sell you to a more efficient, and more expensive model. Keep in mind, however, that even the most efficient window will be ineffective if air can infiltrate through other openings. Look at your building as a system that is only as effective as its weakest component. Windows are one case where you have to balance the sometimes-conflicting goals of cost, efficiency, and style.

Drywall Installation and Taping

Many of the Des Moines’ historic homes were built with plastered interior walls. Because it is so labor-intensive (and therefore expensive), plaster is not considered a standard building practice in today’s construction industry. A plaster wall is constructed in several stages. First, small strips of wood called lath are nailed across the studs (walls) and the bottoms of floor joists and rafters (ceilings). Plaster is typically applied onto the lath in three layers. The first layer is the thickest and applied directly to the lath. As it is applied to the wall or ceiling, some of the plaster gets pressed through the horizontal spaces between the lath strips. These “keys” harden and became the supports that hold the plaster to the wall or ceiling. The second layer of plaster is much thinner and helps level the surface. The final layer consists of a mixture of lime and plaster, or plain lime putty, and is applied to a thickness of approximately 1/8” before being floated to a near-flat surface.

You will find it is very difficult to remove small areas of plaster without damaging the surrounding area – if the “keys” that hold the plaster to the lath fall off, the plaster itself becomes very weak. It is likely that during your renovation, you will either completely remove the plaster or significantly damage areas of plaster in order to update the electric, plumbing, and HAVC systems.

Drywall

In these areas, you will likely replace the plaster you remove with drywall. Drywall is a “sandwich” of gypsum between two layers of paper backing. It is fabricated in sheets that come in a range of sizes 48” wide by 8 to 12 feet long. Larger drywall suppliers have a truck with a crane and will, for a fee, hoist the drywall into second and third-floor windows and distribute it throughout the rooms. Particularly in buildings with tight stairways or small hallways, it may be impossible to carry a full sheet between floors, so this service can be invaluable.

Sometimes a vapor barrier is installed between the insulation and the drywall. A vapor barrier is a plastic sheeting that prevents air and moisture infiltration into the building and can improve its energy efficiency. A vapor barrier must be installed on the “warm” side of the insulation or moisture can condense inside the wall and cause significant damage.

Hanging and Taping

A finished drywall surface happens in two stages: hanging and taping. Hanging drywall takes some muscle, but with the right tools and some persistence, the skills are relatively easy to acquire. If you have never hung drywall, ask someone with experience to help you for a few hours until you understand the process. Most general “how-to” books contain sections on hanging drywall.

Essentially, large sheets of drywall are screwed or nailed to the studs and joists to create a flat surface. Screws will create a stronger connection than nails and will result in fewer “pops” where the connector becomes visible as the house shifts or settles.

Tools required for installing drywall include:

• Cordless drill (with spare battery and charger)

• Utility knife (with plenty of spare blades)
• Drywall square (a four foot "T" shaped tool)
• Keyhole saw
• Tape measure
• Chalk line, and
• Carpenter's pencils

A drywall lift is a hand-cranked lifting platform for holding sheets of drywall when hanging the ceiling. Using a lift makes the job manageable for even a single person who has the strength to move a whole sheet onto the lift.

It is generally best practice to install the largest piece of drywall that will fit in a space, minimizing the number of joints. It is also best practice to install full sheets of drywall perpendicular to the studs or joists in order to minimize “pops” and cracks. In cases where the sheets must be cut, it is scored through the paper on one side with a utility knife and snapped by bending. Cutting the paper on the opposite side then separates the piece.

Managing Drywall Installation

If you hire people to hang and tape the drywall, there are some things to look for before releasing their final payment. The primary issue is quality - to check the quality of the taping, take a high-powered construction lamp (halogen) and place it near to the wall, shining it each direction. Rough areas, bumps, and depressions that should be dealt with will cast shadows along the wall. Also veryify that none of the electric boxes have been covered up. If any are covered up, the electrician will likely forget to install the appropriate fixture. For example, you don't want to get caught in a situation where your building inspector is performing the final inspection and notes a "missing" smoke detector. The drywall installer can locate the covered electric boxes using a long level and noting any "bulges" in the ceiling (properly installed boxes protrude beyond the stud or joist).

Fixtures and Finishes

Up to this point, much of the work in your home has been occurring “behind the scenes” – it has now been covered up by the drywall. The finishes include everything from the drywall out.

The finish decisions you make will drastically affect the look, feel, livability, and budget of your renovation project. Even though fixture and finish installation is one of the last stages, you should begin selecting the finishes early in the process for two primary reasons. First, most finishes are available in a broad range of quality and cost. Unless you have a bottomless wallet, you will be forced to make some tough decisions on where you want higher quality finishes and where you can live with more moderate selections. If towards the end of construction, you have money left over in your contingency fund, consider putting it towards higher-end finishes. The second reason to begin selecting finishes early in the process is that many products must be custom fabricated and/or be shipped from far-away locations. Selecting the finishes early ensures that they will be available when you need them installed. Late arrivals can initiate a domino effect and negatively impact the remaining schedule of the project.

Allowances

If you are working with a general contractor, you may have an “allowance” for your various finish types. An allowance is the contractor’s recognition that you will have decisions to make through the course of the project. For example, consider that your architectural drawings specify “wood” flooring in the dining room. This gives the contractor a ballpark idea of what you are intending to do. When putting together the bid, he or she figures that there is 150 square feet of floor, and oak costs about $6 per square foot totaling $900. This will be the base price in the estimate and you would get a flooring allowance of $900 to apply to any flooring you select. If you decide to install a walnut parquet floor that costs $20 per square foot, you would pay the difference. Because prices vary so much, the allowance method can apply to any of the finishes.

The contractor may also simply exclude some of the finish materials from his or her bid. In this case you would be required to purchase the product on your own and have it on hand when they are ready to install. Some of the finishes you may have to select may include:

• Flooring

• Kitchen cabinets, bathroom vanities, and drawer pulls
• Plumbing fixtures and faucets
• Specialty items such as mailboxes, toilet paper holders, and towel bars
• Flooring (vinyl, wood, tile, etc)
• Paint colors
• Light fixtures and ceiling fans
• Countertops
• Architectural woodwork such as window trim, base molding, fireplace surrounds, etc., and
• Appliances

Subcontractors

At this stage, your plumbing, HVAC, and electrical subcontractors will come back to install the fixtures and complete their work.

The HVAC subcontractor will install all of the vent covers and balance the system. The electrician will make the final connections to power up all of the circuits and install all of the electrical fixtures. The plumber will install all of the plumbing fixtures (except for the tub which had to be installed earlier in the process).

Carpenters are typically responsible for installing the cabinetry.

Systems Finish

Once the drywall is installed, taped, and painted, the cabinets placed, tile laid, and all the fixtures are on site the systems finishing stage begins. You will call back your electrician, plumber, and HVAC contractor to install the final pieces of each trade and complete the contracted work. You should hold back a reasonable portion of the contract payment until the finish work is completed to your satisfaction.

The HVAC finish work includes placing the fan units and condensers, charging the air conditioner if required, and placing the vent covers.

When you have received all your new electric fixtures, distribute them throughout the house, label where they are to be mounted, and call your electrician to return. At the end of the electric rough-in, your electrician likely left the home runs dangling, unconnected, at the breaker box. The electric finish consists of installing the appropriate sized circuit breakers, connecting all the wires, installing your fixtures, and powering the system. The electrician will also install the thermostats and power the condensers, so make sure that the heating and cooling units are in place.

Your plumber will return to install the plumbing fixtures after the cabinets and counters are in place. Verify that all the fixtures work, drain properly, and that valves don’t stick before releasing the final payment. The plumber will also connect the overflow pan for any HVAC units or washing machines on the second and third floors.

Landscaping and Sitework

During construction it is likely that the lawn will sustain significant damage from building material storage, dumpsters, machinery, utility trenching, and general use. Once the finish carpentry begins, however, most of the heavy yard use is over – you can begin to clean up debris and plan any landscaping you want done.

Your landscaping plan may be as simple as removing overgrown bushes and planting grass; or as complicated as installing a sprinkler system, retaining walls, and hiring a landscape designer to create a backyard oasis. Either direction you choose, landscaping should be one of the last activities in your renovation process. This ensures that your contractor will not accidentally damage your new plants and lawn.

Project Close-Out

Congratulations! You are finally ready to move in.

Well, not quite yet. Before you start moving your belongings in, and certainly before you issue the last payment to your contractor, you need to perform a detailed walkthrough and prepare a "punchlist" for your contractor. Renovation is a complex business and there are many opportunities for things to get overlooked, particularly in the final stages as the pressure mounts to complete your project. The punchlist may be your last opportunity to get timely work out of your contractor - once you have approved the final payment and received the final lien waiver, your options become much more restricted.

A punchlist is simply a list of items (these items must be either specifically included or reasonably implied in the contract, of course) that the contractor needs to complete prior to receiving the final payment. You may want to prepare the punchlist with the assistance of your contractor. That way, you can ask questions and make sure that you are on the same page.

Some things you might want to pay particular attention to as you do your punchlist walkthrough include:

• Switches and lights - Flip every switch and make sure it is working and correctly installed

• Outlets - Purchase a cheap tester (you could even use a night light) and make sure that every outlet works.
• Faucets - Let the tap run until it gets hot (test the cold too)- as the water is warming up, look underneath to make sure there are no visible leaks in the drain
• Drywall - Examine every wall and make sure there are not "nail pops", cracks, or unfinished corners
• Paint - Examine every wall and ceiling to look for areas of poor coverage or obvious mistakes
• Fixtures - Make sure plumbing fixtures are caulked where required, flush every toilet, turn on the shower, etc.
• Cleaning - The contractor should turn over a clean building, and all construction waste should be removed (you may ask for leftover paint, carpet trimmings, etc.)
• HVAC - turn on all HVAC equipment (heat and cool) to test operation - make sure all required filters are installed
• Trim - Look for missing pieces of trim or base shoe, poor corners, and other obvious flaws

If the contractor is not present when you create the punchlist, give him or her a copy and discuss it in person. You may withhold a portion of the final payment until the punchlist items are corrected.

Your last step is to obtain the final inspection and get a copy of your certificate of occupancy if required. In addition to verifying the permitted work was performed and that the building meets minimum code requirements, your inspector will measure the rooms and make any changes to the city’s database. If anything does not meet building code or applicable city ordinances, you may be cited and required to make additional repairs within an acceptable time frame.