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6 Ways to Reduce Risk in a Remodel

No remodeling project is risk free. You can’t simply ignore potential risks–they won’t go away.

Instead, hope for the best but prepare for the worst!

Here are six strategies that will help you prepare for the worst and reduce risk:

1. Think of yourself as the CEO of your home remodel.

A CEO is responsible for shaping and communicating the company’s vision and, ultimately, setting the strategic direction for the company. When it comes to your home remodel, you are the CEO. You are responsible for communicating your vision and setting the direction of the work. It’s very important for you to continue to play an active role in your remodel by keeping your finger on the pulse of the project and ensuring it’s shaping up as expected, as no contractor is going to advocate for your project as fiercely as you will.

2. Communicate clearly.

I’ve said it before and I’ll say it again: poor communication creates mistakes.  Communication is the underlying key to a successful remodel. This includes the words you use as well as the tone in which you deliver them. Also, don’t rely solely on verbal communication.  It’s always a good practice to follow up with an email that recaps a conversation to ensure those involved with your project are on the same page.

3. Create a clear chain of command.

Establishing clear lines of authority and decision-making clarifies who on the team is accountable to whom and for what portions of the project. Here are two questions that may help you define your chain of command:

• In what format will questions be addressed and information disseminated?
• Who is your key contact if questions arise (either from you or someone on the crew) and the boss isn’t around?

 4. Understand the terms of insurance and bonding.

Contractors have liability insurance. Be sure you understand to what extent their policy covers property damage or injury to their employees on the job.  Also, verify that their insurance meets state and/or local requirements.  If not, respectfully let your contractor know that you cannot take the risk of hiring him or her, no matter how nice they are.

5. Play it by the book.

The best way to prevent risk is ensuring your general contractor and subcontractors conduct their business in a professional manner. By ‘professional’ I mean make sure your team is sticking to accepted construction and business standards and following all recommended safety precautions. A contractor that cuts corners in these areas is putting lives at stake. 

6. Be the ultimate bean counter.

Constantly compare your actual costs with projected costs, at every step or milestone of the project. This will allow you to catch discrepancies or close gaps before they snowball. A helpful analogy is driving. A poor driver may only focus on getting from one intersection to the next, but a good driver will constantly monitor conditions well beyond what is immediately around them and change lanes when upcoming conditions first come into view.

Following these six strategies, you can rest easy knowing that you have done all you can to mitigate the inherent risks in a remodeling project.