Renovation Roadblocks: What to Do When Things Go Wrong

How exciting it is to plan home renovations – the promise of a fresh kitchen, a luxurious bathroom, or the living room of your dreams that is straight out of your Pinterest board. But let’s come out of this idyllic haze and be real. Renovating a house is not as exciting as the idea of it sounds. More so, it is considered a stressful task by over 85% of homeowners. (Sweeten: Home Renovations)

Delays, budget overruns, and unexpected events make this already stressful task even more arduous. But you know what? By understanding the potential challenges, you can prepare well to tackle those setbacks. 

So, in this post, we will cover exactly that and discuss some of the common roadblocks that homeowners might encounter when renovating. So, continue reading to find out what they are and how to navigate them like a pro. 

KEY TAKEAWAYS

• Home renovations can be extremely stressful.
• By understanding some common renovation roadblocks, you can prepare better for what’s in store for you. 
• Consider issues like budget blowouts, contractor disasters, permit problems, supply chain delays, and other structural issues. 
• Home renovations don’t necessarily have to be an arduous task. 
• If everything is managed correctly, the end results will be well worth the challenging situations. 

Budget Blowouts: When Costs Spiral Out of Control

No matter how meticulously you plan your budget, accounting for every tile, light fixture, and labor hour. Then – bam! – There is an issue at your doorstep. The contractor discovers rotten subflooring, or the price of lumber suddenly spikes, and suddenly the initially planned $30,000 kitchen remodel is creeping toward $45,000.

Also, the market keeps fluctuating. In 2020, additions, closets, and cabinetry saw the most significant price increases, with project costs rising by 49%, 38%, and 30%, respectively, compared to 2019. It might come as a surprise, but in 2023, the NAHB reported that the price and availability of building materials remained a top challenge for builders.

So, how can you deal with this issue? Well, here are some ways: 

• Pad the budget from step one: Experts advise adding a 10-20% contingency fund for unforeseen expenses

• Prioritize & compromise: If costs rise, decide what’s essential (e.g., structural integrity) vs. what can wait (e.g., premium countertops)

• Get multiple quotes: If one contractor’s estimate seems high, shop around before committing. There is a high possibility that you might find some better deals 

Contractor Disasters: Delays, Disappearances, and Disputes

Unfortunately, contractor disputes are not a rare occurrence. Imagine hiring a contractor with great reviews, but now they’re weeks behind schedule, cutting corners, or – worst-case scenario – they’ve vanished into thin air with all the deposit clutched in their greedy little mitts. This might sound like a bad dream, but it is all too common these days. 

According to findings, the Better Business Bureau (BBB) recorded 4,084 complaints against general contractors in the U.S. in 2022. Another customer repost survey found that 9 out of 10 general contractors provide written guarantees for their work, with a median coverage period of 15.5 months. 

To deal with such a complex situation: 

• Investigate contractors thoroughly before finalizing: Check licenses, insurance, and reviews on sites like the BBB, Angi, and Houzz.

• Get everything in writing: Make sure a detailed contract, including outline timelines, payment schedules, and materials, is signed before the project starts. 

• Withhold final payment: Do not make the mistake of paying the full amount upfront; withhold a minimum of 10-15 % until the job is complete and inspected.

• Send an attorney demand letter: In case the informal route fails, a formal attorney demand letter can help seek a resolution before escalating to legal action.

• Know the legal recourse: If a contractor abandons the job, you have the right to file a complaint with the state’s contractor licensing board or pursue small claims court.

DO YOU KNOW? 
Homeowners with higher incomes and home values tend to spend more on home improvement projects. 

Permit Problems: When Red Tape Slows You Down

Many people think that they can replace those windows without a permit – until the city slaps them with a stop-work order. Permitting issues can derail renovations, especially in older homes where unpermitted work from previous owners is a matter of its own.

Insulation projects that specifically involve structural changes typically require permits; in cities like San Francisco and New York, for example, permit approval times can take anywhere between a few weeks to even months, delaying projects significantly.

To save yourself from any legal trouble and ensure the work finishes on time, research the local requirements and apply for permits early. Considering the worst scenario, if you’re caught without one, work with local officials to legalize the work (though this may involve extra fees and inspections). 

Supply Chain Delays: The Waiting Game

Imagine ordering the perfect Italian marble for your backsplash – only to learn it’s stuck on a cargo ship for six months. Supply chain disruptions have been affecting renovations, especially since the pandemic, with no immediate end in sight.

You can avoid falling into this pitfall by ordering the materials early, choosing alternative, backup options, and clearly communicating with the contractors. 

Hidden Structural Issues

Sometimes, it might seem like everything is going seamlessly, but then, you tear down a wall and, surprise, there is black mold, termite damage, or outdated electrical wiring. Fun little twists like these can add thousands to the budget and extend timelines dramatically. 

These are the hidden costs of old houses. The National Association of Realtors (NAR) indicates that issues like structural or foundation problems, aluminum wiring, and outdated electrical panels are often disclosed during home inspections. To avoid these not-so-sweet surprises, take the following measures:

• Get a pre-renovation inspection: A structural engineer or specialized inspector can spot issues that might not even be visible to you, before starting a project. 

• Budget for the worst: Older homes are more likely to be filled with surprises, so prepare accordingly. 

• Consider insurance: Check out insurance policies, as some may cover sudden discoveries (like burst pipes during demolition). 

DO YOU KNOW? 
The term “renovation” itself comes from Latin, meaning “to make new again”

Staying Sane When Renovations Go Sideways

Renovations are messy, unpredictable, and often stressful – but the good thing is that they don’t have to be completely disastrous. Anticipating the common roadblocks shared in this article can protect you from unreliable contracts and contingencies, and by staying flexible. By paying attention to these, you can navigate even the worst renovation surprises.

At the end of the day, the chaos will only be a story of a few days. And when you’re finally sipping coffee in the newly built kitchen or soaking in that spa-like bathroom, all the headaches will be worth it.