Believing Renovation Myths can be very expensive!

Renovation Expert's Myths are often a media creation

With all the popular Renovation How-to programs, it's not surprising that the general public has difficulty separating renovation Myths from Realities. Although most of the TV programs focus on home renovations, they can easily confuse commercial tenants.

Commercial renovations are not Do-it-yourself renovation projects.

The following myths are good examples of the causes of renovation horror stories.

Any (licensed) renovation contractor can perform a commercial renovation

If the contractor you hire, has a City business license, they can legally work on a commercial building. The myth is, too many residential renovation contractors will try! How much different could it be (and there's more money in it)! When you allow anyone not skilled and experienced in commercial renovation projects to work on your tenant improvements, you are exposing yourself to many unnecessary risks. Do you really want to be a practice project? There are no minimum qualifications required, to simply buy a City business license.

Contractors MUST be qualified, in order to call themselves a Renovation General Contractor

The scary thing about this myth is, most consumers actually believe it! They couldn't be a contractor if they didn't at least know what they're doing," has been the sad tale told by many people who have lived through a renovation nightmare. The truth is, there are no minimum qualifications necessary to obtain a business license that reads General Contractor. All that YOU would need to do to become a Licensed General Contractor, is to buy a City business license! This always comes as a complete surprise to most of our clients. Even worse, many of the residential renovation contractors (operating in the lower mainland) don't even bother to get a business license!

All Licensed Renovation Contractors are pretty much the same

The truth is, almost anyone can purchase a business license. Without even basic construction knowledge, practical construction skills, experience, training or liability insurance, your neighbor could instantly become the newest contractor in town. As disturbing as that might be, it is far too frequently the reality of today's renovation contractor. Skilled, honest and experienced professional contractors are constantly losing business (or even getting out of the business) because of this fact. Unfortunately, nearly everyone is a lowest price shopper until after they hire a contractor. Then they suddenly become quality and value consumer advocates! Basic human nature? Certainly. Realistic, practical or even logical? Not even close. However, accepting the lowest price estimate may not actually produce a worst-case scenario. Hiring the wrong renovation contractor ......always does! Without accurately specifying what you expect to be done, how can anyone give you an accurate project quote?

You should find a contractor you can trust

No, you shouldn't! Hiring any contractor simply because you trust them, is the shortest route to becoming another renovation horror story. When you hire any contractor, you sign a contract. By ensuring that the contract includes all the specifications, schedule and performance details, you eliminate any necessity of trust. Con-artists always use the trust me line, professional contractors don't need to. Good paperwork (written agreements) removes the vulnerability caused by misplaced trust. When we tell our clients not to simply trust (anyone), we actually mean it!

Construction Association members are better Renovation Contractors

After the fiasco caused by the original New Home Warranty Program of BC collapse, this myth should have been put to rest. However, since we want to believe that somebody will protect us, warranty promises sound too good to pass up. Numerous associations promise to protect the consumer by screening and only admitting highly competent and qualified companies. Before you accept this sales pitch and hire a recommended renovation contractor, get a list of the satisfied customers who had all their complaints resolved by the association. Verify with at least (3) of the people on the list, before you hire any referred contractor.

The Building Code (now BCBC 1998) is the biggest problem

Many contractors and developers don't even know what is contained in the BC building code! Other than trying to find ways to walk the line between compliance and breaking the rules, they are simply trying to raise another smoke screen (when the next round of leaky buildings) comes to light. The building code and local by-laws are only the minimum standard allowable and not the optimum for all climate conditions. Trying to build too close to this minimum standard does not allow any margin for error. With all the unskilled workers that are now common in the construction industry, disasters are inevitable. Blaming the BC Building Code for the construction trades incompetence, is a poor excuse at best. For an interesting perspective and analysis of the Leaky Condo problems, read about The T-Rex that ate Vancouver before you buy into the real estate industry propaganda.

The Standard Contract

This creature is the construction industry equivalent of a Unicorn! Although everyone thinks they know what it looks like, its still a mythical creature! A contract is simply an agreement between (at least 2) parties that describes what is to be done and for how much. If you don't agree with everything you read in your contractor's agreement, change it or don't sign it! Better still, write your own outline agreement, and then negotiate. Until it clearly and accurately covers everything you want, for the price you agree to, don't sign! Any contractor who pressures you to sign an agreement before you can have your attorney review it's contents, should be quickly dismissed!

Building Inspectors Ensure Quality Construction

Your local government directly employs local building inspectors. They are responsible to enforce the National/Provincial Codes and local by-laws. They are not responsible to ensure quality construction or contract compliance. If your renovation does not meet Code, YOU are responsible to have the deficiencies corrected! For many reasons, building inspectors will rarely comment on the overall quality of workmanship on a renovation project. There are simply too many liability implications. If the minimum standards have been met, it passes.

We don't need an electrical permit for minor renovation work

Call the Electrical Inspections branch (Provincial) or the City Electrical Inspector, to get the truth. You might also find Safety Standards interesting. This is definitely an area where amateurs can cause disastrous results. There is provision for owner occupied residential electrical work to be legally performed by the homeowner. However, that does not mean that the homeowner gets the electrical permit so his renovation contractor can perform the work. Commercial electrical work MUST be performed by licensed commercial electricians. Changing any hard wired electrical component in a commercial lease space (yourself) could expose you to a huge liability claim if anything goes wrong. Illegal wiring has caused too many fires for this to be considered a minor code infraction!

If you take the middle estimate, you'll get the best value

This overly simplistic approach to contractor screening, makes no sense at all. For this approach to work, every contractor would need to be equally competent! If you get three estimates from contractors who are all incompetent, you'll only know that you've paid too much (for a poor result) when the project is complete. Honest, professional contractors can only give you an accurate quotation when you can specify exactly what you want them to do. Screening contractors requires a lot more research than how much would you charge for. Most renovation service providers charge what the market will bear. With the chronic shortage of skilled people to work on your project, finding good value will require careful screening, to avoid disappointment.

You don't need permits for interior renovations

One of the most common myths that many people believe. Any contractor or interior designer that tells you this, should be avoided. Contact the City Building Department to get the truth. Cosmetic changes may not require permits. Any electrical, plumbing heating or structural changes will DEFINITELY REQUIRE PERMITS.

Self-employed contractors don't require WCB coverage

WorkSafe BC (formerly the Workers Compensation Board of BC) protects every worker in the province, in the event of injury. Who pays the claim, how much and when are the only real variables. Call WorkSafe BC or visit the website www.worksafebc.com before you hire anyone to work on your project. The criterion for financial responsibility are readily available.

A 50% deposit is normal

There is absolutely no reason to pay for something you haven't received. The exception to this is a special order or custom made item. Since both of these are probably of little or no value to a supplier if you don't take them, they definitely require pre-payment. Simply providing operating capital to your contractor should tell you something about their financial responsibility. A reasonable, good faith deposit (10-25%) should be negotiated, stipulated and explained in the contract.

The going rate myth

One of the most commonly accepted renovation myths is the going rate for renovation products and services. It does not exist. Unlike a manufactured commodity, renovation services are totally market driven. Prices can, and sometimes do, changes on an almost daily basis. Some of the factors which contribute to dramatic price fluctuations include:

• World commodity prices for basic materials
• the current state of the local economy
• the number of projects that a given service provider has booked ahead
• the quality of materials and workmanship required
• simple supply and demand

Most contractors will quote prices based on their projected work load. When they get too many projects booked, the next quotes go way up. When the economy is booming, they charge a lot more than when it's slow. Simple supply driven economics. Unfortunately, the prices can change so quickly that your initial budget figures are completely unrealistic.

It's always cheaper, if you pay us in cash

There is a saying among Con artists, Every good Mark believes that they are actually running the game. Contractors who will give you a better deal for cash, are always defrauding more than the Taxman. They rarely have a business license, never have liability insurance and probably couldn't get a building permit anyway. When a building inspector finds out about your illegal renovation project, it will probably cost you a lot more than the difference between the original and Cash price estimates! Remember that with no paper trail, it's only your word against his, when the inevitable legal problems arise. In addition, when they run off with your cash and don't come back to finish the job, who actually wins this game?

Expensive renovation problems can be avoided

The reality of today's commercial renovation industry is much different than it was 10 or 20 years ago. Many years of growth and economic expansion were not properly planned for by our educators. Instead of training skilled trades people, we encouraged students to get an MBA! Now we have a desperate shortage of skilled workers.

Every new renovation project is competing for the services of competent workers. The days of get three quotes are over. Good contractors choose the projects they want and turn down the rest. They don't need to compete for your project, you need to compete for them!

We help to protect you from costly renovation mistakes, from concept to completion.

Related Renovation Design and Planning Information

• Important Retail Store Planning Steps
• Your Legal Responsibilities
• Design a Retail Store
• Commercial Lease Space for retail stores
• Retail store Tenant Improvements
• Good Restaurant Designers

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We provide commercial tenant improvements renovation project planning and design services to lease space clients in Vancouver, North Vancouver, Burnaby, New Westminster, Coquitlam, Port Coquitlam, Port Moody, Delta, Richmond, Surrey, White Rock, Langley, Maple Ridge and Pitt Meadows, BC.

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