Home Contractor vs. Homeowner

This is a reprint from the Builder magazine website: http://www.builderonline.com/products/10-things-you-must-put-in-your-new-house.aspx?page=1 From: BUILDER 2008 Posted on: December 15, 2008 8:44:00 AM 10 Things You Must Put in Your Next House Add these features to boost the value of your homes with your buyers. Americans love getting a deal, which might begin to explain why so many consumers flock to shopping malls on Black Friday. Of course, they aren't always ending up with a real bargain, but sometimes this doesn't matter. As long as an item or service has a high perceived value to people, there’s a good chance they’ll choose to buy it. This concept can be applied to selling homes. Create high perceived value, and you stand a better chance of closing the deal with buyers. One way to do this is to offer high value at a low cost. If your cool-looking kitchen was inexpensive to build, but it looks like it cost tons of money to do, you’ve hit a home run for your business and ...

I am going to tell you a secret. Most lawyers hate the billable hour. It is hard for us to keep track of our time, even with all of the latest software and technology. Most clients do not understand why some activities take so much of our time. They don't understand the value we provide. That is why more and more lawyers are trying to change the way they charge and use flat fees and other means to bill their clients. The other day, I had an epiphany. As a lawyer who works mostly in the construction industry, I should bill like contractors. I could prepare a proposal and scope of the work, and notify the client in advance what I would charge. If things changed dramatically, we would execute a written change order that would be signed by the parties. Everyone would be on the same page, and there would be no surprises. This is easier to do in some areas than others. I pretty much know how much time it takes me to draft a contract, write a demand letter or file a mechanic...

I just had a great experience as a lawyer last week. A client called and he was not unhappy. In fact, he was about to start a home renovation project, and was really looking forward to it. He found a contractor he liked, and he and the contractor were working together collaboratively. A colleague suggested to him that he come see me to draft their contract. It certainly made sense. For less than 1/2% of the value of the project, we hammered out a contract that spelled out the understanding of the parties. It is in compliance with local law, so the contractor is protected. In fact, the homeowner told me that the contractor was willing to chip in and help pay for my fee. Discussing the contract terms helped the homeowner further define the scope of the project and a realistic payment schedule. We discussed what would happen if change orders were necessary and how they would be handled. The homeowner decided what would constitute an unreasonable delay. Problems were anticipated a...