Starting a Project? Here’s a Checklist of What You Need [and Why You Need It]
This checklist is mostly geared toward residential projects, but the concepts – and even many of the details – are often broadly applicable to all kinds of projects.
Starting a project requires attention, intention, and a surprising amount of soul searching – all kinds of questions come up, and assumptions, norms, and dreams all need to be brought out into the open and discussed. It’s all about communication, and about making sure you’ve got the bandwidth to do the project [that’s why #8 on this list might be the most important thing here…]
I put together a “Residential Project Planning Workbook” with 30 pages of worksheets and helpful info - download it here!]
And don’t forget about the Podcast I just launched! It’s called “Home: The Second Story,” and we interview homeowners who’ve completed major renovations or new builds, asking them to share the wisdom and knowledge they’ve gained through the process! Listen wherever you get podcasts, including YouTube!
So let’s dive in – here are eight things you need, and why they’re important:
1. The WHY
Why are you doing the project? What problems are you hoping to solve? How will your life improve by doing this project? Make sure your family is aligned here. While it’s ok for some variation in everyone’s “why,” you’ll be in big trouble if it diverges too much – if one person wants to increase the value of the house so it can be sold next year, and another wants to invest in the home as a “forever home” with no plans to sell for decades, you’re going to run into conflict!
2. The WHAT
What is the project? Write down a clear scope, and be specific. Be aware that doing some scopes of work may necessitate expanding do include other scopes – if you’re adding a lot of new electrical load to your house, you may need to upgrade your service, for example, or if you’re moving a lot of walls around, you may need to refinish all your floors because of how much patching you’re going to have to do.
3. Survey
Especially if you’re changing the exterior of your house, and even if it’s just moving a window, many jurisdictions will require a survey to apply for a permit. The reason? You need to prove that whatever you’re doing is within the property lines, setbacks, etc. You’ll also need to show that you’re not impinging on any utilities, show where the drainfield and well is [if you’re not on public sewer/water] and that both have enough capacity for the additional space you’re adding, etc.
Some jurisdictions will accept a plot plan [which often comes along with your mortgage], and some jurisdictions will only accept something drawn by a surveyor while others are fine if another professional draws it up [architect, GC, etc].
Even if your jurisdiction doesn’t require a survey, getting one is still a good idea – it will show utility locations, easements, major buildings and other built features, and the like. I’ve never once seen a survey that didn’t reveal a surprise or two – a neighbor’s fence encroaching on your property line, a long-forgotten easement putting restrictions on what you can do, a private right of way that’s actually public, etc.
4. Zoning Analysis
To do a proper zoning analysis, you need a survey, and you need the proper professionals – an architect first and foremost, and potentially also a zoning attorney. But you can get started with the basics – looking up what zoning district your parcel is in, what the basic dimensional and use restrictions and requirements for that parcel are, reviewing any special regulations related to overlay districts, historic review boards, design review boards, planning boards, and the like.
Even a quick look through zoning will help you understand more about what is and isn’t possible. And by the way – many well-meaning realtors and residential real estate agents will tell a buyer things like “you can add an addition” or “you can finish the attic”…and you actually can’t, because of zoning.
If you’re hinging the purchase of a property, or a major renovation, on any issue related to zoning, it’s best to get formal and professional help. More on this below!
5. Budget
Before starting a project, you should have a budget. “But I don’t know what things cost!” you say. Well, what they cost doesn’t matter. We’re talking right now about what you’re able to spend. What a steak costs at the fancy steakhouse doesn’t change, whether you can afford it or not. Same goes for construction projects.
To set a budget for your project, think through the following:
- Your family finances
- Whether you’re financing the project or paying with cash [more on this later]
- The value of the house or building today, what you paid for it, and any equity
- Your time horizon for selling – if you’re trying to sell next year, what you can spend on a renovation is very different than if you’re not selling for 20 years
- Your market – what would a buyer expect to see in a house/building like yours?
- What everyone in your family feels about spending money on a project like this. Yes, I said “feel.” Construction is emotional – and projects around your home are the most emotional of them all!
Once you’ve got a handle on those things, *share this information with your project team.* If they don’t have accurate information from you, they can’t guide you properly. Don’t hide your true budget from them, then get mad when they don’t read your mind.
6. Financing plan
There are many ways to pay for projects – cash, bank loans, lines of credit, etc. Paying with cash gives you the most flexibility, but also doesn’t come with the protections that a bank loan does. When you pay cash, the contractor sends you an invoice and you pay it. When you pay with a bank loan, the contractor must apply to the bank to get paid, and they only get paid after the bank has inspected the jobsite and approved the amount that the contractor is asking for.
Keep in mind that construction loans don’t pay for design fees, furniture, legal fees if you need to get a zoning variance, rent while you’re living somewhere else, etc. So even if you have a loan, you’ll still need ample cash to pay for these and other things along the way.
7. Professional Team
You need an architect first, then a contractor/builder. A contractor can’t price a project if they don’t know what they’re building, and the only way to tell them what they’re building is to provide them with drawings.
That said, most residential projects are done without architects, and you may not “need” one – though of course I believe they bring incredible value on every project! The architect is there to guide you through the design, and also zoning, regulatory requirements, strategy, finding a contractor, and being your advocate throughout the design, bidding, and construction phases.
A good contractor is also an absolute necessity, and finding one isn’t always easy! I’ve got other newsletter articles that go into more depth on how to find and interview these professionals, so go search the archive for more info on that!
8. Time and ability to focus on the project
This may be the single most important thing on this list. If you are too busy to dedicate time and attention to your project, it will be miserable, slow, expensive, and stressful. Even with a dedicated team of professionals in your court, you still need to make thousands of decisions, have tons of big conversations with your family, be prepared for emotional and logistical upheaval, and spend a lot of money in a short amount of time.
The single biggest thing I see owners do to sabotage their own projects? Start projects when they don’t have bandwidth. You *must* make room in your life, and owners – even experienced ones – are always surprised how much time, effort, and emotional toll it takes.
So there you have it – 8 things you need to do to prepare for a project! If you’d like some worksheets and more info, I’ve actually put together a “project planning workbook” that’s available on my website: download it here!
Thank you, as always, for your support and for your readership. If you have something you’d like me to cover in a future newsletter, please “reply” to this newsletter - I’ll get your response!