All I Ever Needed to Know about Project Management, I Learned from Building My House

Okay, maybe not everything I needed to know. But I learned a great deal and had some other ideas reinforced by my experience. Here are just a few pieces of advice that I want to pass on. Settle in, because this is a longer read than my usual posts:

• Plan, plan, plan ahead of time: Define specs, identify work standards, create a budget, take time to pick good people, etc. This time spent up front will streamline the project by minimizing change orders while work is in progress, and will maximize the quality by having a well-thought out house with good workmanship. Good planning and preparation can also help in acquiring funding. Banks are more willing to lend to people who have a solid grasp on their project.
  
• Understand the required process. You may not ever build a house with your own hands, but understand what’s involved in the process and the order of events. Read books or research online to gain knowledge.
  
• Record Everything: Use spreadsheets to track expenses, budget, bids, etc. I have one spreadsheet with a tab for each trade involved. On the tab for Plumbing, for example, I've got all my potential plumbers listed with their contact info, bid price, and my observations and notes. For budgeting, I use two spreadsheets: one where I track every expense transaction, and the other that serves as an overall "dashboard" of my available funds, estimated cost in each category, and the amount spent so far in each category . Everything goes in the expense transaction sheet, whether it's a payment to a contractor or a trip to Home Depot for a drill bit. Each transaction record has the date, category (electrical, flooring, etc.), whether it's for labor or materials, the recipient, a description of what the payment is for, the check number (if applicable), and the amount. If I get a refund later, I enter that as a negative amount. In my dashboard spreadsheet, I've listed all the components of the project along with one column for the estimated cost and another containing the sum of all payments so far toward that category. A sidebar itemizes my available funds (loan, savings, etc.). At the bottom, I compare funds remaining to costs remaining.


• Stay organized! Have a plan for keeping your project organized (filing, storage, document organization, electronic scanning, receipts, user manuals, warranties, etc.)


• Stay Task-Oriented. Use Outlook (or other software) to plan events, tasks and reminders, such as “call so-and-so”, “get price on x item”, etc. If your mobile phone allows for it, synch your tasks and appointments to your phone so you can be reminded on the go.


• Expect a constant struggle between schedule, budget, and quality. In many cases, you can have it tomorrow if you don't mind paying extra and going with the first subcontractor that comes along. Of course, you risk getting a poor quality job. In another example: If you can afford the time to scrutinize for just the right material, then you'll be satisfied with the result and you might even find a good deal on it.


• Plan for cash flows over time. At first, I listed all the planned expenses and the current funds I had on-hand. Wow, what a gap in between! As I got the hang of it, I learned to map out a timeline that took into account when I'd have to pay out those amounts and also (and more importantly!) when I would have more money coming in (either through loans or my regular paycheck, etc.). This revealed that the difference wasn't as big as I thought. Yes, if I had to pay the total amount all at once at the beginning then I'd be in trouble! But things seem to even out when I realized my bank account would have time to replenish a bit in between big payouts. A simple "total budget vs. total cost" approach isn’t the best method in cases like mine.


• Get multiple bids. It’s always worth it to get a number of bids for each trade and for each material purchase. I recommend getting at least four bids for everything. When I first bought the lot and had to get some big trees removed, I talked to 11 contractors. Prices ranged from $9,000 to $18,000! That's a range of 100 percent! Then I found a 12th person, and he quoted me $4,500. His insurance checked out and my neighbor had already hired him on another job in the past, so he was recommended. In another case, I was searching for a slab contractor. Again I had gone through about 11 or 12 people. Some were way too expensive and others did not do good work. Still others would never get back to me. Finally, I came across a guy who did great work at a great price. Now, I haven't had to go to such extremes for every contractor, but my point is not to accept the first bid you get until you find others to compare it to.


• The cheapest bid is not necessarily the best way to go. In the point above, I recommend getting at least 4 bids on everything and I point out how it lead me to some great prices. I only went with those prices because they happened to also be the contractors with very good workmanship. Remember that, in most cases, you get what you pay for. As an example, when bidding out the plumbing I got a range of prices. I ended up choosing someone who wasn't the highest bid, but the second highest. This guy and his dad have been working in this area for years, and they are very good at what they do. I've been very satisfied.


• Have the right people on board. Having the right contractors is vital to your success. Spend a lot of time finding the right people before construction even starts. Contact references. Visit & see their previous work for yourself.
  
• Don’t assume. Ask lots of questions. I was new at this, and I there was a huge number of things I didn't know. For example, if you’re not sure if the contractor is including materials in the bid price, then ASK. If someone mentions to you that the local government is probably going to require X, Y, or Z, then ASK them before you get into trouble. ASK your contractors if they recommend people in other trades that are great at what they do.


• Know your experts. Your subs are a wealth of knowledge and most are happy to share if you ask.


• Always evaluate build vs. buy options. When you are doing work yourself, other work will slow or stop because you are no longer managing. For example, when I started doing the painting myself, everything else came to a standstill. All my free time was spent at the house painting or running to the paint store. (Remember that I'm doing this project outside of a full-time job.) So instead of calling around or arranging for next step, I was busy painting for over two weeks. Consider this when deciding whether to do-it-yourself or to bring in the hired professionals. Yes, they cost money, but they can do it faster than you.


• Plan for project management time. During the building phase, plan time for management and administrative activities. Those receipts aren't going to scan and file themselves, someone needs to make the phone callse, and no one is going to think about your next steps except you. One thing I did was use the time before bed to enter my tasks for the following day. Then Outlook reminds me each day what I need to accomplish.


• Don’t micromanage. You hired people who are professionals in their field. Ask questions and make your specifications known. Then be available in case they have questions. Sure, you need to visit the site and verify the work as they go, but don’t try to “help” them constantly and don’t question every swing of their hammer.


• Managing different personalities: Each of us has a different personality, and we each interact differently with others. Expect to adjust on the fly as you learn about your people. My framer did a wonderful job, but he was a gruff, no-nonsense kind of guy. He had his own style of communicating that I didn't learn until it bit me in the schedule. At first, I asked him a lot of questions about when I should order things, like my exterior doors. He told me I was "thinking too much" and that he'd let me know when I needed to do it. Later he asked me "What about your doors?", but he never told me "Now is the time to order your doors". So I didn't understand the message he was sending. Later, he scolded me because I hadn't ordered them yet even though he had "told me to". Overall, he was mostly growl and no bite, but I could have avoided a delay if I had stopped to make sure I understood what he meant by his comments. On the other end of the spectrum is my plumber. He's a jolly, easy-going guy who cracks jokes with his workers and communicates more clearly. I'm more comfortable approaching him with a question or calling him about a problem.


• Always stay 2-3 steps ahead of what’s currently happening. While task A is in progress, you also need to be doing what's required to setup for tasks B and C. While you're busy painting the inside of the house, you should be lining up the trim carpenter and ordering the receptacles and light fixtures so your electrician can come out to finish up.


• Don't relax. At certain times, you might have people working at the house and it looks like you can take some time off and let your brain decompress. As much as you want to use the time to relax, you should be using it to prep for upcoming steps. My sheetrock guys worked for several days and finally the texture was sprayed on. I didn't prep for anything else while that was going on. And for several days afterward, I didn't look into how I was going to get the primer sprayed on. Before I knew it, weeks had passed before anything substantial got done.


• Keep your contact info with you. Keep everyone’s contact info with you at all times (in your phone/PDA, etc.). You never know where you’ll be when a call from one sub or supplier prompts a quick call to another.


• Stay in charge. Don’t let a sub or supplier rush you or cause you to change your schedule in such a way that’s not good for you. You are paying them, and they need to accommodate you. Likewise, don't let an incompetent contractor or supplier slow you down or cost you money. When Home Depot couldn't get my garage door order right after two months, I fired them and found someone else.


• Inspect completed work. Always inspect and verify completed work before signing off on it (or paying for it). Early on, my plumber made an honest mistake when he forgot to run a water line to the kitchen freezer for the icemaker. When I inspected the work and found the oversight, I got him back out to add the line before I poured the slab. In another case, I had to get the people from the man-made marble place back out 3 times before their shower installation was acceptable and I could pay them. Never pay for work that hasn’t been completed yet.


• On-site supervision: You don’t need to be on-site all day every day, but do stop by at least once or twice per day when work is going on. Visit in the evenings to clean up and survey what has been done.


• Communicate. When there was a long lull between times when a contractor was needed on-site, I would stay in touch with them to let them know where I was in the process. For example, the security company came out to survey the site and get a deposit during the framing. So much time had passed that I called him to let him know I was still around and give him an update. He said he had seen me on his list and was wondering how my project was going. You also need to communicate clearly what you want from your contractors. Several times, I printed portions of the floorplan and marked it up to show someone what I wanted. When I ordered cabinets, I spelled everything out clearly by providing drawings. I also used painter's tape to mark on the kitchen walls where the cabinets would be placed.


• On-site appointments. Once the house is locked up, never rely on anyone to call you before they come. No matter how much you explain that the house is locked and you need to meet them there, they are not likely to call until they get there and find the house locked. I've had local inspectors do this to me where I specify they need to call me ahead of time and they don't even bother to call me when they get there. They just leave and then charge me for another visit. Delivery people are bad at this. I always ask that they add a note to the paperwork to call ahead of time. They've only done this a couple of times. Mostly, they wait until they get there and realize they need to call you. Luckily, I only live (and work) 5 minutes away. Otherwise this would be a real problem. I thought of putting a sign in the window near the front and back doors with my number to call for gaining access, but I doubt they would read it.


• Take action early on project risks. As soon as you hear about a possible risk to the project, take steps to head it off. This could be a delay in a delivery or a code requirement you didn't know about, etc. Don't wait to make a call on stuff like this. Fixing it or clearing it up could take longer than you imagine. So start early.
  
• Provide what's needed. In many cases, you’re responsible for getting people the materials they need. Don't get caught in a situation where the job site is ready for them but you don't have the needed materials on hand for them. This causes an unnecessary delay. Make sure deliveries are on time and correct. Coordinate what's needed with your contractors and stay in touch with them about delivery times, etc.