If all those weren’t reasons enough, then yes coming just to see P.L. Lyons, Inc. is fine as well We’ll have a booth focusing on our custom building and remodeling services. We’ll be giving away some freebies each day and we’ll also have some interactive treats for you.

If you have questions then comment below, hit us up on Twitter or contact us online through our form. Of course we still answer email and the telephone too- whatever your communication preference.

An estimate for a construction project is arrived at much like an estimate for your car repair after an accident. You list the parts and labor and give an estimate. With one huge exception: the construction estimate does not have a standardized cost manual like the automotive repair center does. Additionally, there are many more products to define for the end cost. For this reason, you must be sure that your building contractor is giving you a good detailed estimate, and not just a “guestimate”.

A detailed estimate will always have “take off” information that drives the list of final costs. If you get a lump sum cost for your project, ask your builder for an itemized list of costs that produces the final number. Ask for the details that define the itemized list of costs. This assures a detailed estimate, and most likely a pleasing and enjoyable final result.

If someone quotes a per foot price, beware! There are no details tied to that figure, and something as small as a faucet or specified window manufacturer can alter the per foot price by thousands of dollars.

Download our detailed cost estimate here.

My answer, “It’s hard”. Those of us that have been here for a while, know that we will face ups and downs in the market. We knew that in tough times like the late 1970’s to early 1980’s, we had to diversify to survive those economic changes. Those times had different challenges, as lending was available, but at peak rates. We paid 18-21% for construction loans, and 30 year mortgage rates were at 14-16%. We ventured into other types of businesses. We got involved in light commercial work, remodeling, and even into other types of retail sales. We did what we had to do to survive.

As for my friend, he has never seen this part of the business, and this downturn is especially difficult. Although 30 year mortgage rates are at an all time low and construction rates remain low, it is extremely difficult to secure constructions loans for speculative building. Even with the all time low 30 year rates buyers are wary, waiting for the economy to strengthen before they buy.

How does the smaller volume builder continue in the next few months, or through the next couple of years? With the new tax credits coming to an end, will our market shrink even more? Did the tax credits help us anyway? As I see it, yes to both. We may not have sold a house to the first time home buyer, but we did sell the customer who sold their house to the first time buyer. Their sale occurred as result of the $8,000.00 new home buyer credit. So yes the credits spurred sales.

With the tax credits drying up, how do we now attract buyers in this lean market? It seems the larger volume builders have a greater advantage, as they can cut their margins, allowing them to out sell the smaller volume builder. They offer “buy down” rates offering 30 year mortgages at below market. They attract the buyer and secure more sales. How do we compete with that?

The smaller volume builder can do the same. Many banking institutions are willing to help with programs like the ones I’ve mentioned, if the end result is them closing an open construction loan and possibly allowing you to start a new project. This helps with cash flow, and relieves your equity in the house. Margins become a bit smaller, but in the long run, it’s a win win win. The builder sells, the buyer gets the “deal of a lifetime”, and the bank continues loaning; therefore continuing to profit.

I told my friend to “work hard and keep the faith”.  As I’ve said before, “these times too shall pass”.

Here’s another little known fact the “contractor friend” won’t mention. The original builder of your home is absolved of many and maybe all responsibilities/warranties when someone else works in that house. Below is a list of examples that may trigger this situation:

• Carpentry, such as altering of framing or even moving a doorway
• Electrical alterations
• HVAC alterations
• Plumbing alterations

Any carpentry change can have an effect on the structural integrity of the house. Any electrical change will have an effect on the electrical panel and code. Any plumbing change can affect the status for code applications.

In the event these types of changes are made the builder and his sub contractors could no longer be responsible for what they did. Their work has been altered without proper permits after they left. To make matters worse your “contractor friend” has no coverage. Original responsibilities and insurance obligations are no longer in effect.

After my explanations, I got the job, and my clients are very happy as the work is progressing.

They commented “he” was a little cheaper than us, but after questioning him about my information, both they and their “contractor friend” decided he should not do the work.

No matter how small the job seems to you, it has consequences. When considering all the consequences, YOU should always chose to work with a licensed professional. It doesn’t have to be us although we’d love to help.

As we always do, I completed a drawing, followed by an itemized cost estimate based on that drawing. I quoted the job and was asked several questions by the homeowners in regards to the estimate. They asked if they could use my scope of work and plans to have a “contractor friend” quote the job also. I agreed to let them use the plans and scope of work, with the understanding that they would pay for the plans if their friend got the job.

After they met with their “contractor friend” they asked why they needed me, a licensed contractor, to do their work. The “contractor friend” said “he was qualified and did this type of work without a permit all the time”. He has been doing this type of work on the side while he was laid off.

I explained the following:

1. We are professionals, and this is a service we provide to make sure you get what you requested.

2. We are licensed; as required by law, and are required to have Workers Comp and Liability Insurance. He isn’t licensed and does not have these types of insurances. What happens if your house sustains damages, due to his neglect, while he is working in your house. You may not be protected by your insurance because of the permits that are required, and because you have not disclosed to your carrier what you are remodeling.

3. If that unlicensed contractor does any work including ANY electrical and or plumbing in the house without permits, this could result in fines in excess of $1,000.00.

4. We get all necessary permits required to complete this work, and it is inspected by the local building officials. Therefore you as homeowner get all inspections as required. When it comes time to sell, you’ll need these inspections and may have trouble getting them otherwise- which can lead to much more costly fixes down the road.

5. When remodeling a home or basement, what you think doesn’t really matter. Having a license and obtaining permits do matter regardless of whether you agree. Most every remodeling project requires a permit; regardless of who is performing the work, even if it’s the homeowner.

6. We offer a warranty, similar to the new homeowners warranty offered by the HBAL. Unlicensed contractors often have no warranty.

Part 2 coming up. How did this story unfold?

Where to start

We’re here

Louisville’s very own G.E.

Seminar on Financing

More New Products

New Kohler Products

Green Appliances

Solar Panels

Shameless self plug

Some fun amongst all the hard work

Back to the ville.

The last connection.

The trip home.

Last tweet.

The use of energy efficient building systems and practices, along with integration of solar and wind energy is becoming much more affordable in many areas of the country. This will only continue to improve in the long run. The use of green products will have a definite effect on the cost of building now making it more expensive. This too will become more affordable though as more manufacturers, designers, developers, builders, and consumers enter this arena. Supply and demand have a way of working themselves out. Remember what flat screen TV’s used to cost

1. I recently became a Certified Renovator, as required by the EPA Renovating Repair and Painting law that takes effect in April 2010.
2. We recently took courses dealing with drywall specifications and finishes along with painting finishes for new and remodel construction.
3. I just completed a course concerning ICF forms, and the part they play in the Green Building process.
4. We will be attending the International Builders Show later this month. We will be attending educational courses concerning upcoming codes and standards changes, green building practices, and other issues. We will be introduced to many of the new products and practices we’ll be using in the future.

Want to work with a design build firm on the leading edge? Contact us today regarding your custom project.

Last year was a tough year for most of the building industry. The wavering economy and financial markets put a stop to the new home buyer market. The buyers were not only concerned that their net worth had diminished with the fall of the stock market in 07 and 08, but they were also concerned about their employment situations. Concerns and debates over nationalized health care and the unwillingness of banks to lend were two other headlines that led to uneasiness.

These are still concerns for everyone in 2010. However, tough times have always made the leaders in our industry stronger. Many of us weathered the “recession/depression “ of the late 70’s and early 80’s, when interest rates for builders and developers exceeded 20% and home mortgage rates were at 14%. We survived the slow down in the 90’s, then came out strong through the early 2000’s when builder and developer rates dropped to 5 and 6% and 30 year fixed rates dropped to 4.75 and 5%..

All that said, we just experienced the worst downturn in the building industry most of us have ever known. Those who are still surviving will come out of this downturn much “leaner”, “meaner” and “greener”. We will be savvy to current trends and the newest building practices. We will be better managers. We will again appreciate every project no matter how small. It’s part of the economic cycle. This cycle has just been a bit deeper and longer than most. However, this too shall pass.

So what does this mean to you the consumer. It means this is one of the best times in history to build, buy or remodel. Product and material prices are low and labor rates in the construction field have dropped. They won’t stay low forever. Thirty year fixed rates are still very low, and they will rise as well. So if you are contemplating making a move, now is the time to “press go”.

Our firm is looking at the future and embracing change. We’re looking into new products, practices and aligning with future mandates.

We are looking forward to good year! After all, we have our health, our faith, and our God who promises to take care of us as long as we BELIEVE. And we do BELIEVE!

Contact us today about your custom project. We’re still here.

When building your dream custom home, what comes first: the Chicken or the Egg?

This could be debated either way and our emotions tell us design your plan first. After all that’s far more exciting then picking out a piece of barren ground. With 35 years of experience we think the opposite. Home plans can be a endless search without some parameters. A good first parameter- what size and what are the restrictions of your lot? If your lot will only allow for a home that’s 55 foot wide and 50 foot deep then you can narrow your plan search quite a bit. Thus allowing for the plan to be customized to your specifications.

On the other hand if you find your dream home plan or better yet have it designed, then you may have to compromise where you’ll build it.

These are suggestions to think about. After you have a lot, you’ll have some boundaries with which to start your plan design. At P. L. Lyons, Inc., we will help you look for lots, in your price range, and we specialize in working with you to design your plans.

Call us today to discuss your plans for building a new home or to discuss the plans and estimates for your custom remodeling project.