Key takeaways
- 15% contingency is the floor, not the ceiling.
- Itemized scope prevents change orders.
- Two quotes minimum; pick the middle bid.
- Pay on milestones, never upfront.
- Permit early — never skip.
Core concepts
Scope of work
Room-by-room, line item, material spec.
Contracting
Fixed-price preferred; T&M only for surprises.
Payment
10% down, milestone draws, 10% retention.
Step-by-step framework
- 1Walk property with contractor.
- 2Build line-item SOW.
- 3Get 2 quotes.
- 4Sign fixed-price contract.
- 5Schedule weekly walkthroughs.
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Common mistakes to avoid
- Vague SOW.
- Paying 50%+ upfront.
- Skipping permits.
- No retention held back.
Frequently asked questions
Average rehab cost per sqft?
$15–35 light; $35–75 medium; $75–150 heavy.
DIY savings?
30–40% but at 3x timeline. Rarely worth it.
Permits always required?
Yes for structural, electrical, plumbing. Skip = resale problem.
Change orders normal?
Some. Limit to <10% of contract.
Action checklist
- ☐Line-item SOW.
- ☐Two quotes.
- ☐Fixed-price contract.
- ☐Milestone draws.
- ☐Permits filed.
- ☐15% contingency.
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