Phase TWO (!!!!!) – Properly Terrified
Well, we’ve done it. After a year+ of due diligence, we’ve pulled the trigger and engaged a general contractor and closed on a construction loan for the second phase of this project.
Up to this point, we’ve paid for materials and subcontractors from our savings. The work we’ve subcontracted on this project has been significant – custom decorative fencing on the sides of the front garden, custom corten planters, all of the rear excavation, footings and foundation work (both house and garage), tree removal, concrete flatwork, custom fence posts and gate, mechanical, electrical, plumbing, some insulation work on the fire rated walls, all of the masonry work, gutter and downspout installation, custom cabinets and countertops, and occasionally we’ve hired superintendent oversight (especially when doing outdoor work) or labor to speed certain tasks up to meet other deadlines (drywall installation, taping and painting, etc.).
We’ve assumed the role of GC related to all of the above work which means we’ve not paid additional overhead and profit on those items – but the time and labor involved to manage all of that work was very, very real. Coordination of trades and communication around scheduling, significant prep work so that the project area was ready for contracted work, on site supervision and availability to answer questions immediately – all of this work was done outside of our work and family obligations, and often meant we were also working on our real work-work late nights and weekends to stay caught up.
For the remaining work on the first phase of the project, we’ve purchased the materials, submitting orders and drawings, reviewing shop drawings and submittals, arranging and paying for delivery and receiving, and occasionally paying others (like our young, strong neighbors) an hourly rate for manual labor on items that required more muscle than our four arms could manage. One of the first things we ordered early were the windows. They were one of the highest ticket items on the project, and Marvin was about to have a significant price increase, so our rep encouraged us to get our order submitted. They held the windows for almost a year until they finally insisted we take possession of them. So we had to find a new space for them (storing them in M’s office storage area), which meant we had to rent a truck later, hire help to load and unload, and then help to lift and install them in place over one weekend. They were beasts. We also hired help with the scaffolding – pickup, unloading, assembly, disassembly, reloading and delivering. We got some help with fence post installation as well.
Outside of those items, we have completed everything else on our own. Demolishing everything in the front yard, trenching and installing new underground drainage, excavating for and installing limestone retaining walls and steps, reinstalling brick pavers to the front sidewalk, installing planters, and preparing base for and then installing a pebble mosaic patio, emptying a good portion of the house and moving items into storage, removing and stacking brick pavers, completely restructuring the first floor framing to install new beams and open the house to the basement for the first time, tuckpointing the interior stone foundation walls, temporarily supporting the porch roof and demolishing the two-story decks, waterproofing all of the concrete foundations, tie-ins between underground utilities to garage foundation, site grading and lawn restoration, restoration of neighboring yards including modular retaining wall modifications and new steel fencing components, demolition of the existing kitchen, building the two-story addition from the foundation up, sanding, prepping, and painting all components for the exterior fence, installing components of our fire-rated exterior walls including sheathing, air and moisture barriers, waterproofing the window openings in wood framing and masonry walls, installing Hardie siding and trim on the addition, fabricating our own sheet metal components to tie the existing roof to the addition, framing all interior walls, insulating, and installing drywall, removing existing wood floors, installing subfloor and leveling floors, installing herringbone floors, installing cabinets, wainscoting, interior trim, paint… I’m sure I’ve left some things off these lists, but you get the point. It’s been a lot.
When we put this project out to bid in early 2020, we anticipated that even with a general contractor it would be a phased project due to space limitations on the site, and it would likely take a year or two (or more) plus time to complete any work that we needed to pull out of the project and self-perform for budget reasons. We stopped the project in March because of pandemic uncertainty, and carved out some outdoor front garden work in late 2020 / early 2021. By 2022 all GC’s we were considering were booked solid and 30% + higher on prices than 18 months previous. We took the plunge as our own GC’s and optimistically thought we could complete phase one and phase two in 2 – 2.5years. That has doubled. Despite all the knowledge we brought to the table, there was simply no way to truly know how much time and energy two people could contribute to the work on a weekly basis. We both had significant job changes, we graduated a kid from high school and college with a second kid now in the homestretch of high school. We navigated a pandemic, work from home challenges around construction, tricky issues with a neighbor that shifted project timelines and order of completion, and the general stress of living in a construction zone with a temporary kitchen. Oh, I almost forgot – we BOTH turned 50 in this time span, so let’s add *aging* bodies into the mix.
Let me say this before I continue on: We have KICKED ASS on this project. No doubt about it.
This next step is exciting – we will hand over construction to someone else for framing / exterior envelope, utilities, and finishes on the carriage house. It’s going to be a trip to watch how much can get done when someone works on this project 40 hours a week rather than 8-16 hours on a weekend. Framing and closing in will be fast – and that will be fun to watch. I mean, we’ve already completed the hardest part of the work – everything that touches the ground and impacts the neighbors!
But it’s terrifying on many levels. Because of the scope of work and speed with which we’ll need to make regular payments to our contractor, we are opting to use a construction loan that will automate payment draws and have oversight of the budget and funding. We’ve never done this before on a personal level, and it feels like we’ve had a second job (or maybe third?!) on the side for the past few months. We are hoping to be completed within a year, 8-9 months would be even better. The GC we’ve hired will have no issue with that timeline. Once we’ve released shop drawings on windows and trusses, and he has all the long lead items on hand, he’ll fly. He thinks four months of actual hammer-swinging time once they are on site.
The sidebar here is that we ALSO have to have the main house and rear garden work done in the same timeframe. This is because we are essentially saying “Here’s where we are starting, and here’s what we’ll look like when we finish.” The bank wants assurances that the end product that they are providing some of the funding for will actually look like what we’ve drawn – that our house will be worth X amount once complete. In a construction loan, NO work is allowed to be self-performed. They need proof that even if we lose both of our arms tomorrow, all of the work will still be completed. So they are trusting us that all of the main house will look as complete as a few areas of the house do now. That’s why we worked our tails off in March/April/May to get the house “done” enough in the kitchen and addition so that it’s readily apparent what the whole house will look like once complete. We aren’t financing that work because we are completing it – the remaining floor installation throughout the house, all the trim work, all the painting. So now we have a timer going, and we’ve got to finish all of this outside of other work, while also being responsive to a GC on a fast timeline, and also working and being a family and graduating a kid and choosing a college, etc…
Into all of this mix are these gray areas of dining room and pantry fit-out, basement stair and whole house stair upgrades, historic window restoration on the front, and enough rear garden infrastructure in place – stairs and decks and pavers, to satisfy the bank. We have allowances set aside for our GC to complete some of this work, but we also have to really watch our budget, and prices aren’t getting any better. Any of this work that we will likely need to do won’t be eligible for reimbursement in the construction loan, so we’re also entering a stretch where we need to be on a very strict budget and will be a little cash-strapped until everything completes and we pay off the loan and enter into a mortgage model that we haven’t dealt with in awhile. We have a pretty good 5-7 year plan, but the next year is going to be a real challenge. I’m incredibly nervous, more nervous than I’ve been in this entire process. This is a leap of faith at a time when there’s a whole lot of economic insecurity and we’re definitely in a time of transition in many, many different ways in our lives and with family. But we are also ready to enjoy the fruits of our labor without such a long to-do list. We’re ready to have a house that is complete and its worth to us translates to its actual economic value. We’re ready to have project space in a garage and outside of our house. We’re ready to have easy access to our bikes again. And we are really ready and excited to own a second home, and all the opportunities that come with that. You shouldn’t even get me started on what tripling the garden size means to me.
We’ve been lucky to have some really great advisors along the way, and there was a lot of celebrating last week when it became real. It’s not the first leap of faith we’ve taken, and I’m sure it won’t be the last. We’re going to still need to be patient about finishing touches on the house – me especially. I’ve been dying to finally make some of these furniture purchases I’ve wanted to do for over a decade but we’ll probably still hold off on those until we’ve gotten through this loan period.
The clock has started, so off we go. The final push is here. Wish us luck.
A few photos of the aforementioned trim out to tide you over. Can’t post a monthly recap without them! See you in July.