1

ExpectationsRemodeling your home and life

Presented by Nickolas Sosa CEO

2

Welcome! Team Introductions

Vision & GoalsS3 Design Group provides extraordinary value in every aspect of our service by providing creative designs and delivering quality products and workmanship.

We’re committed to: Maintain open communication Deliver valuable information Research and outline expectations Operate with Honesty & Integrity Empower individuals Care for our environment Invest in our future

3

Why are we here?

Our Goals Learn about contractor selection Give you an overview of the construction process Developing and understanding expectations

“We are committed to planning and building a project you love.”

4

What to consider Financial

Lower property taxes vs new home purchase Increased value Efficiency and conservation

Emotional Discouraged, disappointed & hopeless Significant events (Marriage, home purchase, children) Dreams & aspirations

Physical Currents needs, new children, parents, space Location, high appreciation value, great schools, desired neighborhood New home, same address

5

Sobering statisticsIn California alone:

315,324 licensed contractors 90% will be bankrupt within the first 5 years California State License Board has 434 employees 23,205 complaints opened in 2008 85% of these homeowners were dissatisfied with the work done by their contractor (job was

not done on-time, on-budget and specifications were ignored/amended to suit the contractor)

Be educated & informed

Company Philosophy

Our philosophy is simple;

Build relationships that maintain

“a customer for life.”

6

Who are you inviting into your home?

There’s a scale to general contractors 1 is low – 10 is high – There is no standard

9-10 Offers a Process & Communication (Reliable)

7-8 Offers Quality Product & Service (Looking good)

5-6 Licensed, Bonded & Insured (The bare minimum plus)

3-4 Licensed & bonded (The bare minimum)

1-2 No License & no bond (The bottom of the barrel)

↑

7

How to ensure you hire a “10”

Current Active License (Contractor State License Board) General Liability Insurance Worker Compensation

Employment history Current and past clients references Vendors and subcontractors Current projects in process & their availability

Quality/Assurance Performance Bond when is it necessary Liquidated Damages (completed on time or contractor pays you) Establishment/Office location

Professionalism Company Vision & Mission Process & procedures Trade associations

8

Architect Licensed, advanced degree, typically not a residential requirement unless building over three

stories or multi-family over four units

Building Designer Realistically renders your design concepts, same scope of work as licensed architect, much less to

spend

Structural Engineer (Specialty Engineers – as required) Responsible for reviewing structural aspects; such as walls, foundations, support issues (makes

sure your house doesn’t fall over)

Interior Designer What tile matches your cabinets? Designer assists with furniture, color, fixtures, etc.

C License Specialty Contractor, plumber, electrician, etc. (can only perform licensed trade)

B License (build vs. design build) General Contractor, able to perform all trades

Be Educated & Informed! Know your team

9

Design Process Gather information

Complete Client Questionnaire Complete Needs, Wants, Dreams Complete Working within Budget Complete Inspiration Process & Review Obtain city planning requirements

Preliminary Plan Set Complete Site Analysis (Measure, Photograph, & Inspect) Complete Site Plan Create Existing Plan(s) Create Proposed Plan(s)

Client Review Design Review Meeting(s) (Repeat as Necessary) Optional project pricing review(s) (Repeat as Necessary) Proposed plan revisions (Repeat as Necessary)

Architectural Plan Set Complete Interior & Exterior Elevation(s) Complete Electrical/Mechanical/Plumbing Plan(s) Complete Structural Plans & Details (As Required) Order Additional Documentation (As Required)

Title 24 Energy, Truss, Structural Engineering Calculations, Other Engineering Etc.Permitting process

Submit to City for Planning & Building Review Revise Plans Per City Request (Repeat as Necessary) Pay for permit and receive approved construction documents

An Inspired Plan… Produces Dream Results

10

Construction process…from planning to building City Planning Department

Zoning (district – regulation codes)

Design review (setbacks, heights, F.A.R., impervious)

City Building Department Plan check (verifies the planning & building documentation)

Permits (city calculated and issued)

Inspections (verifies code compliance )

11

The Construction Contract All items are included in the bid (no oral agreements) (NO ASSUMPTIONS) IT MUST BE IN WRITTING

Specifications are the written details of what will be included in the project (all products/appliances/fixtures should be new unless otherwise noted)

Reference to plans (plans included in bid)

Total bid amount (materials & labor)

Exclusions (items not included, landscaping)

Allowances (amount to purchases items within the contract)

Down Payment 10% or $1,000.00

Change order process

Project start and end dates

Warranties / Indemnification

Liquidated Damage Clause (contractor completes on time or they pay you)

Schedule of payments must correspond to project milestones (never get ahead of the contractor in payments vs. work performed and inspected – you will almost always regret it)

Dispute resolution, arbitration, civil litigation

12

Jobsite guidelines Integrity of workers Job site cleanliness

Construction timeline & scheduling Phase 1 (building the shell)

Demo, concrete, Framing Roofing, windows, siding

Phase 2 (The meat and potatoes) Plumbing, Mechanical, Electrical, Low Voltage Wiring (Rough trades) Insulation, Drywall

Phase 3 (The glitz and glamour) Cabinets Masonry work (Tile, Countertops, Showers, Backsplash, Floors) Doors & trim Flooring Fixtures (Plumbing, Electrical, Appliances)

Construction Phases

13

A remodeling or construction job is a shared project between the client and the contractor.

Contractors expect clients … To be available for decisions To have an established form of timely communication To review and select finish items early in the construction process, i.e. plumbing fixtures,

appliances, etc To make specific decisions well before installation To have access to remodel areas To clean out the contents of the soon-to-be-remodeled areas To have progress payments ready upon milestones or dates per contract To be aware of possible project delays

Outline Your Expectations! The Contractor Expects…

14

Outline Your Expectations! The Client Expects…

Clients expect contractors to be the experts.

Clients expect the Contractor… To research any local ordinances or special permit requirements. To have a detailed contract To have a progress payment schedule based on milestones/dates in contract To have a specific construction time-line To be available for decisions To have an established form of quick communication To schedule face-to-face weekly meetings To be pragmatic and solution oriented To schedule finish choice deadlines To continually update on the good, bad and ugly To have an agreed upon change order process To pass all trade inspections To review what aspects of the project will be tackled by subcontractors To have signed subcontractor/vendor lien releases prior to payment To request payments when milestones/dates have been met according to contract To have product demonstrations as necessary and final project walkthrough

15

Each project is unique, ask questions… Where will you live during construction? (cost vs comfort)

Where is everything? (Even the cleanest job site is dusty, loud, supplies, equipment and lots of strangers in your home) Furniture (move and protect) Valuables (remove from property) Pets (“Where is Peanut?”) Landscape (“My azaleas are smashed!”) Organization (what to do with all the stuff during the improvements)

Decisions, decisions, decisions…

16

Finishing Smoothly!

Your contractor should want a referable client!

Contractor pre-punch list and client final punch list Lien releases: Sub-contractor(s) and materials supplier(s) Demonstrations and maintenance Final Inspection Warranty: Ask about SB 800, 10 year warranty NEVER make a final payment before the project is finished 30 day Customer Survey

17

ExpectationsRemodeling your home and life

Presented by Nickolas Sosa CEO

S3 Design GroupHOME IMPROVEMENT BUILDERS

18

Remodeling your life (Part 1) Dealing with feelings…

What’s your approach?

Stress Anger Frustration Non-Agreement Disappointment Envious

19

Remodeling your life (Part 2)

Encouragement

Patience - Expect that things will go wrong Forgiveness - Expect humans to be at your home working Consideration - Expect there are two sides to every story Understanding - Expect every decision has implication

Take your time - don’t rush it; this too shall pass Ensure quality - don’t compromise long term happiness Finish smooth - enjoy your remodel for years to come

20

Contact us today(408)-629-9906

www.S3DesignGroup.com

Let’s build something special

CEO Nickolas Sosa (business owner, Real Estate Broker, General Contractor, Certified green builder) who has been intricately involved in all aspects of home improvement from residential design to interior space planning; from construction estimating to project management, says, “our team is committed to work together for your benefit; S3 Design Group is in the business of providing a refreshing experience.”