In order to say yes to your priorities, you have to be willing to say no to something else. 
- unknown

But instead of NO, what if it’s a ‘not right now’?

[VIDEO]

READ THE TRANSCRIPT AND ADDITIONAL NOTES BELOW

No matter who we are, we are going to push our budget envelope. Whether that’s in big ticket items or multiple low-cost items, it adds up faster than we expect. Why is it when we have to make a choice between products, the one we choose always ends up being the more expensive one? I mean, was this specific quartz counter made for royalty and I wasn’t told!?

While I'm completely capable of waiting and trying finding another [insert over-priced product here] at a price I can afford, it’s the overall project and lifestyle I'm more unwilling to walk away from. So how can you make it all work if you don’t currently have the funds?

In this lesson, we’re going to talk about how you can get everything on your Wishlist by figuring out your big picture utilizing Pausing and Phasing, and the differences between the two. 

Pausing 

Relatively small in nature, Paused items are things that you can live without and added after-the-fact. But more importantly, don’t require the primary dwelling permit to remain open or the contractor to stay on pay-roll. They are items that can be added when the money is there, but items that need to be planned from the start.

Things you can have for Paused items are:

• Minimal to elaborate landscaping (unless your subdivision requires it)

• Built-ins, millwork / custom cabinetry

• Certain finishes (masonry work, crown moulding and wainscoting, feature walls, etc.)

• Unfinished basement (most bylaws require it to be drywalled)

• Small detached outbuildings*: shed, greenhouse, trellis, gazebo, etc.

• Pool* / hot tub
  (unless access doesn't allow, ie. lot is too narrow for the concrete truck or it needs to be built in/brought in via. crane. These instances will add $ to the price)

• Detached Garage*
  
  

* Bordering on Phasing. Double check with your City whether these items will require a permit. Generally small detached outbuildings under a certain size (typically around 107 sf. / 10 sm.) don’t require a permit. However, generally pools and detached garages do require a permit but this can be done on a separate permit from the house and in most cases do not require a GC/PM because there is no living space attached to the garage. 

Phasing

One of the best ways to reduce construction cost is to reduce the scope. One way is reducing the project as a whole (size, style, type of build, etc.) OR by delaying some work to a later time by phasing the project.

This means that you’re purposely delaying part of the work for when you’re in a better financial place or time in your life, or both. Ultimately it can make sense in the right circumstances, but it does come at an overall cost. 

Pros:

• Lower initial costs (spreading the costs of a larger project over time)

• Shorter construction time (smaller scope = shorter timeline)

• Less inconvenience in the moment

  • If renovating, you can have a part of the remodel happening while other parts stay intact

  • If new, you will have less time in a rental unit and the possible additional costs of a storage facility

• Allows for design changes (not recommended unless they are minor, but you do have the ability to revise the 2nd phase)

Cons:

• Higher total cost

• Longer total construction time

• More coordination / complexity

• Longer inconvenience

• The possibility of increasing prices of services and materials

Higher design fees (having to create a master plan and phased plans), more financing (back and forth with the bank), higher contracting fees (spread over time), extra costs for trades mobilization (back and forth to the project), longer total construction time (even though the initial scope is shorter, the entire process is longer), and the possibility of putting up with temporary housing and storage for a longer period of time.

Some examples of phasing:

For new homes/buildings:

• House, then detached garage, then guest house (not in any particular order)

• House, pool, then pool house / guest house

• Carriage house / laneway house then main house

• ½ new house then the other ½ (or other variations of size)

For renovations/additions:  (or vice-versa)

• Renovation then addition

• 1st floor renovation then the 2nd floor, etc.

• Exterior then interior (or vice-versa but not recommended)

• Importance (items that are detrimental to safety and health like leaks, structural failure, fire damage, mold, pests, etc. or life events like new baby arrival, aging parent, accessibility, rental income, etc.)

How to Proceed

I cannot stress this enough, this is not a simple procedure. It must be designed and planned by professionals who can be intentional and strategic about the design and build so there aren’t any surprises during the process. 

You don’t want phase 1 to block phase 2, making it impossible to build what you sought out to do. And you don’t want to have phase 2 demolish what you created in phase 1; or at the very least to destroy the landscaping of phase 1. Leaving no stone unturned (pun intended).

Everything must be purposely thought out, defined and designed in a strategic, overall master plan. While it does increase the design fees at the beginning, it creates a more efficient process and gives clarity to the overall project. Once the master plan is complete, design work for subsequent phases can be deferred until needed.

Along with a master plan, it’s important to create a phasing plan. This plan describes how the scope of work will be grouped, done in what sequence, and the transition between finished and started once again.

Another reason I recommend creating a master plan is to get a feel for the overall cost. This will determine whether you continue with phase 1 or add any additional phases. There have been some cases where my clients have initially thought to only renovate and postpone the addition, only to move forward with both, and in doing so made a list of future possibilities.

Note: One thing to talk about with your Design and Build Team is the permitting process. In some cases, if you pull a building permit for the entire project and keep the permit open (re-new) until all phases are complete, it could ensure that your project will be protected against future, more strict code changes for the later phases. For simple, straightforward projects, this is less of a concern.

At the end of the day does phasing cost you more? Absolutely. Without a doubt. More time and more money. Some more, some less, depending on the project. 

Speak to your design and build team about your options and which make the most sense based on your specific project and priorities. While it might not be the right time now, you’re making them a priority for the future.