Frequently asked questions
Some frequently asked questions
Renovations cost money – a lot of money. Therefore, you should not proceed lightly.
There are many questions to answer and you must arrange the financial aspects. However, how do you
do all this?
- What must I pay attention to when contracting a renovator?
- What is a ‘good’ quotation?
- What should the quotation specify?
- How do I evaluate a quotation?
- Can I request several quotations?
- How do I compare quotations?
- Can you negotiate the price?
- Are there guidelines for certain jobs?
- Can the costs vary during the work?
- What if the job costs more?
- What’s the best way to finance my
renovation project?
- Are
construction/renovation costs tax deductible?
- What is insured during construction?
- Do I need a construction license?
- Do I need a monument license?
1. What must I pay attention to when contracting a
renovator?
De Cannenburgh is a member of NVOB and therefore observes the 1998 Renovation
Agreement, a joint agreement between the consumer organization Owned House Association and NVOB. It
covers all relevant aspects of renovation work, such as choice of materials, price agreements, term
of completion and less or added work. Some certainties from the 1998 Contracting
Agreement:
- The price is fixed;
- You can agree that the contract price is to be paid in
installments (or after completion);
- The contractor is obliged to
quote a price as soon as possible in the case of an order for added work and must report whether
and, if so, by how long the construction period will be extended;
- The construction period is recorded in writing, so the client knows where he is at.
There is a fine for late completion.
2. What is a ‘good’ quotation?
A good quotation is drawn up in
accordance with the 1992 General Conditions for Contracts in the Construction Industry (AVA 1992),
which describe exactly how a quotation must be drawn up. In accordance with these conditions, a good
quotation always indicates the following:
- The location of the work;
- A description of the
work;
- The drawings, technical descriptions, designs and
computations of the work;
- The starting date of activities;
- The date of completion;
- The
cost of added work and the applicable sales tax;
- Whether payment
is to be made in installments;
- Whether the work is subject to a
risk arrangement;
- That estimated items have been taken into
account.
3. What should the quotation
specify?
That depends on the order. If you know exactly
what you want, the quotation can be highly specified. If you only have a vague idea of the
activities, then The Cannenburgh as an NVOB contractor can make a rough estimate of the
costs.
Not until the contractor knows exactly what is to be done will he submit a final
quotation, since of course he must first know what problems he can meet and what your ideas are
about finish and materials.
4. How do I evaluate a quotation?
A quotation is based on the
specifications. The more accurate these are, the more clear the quotation will be. Since it is
difficult to evaluate a quotation, it is best to receive specific information about it. The
Cannenburgh would be pleased to explain what the quotation is based on.
5. Can I
request several quotations?
Yes. If you’ve had specifications and drawings made by an
architect, you can always request several contractors to submit a quotation. But drawings, technical
descriptions and designs from one contractor may not be given to another contractor so that the
latter can give you a quotation. You should be able to make a good comparison based on three
quotations.
6. How do I compare quotations?
By paying attention to the
accuracy of the quotation. After all, the various contractors will be quoting for the same job, and
thus their quotations should be roughly the same.
Don’t pay attention only to the price, because
you’ll always be able to find someone who is cheaper and often a lower price will be for lower
quality work.
7. Can
you negotiate the price?
There are no standard prices for certain jobs. The quotation
will have been drawn up based on work hours and materials. If the price is too high, then we can
help you find a better priced solution. Other materials, another construction.
8.
Are there guidelines for certain jobs?
No, nor can these be indicated, because every job
is different. A quotation is made based on your situation, which may well be different from that of
your neighbor.
9. Can the costs vary during the work?
Yes.
Always take into account the possibility of less or added work. Less work is of course fine, but
unexpected setbacks are not so nice. These are unforeseen aspects which come to light during
construction.
Always try to take these into account. We also advise you to set your budget lower
than your possibilities. This will leave you some leeway. That’s a reassuring idea.
10. What if the job
costs more?
Avoid unexpected surprises in the bill by making sure you have covered all
costs – also that of the extra door not included in the specifications but which might be very
handy.
Make the contractor compute the cost of added work before you agree to it. Once
everything is down on paper, you’ll know what to expect. The final bill will include a specification
of less or added work.
11. What’s the best way to finance my renovation project?
If you
cannot pay for a renovation with your own means, you could take out a loan. Of the various
possibilities, a mortgage is the most economical. However, you will have to involve a public notary
and pay a financing commission.
These costs are tax deductible. With a second mortgage, however,
only the amount borrowed is tax deductible. Other possibilities are leasing or getting a personal
loan. Relatively speaking, these are much more expensive, but no public notary is needed, so you
save on costs.
12. Are construction/renovation costs tax deductible?
Only if
you let the house, i.e. not if you live in it. However, the revenue service may make an exception
for a building listed as a monument.
13. What precisely is insured during construction?
In principle
everything. Construction processes often are complex and dynamic, because many parties are involved
(clients, construction executive boards, main- and subcontractors, architects, etcetera). During
such a process sometimes unforeseen damage occurs and it is not always obvious who is responsible.
The Construction All Risks insurance offers security for material damage at or around a
construction area to all parties involved. A good contractor has arranged such an insurance for all
its work. Of course they also have a liability insurance. Possibly you must inform your own
insurance company of the work, examine your own insurance policy for that!
14. Do I need a
construction license?
There are several types of construction licenses. Sometimes you
do not need any licence at all. To determinate that, you can go to http://vrom.nl/bouwvergunningen_online.
There
you can also find information about which data you have to add to a building request (photographs,
drawings, construction calculations, etcetera). If a Monument licence is required, requesting a
construction license is inevitable.
15. Do I need a monument license?
Large parts of Amsterdam have
been declared as Protected Cityscape. Besides, there are many monuments in Amsterdam. So, in many
cases a monument license will be necessary, which you possibly can request in consultation with your
constructor.
Read more about monument licences:http://www.bma.amsterdam.nl/adam/nl/monum.html
