How to finish an apartment after the developer and avoid hidden costs

Buying an apartment and receiving the keys to your own new apartment is a dream for many, but when the first emotions have already subsided, it turns out that buyers are faced with another, no less difficult task: finishing and arranging the interior.

Buying an apartment and receiving the keys to your own new apartment is a dream for many, but when the first emotions have already subsided, it turns out that buyers are faced with another, no less difficult task: finishing and arranging the interior.

The budget that needs to be allocated for this purpose is, along with the purchase, another major expense item, especially since prices for finishing materials and services are growing at an astronomical rate. All this leads to the fact that the amounts that newly minted apartment owners have allocated for the decoration and improvement of their premises are melting every day. If you are not careful enough, you can easily get into unplanned debt.

We'll tell you below how to avoid this.

An unfavorable contract with a finishing team or its absence, an ill-conceived design project that becomes a bottomless barrel, and even fines that many are unaware of can lead to the fact that you will suddenly be forced to spend all your savings to finish the room and be left without financial pillows for a rainy day. Then, often the only way out is another loan, but when you are already paying back the first loan for an apartment, taking on additional obligations risks falling into a debt trap.

How to prevent this and where financial pitfalls may be hidden? Is there any universal financial advice for those who are planning to finish renovating their apartment now? These are definitely precautions.

When currently planning large expenses that extend over time, for example, large-scale finishing work, you should always have a financial “reserve”. Providing an amount even 20-30% more than expected will minimize the risk of sudden financial stress because, unfortunately, “rigid” budgeting for such large projects often ends up putting you in debt later.

An agreement with a team of finishers is the basis!

When planning finishing work, of which there is plenty in the new premises, you can rely solely on your own strength or hire specialists. If you decide on the latter and you need a standard scope of finishing work, that is, for example, painting, tiling, plastering, preparing electrical connections or installing doors and window sills, then you must enter into a contract for specific work with specialists, often called simply a contract for renovation – as opposed to a construction contract.

Usually they look for a team by recommendation, which, of course, is a very good step, because from the very beginning, thanks to reviews from friends or relatives, you know that you are dealing with professionals who will do the job reliably and on time. As a rule, confirmation of reliability is enough, and you do not enter into a corresponding agreement with professionals. Some see this as an apparent opportunity to save money: with an informal “agreement” with contractors, without a contract, the repair company avoids paying tax, and we, the clients, are tempted by a lower price than under the contract.

But does this really guarantee us savings? You must be aware that the lack of a contract poses a very big security threat to your budget! In the end, it may happen that the team receives an advance and, instead of starting work... disappears. And you won’t be able to do anything, because the parties are not bound by any formal agreements! And if you hire several separate crews that specialize in a certain type of work, such as painters, tilers or carpenters, then you could even lose out on a few down payments.

You will have to find other contractors, and, as a rule, specialists “caught” at the last minute are those for whom there are no queues of people lining up, and with such a service there is a high probability that you will have to pay extra for corrections...

It should be kept in mind that signing a contract is always in your best interest, because this is the main protection of your money and any subsequent claims, for example, free repair of defects or refund of prepayment. A reliable and honest professional should never shy away from signing a contract. Remember that you can also enter into a contract with a person who is not engaged in business activities. If a contractor is trying to convince you that a contract is not needed, then this behavior should be a red flag for you.

The absence of a contract is a huge risk that your already strained budget after purchasing a home will be burdened with additional expenses, which, with rampant inflation, rising prices for materials and finishing services, will quickly undermine your financial liquidity and threaten you with debts that you cannot afford to repay.

It is necessary to keep an eye on these expensive details in contracts with repair crews!

An agreement with an individual specialist or a team, and even more so with many teams, is necessary. But the whole trick is not just to sign “some” agreement, but a good agreement, that is, one that will not be some form downloaded from the Internet containing only general conditions. It is necessary to individually adapt it to your situation, the amount of work performed and the financial risks associated with it.

What should be in the contract for specific finishing works and what should special attention be paid to?

 Identification of the parties in the contract: the data and signatures of both parties are important here. Note: If you sign a contract with a company, the company name must be stated and the signature must be made by an authorized person - there may be many of these in such companies, but if you do not have the signature of an authorized person, the provisions of the contract may be easily undermined!

Before signing an agreement with a contractor engaged in individual entrepreneurship, it is worth checking it in the central register and information on business activities. If another person, other than what is indicated in the register, signs the agreement on his behalf, you must request that the power of attorney be provided in writing. This is very important for your financial security, because when the contract is signed by a person who does not have the right to represent the entrepreneur, and a situation occurs where the service is performed incorrectly or not performed at all, you will have a huge problem with getting your money back. This is because the court will first need to determine who you can bring your claims against. Unfortunately, this will incur additional costs because you will have to consider the long-term process, and the costs may lead to further financial problems.

 The exact scope of work, that is, the subject of the contract: it is necessary to outline step by step what to do and in what premises. Generalizations such as “sewerage” should be avoided and instead written down, for example, “laying out water supply and sewerage networks and installing plumbing fixtures (fittings, bathroom ceramics, shower cabin).” And when, for example, you order furniture from a carpentry team, make sure that its assembly is included in the price - if you do not have such a condition, it often turns out that you will have to pay extra. for this service! In this case, a detailed draft should be attached to the contract as an appendix, naturally with the signatures of both parties.

 Timing: The contract should specify both the start and end dates of the work. It is worth paying attention to entries like: “the contractor reserves the opportunity to postpone the stated date of completion of the work,” because such an “insurance” note may mean that a situation will occur when the work will drag on indefinitely. If during the work it turns out that you want to order additional work, they should be included in the annex, which should also indicate a specific date for their completion.

 Wages, advance payments and contractual penalty provisions: for various types of finishing work, prices may be quoted per meter of work (for example, when laying tiles), the amount may be a lump sum or the corresponding payments will include subsequent stages of work. If the latter case applies to you, make sure that the contract also includes a schedule with dates and prices for the stages.

 Purchase and quality of building materials: it often happens that for finishing you personally buy “big” elements: bathroom tiles, floors or shower stalls, but forget about the small ones: for example, electrical sockets, grout, adhesives, wires. When work begins and when deadlines are tight, you usually rely on professionals to select and purchase them. If you decide to do this and give them "free rein" in this regard, you should insist that everything be written down permanently in the estimate that you see, so that you don't end up paying inflated amounts for perceived minor elements: prices for similar products, depending on the quality and manufacturer, may differ several times!

 Warranty: for repair and finishing work, the standard warranty is provided for a period of 2 years and this period is regulated by the Civil Code.

First of all, you need to make sure that the contract contains a warranty clause, which you are entitled to by law, because it will protect you from paying money out of your own pocket if an expensive defect is discovered after the work is completed. Secondly, if you agree to pay an advance, you should require a receipt and then pay only for the work completely completed, and not before.

Such steps will allow us to maintain control over finances throughout our work. And if money has already been invested in finishing, and the team continues to delay completing the ordered service, you are not defenseless. If the contract is well written, you may also be able to claim compensation. True, receiving it most often does not happen immediately, but when you had to “freeze” a large amount of your funds for the costs of purchased materials and advances paid, the compensation received can help save the budget in the event of debt.

Custom interior design can be... a bottomless pit

Following trends, more people are considering hiring an interior designer, which is not surprising. Without a doubt, this speeds up the whole process and allows you to use the full potential of the room and make the rooms as user-friendly as possible and adapted to individual needs. But even in this case, you need to approach the matter with special care about your finances. As with any other specialist, you need to take care of the contract.

In this case, you should pay special attention to the permissible number of adjustments to the project: the contract must indicate information about how many such changes and when you can make them within the framework of written agreements and the amount paid. It is also necessary to clarify with the architect what an amendment is and what is already a change that interferes with the project so much that it will be associated with the need for additional payment.

You should also check whether the contract contains a clause on insurance against design errors. This is still rare for small offices or individual entrepreneurs. Such insurance guarantees that the designer will cover the financial costs of any mistakes, but, of course, such insurance increases the price of the service.

An element that can currently increase costs dramatically is materials, particularly availability issues. If the architect includes materials in the design, for example, from limited collections, latest collections or “high-end” collections, you may find that the elements and materials planned in the design are not found anywhere or have surprisingly high prices.

Therefore, when accepting the final rendering, you should also request a complete bill of materials. Often you can agree with the architect that you will receive a complete list of stores that have the materials you are interested in. The architect can also prepare technical drawings and instructions for contractors for you. Thanks to this, you will avoid a situation where, due to a lack of materials, the project will have to be redone and... pay for it again.

High price... waste after renovation

If you have already successfully completed the finishing work or, conversely, the whole process has been delayed, you need to pay special attention to the problem of waste resulting from the renovation. Both storage for too long and improper disposal can also cause unplanned expenses.

Items such as construction debris, electrical wiring or plumbing items should not be thrown into a regular trash bin. According to the law, you can get rid of them in two ways: either take them yourself to the so-called PSZOK (selective collection point for household waste), or rent a container or so-called big bag, that is, a large industrial bag, and then entrust the waste removal to a finishing team your apartment, or another team specializing in the disposal of construction waste.

Be careful when choosing a company, check the reviews, because, unfortunately, there are unscrupulous “specialists” who, instead of disposing of waste legally, throw it, for example, in forests. This is a serious violation that can result in punishment not only for the fraudster, but also in some situations for the “client” who ordered it. Moreover, the fines are not small and can reach up to 5,000 zlotys!

It also happens that apartment owners in apartment buildings store garbage, for example, on lawns or in their own parking spaces. And here’s a remark: both of them are breaking the law! Although it may seem that in the second situation, since the parking space is private land (having been purchased by the resident), it is still under the management of the complex/residential community, and is therefore a public space.

If waste stored with us remains for too long, obstructs traffic or threatens the safety of, for example, children playing nearby or passing cars, you may be fined PLN 500 in accordance with the Code of Minor Offenses. Throwing containers of paints or varnishes into regular municipal trash cans also carries the same penalty. In addition, if, for example, the repair waste you throw out during the emptying of municipal containers damages the garbage truck - this applies, for example, to tiles or fittings - its owner has the right to demand that you pay the costs of repairing the vehicle.

If you are fined by the police or city guard, or punished by the management of the complex, then even if it is a small amount, you can get into serious financial problems in the long run. If you ignore the fine, failure to pay on time will result in interest charges and formal enforcement proceedings may be initiated against you. Then the debt that you did not pay voluntarily will be forcibly collected along with interest and all expenses incurred during the trial.

Decorating an apartment is often a labor-intensive process and requires long-term financial planning. However, the more of the above factors you consider before getting started, the more likely you are to reduce costs along the way.

Source: portalnieruchomosci.com