Guidelines to Bathroom Remodeling
May 31, 2008
Kelvin Williams asked:
When you think about major bathroom remodeling, what do you think of first? Which aspects of major bathroom remodeling are important, which are essential, and which ones can you take or leave? You be the judge.
Although the bathroom, compared to all the other rooms in the home has the smallest area, a “major bathroom remodeling” can be costly; in fact can be compared to renovating a small house.
Upgrading your bathroom appliances as well as knocking down walls are generally the scope of “bathroom remodeling” jobs. You will need important help that will include a designer or architect, an electrician, plumber, carpenter, professional tiler and possibly also a “general contractor” to organize jobs and bring everybody together.
For the superlative bathroom remodeling results, you need to contact a contractor because this won’t be a simple do-it-yourself remodeling project.
Benefits of hiring a contractor
The most notable benefit of obtaining the help of a contractor in your major bathroom remodeling project is acquiring “peace of mind” and having to deal with just one person to impart your ideas to or to blame in case something goes wrong.
A reliable contractor carries with him the knowledge and Skills to supervise and manage everything in the bathroom remodeling process starting from the tearing-out phase up to the installation of the last plumbing piece.
Your contractor coordinates with the plumber, electrician and any other workers needed in your bathroom remodeling project, obtains all essential permits demanded by your city and organizes work schedules in order that no time is wasted.
Design and planning
A collection of architectural and design plans will help not only you but your bathroom remodeling professionals as well visualize the completed project, although any design ideas and preparations may be helpful.
When contemplating major remodeling on your bathroom, the most essential thing to keep in mind is to consider and look into your “bathroom remodeling” project estimate or figures as well as what you imagine is the most attractive bathroom design for you.
Throughout the your bathroom remodeling course, remember to think and look of the remodeling project from all angles such as functionality, overall design, aesthetic appeal, comfort, materials and colors.
While you may avoid crazy designs generally in other rooms of your house, your bathroom can deal with vibrant patterns and colors and whimsical themes. Furthermore, it can be a meticulous depiction of your homes ambience.
Consult a designer for bathroom design suggestions and ideas, let them know of your design preference so they can give you a sketch or you can examine magazines and cut out designs, ideas and photos that correspond or match with what design you have in mind.
Truthfully, the only difference between you and major bathroom remodeling experts is time. If you’ll invest a little more time in reading, you’ll be that much nearer to expert status when it comes to major bathroom remodeling.
Here are basic questions that you should ask yourself to help you design your bathroom:
• What do you want to accomplish?
• Which do you prefer more, sink or counter space?
• Do you need one more shower compartment?
• Would you like to put in a whirlpool or spa setting?
• Do you need lots of cabinets or just open shelves for storage space?
Establishing a realistic budget for your major bathroom remodeling
When determining your bathroom remodeling budget, bear in mind the bathroom design inspiration and ideas you like as well as if they are expensive.
Remember, it is less expensive when you don’t relocate your bathroom’s plumbing fixtures, like sinks or toilets, so then when you have a much smaller budget, incorporating your present bathroom plan into your new bathroom design can in fact, be very economical.
Furthermore, the cost of your bathroom remodeling project will greatly depend on your choice of fixtures and quality of bathroom appliances you would like to have. Some bathtubs, fixtures and even tiles could be expensive because of their brand names.
Considering that you can spend hours in your bathroom, taking care of your many hygiene and grooming needs, it is very important that you give thorough consideration on how you want to use your bathroom room.
Today’s bathroom is no longer just a place for taking a bath, brushing your teeth, etc. It now can a place where you can relax in the tub, light a candle and read a book and just take pleasure in its calming ambience.
Bathrooms need to be just as functional, good looking and comfortable as the other rooms of your home.
Enjoy the excitement and fun of your bathroom remodeling project and take pleasure in the many years of contentment and gratification offered by your finished bathroom project.
Hopefully the sections above have contributed to your understanding of major bathroom remodeling. Share your new understanding about major bathroom remodeling with others. They’ll thank you for it.
[Tags]home improvement,homes,improvement tips,need contractors,major,design,contractors[/Tags]
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When you think about major bathroom remodeling, what do you think of first? Which aspects of major bathroom remodeling are important, which are essential, and which ones can you take or leave? You be the judge.
Although the bathroom, compared to all the other rooms in the home has the smallest area, a “major bathroom remodeling” can be costly; in fact can be compared to renovating a small house.
Upgrading your bathroom appliances as well as knocking down walls are generally the scope of “bathroom remodeling” jobs. You will need important help that will include a designer or architect, an electrician, plumber, carpenter, professional tiler and possibly also a “general contractor” to organize jobs and bring everybody together.
For the superlative bathroom remodeling results, you need to contact a contractor because this won’t be a simple do-it-yourself remodeling project.
Benefits of hiring a contractor
The most notable benefit of obtaining the help of a contractor in your major bathroom remodeling project is acquiring “peace of mind” and having to deal with just one person to impart your ideas to or to blame in case something goes wrong.
A reliable contractor carries with him the knowledge and Skills to supervise and manage everything in the bathroom remodeling process starting from the tearing-out phase up to the installation of the last plumbing piece.
Your contractor coordinates with the plumber, electrician and any other workers needed in your bathroom remodeling project, obtains all essential permits demanded by your city and organizes work schedules in order that no time is wasted.
Design and planning
A collection of architectural and design plans will help not only you but your bathroom remodeling professionals as well visualize the completed project, although any design ideas and preparations may be helpful.
When contemplating major remodeling on your bathroom, the most essential thing to keep in mind is to consider and look into your “bathroom remodeling” project estimate or figures as well as what you imagine is the most attractive bathroom design for you.
Throughout the your bathroom remodeling course, remember to think and look of the remodeling project from all angles such as functionality, overall design, aesthetic appeal, comfort, materials and colors.
While you may avoid crazy designs generally in other rooms of your house, your bathroom can deal with vibrant patterns and colors and whimsical themes. Furthermore, it can be a meticulous depiction of your homes ambience.
Consult a designer for bathroom design suggestions and ideas, let them know of your design preference so they can give you a sketch or you can examine magazines and cut out designs, ideas and photos that correspond or match with what design you have in mind.
Truthfully, the only difference between you and major bathroom remodeling experts is time. If you’ll invest a little more time in reading, you’ll be that much nearer to expert status when it comes to major bathroom remodeling.
Here are basic questions that you should ask yourself to help you design your bathroom:
• What do you want to accomplish?
• Which do you prefer more, sink or counter space?
• Do you need one more shower compartment?
• Would you like to put in a whirlpool or spa setting?
• Do you need lots of cabinets or just open shelves for storage space?
Establishing a realistic budget for your major bathroom remodeling
When determining your bathroom remodeling budget, bear in mind the bathroom design inspiration and ideas you like as well as if they are expensive.
Remember, it is less expensive when you don’t relocate your bathroom’s plumbing fixtures, like sinks or toilets, so then when you have a much smaller budget, incorporating your present bathroom plan into your new bathroom design can in fact, be very economical.
Furthermore, the cost of your bathroom remodeling project will greatly depend on your choice of fixtures and quality of bathroom appliances you would like to have. Some bathtubs, fixtures and even tiles could be expensive because of their brand names.
Considering that you can spend hours in your bathroom, taking care of your many hygiene and grooming needs, it is very important that you give thorough consideration on how you want to use your bathroom room.
Today’s bathroom is no longer just a place for taking a bath, brushing your teeth, etc. It now can a place where you can relax in the tub, light a candle and read a book and just take pleasure in its calming ambience.
Bathrooms need to be just as functional, good looking and comfortable as the other rooms of your home.
Enjoy the excitement and fun of your bathroom remodeling project and take pleasure in the many years of contentment and gratification offered by your finished bathroom project.
Hopefully the sections above have contributed to your understanding of major bathroom remodeling. Share your new understanding about major bathroom remodeling with others. They’ll thank you for it.
[Tags]home improvement,homes,improvement tips,need contractors,major,design,contractors[/Tags]
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The Construction Appraisal - What You Need to Know Before Your Loan Gets Denied
May 28, 2008
Chris Esposito asked:
The appraisal is just as important to your construction loan qualification as your income, assets and credit. The appraisal for a home to be built is even more important than an appraisal for a home that already exists. For a construction loan, the appraiser will do what is called a “plans and specs appraisal,” meaning they will examine the plans and specifications for the home to be built and compare it to existing homes in the immediate area that are similar.
An appraisal is an assessment by a licensed appraiser (an opinion, really) of the value of a particular home at a given time. The appraiser, who is licensed by the state, must follow certain rules regarding how an appraisal is conducted.
They must locate similar homes within a close proximity to your location (usually 1-3 miles) that are on similar size land. This is called finding “comparables,” or “comps.” A “comp” is not a “comp” if the home has not sold on the open market within the last six months. This can be stretched up to a year, but most lenders prefer six month old comps or less.
This means if you are building a 2000 square foot colonial style home on 1 acre, the appraiser must find at least three other roughly 2000 foot (usually within 15% of the size) homes on roughly 1 acre of land. If they cannot do this, there are often problems with establishing value. This could lead to a loan denial or to the lender making adjustments to the value (usually lower).
The best advice is to know the area you are building and not try to build a home that is way out of the ordinary for the area. We often see borrowers who want to build a home that is significantly larger and more expensive than the other homes in the area (called “overbuilding for the area”). They may be perfectly qualified as a borrower, but if the appraiser has problems establishing a legal appraised value, the loan could be denied.
Another issue often arises with large lots. If you find a 15 acre lot in an area of half-acre lots, you may run into problems with the appraisal. Lenders do not want to be stuck owning a property (if you were to default on the loan for some reason) that is out of the ordinary from the rest of the area. They need to be able to sell it quickly and may have trouble doing so if it is not typical for the area.
Here are some other common issues to consider: lot size, type of construction, and location of your intended home.
Most lenders will limit the size of the land on which you can build to 40 acres or less. As mentioned above, there must be comparable lots in the immediate area to justify the larger size. For example, your lender may be able to approve a loan for a home to be built on a 32 acre lot, but there must be other somewhat similar sized lots with somewhat similar sized homes available as comps. If the appraiser cannot find “comps” for this project, the chances are you will be denied the loan no matter how well qualified you are as a borrower.
The type of construction is also an important consideration. This is a common issue with log homes, but it can be problematic with any type of construction that is different than a regular “stick built” home. The appraiser must be able to locate “comps” for the type of construction you are building. This means, if you are building a log home, there must be other log home sales in the immediate area within the last 6 or so months that are similar size and on similar land. See the potential for problems?
Here’s an example from an actual client who wanted to build a log home on land he already owned free and clear. His income, savings and credit were excellent. In all, he was a well qualified borrower. However, he wanted to build a log home, a very nice log home. He said there were several log homes in the immediate area, thinking there would be no trouble with the appraisal.
However, the appraiser reported there were no comps for over 60 miles! How could this be? The appraiser explained that none of the log homes in the immediate area had ever sold, as they were all built by the owners who still lived in them.
What’s the lesson? A comp has to be a SALE of a similar type home, not just another nearby similar house. The second lesson is that many log homes are built as either retirement or vacation homes. The owners build them and never let go of them.
Ironically, this particular client said he could stand on his would-be front porch and see four log homes. But, none of them had sold, meaning they could not be considered comps for the appraisal. Fortunately, in the end, due to his impeccable qualifications and an endless amount of negotiating with the head of the construction lending department, he was able to build his log home without a log home comp. But, don’t count on this happening again.
The other area of concern for appraisals is the location of the property. Your lot will be considered to be either in an urban, suburban or rural setting. This will determine how far away the comps can be. Typically, in an urban setting, comps must be a half mile or less from the subject. This may be stretched to a mile in some cases. For suburban properties, one to three miles is the maximum distance allowed in most cases. For rural properties, the comps should ideally be no more than five to ten miles away.
There are exceptions to these rules, but you should not count on an exception being made. It is best to understand how an appraisal interacts with your loan application and do as much research as you can before you make any financial commitments. Often, if you find a lot and house plan you like, you can hire a local appraiser on your own to just “run comps” for your proposed home. Expect to pay for this service, as appraisers are professionals and should be properly compensated for their time and expertise.
But, this could be the best money you ever spend if there are any questions as to whether a good appraisal can be obtained for your proposed home. It is better to know early instead of spending time and money on plans, deposits, the full appraisal and any other expenses you may incur.
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The appraisal is just as important to your construction loan qualification as your income, assets and credit. The appraisal for a home to be built is even more important than an appraisal for a home that already exists. For a construction loan, the appraiser will do what is called a “plans and specs appraisal,” meaning they will examine the plans and specifications for the home to be built and compare it to existing homes in the immediate area that are similar.
An appraisal is an assessment by a licensed appraiser (an opinion, really) of the value of a particular home at a given time. The appraiser, who is licensed by the state, must follow certain rules regarding how an appraisal is conducted.
They must locate similar homes within a close proximity to your location (usually 1-3 miles) that are on similar size land. This is called finding “comparables,” or “comps.” A “comp” is not a “comp” if the home has not sold on the open market within the last six months. This can be stretched up to a year, but most lenders prefer six month old comps or less.
This means if you are building a 2000 square foot colonial style home on 1 acre, the appraiser must find at least three other roughly 2000 foot (usually within 15% of the size) homes on roughly 1 acre of land. If they cannot do this, there are often problems with establishing value. This could lead to a loan denial or to the lender making adjustments to the value (usually lower).
The best advice is to know the area you are building and not try to build a home that is way out of the ordinary for the area. We often see borrowers who want to build a home that is significantly larger and more expensive than the other homes in the area (called “overbuilding for the area”). They may be perfectly qualified as a borrower, but if the appraiser has problems establishing a legal appraised value, the loan could be denied.
Another issue often arises with large lots. If you find a 15 acre lot in an area of half-acre lots, you may run into problems with the appraisal. Lenders do not want to be stuck owning a property (if you were to default on the loan for some reason) that is out of the ordinary from the rest of the area. They need to be able to sell it quickly and may have trouble doing so if it is not typical for the area.
Here are some other common issues to consider: lot size, type of construction, and location of your intended home.
Most lenders will limit the size of the land on which you can build to 40 acres or less. As mentioned above, there must be comparable lots in the immediate area to justify the larger size. For example, your lender may be able to approve a loan for a home to be built on a 32 acre lot, but there must be other somewhat similar sized lots with somewhat similar sized homes available as comps. If the appraiser cannot find “comps” for this project, the chances are you will be denied the loan no matter how well qualified you are as a borrower.
The type of construction is also an important consideration. This is a common issue with log homes, but it can be problematic with any type of construction that is different than a regular “stick built” home. The appraiser must be able to locate “comps” for the type of construction you are building. This means, if you are building a log home, there must be other log home sales in the immediate area within the last 6 or so months that are similar size and on similar land. See the potential for problems?
Here’s an example from an actual client who wanted to build a log home on land he already owned free and clear. His income, savings and credit were excellent. In all, he was a well qualified borrower. However, he wanted to build a log home, a very nice log home. He said there were several log homes in the immediate area, thinking there would be no trouble with the appraisal.
However, the appraiser reported there were no comps for over 60 miles! How could this be? The appraiser explained that none of the log homes in the immediate area had ever sold, as they were all built by the owners who still lived in them.
What’s the lesson? A comp has to be a SALE of a similar type home, not just another nearby similar house. The second lesson is that many log homes are built as either retirement or vacation homes. The owners build them and never let go of them.
Ironically, this particular client said he could stand on his would-be front porch and see four log homes. But, none of them had sold, meaning they could not be considered comps for the appraisal. Fortunately, in the end, due to his impeccable qualifications and an endless amount of negotiating with the head of the construction lending department, he was able to build his log home without a log home comp. But, don’t count on this happening again.
The other area of concern for appraisals is the location of the property. Your lot will be considered to be either in an urban, suburban or rural setting. This will determine how far away the comps can be. Typically, in an urban setting, comps must be a half mile or less from the subject. This may be stretched to a mile in some cases. For suburban properties, one to three miles is the maximum distance allowed in most cases. For rural properties, the comps should ideally be no more than five to ten miles away.
There are exceptions to these rules, but you should not count on an exception being made. It is best to understand how an appraisal interacts with your loan application and do as much research as you can before you make any financial commitments. Often, if you find a lot and house plan you like, you can hire a local appraiser on your own to just “run comps” for your proposed home. Expect to pay for this service, as appraisers are professionals and should be properly compensated for their time and expertise.
But, this could be the best money you ever spend if there are any questions as to whether a good appraisal can be obtained for your proposed home. It is better to know early instead of spending time and money on plans, deposits, the full appraisal and any other expenses you may incur.
Contractor Listings in LA
What You Can Expect From A Plumbing Course
May 28, 2008
James Copper asked:
Courses in plumbing are not just about the plumbing theory and its general applications. There are many aspects of plumbing and a number of specializations possible. Some of these courses are designed for those who just want to pick up the basics, while others are geared to those who want to be the best in their field and make a profession of their plumbing Skills. There are a variety of training options possible as well. We looked at one month-long plumbing course taught in the United Kingdom.
After the first week of general plumbing history, overviews and general functions such as repair and maintenance of pipes and fixtures, week two started delving more into the specific elements of plumbing. One of the courses in plumbing that provides a good grounding in the plumbing trade, this program introduces plumbing interns to the various service options they could consider.
The second week of this series of courses in plumbing starts off with a study of a homes supply of cold water. It teaches the ins and outs of various types of cold water delivery systems that might be found in the typical residence. Next is the study of hot water and its supply and delivery. The focus here is on feed cisterns, boilers and the other ways in which the homes hot water can be heated including renewable alternative resources. A follow-up chapter brings the study of water supply together, looking at the delivery and maintenance of hot and cold water, the study of valves and water taps, the requirements of each systems installation and the procedures for testing its workability and determining its repair and non-function issues.
Next in the list of courses in plumbing is the one on central heat in residences. Building regulations are an important part of this chapters lessons, as well as the components of central heat unit, other heat emitters and how to test them and determine they are in safe working order.
That then would conclude the second of four weeks of courses in plumbing.
The third week begins with a look at plumbing entrepreneurship. Here youll learn about self-employment taxes, marketing yourself and your new firm and the basics of small business accounting and bookkeeping. Next youll learn how to start your new plumbing business and how to successfully run it. Youll learn more about marketing, how to offer work quotes to potential customers, how to provide the best in customer service and how to determine when is the time to expand. Once you know you should expand, youll need to know how. This course will help you get started with that.
The next part of your courses in plumbing has to do with septic systems above ground. Youll learn about toilets, traps, gutters, and their installation, troubleshooting, testing and repair. Electrical system lessons follow. These include talk about electrical and plumbing safety, the various types of cable, the installation of major electrical appliances, and an understanding of how to test and remove them.
Final courses in plumbing are advanced water systems, tiling, plastering and some hands-on training in all you have learned from these courses in plumbing.
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Courses in plumbing are not just about the plumbing theory and its general applications. There are many aspects of plumbing and a number of specializations possible. Some of these courses are designed for those who just want to pick up the basics, while others are geared to those who want to be the best in their field and make a profession of their plumbing Skills. There are a variety of training options possible as well. We looked at one month-long plumbing course taught in the United Kingdom.
After the first week of general plumbing history, overviews and general functions such as repair and maintenance of pipes and fixtures, week two started delving more into the specific elements of plumbing. One of the courses in plumbing that provides a good grounding in the plumbing trade, this program introduces plumbing interns to the various service options they could consider.
The second week of this series of courses in plumbing starts off with a study of a homes supply of cold water. It teaches the ins and outs of various types of cold water delivery systems that might be found in the typical residence. Next is the study of hot water and its supply and delivery. The focus here is on feed cisterns, boilers and the other ways in which the homes hot water can be heated including renewable alternative resources. A follow-up chapter brings the study of water supply together, looking at the delivery and maintenance of hot and cold water, the study of valves and water taps, the requirements of each systems installation and the procedures for testing its workability and determining its repair and non-function issues.
Next in the list of courses in plumbing is the one on central heat in residences. Building regulations are an important part of this chapters lessons, as well as the components of central heat unit, other heat emitters and how to test them and determine they are in safe working order.
That then would conclude the second of four weeks of courses in plumbing.
The third week begins with a look at plumbing entrepreneurship. Here youll learn about self-employment taxes, marketing yourself and your new firm and the basics of small business accounting and bookkeeping. Next youll learn how to start your new plumbing business and how to successfully run it. Youll learn more about marketing, how to offer work quotes to potential customers, how to provide the best in customer service and how to determine when is the time to expand. Once you know you should expand, youll need to know how. This course will help you get started with that.
The next part of your courses in plumbing has to do with septic systems above ground. Youll learn about toilets, traps, gutters, and their installation, troubleshooting, testing and repair. Electrical system lessons follow. These include talk about electrical and plumbing safety, the various types of cable, the installation of major electrical appliances, and an understanding of how to test and remove them.
Final courses in plumbing are advanced water systems, tiling, plastering and some hands-on training in all you have learned from these courses in plumbing.
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Truth in Housing – Follow the Rules
May 28, 2008
Blake Vanderhyde asked:
If you are going to buy or sell a property, one thing you should familiarize yourself with are the rules in your city or municipality that govern inspections. Many cities require mandatory inspections in order to maintain quality control of the city’s housing stock and to provide accurate information regarding the condition of property. This should not be confused with the voluntary private home inspection that a buyer would typically have performed on a property before he or she decided to purchase it. While it is almost always a good idea to perform private home inspections, they are not always mandated by law. If you are uncertain about whether your particular city has such an inspection requirement, call the planning department or check the city’s website.
Case Study: John Doe wants to put his house up for sale in Minneapolis, Minnesota. He knows that his house is in disrepair and needs some work, but he is short on cash. He wants to know what must be fixed before he puts the property on the market.
If you are you are going to buy or sell a property in Minneapolis, Minnesota you must get acquainted with the Minneapolis Truth in Housing Ordinance. Pursuant to the ordinance, before you can sell your property in Minneapolis, you must hire an evaluator that is licensed by the City (as of this writing, July 3, 2008). This evaluator will prepare a report regarding the condition of the house. One copy of the report is given to the seller and another one is filed with City within five business days.
If the evaluator determines that no repairs or replacements are required, then a certificate of approval is issued. The seller should keep a copy of this certificate so he or she can present it at the closing.
On the other hand, if some repairs or replacements are required, then a notification letter is sent to the seller. The seller will then need to make the repairs and get a re-inspection and approval by the City inspector or private evaluator. The Truth in Sales and Housing Department will then issue a certificate of approval, which should be presented at the closing.
The seller must keep a copy of this report on the property so all potential buyers can have access to the information. This report is only valid for two years, or for one sales transaction.
Does the seller always have to make the repairs? No. The buyer and seller are free to negotiate who takes responsibility. The buyer can assume responsibility for the repairs and let the seller off the hook. In order to this, the buyer must sign an acknowledgement of responsibility, and submit this to the Truth in Housing Department. The buyer then has 90 days after the closing to make the requisite repairs. After the repairs are completed, the buyer must get a re-inspection and approval by the City inspector or private evaluator to make sure everything was done properly. The Truth in Sales of Housing Department will then issue a certificate of completion.
John Doe is almost ready to get started, but before he hires a Truth in Housing Evaluator he wants some examples of common repairs so he can start to prepare his budget.
According to the City of Minneapolis website, examples of common repairs include (but are not limited to): Electrical System - exposed wires such as open junction boxes that have the cover missing AND have wires that are uncapped, not taped, AND are out of the box so that someone can get shocked. Permit is needed to install a fixture. No permit needed to tape or cap wires, put wires back into box, and cover box. Smoking Detectors – missing or inoperative smoke detectors. No permit need to install battery-operated smoke detectors.
How about things that are not covered by Truth in Housing? According to the City of Minneapolis website, examples of Common Items not covered by Truth in Housing – Roofs (unless structural), missing storm or prime windows or doors, missing window sashes, holes in walls or ceilings, chipped or peeling paint, torn carpet or broken tile, plumbing “s” traps, except in basement, galvanized plumbing system, as long as it is not tampered with or overfused, lack of laundry facilities, or lack of basement floor drain, basement is not full (crawl spaces are OK), toxic substances such as asbestos, lead-based paint, formaldehyde, radon, non-essential systems such as woodstoves, fireplaces, or air conditioners, basement plumbing fixtures that are not vented, such as basement showers.
Remember, every city and municipality is different. Moreover, rules are always subject to change. Just because something is not covered by Truth in Housing, does not mean it doesn’t require attention or repair. That is why it is important to call your city planning department or visit the city website to make sure that you have up to date information, and also consider a private inspection. Much of the information discussed in this article comes from the City of Minneapolis website. This article should not be considered legal advice.
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If you are going to buy or sell a property, one thing you should familiarize yourself with are the rules in your city or municipality that govern inspections. Many cities require mandatory inspections in order to maintain quality control of the city’s housing stock and to provide accurate information regarding the condition of property. This should not be confused with the voluntary private home inspection that a buyer would typically have performed on a property before he or she decided to purchase it. While it is almost always a good idea to perform private home inspections, they are not always mandated by law. If you are uncertain about whether your particular city has such an inspection requirement, call the planning department or check the city’s website.
Case Study: John Doe wants to put his house up for sale in Minneapolis, Minnesota. He knows that his house is in disrepair and needs some work, but he is short on cash. He wants to know what must be fixed before he puts the property on the market.
If you are you are going to buy or sell a property in Minneapolis, Minnesota you must get acquainted with the Minneapolis Truth in Housing Ordinance. Pursuant to the ordinance, before you can sell your property in Minneapolis, you must hire an evaluator that is licensed by the City (as of this writing, July 3, 2008). This evaluator will prepare a report regarding the condition of the house. One copy of the report is given to the seller and another one is filed with City within five business days.
If the evaluator determines that no repairs or replacements are required, then a certificate of approval is issued. The seller should keep a copy of this certificate so he or she can present it at the closing.
On the other hand, if some repairs or replacements are required, then a notification letter is sent to the seller. The seller will then need to make the repairs and get a re-inspection and approval by the City inspector or private evaluator. The Truth in Sales and Housing Department will then issue a certificate of approval, which should be presented at the closing.
The seller must keep a copy of this report on the property so all potential buyers can have access to the information. This report is only valid for two years, or for one sales transaction.
Does the seller always have to make the repairs? No. The buyer and seller are free to negotiate who takes responsibility. The buyer can assume responsibility for the repairs and let the seller off the hook. In order to this, the buyer must sign an acknowledgement of responsibility, and submit this to the Truth in Housing Department. The buyer then has 90 days after the closing to make the requisite repairs. After the repairs are completed, the buyer must get a re-inspection and approval by the City inspector or private evaluator to make sure everything was done properly. The Truth in Sales of Housing Department will then issue a certificate of completion.
John Doe is almost ready to get started, but before he hires a Truth in Housing Evaluator he wants some examples of common repairs so he can start to prepare his budget.
According to the City of Minneapolis website, examples of common repairs include (but are not limited to): Electrical System - exposed wires such as open junction boxes that have the cover missing AND have wires that are uncapped, not taped, AND are out of the box so that someone can get shocked. Permit is needed to install a fixture. No permit needed to tape or cap wires, put wires back into box, and cover box. Smoking Detectors – missing or inoperative smoke detectors. No permit need to install battery-operated smoke detectors.
How about things that are not covered by Truth in Housing? According to the City of Minneapolis website, examples of Common Items not covered by Truth in Housing – Roofs (unless structural), missing storm or prime windows or doors, missing window sashes, holes in walls or ceilings, chipped or peeling paint, torn carpet or broken tile, plumbing “s” traps, except in basement, galvanized plumbing system, as long as it is not tampered with or overfused, lack of laundry facilities, or lack of basement floor drain, basement is not full (crawl spaces are OK), toxic substances such as asbestos, lead-based paint, formaldehyde, radon, non-essential systems such as woodstoves, fireplaces, or air conditioners, basement plumbing fixtures that are not vented, such as basement showers.
Remember, every city and municipality is different. Moreover, rules are always subject to change. Just because something is not covered by Truth in Housing, does not mean it doesn’t require attention or repair. That is why it is important to call your city planning department or visit the city website to make sure that you have up to date information, and also consider a private inspection. Much of the information discussed in this article comes from the City of Minneapolis website. This article should not be considered legal advice.
Renewable Energy Videos
Commercial Finance- Hard Money
May 27, 2008
Gregg Elberg asked:
The Merriam- Webster Online Dictionary defines hard as:
“1 a: not easily penetrated: not easily yielding to pressure b of cheese: not capable of being spread: very firm
2 a: of liquor (1): having a harsh or acid taste (2): strongly alcoholic b: characterized by the presence of salts (as of calcium or magnesium) that prevents lathering with soap
3 a: of or relating to radiation of relatively high penetrating power: having high energy b: having or producing relatively great photographic contrast
4 a: metallic as distinct from paper b: of currency: convertible into gold: stable in value c: usable as currency d: of currency: readily acceptable in international trade e: being high and firm
5 a: firmly and closely twisted b: having a smooth close napless finish
6 a: physically fit b: resistant to stress or disease c: free of weakness or defects
7 a (1): firm definite (2): not speculative or conjectural: factual (3): important or informative rather than sensational or entertaining b: close searching c: free from sentimentality or illusion: realistic d: lacking in responsiveness: obdurate unfeeling
8 a (1): difficult to bear or endure (2): oppressive inequitable b (1): lacking consideration, compassion, or gentleness : callous (2): incorrigible tough c (1): harsh, severe, or offensive in tendency or effect (2): resentful (3): strict unrelenting d: inclement e (1): intense in force, manner, or degree (2): demanding the exertion of energy : calling for stamina and endurance (3): performing or carrying on with great energy, intensity, or persistence f: most unyielding or thoroughgoing
9 a: characterized by sharp or harsh outline, rigid execution, and stiff drawing b: sharply defined: stark c: lacking in shading, delicacy, or resonance d: sounding as in arcing and geese respectively —used of c and g e: suggestive of toughness or insensitivity
10 a (1): difficult to accomplish or resolve: troublesome (2): difficult to comprehend or explain b: having difficulty in doing something c: difficult to magnetize or demagnetize
11: being at once addictive and gravely detrimental to health
12: resistant to biodegradation
13: being, schooled in, or using the methods of the natural sciences and especially of the physical sciences
14: of money: contributed (as by individuals or political action committees) directly to a particular candidate or campaign
Synonyms: hard difficult arduous mean demanding great exertion or effort. Hard implies the opposite of all that is easy . Difficult implies the presence of obstacles to be surmounted or puzzles to be resolved and suggests the need of Skill, patience, or courage . Arduous stresses the need of laborious and persevering exertion .”
As used in this article, hard money is intended to convey the idea that because of the current economic conditions, many financing needs will be more difficult to accomplish. They will require great exertion and effort to overcome the economic obstacles of the current economy. Compared to 2006 and 2007, periods of relatively easy money, to obtain financing today you will have to have firm, definite facts to support your financing needs. And the cost of money will be more difficult to bear. Hard money is harder to find, harder to obtain and harder to repay. Nevertheless, hard money may be an economic necessity as a means to an end to grow a business or complete a real estate transaction.
Why is 2008 a time of hard money? This is a difficult question to answer. If you ask 3 experts you probably will get three different answers. It may be the economic equivalent of The Perfect Storm- a True Story of Men against the Sea. The phrase perfect storm refers to the simultaneous occurrence of events which, taken individually, probably would be far less powerful than the result of their rare combination. These occurrences are rare by their very nature, so that even a slight change in any one event contributing to the perfect storm would lessen its overall impact. The stock market crash of 1929 and following depression exemplifies a perfect storm of economic consequence.
What are these events today? 1) The Mortgage Melt-down. Major financial institutions in the United States are incurring billions of dollars in losses due to the loss in valuation of their investments in mortgage securities. The consequence for borrowers is that these institutions are less inclined to take risks when loaning money for fear of additional losses. And their regulators are demanding that regulated lenders raise their credit standards for borrowers to qualify for a loan. 2) The devaluation of the American dollar versus other world currencies. The U.S. government is spending ginormous amounts of money in excess of what it collect in revenue due to the political compulsion to spend taxpayers’ money, the war in Iraq, Hurricane Katrina (and other natural disasters) and the war on terrorism. This makes our currency less valuable. It makes importing to the U.S. more expensive. The American people have less money to spend on goods and services, and their money buys less than it did a year ago because prices of necessities such as gasoline are higher. 3) The current tendency of Federal and State governments to reduce funding for social services, health services and education because of inadequate revenues; this hurts individuals and businesses who have less money to spend on products and services which creates additional drags on our economy. 4) The diminishing value of residential real estate all across the United States. This is related to the mortgage meltdown and the fact that many people incurred debts that they cannot repay. The real causes of these events are complicated and beyond the scope of this article. Suffice it to say that these are hard times and hard times create needs for hard money loans.
What exactly is hard money? Here are seven examples:
1) A commercial real estate loan where the borrower receives funds based on the value of the property, usually 50% or less, at an interest rate higher than a bank would charge. This is the most commonly understood type of hard money. In this financing, neither the income from the property or the borrower demonstrably supports the repayment of the loan.
2) A real estate loan to buy a residential property where the borrower cannot prove their income. This may be accomplished with financing from a seller, the only party willing to take the risk of non-payment.
3) A small junior lien on income producing commercial real estate where the first lien is very large. For example, a million dollar second lien behind a ten million dollar first lien. Most lenders simply do not want to consider a loan of this type because of the potential liability for repayment of the first lien. It is ten times the risk of the secondary loan.
4) Most loans to people with less than excellent credit. Many loans are based on credit scoring. If you do not have a credit score that is high enough for the lender’s requirement, you simply do not get their loan and you may or may not be able to find a hard money loan to accomplish your objective.
5) Accounts receivable financing to construction contractors, medical providers and sellers of agricultural products. Most factors do not offer to these sectors of the economy because of the risks and complexities that are involved.
6) Purchase order financing for items with gross margins less than twenty percent. The twenty percent margin is a benchmark for sufficient profitability in a transaction to pay all financing costs and create profits for the business after all costs are paid. During hard economic times margins are squeezed. It is a vicious cycle.
7) Loans to businesses that are particularly negatively affected by the current economy. For instance, a loan to build a new lumberyard is impacted by the downturn in new real estate construction and a lower need for lumber. Most banks would simply decline to consider such a loan. The same is true for developers seeking to build new housing tracts or office building developments. This is not a good time to try to start a new mortgage brokerage company; although it may be a good time to be a hard money lender provided that you are very, very careful in assessing your transactional risks.
What do all of these situations have in common? In times of easy money these situations would be less costly to finance and more likely to receive funding. Today, the lender’s answer to your request for funding is more likely to be a polite but strong “no way”. Many lenders have effectively (if not actually) shut their doors. Many lenders will simply decline to lend on hotels/motels, gas stations, owner/user properties, properties with any environmental issues. Borrowers who do not have FICO credit scores above 680, with substantial net worth and income will find it is very difficult to obtain many types of loans. Fortunately, the door for accounts receivable financing is still wide open.
The bottom line: Hard times in our economy will tend to force more individuals and businesses to borrow hard money- if they are able to get any money at all. Commercial financing with hard money will tend to grow as traditional sources of financing from banks and institutional lenders simply will not be available.
Copyright © 2008 Gregg Financial Services
www.greggfinancialservices.com
Renewable Energy Videos
The Merriam- Webster Online Dictionary defines hard as:
“1 a: not easily penetrated: not easily yielding to pressure b of cheese: not capable of being spread: very firm
2 a: of liquor (1): having a harsh or acid taste (2): strongly alcoholic b: characterized by the presence of salts (as of calcium or magnesium) that prevents lathering with soap
3 a: of or relating to radiation of relatively high penetrating power: having high energy b: having or producing relatively great photographic contrast
4 a: metallic as distinct from paper b: of currency: convertible into gold: stable in value c: usable as currency d: of currency: readily acceptable in international trade e: being high and firm
5 a: firmly and closely twisted b: having a smooth close napless finish
6 a: physically fit b: resistant to stress or disease c: free of weakness or defects
7 a (1): firm definite (2): not speculative or conjectural: factual (3): important or informative rather than sensational or entertaining b: close searching c: free from sentimentality or illusion: realistic d: lacking in responsiveness: obdurate unfeeling
8 a (1): difficult to bear or endure (2): oppressive inequitable b (1): lacking consideration, compassion, or gentleness : callous (2): incorrigible tough c (1): harsh, severe, or offensive in tendency or effect (2): resentful (3): strict unrelenting d: inclement e (1): intense in force, manner, or degree (2): demanding the exertion of energy : calling for stamina and endurance (3): performing or carrying on with great energy, intensity, or persistence f: most unyielding or thoroughgoing
9 a: characterized by sharp or harsh outline, rigid execution, and stiff drawing b: sharply defined: stark c: lacking in shading, delicacy, or resonance d: sounding as in arcing and geese respectively —used of c and g e: suggestive of toughness or insensitivity
10 a (1): difficult to accomplish or resolve: troublesome (2): difficult to comprehend or explain b: having difficulty in doing something c: difficult to magnetize or demagnetize
11: being at once addictive and gravely detrimental to health
12: resistant to biodegradation
13: being, schooled in, or using the methods of the natural sciences and especially of the physical sciences
14: of money: contributed (as by individuals or political action committees) directly to a particular candidate or campaign
Synonyms: hard difficult arduous mean demanding great exertion or effort. Hard implies the opposite of all that is easy . Difficult implies the presence of obstacles to be surmounted or puzzles to be resolved and suggests the need of Skill, patience, or courage . Arduous stresses the need of laborious and persevering exertion .”
As used in this article, hard money is intended to convey the idea that because of the current economic conditions, many financing needs will be more difficult to accomplish. They will require great exertion and effort to overcome the economic obstacles of the current economy. Compared to 2006 and 2007, periods of relatively easy money, to obtain financing today you will have to have firm, definite facts to support your financing needs. And the cost of money will be more difficult to bear. Hard money is harder to find, harder to obtain and harder to repay. Nevertheless, hard money may be an economic necessity as a means to an end to grow a business or complete a real estate transaction.
Why is 2008 a time of hard money? This is a difficult question to answer. If you ask 3 experts you probably will get three different answers. It may be the economic equivalent of The Perfect Storm- a True Story of Men against the Sea. The phrase perfect storm refers to the simultaneous occurrence of events which, taken individually, probably would be far less powerful than the result of their rare combination. These occurrences are rare by their very nature, so that even a slight change in any one event contributing to the perfect storm would lessen its overall impact. The stock market crash of 1929 and following depression exemplifies a perfect storm of economic consequence.
What are these events today? 1) The Mortgage Melt-down. Major financial institutions in the United States are incurring billions of dollars in losses due to the loss in valuation of their investments in mortgage securities. The consequence for borrowers is that these institutions are less inclined to take risks when loaning money for fear of additional losses. And their regulators are demanding that regulated lenders raise their credit standards for borrowers to qualify for a loan. 2) The devaluation of the American dollar versus other world currencies. The U.S. government is spending ginormous amounts of money in excess of what it collect in revenue due to the political compulsion to spend taxpayers’ money, the war in Iraq, Hurricane Katrina (and other natural disasters) and the war on terrorism. This makes our currency less valuable. It makes importing to the U.S. more expensive. The American people have less money to spend on goods and services, and their money buys less than it did a year ago because prices of necessities such as gasoline are higher. 3) The current tendency of Federal and State governments to reduce funding for social services, health services and education because of inadequate revenues; this hurts individuals and businesses who have less money to spend on products and services which creates additional drags on our economy. 4) The diminishing value of residential real estate all across the United States. This is related to the mortgage meltdown and the fact that many people incurred debts that they cannot repay. The real causes of these events are complicated and beyond the scope of this article. Suffice it to say that these are hard times and hard times create needs for hard money loans.
What exactly is hard money? Here are seven examples:
1) A commercial real estate loan where the borrower receives funds based on the value of the property, usually 50% or less, at an interest rate higher than a bank would charge. This is the most commonly understood type of hard money. In this financing, neither the income from the property or the borrower demonstrably supports the repayment of the loan.
2) A real estate loan to buy a residential property where the borrower cannot prove their income. This may be accomplished with financing from a seller, the only party willing to take the risk of non-payment.
3) A small junior lien on income producing commercial real estate where the first lien is very large. For example, a million dollar second lien behind a ten million dollar first lien. Most lenders simply do not want to consider a loan of this type because of the potential liability for repayment of the first lien. It is ten times the risk of the secondary loan.
4) Most loans to people with less than excellent credit. Many loans are based on credit scoring. If you do not have a credit score that is high enough for the lender’s requirement, you simply do not get their loan and you may or may not be able to find a hard money loan to accomplish your objective.
5) Accounts receivable financing to construction contractors, medical providers and sellers of agricultural products. Most factors do not offer to these sectors of the economy because of the risks and complexities that are involved.
6) Purchase order financing for items with gross margins less than twenty percent. The twenty percent margin is a benchmark for sufficient profitability in a transaction to pay all financing costs and create profits for the business after all costs are paid. During hard economic times margins are squeezed. It is a vicious cycle.
7) Loans to businesses that are particularly negatively affected by the current economy. For instance, a loan to build a new lumberyard is impacted by the downturn in new real estate construction and a lower need for lumber. Most banks would simply decline to consider such a loan. The same is true for developers seeking to build new housing tracts or office building developments. This is not a good time to try to start a new mortgage brokerage company; although it may be a good time to be a hard money lender provided that you are very, very careful in assessing your transactional risks.
What do all of these situations have in common? In times of easy money these situations would be less costly to finance and more likely to receive funding. Today, the lender’s answer to your request for funding is more likely to be a polite but strong “no way”. Many lenders have effectively (if not actually) shut their doors. Many lenders will simply decline to lend on hotels/motels, gas stations, owner/user properties, properties with any environmental issues. Borrowers who do not have FICO credit scores above 680, with substantial net worth and income will find it is very difficult to obtain many types of loans. Fortunately, the door for accounts receivable financing is still wide open.
The bottom line: Hard times in our economy will tend to force more individuals and businesses to borrow hard money- if they are able to get any money at all. Commercial financing with hard money will tend to grow as traditional sources of financing from banks and institutional lenders simply will not be available.
Copyright © 2008 Gregg Financial Services
www.greggfinancialservices.com
Renewable Energy Videos
Five Reasons Homeowners Spend Too Much When They Remodel
May 27, 2008
Dan Fritschen asked:
Although there are many things that can go wrong during a home remodeling project, spending too much doesn’t need to be one of them. At www.remodelormove.com, we hear far too many stories from people who have ended up spending far more than they wanted to spend on a remodel. This doesn’t have to be the case. In fact, there are many things homeowners can do to control the cost of their remodeling projects.
Before anyone begins a home remodeling project, I encourage them to think very carefully about protecting themselves from the top five reasons costs get out of hand.
1. Contractor relationship and the remodeling contract.
Many homeowners find costs spiraling when they remodel because they either have not developed a good working relationship with their contractor or because they don’t communicate with the contractor effectively. Poor communication generally results in a weak contract.
Homeowners must be able to communicate with the contractor — before a contract is written — to clarify what they do or do not want done. There needs to be clear agreement, reflected in the contract, about the extent of the work, the quality of workmanship expected, the quality of the materials use, and other specific details of the remodeling design. All of these details should be spelled out in the contract.
When this doesn’t happen, most homeowners find themselves making decisions and choices that cost extra either in labor or materials. In some cases, poor communication and failure to understand expectations can result in disaster.
2. Poor Planning.
Without careful planning, many homeowners end up spending far more than necessary on many materials, fixtures, etc. They also fail to schedule their projects at times when they can save on some of the associated costs. For example,
* Many people just don’t understand that many contractors charge lower rates (by as much as 5 7%) for work during their slow time.
* Workers are more productive and efficient in cooler weather than they are in the heat of summer.
* Shop for materials and fixtures far enough ahead to be able to benefit from shopping sales.
* Avoiding late changes and upgrades is also part of planning. Changes in the design, the materials, or the installation of items after purchases have been made and work has begun are more costly than most people realize. There will be additional labor costs and materials costs to accommodate each change.
* Avoid upgrades. They seem small at the time the decision is made, but they add up to significant additional cost very quickly.
3. Budgeting and Estimates.
Unfortunately, too many homeowners start with a remodeling contract instead of a budget. The first thing homeowners should do is create a budget for the remodeling project. The budget should reflect what they already know about the cost of materials, tools, fixtures, etc. I usually recommend using a planner to help with itemizing costs and related expenses and to keep track of all the information and estimates homeowners gather during the planning stage of their project. I even wrote one to help people with these issues (www.remodelingorganizer.com).
People need to remember that different contractors quote in different ways. They need to gather as many quotes and estimates as possible before they decide which contractor to hire. At the very minimum, one should compare at least five estimates; three is not enough. And try to get at least two estimates from different “types” of contractors — large contractors with lots of employees, and small companies with few if any employees.
Creating the budget first, helps homeowners select designs and materials that will result in the quality they want at a price they can afford.
4. Comparison Shopping.
Most homeowners are accustomed to shopping for deals on most large purchases, such as cars, boats, etc. But when it comes to a remodeling project, many seem to think there are no deals to be found. Many homeowners enter into agreements with contractors to have the materials purchased by the contractor without regard to cost. Many other homeowners assume that the price of all materials will be the same everywhere. When people shop around and compare prices, they can save a bundle on materials, fixtures, tools, etc.
5. Pitch in to Save.
Lack of experience or Skill leads many homeowners to conclude that they need to turn a project over to their contractor and just get out of the way. While this is true for some homeowners, for others doing part of the work can be fun and can help keep a project under budget. Painting, demolition, tiling, electrical, clean up are just a few of the projects homeowners can undertake to better manage the cost of their remodel.
I am convinced that if every homeowner considering a remodeling project would plan, budget, shop, pitch in, and be sure they are communicating clearly and effectively with their contractor, most remodeling projects could be completed within their budgets.
Renewable Energy Videos
Although there are many things that can go wrong during a home remodeling project, spending too much doesn’t need to be one of them. At www.remodelormove.com, we hear far too many stories from people who have ended up spending far more than they wanted to spend on a remodel. This doesn’t have to be the case. In fact, there are many things homeowners can do to control the cost of their remodeling projects.
Before anyone begins a home remodeling project, I encourage them to think very carefully about protecting themselves from the top five reasons costs get out of hand.
1. Contractor relationship and the remodeling contract.
Many homeowners find costs spiraling when they remodel because they either have not developed a good working relationship with their contractor or because they don’t communicate with the contractor effectively. Poor communication generally results in a weak contract.
Homeowners must be able to communicate with the contractor — before a contract is written — to clarify what they do or do not want done. There needs to be clear agreement, reflected in the contract, about the extent of the work, the quality of workmanship expected, the quality of the materials use, and other specific details of the remodeling design. All of these details should be spelled out in the contract.
When this doesn’t happen, most homeowners find themselves making decisions and choices that cost extra either in labor or materials. In some cases, poor communication and failure to understand expectations can result in disaster.
2. Poor Planning.
Without careful planning, many homeowners end up spending far more than necessary on many materials, fixtures, etc. They also fail to schedule their projects at times when they can save on some of the associated costs. For example,
* Many people just don’t understand that many contractors charge lower rates (by as much as 5 7%) for work during their slow time.
* Workers are more productive and efficient in cooler weather than they are in the heat of summer.
* Shop for materials and fixtures far enough ahead to be able to benefit from shopping sales.
* Avoiding late changes and upgrades is also part of planning. Changes in the design, the materials, or the installation of items after purchases have been made and work has begun are more costly than most people realize. There will be additional labor costs and materials costs to accommodate each change.
* Avoid upgrades. They seem small at the time the decision is made, but they add up to significant additional cost very quickly.
3. Budgeting and Estimates.
Unfortunately, too many homeowners start with a remodeling contract instead of a budget. The first thing homeowners should do is create a budget for the remodeling project. The budget should reflect what they already know about the cost of materials, tools, fixtures, etc. I usually recommend using a planner to help with itemizing costs and related expenses and to keep track of all the information and estimates homeowners gather during the planning stage of their project. I even wrote one to help people with these issues (www.remodelingorganizer.com).
People need to remember that different contractors quote in different ways. They need to gather as many quotes and estimates as possible before they decide which contractor to hire. At the very minimum, one should compare at least five estimates; three is not enough. And try to get at least two estimates from different “types” of contractors — large contractors with lots of employees, and small companies with few if any employees.
Creating the budget first, helps homeowners select designs and materials that will result in the quality they want at a price they can afford.
4. Comparison Shopping.
Most homeowners are accustomed to shopping for deals on most large purchases, such as cars, boats, etc. But when it comes to a remodeling project, many seem to think there are no deals to be found. Many homeowners enter into agreements with contractors to have the materials purchased by the contractor without regard to cost. Many other homeowners assume that the price of all materials will be the same everywhere. When people shop around and compare prices, they can save a bundle on materials, fixtures, tools, etc.
5. Pitch in to Save.
Lack of experience or Skill leads many homeowners to conclude that they need to turn a project over to their contractor and just get out of the way. While this is true for some homeowners, for others doing part of the work can be fun and can help keep a project under budget. Painting, demolition, tiling, electrical, clean up are just a few of the projects homeowners can undertake to better manage the cost of their remodel.
I am convinced that if every homeowner considering a remodeling project would plan, budget, shop, pitch in, and be sure they are communicating clearly and effectively with their contractor, most remodeling projects could be completed within their budgets.
Renewable Energy Videos
The Ultimate DIY Project: Owner Builder Construction
May 26, 2008
Chris Esposito asked:
If you enjoy working around the home and doing various DIY projects, then maybe you’re ready for the Holy Grail of DIY - building your own home as an owner-builder. By eliminating the costs of a general contractor’s overhead, you will save tens of thousands of dollars on your next home. And it’s not as labor intensive as you might think.
Being an owner builder simply means you are overseeing the construction of your home without hiring a licensed builder. By eliminating the builder, you eliminate the builder’s profit, which translates to tens of thousands of dollars you get to keep for yourself.
For many DIY lovers, being an owner builder is a chance to put their Skills to good use. When you act as your own general contractor, you can do as much of the work as you wish. There are many examples of owner builders who do the majority of the labor themselves, from framing all the way through to landscaping.
However, many owner builders contract out the bulk of the labor and focus on doing only the projects that they are comfortable with, such as hanging drywall or painting. Every bit of labor that you do yourself becomes extra sweat equity that you build into your home.
Once the house is built, it’s worth whatever a potential buyer is willing to pay for it. Therefore, cutting the costs of construction by being an owner-builder means your new home will be worth much more than you spend to build it.
But, don’t worry if you feel you’re not ready (or willing) to take on an entire construction project on your own. Being an owner builder is more about project management than it is about actual physical labor. In fact, plenty of owner builders never lift a hammer.
Even without doing any of the labor yourself, there is plenty of sweat equity to be made, because you will cut out the costs of the builder. Indeed, a lot of people don’t realize that their builder never actually does any labor himself. Instead, he typically manages the sub-contractors who do all the actual physical construction.
So, if you feel you have the management Skills to oversee the project, then being an owner builder can still be very profitable.
Beyond having to understand the planning and project management involved in construction, a successful owner builder also understands the financing that is needed.
It’s fair to claim that most people who build a home do not have the cash on hand to complete the project without financing some (or all) of the construction. The trick is understanding how being an owner builder affects your chances for getting approved for a construction loan.
With the current belt-tightening by the mortgage industry, construction loans are getting harder to find, even if you are willing to hire and pay a fully licensed general contractor. As you might imagine, securing financing for a construction loan that will allow you to be an owner builder is even tougher. The good news, though, is that there are programs still available - you just need to understand some of the key points about the financing that may affect your ability to build your dream home.
First, it’s important to realize that the costs of the financing will typically be slightly higher than the costs of a regular construction loan. Step back and look at the big picture. If you feel you would be a successful owner builder, is it worth it to pay slightly more for the financing for the opportunity to save tens of thousands of dollars on your construction costs?
Owner builder construction loans are a specialty product that represent more work and more risk to the lender. On the other hand, they also represent a greater opportunity for you, the borrower, to save a ton of money. It should be a fair trade all around.
The second important thing to realize is that owner builder loans will typically have stricter requirements than a simple purchase or refinance loan. These requirements may mean you have to qualify based on stricter credit score guidelines or tougher debt-to-income ratios.
For example, if a borrower’s credit score is below 700, it is pretty common to require that borrower have a larger spread between the total construction line of credit and the appraised value of the future home. Sometimes, for the borrower with the lower credit score, this might require a down payment on the construction loan. But, that doesn’t mean the deal can’t be done. It’s just important to understand the financing will be different than the simple purchase loans that you may be accustomed to.
The third important point to recognize is that owner builder construction loans will always be designed to protect you and ensure there is enough money available in your construction loan (i.e., line of credit) to complete the project. Nobody, meaning neither the bank nor you, wants an unfinished home. So, it is pretty common for owner builder loans to require that you qualify for extra amounts of money in your construction line of credit on top of your land and budget numbers.
For instance, you may have a small pot of money wrapped into your loan as a contingency fund in case you slightly under budgeted. It’s a protective feature to make sure you don’t run out of money during construction and end up with a home without a roof. However, your permanent loan should only include the money that you actually use during construction. So, any extra funds or any extra budget money that you don’t spend during construction won’t count against you.
So, if you are a fan of DIY projects, and you think you have the management Skills to oversee the project, then perhaps being an owner builder will be a good option for you. The large amounts of savings can make it a very profitable experience. Just make sure you understand the planning and the financing involved.
Contractor Listings in LA
If you enjoy working around the home and doing various DIY projects, then maybe you’re ready for the Holy Grail of DIY - building your own home as an owner-builder. By eliminating the costs of a general contractor’s overhead, you will save tens of thousands of dollars on your next home. And it’s not as labor intensive as you might think.
Being an owner builder simply means you are overseeing the construction of your home without hiring a licensed builder. By eliminating the builder, you eliminate the builder’s profit, which translates to tens of thousands of dollars you get to keep for yourself.
For many DIY lovers, being an owner builder is a chance to put their Skills to good use. When you act as your own general contractor, you can do as much of the work as you wish. There are many examples of owner builders who do the majority of the labor themselves, from framing all the way through to landscaping.
However, many owner builders contract out the bulk of the labor and focus on doing only the projects that they are comfortable with, such as hanging drywall or painting. Every bit of labor that you do yourself becomes extra sweat equity that you build into your home.
Once the house is built, it’s worth whatever a potential buyer is willing to pay for it. Therefore, cutting the costs of construction by being an owner-builder means your new home will be worth much more than you spend to build it.
But, don’t worry if you feel you’re not ready (or willing) to take on an entire construction project on your own. Being an owner builder is more about project management than it is about actual physical labor. In fact, plenty of owner builders never lift a hammer.
Even without doing any of the labor yourself, there is plenty of sweat equity to be made, because you will cut out the costs of the builder. Indeed, a lot of people don’t realize that their builder never actually does any labor himself. Instead, he typically manages the sub-contractors who do all the actual physical construction.
So, if you feel you have the management Skills to oversee the project, then being an owner builder can still be very profitable.
Beyond having to understand the planning and project management involved in construction, a successful owner builder also understands the financing that is needed.
It’s fair to claim that most people who build a home do not have the cash on hand to complete the project without financing some (or all) of the construction. The trick is understanding how being an owner builder affects your chances for getting approved for a construction loan.
With the current belt-tightening by the mortgage industry, construction loans are getting harder to find, even if you are willing to hire and pay a fully licensed general contractor. As you might imagine, securing financing for a construction loan that will allow you to be an owner builder is even tougher. The good news, though, is that there are programs still available - you just need to understand some of the key points about the financing that may affect your ability to build your dream home.
First, it’s important to realize that the costs of the financing will typically be slightly higher than the costs of a regular construction loan. Step back and look at the big picture. If you feel you would be a successful owner builder, is it worth it to pay slightly more for the financing for the opportunity to save tens of thousands of dollars on your construction costs?
Owner builder construction loans are a specialty product that represent more work and more risk to the lender. On the other hand, they also represent a greater opportunity for you, the borrower, to save a ton of money. It should be a fair trade all around.
The second important thing to realize is that owner builder loans will typically have stricter requirements than a simple purchase or refinance loan. These requirements may mean you have to qualify based on stricter credit score guidelines or tougher debt-to-income ratios.
For example, if a borrower’s credit score is below 700, it is pretty common to require that borrower have a larger spread between the total construction line of credit and the appraised value of the future home. Sometimes, for the borrower with the lower credit score, this might require a down payment on the construction loan. But, that doesn’t mean the deal can’t be done. It’s just important to understand the financing will be different than the simple purchase loans that you may be accustomed to.
The third important point to recognize is that owner builder construction loans will always be designed to protect you and ensure there is enough money available in your construction loan (i.e., line of credit) to complete the project. Nobody, meaning neither the bank nor you, wants an unfinished home. So, it is pretty common for owner builder loans to require that you qualify for extra amounts of money in your construction line of credit on top of your land and budget numbers.
For instance, you may have a small pot of money wrapped into your loan as a contingency fund in case you slightly under budgeted. It’s a protective feature to make sure you don’t run out of money during construction and end up with a home without a roof. However, your permanent loan should only include the money that you actually use during construction. So, any extra funds or any extra budget money that you don’t spend during construction won’t count against you.
So, if you are a fan of DIY projects, and you think you have the management Skills to oversee the project, then perhaps being an owner builder will be a good option for you. The large amounts of savings can make it a very profitable experience. Just make sure you understand the planning and the financing involved.
Contractor Listings in LA
How To Buy A Power Tool
May 24, 2008
Eric J asked:
How To Buy A Power Tool
Power tools are very expensive and when said and done all the tools can add up to a big expense. So when buying a power tool you want to not only make sure you are getting the most for your dollar, but you also want to make sure you are buying the right power tool. You don’t want to buy a tool that is pure overkill on power or even worst, underpowered. That’s why when you buy a power tool you want to look at the important aspects of the tools and sometimes this can be confusing. One important questions to ask yourself is, “What kind of user am I ?” Once you find this out choosing the right brand is a lot easier. After you decided what kind of user you are you need to look at some important aspects such as corded vs. cordless, amps and horsepower, return policies and more.
Kind of User
A power tool is an extension of your hands, like Edward Scissor Hands. If you have the right tool and a quality tool, you can create or fix just about anything. One important questions you need to ask yourself is, “What kind of user am I ?”
If you are a light homeowner user, you can get away with a less expensive brand such as Black and Decker. A light homeowner user probably will not put a lot of use and abuse on the tools and power is not a big deal. Remember more power usually means more weight in the tool. Black and Decker designs their tools for the light homeowner use. They are quality built and inexpensive.
If you are not a light home owner use, but aren’t a serious user, Craftsman makes an exceptional tool. Craftsman actually has other companies make these tools for them, you can see their manufactures through the source code. Craftsman makes a good quality tool that has a lot of features and good power. Plus they have a great return policy if something happens or you are dissatisfied with the tool.
If you are a serious home user or contractor, go with a good brand name such as Milwaukee, Dewalt, Bosch, Porter Cable or Makita. These manufactures pride themselves on making the best tool. They are constantly putting money into their research and development process to make these tools even better. These professional power tools cost more, but they are made with better technology and materials. They also have a better design that causes less fatigue on the user. Not to mention that these tools are made to last a life time.
Quality Tool
The tools mentioned above are good quality tools. I would suggest staying with one of the manufactures above for a couple different reasons, but the main reason is efficiency. These power tools will last you a lifetime. They are designed by companies who have been in the business for along time and they understand power tools. They understand quality, safety and what makes a good tool. These are more efficient meaning they can actually transfer more power from the input or batter to the output. This means less work for the user and less frustration. If you would like to learn more about the difference between cheap power tools and professional power tools, please see this article.
Corded Vs. Cordless
Corded power tools tend to have a little more power, while the cordless has the versatility. At least this is the case now. Milwaukee just came out with a new battery technology that might change everything. Cordless power tools are becoming more and more common as they are increasing their power, while lowering their overall weight of the tool. I would suggest going with a cordless tool because of versatility. The only reason to go with a corded tool is if you will be using the tool for long periods of time or the tool you are looking for has a substantial more power capability in the corded version.
Return policy
Power tools are expensive and I don’t care how carefully any company watches for defect, they will always get one or two pass them by. You never know what will happen. These companies do a very good job and have very low returns on their products, but as a consumer you always want to be prepared. I would suggest going with a store who has an exceptional return policy, such as Amazon. They have been voted year after year as one of the most return friendly stores around. Amazon is also a good place to go because they have user ratings from real people who have used the tools. Just make sure you know your return policy from what ever store you buy from.
Renewable Energy Videos
How To Buy A Power Tool
Power tools are very expensive and when said and done all the tools can add up to a big expense. So when buying a power tool you want to not only make sure you are getting the most for your dollar, but you also want to make sure you are buying the right power tool. You don’t want to buy a tool that is pure overkill on power or even worst, underpowered. That’s why when you buy a power tool you want to look at the important aspects of the tools and sometimes this can be confusing. One important questions to ask yourself is, “What kind of user am I ?” Once you find this out choosing the right brand is a lot easier. After you decided what kind of user you are you need to look at some important aspects such as corded vs. cordless, amps and horsepower, return policies and more.
Kind of User
A power tool is an extension of your hands, like Edward Scissor Hands. If you have the right tool and a quality tool, you can create or fix just about anything. One important questions you need to ask yourself is, “What kind of user am I ?”
If you are a light homeowner user, you can get away with a less expensive brand such as Black and Decker. A light homeowner user probably will not put a lot of use and abuse on the tools and power is not a big deal. Remember more power usually means more weight in the tool. Black and Decker designs their tools for the light homeowner use. They are quality built and inexpensive.
If you are not a light home owner use, but aren’t a serious user, Craftsman makes an exceptional tool. Craftsman actually has other companies make these tools for them, you can see their manufactures through the source code. Craftsman makes a good quality tool that has a lot of features and good power. Plus they have a great return policy if something happens or you are dissatisfied with the tool.
If you are a serious home user or contractor, go with a good brand name such as Milwaukee, Dewalt, Bosch, Porter Cable or Makita. These manufactures pride themselves on making the best tool. They are constantly putting money into their research and development process to make these tools even better. These professional power tools cost more, but they are made with better technology and materials. They also have a better design that causes less fatigue on the user. Not to mention that these tools are made to last a life time.
Quality Tool
The tools mentioned above are good quality tools. I would suggest staying with one of the manufactures above for a couple different reasons, but the main reason is efficiency. These power tools will last you a lifetime. They are designed by companies who have been in the business for along time and they understand power tools. They understand quality, safety and what makes a good tool. These are more efficient meaning they can actually transfer more power from the input or batter to the output. This means less work for the user and less frustration. If you would like to learn more about the difference between cheap power tools and professional power tools, please see this article.
Corded Vs. Cordless
Corded power tools tend to have a little more power, while the cordless has the versatility. At least this is the case now. Milwaukee just came out with a new battery technology that might change everything. Cordless power tools are becoming more and more common as they are increasing their power, while lowering their overall weight of the tool. I would suggest going with a cordless tool because of versatility. The only reason to go with a corded tool is if you will be using the tool for long periods of time or the tool you are looking for has a substantial more power capability in the corded version.
Return policy
Power tools are expensive and I don’t care how carefully any company watches for defect, they will always get one or two pass them by. You never know what will happen. These companies do a very good job and have very low returns on their products, but as a consumer you always want to be prepared. I would suggest going with a store who has an exceptional return policy, such as Amazon. They have been voted year after year as one of the most return friendly stores around. Amazon is also a good place to go because they have user ratings from real people who have used the tools. Just make sure you know your return policy from what ever store you buy from.
Renewable Energy Videos
At What Price Construction Estimating Software?
May 23, 2008
Nick Hurd asked:
The business of construction has its highs and lows, as there are investments of equipment and tools as well as payroll for labor in today’s economy. For smaller contractors the question of worth in purchasing construction estimating software comes to the drawing table.
A small contracting business is one not determined by the amount of take home pay, or the number of projects one has fulfilled, rather it entails the various jobs the must be taken care of by the contractor. Smaller contractors have other areas of interest to stay on top of, such as duties of human resource, business accounting as well as estimations and other area of business. On the other hand, a large contractor generally has a title of General Contractor. Therefore, there are others hired to perform other necessary duties, since a larger business is based on a larger scale.
The large and medium size construction companies will find the use of construction estimating software vital to a properly run business. However, a smaller construction company may be a bit more reluctant of purchasing such software, if the general contractor has no experience with computers.
Contractors and a newly hired contractor who are familiar with using computers should feel at ease and encouraged with the use of construction estimating software as a great work tool for needs of estimating any construction job as well as many other tasks related to the construction field.
Many construction estimating software programs correspond nicely with business bookkeeping software that is helpful in making estimates for business clients more accurate. Construction estimating software also improves the businesses financial order as
well as time management and the long-term probabilities of profits. Construction estimating software is easy to use and offers many benefits to a construction company and anyone who is comfortable with computer use would fair well to purchase construction estimating software for their business.
Contractors who are inexperienced with the use of computers may be hesitant of purchasing construction estimating software, however with a bit of time and patience it is easy to learn and to use. Construction estimating software is a worthwhile purchase for any construction business; it will pay for itself many times over, while helping you gain better profits for the work that is efficiently done with the use of such software. The small amount of time learning the program will in return give you more time to do things you want to do while not being at work, without the headaches of worry for duties while you are on time off.
Some of the benefits of using construction estimating software besides enabling your to make the best estimates and bids for jobs, it will also keep track projects and present documents, bookkeeping and write up the contracts. Construction estimating software enables the small contractor to reach the professional practices to match those of larger contractors. The more use of construction estimating software the more time saved and money made.
Construction estimating software is beneficial to any construction company, more than likely your competition already has their own software in place. Take the time to learn the new construction estimating software so you can stay on the edge of your job duties. Some construction estimating software is relatively affordable and well worth the purchase in long range terms of success.
Renewable Energy Videos
The business of construction has its highs and lows, as there are investments of equipment and tools as well as payroll for labor in today’s economy. For smaller contractors the question of worth in purchasing construction estimating software comes to the drawing table.
A small contracting business is one not determined by the amount of take home pay, or the number of projects one has fulfilled, rather it entails the various jobs the must be taken care of by the contractor. Smaller contractors have other areas of interest to stay on top of, such as duties of human resource, business accounting as well as estimations and other area of business. On the other hand, a large contractor generally has a title of General Contractor. Therefore, there are others hired to perform other necessary duties, since a larger business is based on a larger scale.
The large and medium size construction companies will find the use of construction estimating software vital to a properly run business. However, a smaller construction company may be a bit more reluctant of purchasing such software, if the general contractor has no experience with computers.
Contractors and a newly hired contractor who are familiar with using computers should feel at ease and encouraged with the use of construction estimating software as a great work tool for needs of estimating any construction job as well as many other tasks related to the construction field.
Many construction estimating software programs correspond nicely with business bookkeeping software that is helpful in making estimates for business clients more accurate. Construction estimating software also improves the businesses financial order as
well as time management and the long-term probabilities of profits. Construction estimating software is easy to use and offers many benefits to a construction company and anyone who is comfortable with computer use would fair well to purchase construction estimating software for their business.
Contractors who are inexperienced with the use of computers may be hesitant of purchasing construction estimating software, however with a bit of time and patience it is easy to learn and to use. Construction estimating software is a worthwhile purchase for any construction business; it will pay for itself many times over, while helping you gain better profits for the work that is efficiently done with the use of such software. The small amount of time learning the program will in return give you more time to do things you want to do while not being at work, without the headaches of worry for duties while you are on time off.
Some of the benefits of using construction estimating software besides enabling your to make the best estimates and bids for jobs, it will also keep track projects and present documents, bookkeeping and write up the contracts. Construction estimating software enables the small contractor to reach the professional practices to match those of larger contractors. The more use of construction estimating software the more time saved and money made.
Construction estimating software is beneficial to any construction company, more than likely your competition already has their own software in place. Take the time to learn the new construction estimating software so you can stay on the edge of your job duties. Some construction estimating software is relatively affordable and well worth the purchase in long range terms of success.
Renewable Energy Videos
Software Development Process and Its Importance
May 21, 2008
Harisha K R asked:
Software development process
A software development process is a structure imposed on the development of a software product.
Process being a fundamental tool for carrying out community consensus and facilitating very large
number of people to work together on a collaborative project. On the assumption and subject to endless debate that a methodical approach to software development results in fewer defects and, therefore, ultimately provides shorter delivery time and better value. The necessity of selecting and following a formal process for software development is to provide desired discipline to deliver a quality product for business success and to avoid wastage of time, money, demoralization in developers etc.
We all know that computers and software are a part of our existence – educational, professional and
personal too, they have made our lives easy and accurate from retail market to rocket science. Hence, software is no longer programming for an individual interest or for the sake of that, software is no more just a program to be executed for performing a task but an interaction of the programs, data-structure and documentation and is a complex structure to develop, test and maintain.
Modern software products are accurate, faster, and cost effective; they have many other synonyms because they are engineered under the selected formal techniques to improve the quality of the product of a software development effort.
Software Development life cycle faces a lot of challenges during each phase, the biggest challenge will be from where to start. Worst situations will be starting a project with new employees, who don’t have domain expertise, unproven technology and that too with a challenging deadline. Along with technical
challenges any situation might hinder a software development plan and put management in a risky and
terrible crisis, which not tackled well this situation might lead to - products overshooting both cost and time estimations but still ending-up in poor quality. They do not meet requirement specifications as defined by consumer and finally, lead to a business failure.
The basic challenges for software industry, which are most deserving of serious attention in the immediate future include to:
1. Create the new logic for problem solving based on open-ended programming environments for high performance computer systems
2. Develop a formal methodology that guides us toward the construction of correct and portable
parallel programs, and adopt an openness to radical and innovative alternatives
3. Design a programming language that incorporates a unifying intuitive model of parallel computation, and which provides a coherent vehicle for the natural description of parallel programs
4. Devise and construct software tools that resonate with the methodology and facilitate a flexible, supportive environment
5. Introduce widely available, substantial educational opportunities in parallel programming that will create a pool of individuals with the experience and intuition necessary to work effectively in this setting.
Above mentioned points are according to the Study of University IOWA.
(http://www.cs.uiowa.edu/~rus/process.pdf )
Why Software Standards are required for software development and what are they.
In the early years of software industry, people with a formal methods background from other segments of the business criticized the same for software projects. They argued and said informal methods were generally more useful and fast resulting than the formal methods. In practice it seems that informality is an advantage.
But as software development increased in complexity and size, informalities proved to be major reason for failure. It was impossible to manage when work got distributed in many teams, they could not match and integrate each individual with a team because of different assumptions and different methods of developments. Thus need for standards and processes for software development. So people started putting them in place as per their experience in their fields.
Today they are many standards available for software industry. A software development project or firm can chose the one that fits their needs for success and can get their firm certified but at some cost.
Many of these standards are from the defense industry particularly in the US which requires a rating based on the process models to obtain contracts.
Some few such standards are discussed below –
ISO 12207 – is an international standard for describing the method of selecting, implementing and monitoring a life cycle for software.
Capability Maturity Model CMM – This is another leading model which independently assesses and grades organizations on how well they follow their defined processes, not on the quality of those processes or the software produced. CMM is gradually being replaced by CMMI.
ISO 9000 describes standards for formally organizing processes with documentation.
ISO 15504, also known as Software Process Improvement Capability Determination (SPICE), is a
“framework for the assessment of software processes”. This standard is aimed at setting out a clear model for process comparison. SPICE is used much like CMM and CMMI. It models processes to manage, control, guide and monitor software development. This model is then used to measure what a development organization or project team actually does during software development. This information is analyzed to identify weaknesses and drive improvement. It also identifies strengths that can be continued or integrated into common practice for that organization or team.
Six Sigma is a methodology to manage process variations that uses data and statistical analysis to measure and improve a company’s operational performance. It works by identifying and eliminating defects in manufacturing and service-related processes. The maximum permissible defect is 3.4 per one million opportunities. However, Six Sigma is manufacturing-oriented and needs further research on its relevance to
software development.
Harisha. K R.
IT Manager
S7 Software Solutions.
http://www.s7solutions.com
“Where Migration Meets Inovation “
Bangalore.
Mail. harishkr@s7solutions.com
Renewable Energy Videos
Software development process
A software development process is a structure imposed on the development of a software product.
Process being a fundamental tool for carrying out community consensus and facilitating very large
number of people to work together on a collaborative project. On the assumption and subject to endless debate that a methodical approach to software development results in fewer defects and, therefore, ultimately provides shorter delivery time and better value. The necessity of selecting and following a formal process for software development is to provide desired discipline to deliver a quality product for business success and to avoid wastage of time, money, demoralization in developers etc.
We all know that computers and software are a part of our existence – educational, professional and
personal too, they have made our lives easy and accurate from retail market to rocket science. Hence, software is no longer programming for an individual interest or for the sake of that, software is no more just a program to be executed for performing a task but an interaction of the programs, data-structure and documentation and is a complex structure to develop, test and maintain.
Modern software products are accurate, faster, and cost effective; they have many other synonyms because they are engineered under the selected formal techniques to improve the quality of the product of a software development effort.
Software Development life cycle faces a lot of challenges during each phase, the biggest challenge will be from where to start. Worst situations will be starting a project with new employees, who don’t have domain expertise, unproven technology and that too with a challenging deadline. Along with technical
challenges any situation might hinder a software development plan and put management in a risky and
terrible crisis, which not tackled well this situation might lead to - products overshooting both cost and time estimations but still ending-up in poor quality. They do not meet requirement specifications as defined by consumer and finally, lead to a business failure.
The basic challenges for software industry, which are most deserving of serious attention in the immediate future include to:
1. Create the new logic for problem solving based on open-ended programming environments for high performance computer systems
2. Develop a formal methodology that guides us toward the construction of correct and portable
parallel programs, and adopt an openness to radical and innovative alternatives
3. Design a programming language that incorporates a unifying intuitive model of parallel computation, and which provides a coherent vehicle for the natural description of parallel programs
4. Devise and construct software tools that resonate with the methodology and facilitate a flexible, supportive environment
5. Introduce widely available, substantial educational opportunities in parallel programming that will create a pool of individuals with the experience and intuition necessary to work effectively in this setting.
Above mentioned points are according to the Study of University IOWA.
(http://www.cs.uiowa.edu/~rus/process.pdf )
Why Software Standards are required for software development and what are they.
In the early years of software industry, people with a formal methods background from other segments of the business criticized the same for software projects. They argued and said informal methods were generally more useful and fast resulting than the formal methods. In practice it seems that informality is an advantage.
But as software development increased in complexity and size, informalities proved to be major reason for failure. It was impossible to manage when work got distributed in many teams, they could not match and integrate each individual with a team because of different assumptions and different methods of developments. Thus need for standards and processes for software development. So people started putting them in place as per their experience in their fields.
Today they are many standards available for software industry. A software development project or firm can chose the one that fits their needs for success and can get their firm certified but at some cost.
Many of these standards are from the defense industry particularly in the US which requires a rating based on the process models to obtain contracts.
Some few such standards are discussed below –
ISO 12207 – is an international standard for describing the method of selecting, implementing and monitoring a life cycle for software.
Capability Maturity Model CMM – This is another leading model which independently assesses and grades organizations on how well they follow their defined processes, not on the quality of those processes or the software produced. CMM is gradually being replaced by CMMI.
ISO 9000 describes standards for formally organizing processes with documentation.
ISO 15504, also known as Software Process Improvement Capability Determination (SPICE), is a
“framework for the assessment of software processes”. This standard is aimed at setting out a clear model for process comparison. SPICE is used much like CMM and CMMI. It models processes to manage, control, guide and monitor software development. This model is then used to measure what a development organization or project team actually does during software development. This information is analyzed to identify weaknesses and drive improvement. It also identifies strengths that can be continued or integrated into common practice for that organization or team.
Six Sigma is a methodology to manage process variations that uses data and statistical analysis to measure and improve a company’s operational performance. It works by identifying and eliminating defects in manufacturing and service-related processes. The maximum permissible defect is 3.4 per one million opportunities. However, Six Sigma is manufacturing-oriented and needs further research on its relevance to
software development.
Harisha. K R.
IT Manager
S7 Software Solutions.
http://www.s7solutions.com
“Where Migration Meets Inovation “
Bangalore.
Mail. harishkr@s7solutions.com
Renewable Energy Videos
