We contracted with Shirey Contracting to remodel a very modest 2-bdr/1 ba house. We told the salesperson we had $50,000-$75,000 to spend. We told them we were new to the process. We received a sample contract to perform a design and feasibility study and it would cost 5-7% of total job. The next meeting we were persuaded to round up our budget to $100,000. The actual contract we signed was changed from 5-7% to 7-9% without mention. Summary: According to the contract a $100,000 remodel would cost $7,000 -$9,000 to design.
The company brought in a house designer who sketched out a concept that had very attractive features. Within 4-6 weeks he had plans suitable for the permit process. The permit was rejected due to a county code violation from a previous owner. The new design called for a wall surrounding the foundation and the addition of windows. This required an engineering study. The heath department found violations regarding an existing community well. Summary: Elements of the design and existing code violations made this project infeasible and prevented permits from being granted.
Even with two rejections from the permit organizations, Shirey continued to make product selections (i.E., flooring, tile, counter, sink, toilet, shower) without our participation for the project and sub contractors were invited to make bids for construction. Summary: Although performed without our knowledge, Shirey claims that we demanded only the best materials. (Both the salesperson and the interior designer are no longer with the company.)
On the day we were to receive our quote we had already been billed over $6,200. We sit down with our salesperson and she tells us that we would normally receive a book with samples, pictures and illustrations of the design elements we selected along with our quote. We received only a spreadsheet printout of the estimate for... Ready... $176,000 (not including the cost of the design). I walked out of the meeting in disbelief. This house is under 1,000 sqft. The cost of the remodel exceeds the cost of new construction of a larger house in our region. Summary: We did not have $200,000 to spend on a remodel nor was it feasible to do so.
Three days later we get a new invoice for additional design fees for $7,800. We were to pay over $14,000 for a spreadsheet and blueprint (not certified by an architect) We expected to pay something for this design and quote, we did not expect to pay money for a house we did not contract for and could not possibly use. When we refused to pay the additional money for this ridiculous quote we were informed that they placed a lien on the property for the unpaid amount. We consulted a lawyer. The lawyer said that the law allows contractors to place liens on properties to recover for materials or worked performed, but they MUST provide you lien notification prior to contract signing. The law is specifically designed with this element to protect the consumer, but there is enough of a loophole to sneak through. The cost to debate this loophole in the law would cost much court time.
So we buy a modest home. Ask a local contractor to perform a remodel. They end up creating a remodel we cannot afford. They cannot obtain building permits. They run up our bill with ridiculous items and they charge us over $14,000 to do this. A qualified contractor would help you create a home and make money for performing real work. Apparently it is more profitable to sell infeasible designs and spreadsheets.
Summary:
Watch out for Shirey's design contract. There are no limits to how much money they can bill you. They call it "valued engineering", we call it a rip-off.
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