the home improvement project case study

In: Operations Management

CASE 4.2 The Home Improvement Project Lukas Nelson and his wife, Anne, and their three daughters...

The Home Improvement Project

Lukas Nelson and his wife, Anne, and their three daughters had been living in their house for over five years when they decided it was time to make some modest improvements. One area they both agreed needed an upgrade was the bathtub. Their current house had one standard shower bathtub combination. Lukas was 6 feet four, and could barely squeeze into it. In fact, he had taken only one bath since they moved in. He and Anne both missed soaking in the older, deep bathtubs they enjoyed when they lived back East.

Fortunately, the previous owners that built the house had plumbed the corner of a large exercise room in the basement for a hot tub. They contacted a trusted remodeling contractor who assured them it would be relatively easy to install a new bathtub and it shouldn’t cost more than $1,500. They decided to go ahead with the project.

First the Nelsons went to the local plumbing retailer to pick out a tub. They soon realized that for a few hundred dollars more they could buy a big tub with water jets (a Jacuzzi). With old age on the horizon a Jacuzzi seemed like a luxury that was worth the extra money.

Originally the plan was to install the tub using the simple plastic frame the bath came with and install a splash guard around the tub. Once Anne saw the tub, frame, and splashguard in the room she balked. She did not like how it looked with the cedar paneling in the exercise room. After significant debate, Ann won out, and the Nelsons agreed to pay extra to have a cedar frame built for the tub and use attractive tile instead of the plastic splashguard. Lukas rationalized the changes would pay for themselves when they tried to sell the house.

Page 127The next hiccup occurred when it came time to address the flooring issue. The exercise room was carpeted, which wasn’t ideal when getting out of a bathtub. The original idea was to install relatively cheap laminated flooring in the drying and undressing area adjacent to the tub. However, the Nelsons couldn’t agree on the pattern to use. One of Anne’s friends said it would be a shame to put such cheap flooring in such a nice room. She felt they should consider using tile. The contractor agreed and said he knew a tile installer who needed work and would give them a good deal.

Lukas reluctantly agreed that the laminated options just didn’t fit the style or quality of the exercise room. Unlike the laminated floor debate both Anne and Lukas immediately liked a tile pattern that matched the tile used around the tub. Anxious not to delay the project, they agreed to pay for the tile flooring.

Once the tub was installed and the framing was almost completed, Anne realized that something had to be done about the lighting. One of her favorite things to do was to read while soaking in the tub. The existing lights didn’t provide sufficient illumination for doing so. Lukas knew this was “non-negotiable” and they hired an electrician to install additional lighting over the bathtub.

While the lighting was being installed and the tile was being laid, another issue came up. The original plan was to tile only the exercise room and use remnant rugs to cover the area away from the tub where the Nelsons did their exercises. The Nelsons were very happy with how the tile looked and fit with the overall room. However, it clashed with the laminated flooring in the adjacent bathroom. Lukas agreed with Ann, that it really made the adjacent bathroom look cheap and ugly. He also felt the bathroom was so small it wouldn’t cost much more.

After a week the work was completed. Both Lukas and Anne were quite pleased with how everything turned out. It cost much more than they had planned, but they planned to live in the house until the girls graduated from college so they felt it was a good long-term investment.

Anne had the first turn using the bathtub followed by their three girls. Everyone enjoyed the Jacuzzi. It was 10:00 p.m. when Lukas began running water for his first bath. At first the water was steaming hot, but by the time he was about to get in, it was lukewarm at best. Lukas groaned, “After paying all of that money I still can’t enjoy a bath.”

The Nelsons rationed bathing for a couple weeks, until they decided to find out what if anything could be done about the hot water problem. They asked a reputable heating contractor to assess the situation. The contractor reported that the hot water tank was insufficient to service a family of five. This had not been discovered before because baths were rarely taken in the past. The contractor said it would cost $2,200 to replace the existing water heater with a larger one that would meet their needs. The heating contractor also said if they wanted to do it right they should replace the existing furnace with a more energy efficient one. A new furnace would not only heat the house but also indirectly heat the water tank. Such a furnace would cost $7,500, but with the improved efficiency and savings in the gas bill, the furnace would pay for itself in 10 years. Besides, the Nelsons would likely receive tax credits for the more fuel-efficient furnace.

Three weeks later, after the new furnace was installed, Lukas settled into the new bathtub. He looked around the room at all the changes that had been made and muttered to himself, “And to think that all I wanted was to soak in a nice, hot bath.”

1. What factors and forces contributed to scope creep in this case?

2. Is this an example of good or bad scope creep? Explain.

3. How could scope creep have been better managed by the Nelsons?

Expert Solution

Answer: Scope creep means an unplanned change to the project scope, followed by inappropriate change in the planned deadlines and budget of the project. Unplanned circumstances are a major driving force that results in scope creep in most projects. In the above case study, issues were realized one after the other which caused delayed decisions, as a consequence of which Nelsons had to bear a hefty amount for installation of the bathtub. Nelson’s bathtub installation goal and requirement became such an uncontrolled moving target that there was no clear definition of what is considered complete and the project crept into unmanageable and budgetary havoc. In Nelson’s case, scope creep kept creeping for various reasons such as no initial specifications, indecisiveness, etc. They kept on adding additional things such as Jacuzzi instead of simple bathtub, cedar frame for the tub and attractive tile instead of the plastic splashguard, tile flooring, and lighting that were not in the original plan, each item adding costs and delaying the project.

Answer: In this case, both can be true. But, the case study signals more towards good scope creep, as Nelsons went ahead with each modification thinking that it will be a long term investment and the changes would pay for themselves when they will sell the house.

Answer: Scope creep would have been better managed by Nelsons in several ways. Firstly, there was a need of proper planning before starting the work. They would have planned the requirements and estimated the budget as per those requirements. Secondly, they would have ensured sticking to that budget and wouldn’t have gone for an expensive Jacuzzi, which resulted in the requirement of tiled flooring in the exercise room, change of flooring in the adjacent bathroom as well as requirement of new furnace which further costed $7500.

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Donald smith has medical wages of $174,000.00 during 2018. his employer withheld $2,523.00. his wife anne..., 75-year-old man, and his 73-year-old wife traveling to nigeria in three weeks. the wife is a..., gary rawlings is 71 years old. he lives at home with his wife, karen, and son,..., mr. ross lives at home with his wife. he has been diagnosed with terminal cancer, and..., william purchased a home three weeks ago for $600,000. he insured his home for $400,000. his..., case study 1 hotel worker danny ruiz was living with his wife and four children in..., a successful business owner, sam along with his wife and three children have the following in..., anton’s wife arranged a surprise party for his 30th birthday. when anton arrived home from work,..., case study: married with two young children, john and his wife rented a two-bedroom apartment in..., john and his wife kila have four children, and they file their tax return jointly. three....

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Case-4.2 “The Home Improvement Project

The Home Improvement Project

Lukas Nelson and his wife, Anne, and their three daughters had been living in their

house for over five years when they decided it was time to make some modest

improvements.

One area they both agreed needed an upgrade was the bathtub. Their current house

had one standard shower bathtub combination. Lukas was 6 feet four and could

barely squeeze into it. In fact, he had taken only one bath since they moved in. He

and Anne both missed soaking in the older, deep bathtubs they enjoyed when they

lived back East.

Fortunately, the previous owners that built the house had plumbed the corner of a

large exercise room in the basement for a hot tub. They contacted a trusted

remodeling contractor who assured them it would be relatively easy to install a new

bathtub and it shouldn’t cost more than $1,500. They decided to go ahead with the

First the Nelsons went to the local plumbing retailer to pick out a tub. They soon

realized that for a few hundred dollars more they could buy a big tub with water

jets (a Jacuzzi). With old age on the horizon a Jacuzzi seemed like a luxury that was

worth the extra money.

Originally the plan was to install the tub using the simple plastic frame the bath

came with and install a splash guard around the tub. Once Anne saw the tub, frame,

and splashguard in the room she balked. She did not like how it looked with the

cedar paneling in the exercise room. After significant debate, Ann won out, and the

Nelsons agreed to pay extra to have a cedar frame built for the tub and use

attractive tile instead of the plastic splashguard. Lukas rationalized the changes

would pay for themselves when they tried to sell the house.

The next hiccup occurred when it came time to address the flooring issue. The

exercise room was carpeted, which wasn’t ideal when getting out of a bathtub. The

original idea was to install relatively cheap laminated flooring in the drying and

undressing area adjacent to the tub. However, the Nelsons couldn’t agree on the

pattern to use. One of Anne’s friends said it would be a shame to put such cheap

flooring in such a nice room. She felt they should consider using tile. The

contractor agreed and said he knew a tile installer who needed work and would

give them a good deal.

Lukas reluctantly agreed that the laminated options just didn’t fit the style or quality

of the exercise room. Unlike the laminated floor debate both Anne and Lukas

immediately liked a tile pattern that matched the tile used around the tub. Anxious

not to delay the project, they agreed to pay for the tile flooring.

Once the tub was installed and the framing was almost completed, Anne realized

that something had to be done about the lighting. One of her favorite things to do

was to read while soaking in the tub. The existing lights didn’t provide sufficient

illumination for doing so. Lukas knew this was “non-negotiable” and they hired an

electrician to install additional lighting over the bathtub.

While the lighting was being installed and the tile was being laid, another issue

came up. The original plan was to tile only the exercise room and use remnant rugs

to cover the area away from the tub where the Nelsons did their exercises. The

Nelsons were very happy with how the tile looked and fit with the overall room.

However, it clashed with the laminated flooring in the adjacent bathroom. Lukas

agreed with Ann, that it really made the adjacent bathroom look cheap and ugly.

He also felt the bathroom was so small it wouldn’t cost much more.

After a week the work was completed. Both Lukas and Anne were quite pleased

with how everything turned out. It cost much more than they had planned, but they

planned to live in the house until the girls graduated from college, so they felt it

was a good long-term investment.

Anne had the first turn using the bathtub followed by their three girls. Everyone

enjoyed the Jacuzzi. It was 10:00 p.m. when Lukas began running water for his first

At first the water was steaming hot, but by the time he was about to get in, it was

lukewarm at best. Lukas groaned, “After paying all of that money I still can’t enjoy

a bath." The Nelsons rationed bathing for a couple weeks, until they decided to find

out what if anything could be done about the hot water problem. They asked a

reputable heating contractor to assess the situation. The contractor reported that

the hot water tank was insufficient to service a family of five. This had not been

discovered before because baths were rarely taken in the past. The contractor said

it would cost $2,200 to replace the existing water heater with a larger one that would

meet their needs. The heating contractor also said if they wanted to do it right, they

should replace the existing furnace with a more energy efficient one. A new furnace

would not only heat the house but also indirectly heat the water tank. Such a

furnace would cost $7,500, but with the improved efficiency and savings in the gas

bill, the furnace would pay for itself in 10 years.

Besides, the Nelsons would likely receive tax credits for the more fuel-efficient

furnace. Three weeks later, after the new furnace was installed, Lukas settled into

the new bathtub. He looked around the room at all the changes that had been made

and muttered to himself, “And to think that all I wanted was to soak in a nice, hot

bath.”

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Why Effective Project Management is Crucial for Home Renovation Projects

Embarking on a dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315274">home dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315268">renovation dropdown#toggle" data-dropdown-menu-id-param="menu_term_289315274" data-dropdown-placement-param="top" data-term-id="289315274"> project is an exhilarating journey but one that can quickly become overwhelming. dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315267">Home renovations are almost always challenging at the baseline; without effective dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315266">project management , the project can quickly spiral out of control.

This article will delve into the world of dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315266">project management for custom homes and dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315276">home remodeling dropdown#toggle" data-dropdown-menu-id-param="menu_term_289315276" data-dropdown-placement-param="top" data-term-id="289315276"> projects . We will unravel essential strategies to unlock the secrets of a successful project that will lead to life transformation. From meticulous planning and budgeting to navigating unforeseen challenges, this article will prepare you for the complex realities of home building and remodeling.

What is the Difference Between a dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315266">Project Manager and a Contractor for a Renovation?

Contractors come in various forms, from a small independent dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315279">general contractor who wears all the hats; to large-scale architecture, dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315271">interior design , custom building, and remodeling businesses.

While not all contractors are dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315266">project managers , a reputable contractor will have dedicated, experienced dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315266">project managers as part of their team. dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315266">Project managers serve as team leaders and primary liaisons with clients, focusing solely on the operation of a specific project. A dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315302">high-quality dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315266">project manager will be a central leader representing both sides: both the dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315279">general contractor and the client. This ensures dedicated attention to client satisfaction, detail, and effective coordination.

The dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315266">Project Management Institute defines dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315266">project management as the skill of guiding and coordinating resources throughout a project's duration. A reputable company assesses the need for a dedicated dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315266">project manager based on the project's size and complexity.

Do I Need a dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315266">Project Manager for My dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315267">Home Renovation ?

Some dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315269">homeowners may feel that they’re capable of managing their own project, but typically, they don’t have the dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315297">know-how of dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315290">renovation processes or enough clarity into how much time and emotional energy will be needed to successfully accomplish the project - especially for dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315293">large projects . This is a full-time job.

A dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315266">project manager is crucial for keeping the project on track. A reputable dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315279">general contractor with dedicated dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315266">project managers ensures that the project meets or exceeds the client's expectations and adheres to dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315302">high-quality standards.

Good design-build contractors will have great relationships with their tradespeople and dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315273">subcontractors . These relationships are key to ensuring dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315274">home dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315268">renovation dropdown#toggle" data-dropdown-menu-id-param="menu_term_289315274" data-dropdown-placement-param="top" data-term-id="289315274"> projects run smoothly. When independent dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315269">homeowners try to manage their own projects, they lack these relationships, which becomes a significant barrier to the overall success of the project.

It’s also not uncommon for dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315269">homeowners who have project managed in other capacities to think, “How hard can it be?” Just because you’re a dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315266">project manager for another industry doesn’t mean you have the expertise that a dedicated construction dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315266">project manager has. Construction projects are extremely complex and high-risk jobs to project manage. The bottom line is that dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315266">project management across industries is not the same. For example, you may be a musician, but can you conduct an entire orchestra (coordinating the right timing, the right volume, and the right tempo)? Just because you’re an avid dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315278">DIY -er doesn’t mean you can properly construct your own dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315267">home renovation and direct dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315285">plumbers , dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315286">electricians , HVAC, etc. These remodeling projects are multi-faceted, and this is where coordination is critical over a long period.

It comes down to getting the project done vs. getting the project done well (on budget, on time, and at a dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315302">high quality ). 

What Does a dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315266">Project Manager Do for dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315267">Home Renovation ?

Your dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315266">Project Manager is responsible for thoroughly understanding the full dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315298">scope of work and keeping the dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315282">house dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315268">renovation dropdown#toggle" data-dropdown-menu-id-param="menu_term_289315268" data-dropdown-placement-param="top" data-term-id="289315268"> project moving according to plan. One of the main goals of dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315266">project managers at Better Builders is to always finish your project on time and within budget while meeting all dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315291">building permit codes and meeting or exceeding your expectations. Their job is to commit their time and efforts to you and your project, both dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315275">on-site and off.

Quality dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315279">general contractors will tell you that a thoughtful layout of the project and a dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315294">step-by-step guide to the dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315288">project plan before the dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315267">home renovation starts will save time in the long run. One of our mottos at Better Builders is the 5 Ps: Proper Preparation Prevents Poor Performance. A slow start to the project isn’t very exciting, but it will minimize many challenges, like dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315284">unexpected costs and delays, that come along with renovations.

Some of the basic dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315266">Project Management tasks include:

Safety Management

dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315266">Project managers will oversee the logistical safety of how work is being performed as well as the safety of the products being used (non-toxic). Most people think about safety relating to people, pets, dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315269">homeowners , and workers. A reputable design-build contractor will also include the safety of the dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315269">homeowner ’s existing spaces, furniture, flooring, and salvageable items that will be reused.  

dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315281">Project Cost Management

dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315302">High-quality dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315266">project managers will know and thoroughly understand the budget of the project and reconcile actual costs vs. budgeted costs . For example, does the tile order for the specified spec and quality come in at or under the project budgeted amount for tile?

Time Management

dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315266">Project managers will coordinate material lead times to minimize the time between the product being delivered and when it is installed to ensure there is no downtime during the dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315277">home improvement project . They will also manage the dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315300">remodeling process including sequencing of the project phases to ensure work is being installed in the correct order to eliminate rework or going backward. 

Quality Management

Quality management means the dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315266">project manager will ensure the final product meets or exceeds the plans for the client. A reputable design-build contractor who has dedicated dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315266">project managers will have them regularly dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315275">onsite , making sure the work performed meets the highest standards.

A reputable design-build contractor will have a quality control checklist that they will use as their quality standard throughout the life of the project. Additionally, a dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315302">high-quality design-build contractor will work with vetted, reputable dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315273">subcontractors and tradespeople to ensure their work meets the contractor’s and the client's standards.

Vendor and Trade Relationship Management

Building and maintaining strong relationships with vendors and trade partners is critical to a successful project. dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315270">Home remodeling is an imitate experience, so knowing your contractor has trusted trade partners who are an extension of their business is crucial for a successful project. A regular dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315275">onsite dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315266">project manager will coordinate the schedule between vendors and trade partners while holding them accountable for their timing and the quality of their work.

Cloud-Based dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315266">Project Management System

Utilizing a cloud-based dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315266">project management system enhances team coordination, provides reliable backup, offers access from anywhere, and streamlines communication. Better Builders employs a cloud-based construction dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315266">project management tool, allowing clients real-time access to project updates, schedules, daily logs, communication records, and progress photos.

The advantages of using a real-time, cloud-based program include:

Improved team coordination

Reliable backup

Access from anywhere

One stop communication

How Do I Find the Right dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315266">Project Manager for My dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315267">Home Renovation or Custom Build?

Hiring a reputable company with dedicated dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315266">project managers and well-defined systems and processes is essential. The success of a dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315266">project manager relies on the support and accountability provided by the company. Strong back-end support, training, and resources ensure dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315266">project managers can effectively manage dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315304">day-to-day client relationships and uphold quality standards.

Good dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315266">Project Management is the Key to Success

dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315266">Project Management is a significant aspect of the service you receive when working with Better Builders. Trust, transparency, and constant communication are the foundations of our client relationships. When choosing a partner for your dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315295">house remodel or custom home build , consider not only the final product but also the journey to the finish line.

For further insights on preparing for your next project, download our eBook: “ The dropdown#toggle" data-dropdown-placement-param="top" data-term-id="289315269">Homeowner ’s Guide to Planning a Remarkable Renovation .”

About Pete Baughman

Home renovation and custom home building have been a part of my life since birth. My great-grandfather, grandfather, and father were all Carpenters. It was only natural for me to be drawn to it as well. I worked as a Carpenter and Project lead helping him create and produce many extraordinary projects. My experiences have varied from Carpenter, Lead Carpenter, Project Manager, Production Manager, Project Developer, and Sales Manager. I started with Better Builders in 2011 and, in 2019, became an owner.

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