Short Answer 
The homeowner must understand their contract and scope of work before construction starts, while also being prepared to manage unforeseen issues that arise. Effective communication and negotiation with the contractor are crucial for adjusting costs and timelines, and additional expenses can enhance the property’s overall value.
Step 1: Understanding the Contract and Scope of Work
The homeowner entered into a contract with a contractor to add a second story to their home. It is crucial to clearly understand the agreed-upon scope of work and the associated costs before any construction begins. This ensures both parties are aware of what to expect. However, unforeseen conditions can alter this initial agreement.
Step 2: Managing Unforeseen Conditions
During the construction process, unexpected issues arose related to the first story of the house. In situations like this, it is essential to evaluate the impact of these unforeseen conditions on the project timeline and costs. Homeowners and contractors must communicate effectively to negotiate adjustments to the original contract, such as:
- Identifying the specific unforeseen condition.
- Discussing potential solutions and their costs.
- Agreeing on a revised budget to address these changes.
Step 3: Recognizing the Impact on Property Value
Agreeing to pay an additional $25,000 reflects the realities of cost overruns in construction. These added expenses can ultimately contribute to the overall value of the property, enhancing its appeal. Just as loggers, mills, and construction firms add value during various building stages, homeowners should consider how completed projects influence future property assessments and real estate potential.