Wednesday, September 24, 2008

Knowledge is Power

I'm working on a small 4-unit condo conversion and right now I'm collecting the information for my deal binder (all the bids and numbers, zoning ordinances, and other important information regarding the project.  In talking about this project with a potential contractor I suggested he talk with the city about the conversion to make sure that the work he is bidding is the work required by the city for the conversion.
The next day I get a call from this contractor who is concerned about the work above what I asked him to bid (he was bidding the firewall only but discovered that we need a survey, plat map, cc&rs, hoa declaration, etc. and we had to go through the planning commission and city council for approval).  I already knew these things are have bid that work.  BUT...he was also told that a new change in the building code required a pressurized sprinkler system through out the building!  So he started bidding that work as well.  This is where a little knowledge pays big!
I went in to talk with the chief building official (don't talk to the inspectors, talk to the person with the final word) about getting an inspection to make sure I've accounted for all the important changes.  In that discussion I asked him about the sprinkler requirement.  He told me the same thing he told my (potential) contractor.  However, having already had this discussion with him I had him pull out the building code and show me the definitions.  Amazingly, I was right...a town home has 2 sides exposed with no one living above or beneath!  As a town home the property falls into a different category and does NOT require a sprinkler system.  He couldn't believe it (even though we had discussed this a couple weeks ago) and had to double check with the other code book.  A few minutes later he emerges and verifies that I was indeed correct.  So in my pre-inspection he is going to discuss the "new" discovery with the inspector to make sure that he is aware of this vital point as well.  
That little bit of knowledge is going to save me thousands of dollars in upgrades and cost to change.  In fact, it is probably the difference between a successful project and not doing the deal.  In this case knowledge really is power (and a lot of money!).

2 comments:

Khayyam said...

"...a person who knows what he or she is doing can cover greater distance faster and easier than the most determined but inexperienced person can cover under the same circumstance. This is why businesses started by experienced entrepreneurs have a 90 percent success rate, while business started by inexperienced people fail 90 percent of the time. There is simply no replacement for having done it before, for knowledge and experience."
(Brian Tracy, "Success is a Journey", p.44)

Khayyam said...

"Nature is a just employer, but she demands full measure of payment for every reward...the good news is that your biggest problem or difficulty today has been sent to you at this moment to teach you something you need to know to be happier and more successful in the future."
(Brian Tracy, "Success is a Journey", p.54)