Whether it's a house, co-op or condo, renovations are fraught with potential problems. Such quagmires as multiple change orders, delayed supplies or contractor errors can add substantial costs to a budget. One way to bypass problems and work within a strict design and construction budget is to plan precisely what needs to be done long before the project begins.

Preparing a description of the work is the first step. Formulating a budget to determine whether the money initially allotted represents the total scope of the work is the next step. This "master plan" viewpoint enables an owner to see the project in its entirety, rather than the sum of various parts, e.g., design, development and construction.

Another crucial part of the process is hiring the professionals responsible for the project and knowing what to expect. In addition to referrals, trust your instincts about such rudimentary matters as whether your calls are returned promptly or how well your contractors appear to run their own businesses. When you receive a proposal in a timely fashion, it speaks volumes about how timely that contractor will run your project.

Everyone involved in a renovation project has a defined role. The architect is responsible for the design and specifications, the general contractor coordinates and oversees the construction and the owner or owner's representative is responsible for project oversight and global management of the project.

But coordinating the project as a whole, while meeting the owner's needs and staying within budget, is where problems often emerge. The architect's specifications do not necessarily include lead times or a recommended sequence for ordering materials. So before ordering anything, make sure you and your project manager or general contractor understand sequencing. If not, you may be subject to expensive change orders because of unavailable or delayed materials.

Scheduling is especially important in co-ops, where there are usually strict guidelines about the use of freight elevators, placement of dumpsters and construction hours. A co-op board of directors has the ability to virtually halt a project if it isn't complying with the approved parameters for construction work. Therefore, the co-op board, as well as the condo board, is an important part of your project. In fact, when viewed as a "partner" in your project, they become an important asset in advising on the proper permits, drawings, documents and house rules that they will require and eventually approve.

In almost all cases, the members of your building's board have been involved in other construction projects within the building and their firsthand knowledge can be helpful in providing information about logistics and staging, such as: freight, construction parking, deliveries of materials, landmarks interface and, even, dealing with your neighbors during the noisy, dusty construction phase.

Because protecting your investment is paramount, it could influence the design, budget and occupancy. Before construction gets started, make sure to get disputes and any possible misinterpretations out of the way. Settle any subsequent disputes if they occur as they come up during the course of the project. If there are still questions about the construction, get them answered before the framing is finished. After all, once the walls are enclosed, you have pretty well set the pattern for the way the job will look. A whole series of details, such as outlets, fixtures and doorways, should be addressed prior to the completion of framing, partitions and walls.

Problems often arise because of long-lead materials that require extra time to order and have a direct impact on the schedule and sequence of the construction. For example, the millwork that you approved may be too complicated for the contractor to install within the allotted budget. Let the contractor offer you alternatives, such as placing it elsewhere or using a different hardware.

When part of an installation is eliminated due to actual field conditions, then the contractor owes you something in return. Sometimes the contractor will compensate by providing a better finish than anticipated. For services not provided, however, it is standard to receive a "credit change order," in which the contractor offers a credit for the work that has not been performed.

Healthy negotiation is natural on any construction job. Quid pro quo: If you ease up on the contractor's time by eliminating three drawers in the kitchen from the original design; in exchange, you should be able to get those two custom catches on the doors in the den.

When renovating, you'll find that most of the negotiations will occur between you and the contractor. A project manager on a job eliminates a lot of the direct negotiating and misinterpretations between an owner and contractor because it is their role to interpret and communicate the clients' desires and the architect's designs to the contractor. Knowledgeable project managers generally save 10 to 15 percent of the project budget because they understand construction and how to communicate the owners' wishes.

Another way of protecting your investment is to understand that there are tax deductibles in most renovation projects. A tax analysis at the very beginning - long before walls are built and appliances are installed - may actually free up additional monies for the project.

A good piece of advice is working out the price per square foot based upon costs - and desires. These are quality of life costs that may include high-end finishes, professional-grade appliances, technology infrastructure and other things that make the effort of renovating much more worthwhile, including adding value to your premises. In addition, determining whether it is more efficient to move to temporary quarters during the renovations or stagger the construction around the current living quarters is an important choice that should be based upon both cost and convenience.

It is time to consider how a close out or complete the project when construction shifts into the final phase with painting, finishes and fixtures to be installed, along with moldings, floor tile, stone counters, millwork, cabinetry, and appliances. Periodic "walk-throughs" can be scheduled to confirm the quality of the installed work and the level of completion in each room. A master punchlist should be prepared and submitted to the contractor.

Also, the owner or his/her representative will need to ensure that all construction and trade permits have been properly filed and are in compliance to be signed-off by the authorized city agency. Without this administrative confirmation, the owner could be delayed in receiving and approved Certificate of Occupancy or approved building application. The owner should also review the project for any unresolved violations and any outstanding claims or disputes that could trigger an extra payment to the contractor. Other important documents to be aware of are a waiver of lien submitted by the contractor; as-built drawings; notarized warranty of work performed; final requisition of payment as agreed-upon by the owner and the contractor.

There are many variables that should be addressed before embarking upon a major renovation project. The key is to have the answers long before construction funding is approved, a design is created, materials ordered, and construction commences. In other words, there should be no question that you have protected the investment made into your renovation.