Session 2: Staying in Control — Budgets, Timelines, and Planning That Works
Description
This session provides fire survivors with best practices for managing project costs, creating accurate budgets, setting realistic timelines, and establishing proper project oversight using design professionals and vetted contractors.
Speakers:
Tim Vordtriede, Altadena Collective (Total loss survivor, design professional)
Katherine Peoples, HPPP Cares (HUD-approved housing counseling agency)
Session Highlights & Timestamps
1. Contracts and Design Documentation (Establishing the Foundation)
Tim and Katherine emphasize that solid architectural plans and formal contracts are essential before construction bidding begins.
[02:49 - 03:19] Use AIA Contracts: Homeowners should utilize the American Institute of Architects (AIA) contracts, which are legally time-tested and offer a balanced playing field, unlike contracts provided by the builder.
[06:17 - 06:58] Strategy is Key: HPPP Cares/Altadena Collective should be the first point of contact to establish a strategy, as cost-per-square-foot quotes are meaningless without approved architectural plan sets.
[07:00 - 07:29] Avoid Square Footage Estimates: Cost-per-square-foot quotes are meaningless and inaccurate without approved, detailed architectural plan sets; starting without them leads to confusion and cost gaps.
[10:25 - 11:21] Early Pricing (ROM): Get Rough Order Magnitude (ROM) pricing from 1-2 contractors at the 100% Schematic Design (SD) phase to ensure your plans are close to your budget before spending time on final engineering.
[12:15 - 13:43] Bid Leveling: Obtain 5-7 real bids and insist they use the CSI Master Format (Construction Specifications Institute). This standardizes the line items, allowing accurate cost comparison (apples to apples).
[16:32 - 16:45] Detailed Budgeting to Avoid Change Orders: Ensure your contract is fully inclusive by detailing all specific finishes (tile, paint color, hardware) upfront. This prevents contractors from classifying these items as costly, post-contract additions.
[26:03 - 26:37] Architectural Changes Post-Bid: If initial bids are higher than your budget, changes to the architectural plans should be billed hourly by the designer to make them as efficient as possible.
2. Budget Control and Insurance Maximization
Effective budgeting requires extreme detail, proper financial buffering, and strategic use of insurance payouts.
[24:14 - 25:44] Budget Contingency & Extraction: Every construction contract should include a mandatory 10% contingency buffer. Consider including "extractable chunks" (like an ADU or pool) in the budget that can be easily removed if bids are too high.
[24:14 - 24:32] SBA Loans are Gap Financing: SBA loans are strictly designed to cover the gap between insurance proceeds and the rebuilding cost of your original property size, not for development or doubling the house size.
[39:46 - 40:21] Code Upgrade Strategy: Have your architect itemize all significant code upgrades since your home was built (e.g., insulation, structural, fire-resilient materials) to maximize access to the specific Code Upgrade insurance bucket.
[40:43 - 41:12] Extended Coverage: Contractors familiar with disaster rebuilds know how to frame invoicing to align with insurance companies and access the Extended Coverage bucket easily.
3. Project Oversight and Survivor Support
Survivors should seek a third-party professional to act as their owner's representative to manage the complexity of the rebuild.
[32:14 - 33:14] Project Manager/Owner's Rep: Bring on a professional Owner's Rep (a neutral third party who is not the contractor or architect) to manage budget, schedule, and conflict resolution on your behalf.
[30:26 - 31:44] Managed Escrow: If your mortgage company holds the insurance funds (managed escrow), they will send an inspector (in addition to the county) before releasing draw payments. HPPP Cares can help explain this flow.
[32:51 - 33:14] Avoid Hasty Decisions: Recovery is not a race. Making speedy decisions without doing research or asking questions can result in long-term financial pain. Organizations can help speed up the process while ensuring educated decisions are made.
[37:55 - 38:12] AIA Contract Access: To avoid the direct purchase cost of AIA documents, survivors can contact HPPP Cares or Altadena Collective to receive the form.
Resources
Vetting Contractors (LA County Recovers): Always check the LA County Recovers website for a monitored list of vetted, licensed contractors. Unlicensed or problematic contractors are immediately flagged and removed.
Finding Contractors: Drive around and look for clean, well-organized construction sites and check the business signage for professionals you might want to work with.
Experience Lab (HPPP Cares): Located at the Eaton Fire Collaboratory (540 West Woodbury), this lab offers a "touch-feel" experience and education on fire-resilient materials, IBH standards, and defensible spaces. It is an educational center, not a showroom.
HPPP Cares Contact: Call 562-228-1886 (24/7) to schedule a visit to the Experience Lab or seek project oversight advice.
Altadena Collective Contact: Altadena Collective works by appointment (info@altadenacollective.org, located at 125 North Marengo) for architecture-first guidance and contract reviews.
Permit and Planning Stages Article: https://www.latimes.com/business/story/2025-11-14/homebuilders-launch-portal-to-streamline-fire-rebuilds
