Host Kevin O'Connor and general contractor Tom Silva discuss the homeowners' decision to stay in the house during construction, and they agree it won't be easy. Homeowners Bill and Gillian Pierce are already living out of boxes and coolers, because today their kitchen will be gutted back to the studs. In the basement, the entire heating system is coming out, as plumbing and heating expert Richard Trethewey goes straight to work with a reciprocating saw and a sledgehammer. Outside, Tom shows Kevin how he's extending the old windowsills with wood and epoxy to replicate the historic "ears" of the sill that were cut off by the vinyl siding contractor years ago. Gillian sets up a temporary kitchen in the basement, while Kevin gets some bad news from master electrician Allen Gallant. The exterior service components are water-damaged beyond repair, and due to some hidden (and ungrounded) knob-and-tube wiring, nearly ninety percent of the old house will have to be rewired to meet building code. Out back, Tom uses interlocking, insulated concrete forms to form the foundation for the new addition, just before the concrete truck arrives for the pour.