Choosing the right contractor is a critical milestone in your remodeling project. But how can you, the homeowner, be sure you’re hiring the right person? Here are our guidelines for navigating the process:
- Figure out exactly who you need to hire for your project. If you’re doing a smaller job – just carpentry or just electrical – then you only need to find a tradesman. But if you’re doing anything that involves multiple aspects with multiple trades such as plumbing and painting – like, say, a kitchen or bathroom remodel – then you’ll want a general contractor.
- Do your homework. If you’re like most people embarking on a home remodel, you’re going to start asking around for contractor recommendations. Stick to friends, family, and people that you trust – and remember, just because they had a great experience doesn’t mean you will too (your project is a different one, after all). When/if you head to the Web, check out sites including the National Association of the Remodeling Industry and the Better Business Bureau (don’t be fooled by the name though, the BBB is not a government agency and has no official powers to help you in the event your contractor fails to perform). Both have contractor databases that tell you whether they’re licensed, whether there are any outstanding complaints against them, etc. But keep this in mind throughout your search: few people are qualified to tell you if a contractor is technically competent (some architects and realtors can). A good contractor will have technical competence, good management skills, and financial strength in his/her business. He or she will stand by their word and their contract, and deliver the project as promised even if (when) things go wrong.
- Communicate your vision to the contractors before you get their bids. The key here is continuity, to ensure that the bids you get are easily comparable. If you’re bringing in 2 or 3 (or more) contractors to bid, put together a scope of work for the project that you give to each one (the best way to do this: walk around the house and write down what you want, and find comparable pictures from magazines or websites and include them). Put your budget range and a material spec sheet in there as well, including the appliances, lighting, cabinetry, and any other details. Do a chart for each room – write out the tasks (install, remove, finish, paint) and the products you want. Adding a floor plan is always helpful. NOTE: If you don’t do a spec sheet, then your contractor will do one, and you’ll be handing over control over the details.
- Do a walk-through with each contractor you’re considering. Schedule a face-to-face meeting AT your home (there’s no exception to this) to review the project, and the scope of work you created. This is a key time to determine whether you’re on the same page about your vision, and to let it all sink in for both you and the contractor.
- Make sure the contractor you choose has the right insurances. Checking for Workers Compensation Insurance and General Liability Insurance should be part of the “credentials check” described above – but it can never hurt to double check once you make a hire.
- If you are highly risk-averse, ask for a performance and payment bond. If you are doing a large project (let’s say $100,000 or over) and you are just not sure about handing over large sums of money to your chosen contractor, ask them to get a performance and payment bond. This is a financial guarantee from a surety company (normally a subsidiary of an insurance company) that your contractor will perform according to the terms of your contract while paying all subcontractors and material suppliers. Expect to pay anywhere between 3% and 7% of your construction costs.
WARNING SIGNS OF A BAD CONTRACTOR
- If a contractor asks for a cash-only deposit
- If they don’t want to use a contract
- If they charge for a draft proposal (full detailed estimate is a different story, it’s common for the contractor to reimburse this fee upon winning the project)
- If they ask you to submit permits. It’s their job (helps building agencies confirm the contractor is licensed)
- Any version of “I was just in the neighborhood and noticed your windows weren’t double-glazed…”
IMPORTANT TIP
Despite what you may read, invite no more than 3 contractors to bid on your project. More than that and you are wasting your time and crushing the enthusiasm of each contractor (a 1 in 3 chance is worth the effort, a 1 in 6 chance is a waste of time).
IMPORTANT QUESTIONS FOR YOUR CONTRACTOR
- How many projects do you have going on? Zero = no good, 10 = too many/spread too thin.
- How long have you been in business?
- Are you going to be managing the project? If not you, then who? Do you have a foreman?
- Can I see references? These should consist of: projects that they’re doing now, customers they have now, architects, and subcontractors/suppliers that the contractor has worked with, to ask if they get paid on time.