How to Find a Good Contractor
Helpful Hints
House repairs can be overwhelming for homeowners at times. When that is the case, we seek out professional help. If you do not spend the time to pick a qualified contractor, the cost and time required for the project can increase substantially. Here are a few hints for you to help select the qualified contractor for your task.
1. A good source of finding repair people and contractors is through personal referrals. Start by asking people that you know such as friends and co-workers.
Another good source of recommendations is local contractor supply houses.
2. Plan your project carefully on paper and make a budget. The more you know what you want, the more likely you are to get it and the easier it will be for a contractor to give you a realistic bid for materials, labor and time. Don?t forget to create a cushion for unforeseen problems that can add to the total cost of the project.
3. Solicit bids from more than one contractor. Compare not only cost, but skill, reliability and the quality of materials that will be used. A good rule of thumb is to get three bids and question a bid that comes in much lower than the others.
4. Request a copy of the contractor?s license, liability insurance and worker's compensation certificate.
5. I recommend that you write up a contract with a contractor into contract form. You can obtain sample contract on the Internet.
a. The written contract should include agreed-upon starting and completion dates, as well as a schedule of when payments are due. (see item #7)
b. Provide a written scope of work. If you want specific materials or parts, make sure to spell that out in the contract. Try to provide as much information in writing. Use a floor plan, elevations, details and product cut sheets to explain your expectations.
c. Insist on getting all change orders, anything that changes the agreed-upon price or schedule, in writing.
d. Who will be paying for the materials? If the contractor will pay for the materials, what is the mark-up? Have the contractor provide a list of suppliers that will be providing materials for the job. This will provide information required for lien releases.
e. Who will be responsible for getting building permits and inspections from the city? Note that most modifications to a house require building permits. This may seem to be a hassle but it will ensure that projects are completed within the guidelines of the local codes.
6. You will also want to find out how the contractor expects to be paid. There are three main types of approaches to renovation and repair fees:
a. Guaranteed maximum price (GMP). The contractor states the maximum price that the project will cost and guarantees the project within that cost.
b. Bid or stipulated-sum. A fixed price is given for a defined scope of work. Cost savings on the job goes to the contractor and changes to the original plan are charged to you.
c. Cost-plus-fixed fee contract approach. All actual invoices are submitted to you and you pay the labor and material costs plus a flat fee.
7. Pay after the work is completed. You may pay in draws as certain things are finished, but don't pay in advance under any circumstance. As long as you owe the contractor money, they are going to be more likely to complete the job.
8. Release of Liens is essentially an agreement signed by a contractor and given to a property owner at the completion of a job. Basically, it states that the contractor has been paid in full for the work done and relinquishes their right to place a mechanic's lien on the property. The release of liens serves as protection for the property owner from an unscrupulous contractor who, though paid in full, might try to claim that they are still owed some money and place a lien on the property for any amounts which they claim are due but not paid.
9. How long have they been in business?
10. How well do you communicate with them? Find someone who understands what you are trying to accomplish.
11. Do they want a long-term relationship? Some contractors are just "working for the weekend."
12. How are their current jobs coming along? Visit the job sites and talk to the owners. And finally, do they have any references. Find out if these former clients were satisfied with the quality of the work as well as the time it took to complete the job. Ask if they would use them again.
13. Does the contractor guarantee the work? A good contractor will want to do the utmost to ensure your satisfaction with the repair work. Ask what kind of guarantees the contractor offers on the kinds of work to be done on your home.
14. Go with your gut. If everything else checks out, choose the contractor you think best understands your project and with whom you can communicate well. After all, this person and his or her workers will be in your home for days, maybe weeks, so you want to make sure you feel comfortable.
