BROCHURE 03

One of the hardest parts about home renovations is finding the right contractor for the job. While it may take a little heavy lifting in the beginning, it will pay off in the end. In the next pages, we’ll go over seven tricks and tips to help you find the perfect contractor fit. This process may at first appear to be very time consuming and possibly stressful. You will find that following this guide will help you to quickly eliminate the uncooperative candidates and pick your final contractor with confidence.

THE SEVEN TRICKS & TIPS

1. Ask for referrals

2. Look at credentials

3. Interview candidates

4. Check references

5. Make plans, get bids

6. Set a payment schedule (in writing)

7. Avoid red flags

ASK FOR REFERRALS

The best way to secure a trusted contractor is to ask friends, family, coworkers, or neighbors for recommendations. Start with your homeowner friends/family who have recently had home renovation work. See if they had a good experience with a specific contractor, ask what made it a positive experience, how the contractor handled problems, and if they would use the contractor again.

If you can’t find any word-of-mouth recommendations, you can also:

>> Check in with the National Association of the Remodeling Industry for a list of members in your area

>> Talk with Building Inspector, Local Home Inspectors, HUD consultants, homeowner insurance agencies, architects and home designers. They will know which home renovation contractors routinely meet code requirements

>> Ask for referrals via social media

Check big box home remodel stores such as Lowes and Home Depot for a list of local recommended contractors.

LOOK AT CREDENTIALS

Once you’ve gathered a solid list of recommendations, you can do some preliminary research. Whether you make calls or do online research, you’re going to want to find out the following:

>> Check contractor license number, be sure that it is current and in good standing

>> Find out whether they hold all the required licenses from state and local municipalities

>> Check designations from professional associations such as the National Kitchen and Bath Association, National Association of the Remodeling Industry, and National Association of Home Builders

>> Look for contractors who have invested in coursework and past rigorous tests to earn particular certifications

INTERVIEW CANDIDATES

After completing the necessary research on the candidates’ credentials, you can start narrowing down your list. By interviewing each candidate, you can get a better grasp on their experience and aptitude for the job.

Here are some tips for the interview process:

>> Narrow down your list to the top three candidates – things can get confusing beyond that

>> Schedule meetings with the top three

>> Use this as an opportunity to evaluate their communication and work portfolio

>> Evaluate how each candidate answers the questions

>> Focus on selecting a contractor who has a documented history of completing projects that are similar size and scope of your proposed project

Ask the following:

>> Do they take on projects of your size?

>> Are they willing to provide financial references from suppliers or banks?

>> Can they give you a list of previous clients?

>> How many other projects would they have going on at the same time?

>> How long have they worked with their subcontractors?

>> How many projects have they completed within the last 2 years that are similar in size and scope of your proposed project?

>> Do they require an upfront deposit prior to the start of the project and if so how much of a deposit do they require?

>> Do they provide a free written estimate that is valid for 30 days?

CHECK REFERENCES

When you have a better idea of who will be the best fit for the job, you can request that they provide a list of references from previous customers. Remember that you’re buying a service, not a product. Quality of service will be important.

Ask the references:

>> Were they on time?

>> Did the stick to the budget?

>> Were the customers pleased with the outcome?

>> Could anything have been done differently?

>> Make sure the references are really homeowners just like you and not friends and family of the contractor

>> Social media presence is important when selecting larger general contractors

>> Spend time researching the candidates

MAKE PLANS, GET BIDS

By this point, you should have your short list of contractors who align with your goals and have a good track record. Now it’s time to start thinking about your specific project. Here are some steps to take next:

>> Ask if architectural plans or blue prints will be required to get the permits required for your project

>> To compare bids, ask contractors for a breakdown of cost of materials, labor, profit margin, and other expenses

>> Keep in mind that materials typically account for 40% of the total cost

>> When comparing bids, ask contractors to detail out the material vs labor cost for each area of your project such as kitchen verse bathrooms. Make sure they detail make and models of appliances and equipment, number of windows and doors being replaced, size and energy efficiency of heating and cooling system, grade of cabinets, countertops, vanities, etc.

SET A PAYMENT SCHEDULE

Once you have a good idea of who your contractor will be, it’s a good idea to work out a payment schedule. Payment schedules can speak to a contractor’s financial status and work ethic, so here are some things to keep an eye out for when you’re making a payment schedule.

The payment process and distribution for funds are critical to a successful project. It is important that your lender is able to properly manage everyone’s expectations of the distribution of funds from the escrow account before you make the final selection of a contractor. Money is the #1 cause of post closing disputes between contractor and homeowner.

You do not need to accept their payment schedule, you can work with them to create a payment schedule that will work for you both. You do not want a payment schedule that is heavily weighted upfront. Contractors are entitled to a profit and management fee based on work completed, not the promise of completing work.

>> If they want excessive funds, they may have financial problems, or be worried that you won’t pay the rest after you’ve seen the work

>> For large projects the schedule usually looks like this:

Last, but not least, you will want to absolutely get the contract in writing. Once you review the contract, be sure that includes the following items:

>> Price and payment schedule

>> Scope of work

>> Site plan

>> Schedule of primary construction tasks

>> Change-order clause

>> Procedural list for close-out

>> Limited warranty

>> Clause for dispute resolution

>> Waiver of lien

>> Proof of liability insurance

RED FLAGS

1. Reliable contractors make it easy to contact them and are eager to share examples of their past work. Be wary of contractors who do not provide basic information, don’t have references, and don’t have a website, social media presence, or reviews from past customers

2. Portfolios with too few photos or photos that are poor quality

3. Contractors that lack credentials

4. Contractors who take too long to get back to you or don’t provide you with the information you request

5. Too few references, or too much time between projects

6. Contracts that pressure you into accepting a bid or saying that bids are only good for a limited time

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