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Creating Positive Relationships With Contractors

By Michelle Gamble

We’ve all heard the stories about contractors being hired to upgrade properties and either not finishing the job or doing shoddy work. It makes many property owners nervous. The experience, though, doesn’t have to turn out this way – not if you manage the contractor relationship with effective strategies and expertise to prevent these problems. The good news is, it’s not as difficult as you think.

Right upfront you can ensure success by making sure your prospective contractor has some basic business practices in place. “When hiring a contractor, you should look for someone who is reliable, licensed and has a lot of experience,” said Rina Patel, co-founder and licensed realtor with We Buy Any Philly Home based out of Pennsylvania. “If they are not licensed, you could be opening yourself up to financial problems down the road. A licensed contractor has gone through the proper channels and has met all of the requirements set by the state or municipality. This means that they are qualified to do the job and that you can trust them to do a good job.”

Next, word of mouth has a powerful effect. You will want to ask that contractor for referrals and past clients to call. Even better, find a contractor recommended to you by a friend. Referrals can be biased, as the contractor can weed out the unhappy clients. “It’s also important to check references and see if the contractor has any complaints filed against them,” said Patel.

“Many contractors are referred by friends, neighbors or colleagues. There are simple tips when vetting a contractor,” said David Haas, co-founder and COO of PowerPay (getpowerpay.com). “Do a quick search with the Better Business Bureau and look up the contractor on Google reviews. If they really care about their business, there will be many Google reviews and good rating on BBB.com. You can also look at their social sites and see if they have a lot of happy customers. If there are a lot of happy customers, there’s a good chance they will take good care of your project as well.”

According to Jim Kabel, owner of Next Stage Design based in San Jose, California, “Finding a reliable contractor isn’t easy, but our tip is to keep looking until you find the right fit. There might be a contractor that you think could do the job, but consider these final questions to determine if they’re the most reliable contractor for you: • How well do they communicate? • Did they make you feel like a priority in the initial meeting process? • Do they have insurance and workers' compensation? • Are they licensed and insured in the area?

When you can answer all of these questions, you can feel more confident moving forward with a contractor.”

Nothing speaks more loudly about a contractor’s skills and capabilities than examples of their work. “Two positive signs that you’re choosing the right contractor include a portfolio of (successful) renovations that is similar to your own project and a wealth of experience with homes in your area,” added Kabel. “If your contractor has this background, you can better rely on reviews and referrals from the community. When you’ve vetted the contractor based on these three qualifications, you should have enough information to make your decision.”

When drawing up the contract and developing the payment schedule, every expert repeatedly says do not pay all of the money upfront. It makes it too easy for the contractor to abandon the project or leave shoddy work behind. “We never pay contractors

“You should also make sure to get estimates from multiple contractors to compare prices.

100 percent of the fee until the work is 100 percent complete,” said Brian LeBow, broker and owner of Arcadia, California-based Bell Properties Inc. “This ensures that if a job is left incomplete, the payment will be affected as well. Never pay for a service until it’s complete.”

Also, clarity is important when it comes to payments. You want to avoid any misunderstandings, so keep it in writing with specific guidelines and payment agreements. It’s especially important to be clear about what happens if supply costs unexpectedly increase. “I also once dealt with a contractor who quoted me a price higher than what we had discussed once the work was finished,” said David Clark, a contractor, Home Improvement Expert and CEO at BasementGuides. com. “We argued for a long time over this matter, and they got rude with me. Luckily, I remembered I had recorded one of our initial phone calls where we discussed pricing. I played the recording back to them, which finally brought the discussion to a close. Once everything was done, I still filed a complaint with the Consumer Beware List.”

Even if you’re an individual and just want a property upgraded, the use of basic business skills can result in a win-win outcome. “On the recommendation of my friends, I hired a contractor to take care of a minor kitchen remodel,” added Clark. “They were very transparent with their pricing scheme and highly organized in their way of working. They supervised the remodel perfectly and kept me in the loop during the entire process.”

Now that’s a great way to work with a contractor!

Michelle Gamble is the editor of Rental Housing Magazine.