Archive for the ‘Contractor Hiring Process’ Category

How To Pick The Right Contractor

Tuesday, October 27th, 2009

A recent newspaper article spelled out the problems a homeowner may face if they are not careful. “Local remodel contractor files bankruptcy leaving homeowners holding the bag”. This happens too often. I have seen it many times. There is no way tell if a contractor is about to go out of business, but there are steps you can take to minimize the potential problems.

First thing is the interview. Try to get referrals from your friends or family. Call three to five contractors of the referrals or try yellow pages. See how promptly they respond. Set up an appointment and see which contractors show up and who’s on time. During the interview ask probing questions. Use your own intuition about the person. Let your judgment of character work for you. If you feel they are honest, trust your instincts. Try to define the scope of your project in the same way for each contractor to make sure they are bidding the same job.

Remember, you will have this person, their employees, and sub-contractors in your house for some time. Ask for references! These should include a variety of jobs, both in progress and completed. You can ask for vendor references as well.

After you meet, call the Contractor’s State License Board (800-321 CSLB) or go their website (www.cslb.ca.gov) to check out the status of the license and bond. Call the Better Business Bureau (858-496-2131) to check for complaints. Again, trust your own judgment, but always check everything you can.

Once you choose a contractor, there are some things you can do to protect yourself during the job. Make sure the contract is detailed. It should describe all phases of the job and include all the information on the products being used. Before signing, allowances should be set on items such as sinks, toilets, faucets, and floor coverings. The more detailed the contract the less there is to disagree about once the work is under way.

The contract should spell out the payment terms in detail. State law says a contractor cannot take more than 10% (up to a maximum of $1000) as a down payment. For example, a job with a total contract price of $8,000 requires a down payment of no more than $800. The remaining payments should be progress payments tied to progress on the project. As an example, payments on a $50,000 room addition would be $1000 down, $10% at foundation, 10% at framing, 10% at roofing, 10% at drywall and so on.

The idea is to always have enough money left to finish the project if the contractor disappears. If a contractor tells you he needs money up front to pay for material, I would wonder why he has no credit accounts with his suppliers. If his suppliers want cash, that could be an indication of a financial problem. Remember the golden rule: “He who has the gold, makes the rules.” When you give up the money you give up the power. Don’t give up the power until you are happy. Another good idea is to get lien releases from all the subcontractors and suppliers on your project.

There are many reputable, reliable, honest contractors out there. Don’t let the horror stories discourage you. That is only a small percentage of the construction industry. If you do your homework, you will probably have a good experience.k-co_logo_2009

Remodeling Your Home: The First Meeting

Tuesday, June 16th, 2009

So you finally did it-you called a contractor and made an appointment to talk about that room addition you’ve been considering. Great, you took the first step. So what’s next? What’s that first meeting going to be like and how can you make the most of it?

In some ways, that first meeting with a potential contractor is like a blind date. Neither of you knows a lot about the other, and you don’t know whether this will be your only meeting or the beginning of a long relationship. You’re probably even a little bit nervous about it-just like a blind date.

For you as the homeowner, preparing for this meeting will help you feel more comfortable and allow you to get the most from the time. The first thing you should do, even before you make that first call, is to do some research on the contractors you are calling.

Whether you got their name from a neighbor, friend or the phone book, your first stop should be the Contractor’s State License Board to verify that the company has the proper license and insurance coverage. Don’t listen to folks that tell you that the license isn’t important. Why hire someone who hasn’t made the minimum commitment to professionalism by getting the legally-required license? If they are willing to cut corners with their own reputation, then what makes you think they won’t cut corners when it comes to working on your home?

Once the appointment is made, you should be working on the remodeling dream list, which you will want to share with your contractor. For example, you may want to add a master suite to the back of the house, remodel the hall bathroom and re-do the kitchen. Realistically, your budget may only allow for some of this work to be done, so which is most important? You can always pull back and eliminate some things, but you may have enough in the budget to achieve your dreams.

And speaking of the budget, let’s be truthful here. You do have a budget, but you don’t want to tell the contractor what it is. Okay, I understand why you feel that way, but in my experience, this is a mistake. If I come to see you about a bathroom remodel that I know is going to cost no less than $10,000 and you don’t tell me that your budget is only $5,000, we will both be disappointed. Even if you only give me a range-say between $12,000 and $15,000-I can tell you quickly that this is either in the right range, or not, for the project on the table.

These issues, what to do and how much to spend, should also be discussed with your family-before you meet with anyone. Believe me, you do not want to be sitting there with a contractor when you find out that your spouse/significant other has a whole different idea of what’s important and how much to spend. That’s the very definition of uncomfortable, for everyone.

Now just like on a blind date, you may find yourself in “love at first sight” with the contractor. And just like a blind date, you should not make any commitments just yet. In construction, that means don’t sign any contracts at that first meeting. Beware of sales reps that offer incentives that are only available if you sign up “right now”. There’s no reason not to take your time and think about any proposal before you commit, and a whole host of reasons against acting too quickly.

Although most contractors can quote you a rough price at the first meeting to help you know how close to your budget you are, I’d be really concerned about someone who can give you an exact enough price at the first meeting to have you sign a contract. In fact, it isn’t surprising to have the process of refining the scope of work take a couple of visits.

In conclusion, remember that you are talking about two big things here-your home and a lot of money. No ethical contractor will want you to do anything before you have carefully considered their proposal and checked their references. Start off on the right foot and you have a much better chance of your “blind date” ending up in a happy “marriage” with your contractor!