Time Waits For No One Tip #4 - 10 Things to Know Before You Hire a Contractor

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The 10 Things to Know Before Hiring a Contractor

1. Clearly Define Your Project - I can’t tell you how many times people have come to me after they have spent 2x as much on a project and did not get the results they wanted.  Before deciding to hire a contractor you must have the project scope clearly defined.  If you are not sure of what you want, how is the professional supposed to bid on the project? This will help you minimize costly overages and change orders. 
2. What is Your Budget for the Project? It is great to have dreams and aspirations of what kind of house, bathroom, building, remodel or renovation you may want.  But, it is entirely a different thing to have the budgeted amount of money to pay for it.  If you know that you need all work completed for $55,000, then you must take into consideration all aspects of the job. Which are the labor, materials, fees, permits, insurance, etc. and things that will ultimately be out of your control. Set aside some money for changes and weather related delays.  
3. Referrals are a good starting point to find qualified contractors. Get a referral from someone you know and trust. This cuts down on the guess work for you.  However it is always practical to have at least 3 separate bids for the same project so that you can make sure all aspects of the job are covered and you get the best possible contract price.

It is always practical to have at least 3 separate bids for the same project from 3 different companies so that you can make sure all aspects of the job are covered and you get the best possible contract price.       

4. Check to see if the company’s credentials are in good standing and not expired. This includes the contractor license, insurances and sub contractor agreements for all tradesmen that are hired. (i.e. painters, carpenters, roofers).
5. Check References - Has the company worked on a project like yours? How did they do?  Was the previous customer satisfied?
6.  Are they familiar with the current area the project is in? California’s construction laws, requirements, building codes, permits, ordinances, etc. vary from city to city and county to county.  IT IS NOT STANDARDIZED ACROSS THE BOARD. Yes there are some Federal and State Guidelines but for specifics you must go to your local Planning Department. Do Not Assume that just because they have performed work in your state or region that they are familiar with everything.    
7. Establish a Deadline for accepting bid proposals. Once you have established the bid requirements for your project. Provide each bidder the same deadline to have the bid proposals back to you.  This is important because it will affect the start date of the project. 
8. Review the proposals carefully.  - Sometimes if specific project materials are not specified a contractor will insert a brand or type of material that could be “standard” for use with your project.  However, if you are not familiar with the “standards” have someone from the company explain what types of materials will be used and why.  Just like everything else there is a high level range, medium and low range of products and materials to be used.  Know where your budget is in this area so you can keep your materials cost within the specified limits.
9. Establishing a Contract For Services – Most companies will have their own contract for you to sign.  However, just like with all contracts you should know what you are signing and have full comprehension of your rights and ability to cancel the contract or to change it.   It is also upon you to understand when payments are due and under what terms they will be paid.  Some contracts allow for payment of a certain percentage prior to commencement.  Some require payment once the contractor has established “Agency” status.  Meaning as soon as they perform any work on your behalf.  You being the “Client”.   Additional payments are then usually made after certain phases of the job are “complete”.   
10. Do Not Pay the Entire Amount Due Before Work is 100% completed to your satisfaction.  Make sure all mechanics liens have been removed or are a condition of Final Payment.  Inspect the area to make sure the contractor has performed work within the specified guidelines and bid requirements. It is NEVER okay to make final payment prior to completion.  Please understand that once you have made this payment there is nothing holding the contractor to you but his Integrity.

Review of The 10 Things to Know Before Hiring a Contractor

1. Define Your Project
2. Establish the project budget
3. Get Referrals
4. Check Credentials – Licenses, Insurance etc.
5. Check References – Prior customers, projects completed.
6. Familiarity of project location and planning dept. processes.
7. Establish Bid Proposal Deadline to accept bids.
8. Review proposals carefully
9. Review Contract For Services Carefully
10. Withhold Final Payment until all work is completed and liens have been removed. 

For More Information contact me at Realtor-Yolanda@comf5.com   

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