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Choosing a Contractor

Every year a number of consumers are duped by phony businesses calling themselves experienced contractors, and to tell you the truth I’m tired of hearing about people getting misled out of hundreds or even thousands of dollars. So what can you do? Let’s find out.

I’m going to go out on a limb and assume that most individuals aren’t hiring contractors everyday. So how are people supposed to know how to select the perfect contractor for their needs? That’s why there are companies that take advantage of individuals every year. Much to these unethical businesses’ dismay it’s about time people learned how to make the right decision about their contractor.

The first important item is time. It takes time (lots of it) to make a good decision. It is advisable to take even more time than you think you will need. This way you can be sure that you are not pressured into a situation that you are uncomfortable with and that you keep your work load down and ultimately your stress levels low. Choosing the right contractor is an important long-term decision for any homeowner. Most likely you’ll stick with one contractor for all your jobs. For this reason, as well, it is important to take some time and find the best contractor for you. Of course there are emergency instances when you will not have all the time in the world to decide on whom you call to make the repair. This is a serious problem that is discussed later in this article. For now let’s assume that this is a planned undertaking.

What is it exactly that needs to be done? Sit down and write out a description of your project. Try and make this as detailed as possible. Then go through all the components of the project i.e. windows, doors, type of material, etc. This way you can create a concise fact sheet that will be easy to pull from as you talk to your contractor. It is also a good idea to make sketches or floor plans of what you expect. Later as you proceed with the project the contractor or an architect can supplement these sketches. One you’ve decided what it is you are going to build it’s time to find the right contractor for you.

Before you begin searching for a contractor think about what exactly has to be done in your project. Are you planning on having electricity installed or having a new bathtub put in? If you are planning on these, the contractor you choose will have to subcontract with an electrician and a plumber in order to complete the project. Most contractors have subcontractors that they usually use. However, it’s important to check up on the subcontractors as well. Common knowledge would say that at this point you should go to the phonebook. Most people that are scammed by individuals calling themselves contractors will tell you that they found them in the Phone Book. There is a glaring problem with using the Phone Book, and it is the fact that anybody can get in as long as they pay their subscription fee.

As a consumer myself I recommend putting aside the old Phone Book and logging on to www.metroinfo.com. Metroinfo provides a local portal that will help you find the best contractor in your area. They do the hard work for you by providing background checks, business audits, and continuous spot audits that insure the business listed in the portal is adhering to the highest business ethics. By utilizing this service you can stop worrying about finding a reputable contractor and start worrying about your project.

The next step is finding a contractor that has experience in the type of work that you wish to have done. Basically this comes down to your personal preference. Make sure that you get a portfolio of the contractor’s past work. This is a good way to get an idea of what jobs they have completed in the past and what type of skill set they possess. It is also necessary to ask for references of past jobs that they have done. If it’s okay with the owner of the property you can get something besides pictures to look at. Seeing actual work is the best way to go, and it will probably help you feel more comfortable with the contractor’s ability to complete your project in a satisfactory way. It’s also a good idea to ask the contractor for a reference that they had a dispute with. This way you can get a good an idea of how well the contractor handled the issue and what his attitude was toward the problem. Here’s a list of questions to ask the references:

• How did you find out about the contractor?
• Did you have any issues contacting the contractor? Did he return all your phone calls?
• What kind of work did they complete for you?
• Were you satisfied with the workmanship of the contractor?
• Have you had any problems with the finished project? Did you get a warranty on workmanship?
• Did you have any major problems during the building process? Was the contractor able to come up with a solution in a timely manner? Was it satisfactory?
• Did the contractor meet all contractual and spoken guarantees?
• Would you recommend the contractor to a family member?
• Would it be all right if I viewed the work? When is a convenient time for you?

Being able to communicate with your contractor is important as well. You want to make sure that you feel comfortable enough to ask them questions about your project and also be able to point things out that you want completed differently. The bottom line here is that you are paying for the work and the contractor should do what you want done (within building and safety codes), not vice versa. There are a number of questions you will want too ask prospective contractors. Be concerned if the answers from the contractor don’t match your personal research.

1. How long and where has your business been in operation?
2. How and when do you clean up the building site?
3. How long is your work covered under warranty?
4. What work schedule will you and your crew follow?
5. What kind of subcontractors are we going to need to complete the project i.e. plumbers, electricians, etc?
6. Does your company do design work, or should I hire an architect? (Anyone can say that they offer design services. Make sure that you see examples of their work before deciding on letting them design for you)
7. When can you start my project?
8. Have you ever worked as a contractor in any other states?
9. How long does a job like mine usually take to complete.
10. How are you going to solve ________________? (If you think there are any difficult problems to solve ask the contractor what kind of solution they would recommend)
11. What kind of pricing schedule do they generally use? Most consumers that are scammed pay the contractor up front for “supplies.” To avoid this realize that contractors get a discount from supply companies (in the same way mechanics get discounts). This allows contractors to make money on supplies. There isn’t anything wrong with this. Companies need to make money. However, be up front with the contractor to find out where they get their supplies and their discount. There’s nothing wrong with paying a write up, and by paying directly to the supplier you can sure that you will get the materials, no matter what the contractor does.
12. Ask if they require payment part way through the project. This is a reasonable request that contractors use to protect themselves against nonpayment as long as they are actually completing work.

The more you talk with the contractors the more comfortable you are going to feel with them. This is important because you will want to remain in an active role during the project. This means taking some time to check on the work that is being done, and to talk with the contractor about any problems that have arisen. This is a basic consumer safety tip as well. Typically when someone knows that you will be checking in with them often they are more likely to work harder and to make sure that the work is done correctly and to your specifications.

When you’ve finished talking and meeting with the contractors you may find that there is one that you are more comfortable with, however, make sure that you ask all the companies for a written estimate. Knowing that they have to compete for the project may, and in most cases will lower your total cost of building. With this in mind, it may not always be in your best interest to select the contractor solely on price. Remember that you will have to communicate with them on a regular basis and that they may be in you home for some time. It may be worth spending more money to get a higher level of comfort. This is up to you. It is also important to get specifics in the quote. When it is time to get the estimate try to meet with the contractor in person so that you can discuss items and get your questions answered. As a general rule of thumb, remember that you always get what you pay for, within reason. Make sure you compare the estimates to insure you’re getting everything you require. Here is a list of things to look for on the estimate.

• Are there prices for specific types of products that will be used in the project; windows, doors, flooring, etc. When comparing estimates make sure you are comparing apples to apples. One estimate may be significantly higher but may feature top of the line construction supplies.
• Is everything included in the estimate? Make sure that all materials have been accounted for in the estimate.
• Does the estimate include all work that you wanted done? Make sure that the contractor understands what you want from the job and has made preparations for your project.
• Are labor prices higher for one contractor? When this happens it is important to look at the projected time line for the project. If a contractor is charging more for labor but will get the job done sooner it may be more cost effective than paying less money over a longer period of time.
• Remember that you always pay more for higher quality work, but that doesn’t mean that you have to pay a fortune to get the job done right.
• Ask the contractor what their mark up is. This is a percentage that they are making on the project. Bigger construction companies are typically more reliable, because they use actual crews with managers, but they have a higher markup (a markup of 25% isn’t unheard of). Use www.metroinfo.com to find a local contractor that will get the job done right and provide the best Total Cost of Ownership (TCO).

A note about TCO. The Total Cost of Ownership is what you want to be focusing on in any project. This means that you have to concentrate on all factors that influence the project, not just flat materials pricing. When you pay more you’re actually paying for convenience, quality, and piece of mind. I find it very difficult to place a price tag on all of the above things. Remember that your house is probably your biggest investment. You want a contractor that’s going to increase the value of your investment through quality work. It’s also important to remember that your life will be affected by the project. There may be people in and around your home for weeks, and when they are around your home they are around your family. What is the price for keeping your family safe? Because of these reasons you’ll want to make sure that you are comfortable with the company that you choose. It’s worth paying more for a good experience. When you choose your contractor try and get the most overall value, but remember to add in intangibles like comfort and convenience.

There is an important rule about estimates, and it is that they are just estimates. In almost all building scenarios the cost of the project will exceed the estimated cost. That’s why it may be a good idea to go with the contractor whose estimate was higher, because their quote may have been more realistic. Also, remember that it’s all about TCO. Go with the contractor that is going to give you the most value for your money even if you may be spending more to get the job done.

After you’ve decided which contractor to use its time to draw up the contract. Before you ask to have the contract drawn up make sure you communicate any issues you had with the estimate to the contractor. This way they can be resolved on the contract. When entering any construction project, no matter what the size, it is important to have a written contract. NEVER agree to have a project completed with a verbal agreement. NEVER agree to pay cash up front for a project. Every benefit that you may get from these kinds of underground deals is offset by the great risk that you will be taking. Without a written contract you have no legal ground to stand upon.

If you experience success with a contractor you are most likely going to use them again in the future. Finding a contractor you can trust and rely on is hard, so you should pat yourself on the back if you do it right. For future jobs that you may decide to have completed make sure that you still get estimates from other companies. This is a good way to keep your contractor honest. Usually over time people have a tendency to raise prices if they think you trust them. So, every now and again have another company give you a quote to make sure you are still getting a good deal.

When you do get the contract you may want to have it looked over by an attorney, however, if you’re familiar with going over contracts this may be unnecessary. Whatever you do, make sure that you read over the contract piece by piece. This way you know exactly what you are getting. Below is a quick list of things to have on a contract.

• Complete name, address, and telephone number of the contractor. (Never work with a contractor that doesn’t have a physical address. PO boxes are nearly always used by scammers).
• Contractor's license number. (To find out more about licensing restrictions in your area visit www.contractors-license.org. This is mostly useful as an identification tool. In many areas licenses are meaningless or not required).
• Scope of work to be done.
• Brands, models, colors and grades of materials to be used.
• Guarantees on workmanship and materials.
• Who obtains and pays for permits. For more information on required building permits contact your local town hall.
• Who is responsible for cleaning up during and after the project is completed?
• What kind of work is provided by the consumer, if any?
• Prices for labor and anticipated work schedule.
• Prices for materials. Who will purchase materials and from whom?
• Escalation Cap, this is a crucial requirement to insure your financial security. Most construction projects go over budget. An escalation cap protects you from continuous charges as the project goes on. Ask the contractor what the worst-case scenario is. Then work out a price that is acceptable to both of you to complete that scenario.
• Commencement date.
• Estimated completion date.

As construction moves forward you may find that everything doesn’t go exactly as planned. This is a bigger issue with older homes as renovation often uncovers things that no one expected. For this reason it is a good idea to set aside some funds to cover unanticipated repairs. This way when a rotted beam needs to be replaced you can replace it and not compromise the safety of your home. The bottom line is that unanticipated costs are part of the construction process, and it is better to have a fall back than to have to leave a part of the project incomplete.

As I said in the opening, emergency situations are tough. That’s why I would go to the same verified source you used to find a contractor. When you’re in a hurry to choose a plumbing and heating specialist or an electrician use www.metroinfo.com. All rules for building contractors also apply to electricians and plumbers on www.metroinfo.com. This means that when you’re in an emergency situation you can be sure that you will get a professional that will complete the job in a satisfactory way.

Hopefully, by using the tips laid down in this article you were able to find the right contractor for you and have that new renovation done. Remember that if something seems to good to be true it probably isn’t true. This rule can save consumers in almost any situation. So use the tips found here and log on to www.metroinfo.com. By doing this you can minimize your chances of getting ripped off by a con man calling himself a contractor.