How to Hire a General Contractor
Ask for Recommendations
Begin by seeking recommendations from people you trust, such as friends, family, or colleagues. They may have worked with reliable contractors in the past and can provide valuable insights.
Research Online
Conduct an internet search for reputable contractors in your area. Look for contractors with experience relevant to your project and check their online reviews and ratings.
Consider Independent Contractors and Construction Companies
Both independent contractors and those affiliated with larger construction companies should be considered. Evaluate their qualifications, experience, and track record to determine the best fit for your project.
Prepare Questions
Before meeting with potential contractors, prepare a list of questions to ask during the interview process. These questions may include:
- How long has your company been in business?
- What experience do you have with this type of project?
- Do you possess the necessary permits or licenses?
- Can you provide references from past clients?
- What is your cost estimate for the project?
- What is the projected timeline for completion?
- Are you adequately insured?
Verify Credentials
Ensure that the contractor has the necessary permits, licenses, and insurance required to work on your project. This helps protect you from liability in case of accidents or property damage during construction.
Check References
Request references from past clients and follow up by contacting them to inquire about their experience working with the contractor. Ask about the quality of work, professionalism, adherence to timelines, and any issues encountered during the project.
Check Better Business Bureau (BBB)
Verify the contractor's reputation by checking for any complaints filed against them with the Better Business Bureau (BBB). If there are complaints, inquire about how they were resolved.
Discuss Payment Options
Have a detailed discussion with the contractor about payment options and your budget before signing any contracts. Avoid paying in cash and opt for payment methods such as checks or credit cards. Be wary of contractors who request cash payments, as this may indicate a potential scam.
Understand Down Payments
While down payments are common in construction projects, be aware of state regulations regarding the maximum allowable amount for down payments. Ensure that the terms of payment are clearly outlined in the contract to avoid any misunderstandings.
Tips for Hiring a Contractor
Get Recommendations
Start by seeking recommendations from friends, family, and industry associations like the National Association of the Remodeling Industry. Building inspectors and local lumberyards can also provide valuable insights into reputable contractors.
Do Phone Interviews
Conduct phone interviews with prospective contractors to assess their availability, reliability, and professionalism. Ask essential questions about their experience, references, and workload to gauge their suitability for your project.
Meet Face to Face
Select three or four contractors for face-to-face meetings to discuss estimates and project details. Effective communication and a good rapport are essential, but also verify their track record with consumer protection agencies and the Better Business Bureau.
Investigate the Facts
Research each contractor's background by contacting former clients and visiting current job sites. Evaluate the quality of their workmanship, safety practices, and professionalism firsthand to ensure they meet your standards.
Make Plans, Get Bids
Provide contractors with detailed project plans and request itemized bids that include material costs, labor, profit margins, and other expenses. Compare bids carefully and consider factors beyond price, such as reputation and communication.
Set a Payment Schedule
Establish a clear payment schedule that reflects the contractor's financial stability and work ethic. Avoid upfront payments exceeding 10% of the total bid and ensure payments are tied to project milestones to maintain accountability.
Don't Let Price Be Your Guide
Avoid choosing contractors solely based on the lowest bid, as it may indicate compromised quality or financial desperation. Focus on finding a contractor with whom you feel comfortable and can communicate effectively.
Put it in Writing
Draft a comprehensive contract detailing project specifications, payment terms, insurance coverage, start and completion dates, and lien release requirements. A well-defined contract protects both parties and ensures a successful renovation project.
Tips for working with contractors
Get an Itemized Quote
Ensure that your contractor provides you with an itemized quote that includes all materials and their costs. This will help you anticipate your expenditures accurately and avoid surprises.
Ask About Subcontractors
Inquire whether the contractor uses subcontractors and verify their licensing and insurance. Understanding how subcontractors are managed and communicated with can help ensure a smooth project execution.
Set up Regular Communication
Schedule regular communication sessions with your contractor to stay updated on the project's progress and address any concerns. Establishing a clear communication channel ensures that both parties are on the same page throughout the project.
Plot a Timeline
Develop a detailed project timeline with specific events and deadlines. Display the timeline at the job site and regularly review it with the contractor to track progress and ensure timely completion.
Prepare for Problems
Anticipate potential issues and be flexible in addressing them. When problems arise, focus on finding solutions rather than dwelling on setbacks, and adjust the timeline as necessary.
Inspect Work Periodically
Regularly inspect the quality of workmanship and materials installed by the contractor. Address any concerns promptly and respectfully to maintain project standards and ensure your satisfaction.
Offer Kind Gestures
Show appreciation to your contractors by providing small gestures of kindness, such as bringing coffee or snacks to the job site. Building a positive relationship with your contractors can enhance collaboration and lead to a more successful project outcome.
Tips for Finding the Right Contractor
Get Multiple Estimates
Obtain written estimates from multiple contractors to compare pricing and services. Websites like Angie’s List and Thumbtack can help you find reputable contractors.
Hire Local, Licensed Contractors
Opt for local contractors who are licensed and familiar with building codes in your area. This ensures easier communication and accountability.
Check Their Work and Reputation
Research the contractor’s reputation, experience, and past work. Look for customer reviews, check references, and verify their credentials with the Better Business Bureau.
Take Your Time Making a Decision
Resist the urge to rush into a decision. Carefully review all bids and contracts before making a commitment.
Verify Insurance and Bonding
Ensure the contractor has proper insurance coverage and bonding. Request a Certificate of Insurance (COI) to confirm adequate coverage.
Get Everything in Writing
Review a comprehensive contract before work begins. Ensure it includes details of the work, payment schedule, start and completion dates, guarantees, and signatures from both parties.
Understand Your Right to Cancel
Familiarize yourself with your right to cancel the contract within the cooling-off period without penalty. Consider sending the cancellation notice via certified mail for documentation.
Avoid Paying in Full Upfront
While it's customary to pay a percentage upfront, never pay the full amount until the work is completed to your satisfaction. Review payment terms in the contract carefully.
Anticipate Delays
Be prepared for potential delays due to unforeseen circumstances like weather or supply shortages. Maintain realistic expectations and patience throughout the project.
Keep Detailed Records
Maintain organized records of all project-related documents, including contracts, change orders, correspondence, and payment records, for future reference.
How to Hire and Manage a Contractor Checklist and Tips
Deciding When to Use a Contractor:
- Evaluate your comfort level, time availability, and budget constraints for the project.
- Consider permit requirements for technically challenging installations.
Permit Requirements
- Check past work, reputation, and business longevity.
- Get referrals from trusted sources and read online reviews.
Tips for Hiring the Right Contractor
- Check if a permit is required for your project, especially for new work or complex installations.
- Consider permit requirements for technically challenging installations.
Assessing Your Comfort Level
- Evaluate your confidence and familiarity with the project tasks.
- Consider whether you have the necessary tools and skills to complete the job.
Time and Budget Considerations
- Assess your available time and willingness to commit to the project.
- Factor in potential delays and consequences of DIY versus hiring a contractor.
Managing Your Budget
- Compare the cost of hiring a contractor versus DIY, including tool purchases and rentals.
- Ensure you have a clear understanding of the contractor’s pricing and payment terms.
Permit Requirements
- Determine if your project requires permits from the local building department.
- Understand if a licensed contractor is necessary to fulfill permit requirements.
Choosing Between DIY and Hiring a Contractor
- If you lack confidence, time, or budget for DIY, consider hiring a contractor.
- Evaluate the risks and benefits of DIY versus hiring a professional.
Assessing Contractor Qualifications
- Verify the contractor’s license, insurance, and bonding status.
- Request references and review past work to gauge reputation and reliability.
Obtaining Multiple Estimates
- Get detailed estimates from multiple contractors to compare prices and scope of work.
- Ensure each estimate includes all necessary tasks and materials for the project.
Negotiating Contract Terms
- Review contracts carefully and ensure all terms and expectations are clearly defined.
- Discuss payment schedules, timelines, and potential change orders upfront.
Managing the Project
- Communicate regularly with the contractor and address any concerns promptly.
- Monitor progress and ensure the project stays on schedule and within budget.
Resolving Issues
- Address any issues or conflicts with the contractor professionally and promptly.
- Document all communications and agreements in writing to avoid misunderstandings.
Ensuring Compliance
- Verify that the contractor adheres to all permit requirements and building codes.
- Request documentation of inspections and approvals as necessary.
By following these steps and considerations, you can effectively hire and manage a contractor for your project while ensuring a successful outcome.
Tips for Hiring the Right Contractor:
Check Their Past Work
- Identify potential contractors through referrals from trusted sources or online platforms like HomeAdvisor.
- Read reviews and testimonials to assess the contractor’s reputation and reliability.
- Look for longevity in business, a physical office address, positive references, and relevant experience.
Get Multiple Estimates
- Narrow down your list of potential contractors and request estimates from each one.
- Compare each bid’s scope of work, ensuring it covers all necessary tasks and materials.
- Review assumptions, exclusions, and allowances to understand the true value of each bid.
Understand the Scope of Work
- The scope of work defines the full extent of the contractor’s responsibilities.
- Clarify any allowances, assumptions, or exclusions with the contractor before accepting the bid.
- Ensure all verbal commitments are documented in writing to avoid disputes later on.
Manage Change Orders
- A change order is an amendment that alters the contracted scope of work.
- Discuss potential changes or extras before the project begins to avoid surprises.
- Evaluate change orders based on their necessity and impact on the project timeline and budget.
Comparing Bids
- Gather all bids and carefully review each one’s scope of work agreement.
- Take note of allowances, assumptions, and exclusions listed in each bid.
- Evaluate the overall price relative to the value of the scope of work and additional factors.
- Politely address any concerns or discrepancies with the contractor before making a final decision.
License
- Look for a contractor with a valid license, preferably with no filed complaints or disciplinary actions.
- Verify the license number provided by the contractor.
- Ensure the license is appropriate for the type of work being performed.
Insurance
- Confirm that the contractor has adequate insurance coverage, including worker’s compensation and general liability.
- Request insurance certificates (COI) and verify coverage with the insurance company if necessary.
- Ensure the insurance coverage protects against bodily injury and property damage.
Bonding
- Check if the contractor is bonded, which serves as a guarantee that the work will be completed.
- Bonding provides assurance in case the contractor fails to fulfill their obligations.
- Contractors who are bonded demonstrate a commitment to their work and provide added security for the homeowner.
Payment Options
- Discuss payment options with the contractor and agree on a payment schedule before work begins.
- Avoid contractors who demand cash payments upfront, as this may indicate potential issues.
- Minimize upfront payments to no more than 33% and only agree to this with reputable companies.
- Request to be invoiced by mail after the work is completed, rather than paying immediately after the job.
Avoid Rushing Into a Decision
- Take your time to evaluate each contractor thoroughly before making a decision.
- Review contract prices carefully, ensuring they are well broken down, clear, and easily understood.
- Don’t be swayed by discounts or cash incentives offered for immediate contract signing.
- Choose a contractor who provides detailed answers to your questions and addresses your concerns satisfactorily.
Questions to Ask
- Inquire about the total cost of the job and what is included and excluded from the price.
- Clarify any assumptions made by the contractor and ensure they are reasonable.
- Discuss the project timeline and whether the contractor guarantees it in writing.
- Request that all agreements be put in writing to avoid misunderstandings.
- Ask about the upfront payment amount and the reason behind it.
- Determine how the remainder of the payment will be handled upon completion of the work.
- Verify the contractor’s license, insurance, and bonding status by asking for their certificates and license number.
Tips to Effectively Manage a Contractor
Establish the Working Relationship Before the Job Begins:
- Define expectations and requirements in a written scope of work before any work begins.
- Discuss clean-up procedures and the protection of surrounding areas during the project.
- Clarify access to your home and the use of utilities, especially if you won’t be present during work hours.
- Communicate any specific concerns or areas of caution to the contractor.
- Discuss how change orders will be handled and review them fairly based on the terms defined in the contract.
Be Organized and Observant Once the Job Begins:
- Allow the contractor to work without unnecessary interruptions but remain observant of their progress.
- If you have concerns, address them with the contractor but avoid micromanaging.
- Maintain a job file with all relevant paperwork, including contracts, change orders, certificates of insurance, bills, and invoices.
Review the Work Once the Job Is Complete:
- Inspect the completed work in person before making the final payment to the contractor.
- Ensure that the job site is cleaned to your satisfaction and that the work meets your expectations.
- Do not rush into making the final payment; take your time to review the work thoroughly.
- If you are satisfied with the contractor’s work, provide feedback and leave a review to help others make informed decisions.
Source:
https://www.thespruce.com/hiring-and-managing-home-repair-contractor-1825128