1. Hiring a contractor can be intimidating. How would you encourage someone to start the process?
Ask people you know (colleagues and neighbors) who have done remodeling projects if they would re hire their contractor.
Go to the NARI (National Association of the Remodeling Industry) website and contact the members in your area.
Depending on the size of your project, hire a design firm to do the design and let them help provide the best contractor for your project. Most contractors, even the ones that are “design/build”, outsource their design. By getting that complete prior to asking for bids, you can save a lot of time and money.
2. Is it a good idea to ask your friends and family for their experiences with hiring contractors? What should you be able to take away from these types of conversations?
Absolutely – just make sure you ask the right questions:
- What did they like most (and least) about their experience?
- Was the project completed on time and within the original budget?
- Did they drive change orders or did they come from the contractor?
- Would they rehire their contractor for another project If not, why?
- What would they have done differently?
3. When would you hire a general contractor When would you hire project specific contractors?
Good General Contractors (GC) can usually handle any project regardless of its scope.
You’ll want to hire a GC when you have a remodel that involves multiple trades for a few reasons:
- The professional GC has their own subcontractors that they use exclusively and have established relationships with.
- The project schedule is run by the GC allowing the project to be completed efficiently and within the established budget.
- You have a single point of contact for the entire project and any warranty issues.
With that being said, if you have done remodeling before and feel comfortable selecting a trade specific contractor to install a new back splash, flooring or lighting, then do so. Just remember, being your own GC is not all it is made out to be. Even with solid experience, many clients end up with projects taking twice as long and ultimately costing more because items need to be redone due to overlooked details etc.
4. You mention getting bids from contractors. How many should you get and how do you know whether they are accurate?
For comparisons sake, we usually recommend 3 bids.
The challenge is to understand what is consistent between the bids you receive. Unless you are a remodeling professional who has completed your type and quality of project before, it is very difficult to know whether bids are accurate and complete.
- Are the bids on the same design?
- Do they quote the same level of finish (carpet, tile, cabinetry, plumbing and lighting fixtures, etc.)?
- Do the contractors have similar licenses, areas of expertise, reputation and warranties?
Make sure all the details you want included in the remodeling project are in the scope of work and in the plans.
If one contractor’s price is well below the others you’re receiving usually one of two things could be the cause:
Some contractor’s will intentionally provide a project price that is lower than their competition. They leave out critical portions of the project in the scope of work. Then once you are committed to them, your home is in mid project, and you are quite vulnerable, they start with change orders. By the time you are done the project ends up costing more and taking longer than the other contractor’s.
The other cause could be that the contractor has never done a job this size or does not have the necessary experience to properly budget for and complete the project.
By default, the contractor leaves out critical parts and pieces they are not aware of because they have not done this kind or size of work before the “additional” work costs more or is simply not performed because the contractor did not include it.
Again, the best way to ensure a bid includes all the necessary pieces, is to make sure all the details are included. If you do not know all the details that your project needs, enlist the help of someone who does.
A. Should you do your own research?
Yes. You are your own best advocate; it’s a lot for a homeowner to take in, especially when trying to concentrate on their work and families. Plan to invest a good deal of time not only doing research, but meeting with contractors, and comparing the bids.
B. How would you do that?
If you choose not to use a design firm up front, then it’s up to you to decide what level of finish you want. When you meet with your contractors, tell them you want the bid to include $8 sq ft carpet, $5 sq ft tile, and an allowance of $8,000 for appliances. The more specific you are in your bid request from contractors, the more likely you are to be able to compare apples to apples.
C. What reputable resources are available?
Remodeling Magazine (www.remodelingmag.com) publishes an annual “Cost vs. Value” report for the nation and breaks it down into region. This is an industry benchmark for the remodeling industry, realtors and homeowners. It provides objective accurate information.
Contact the National Association of the Remodeling Industry (NARI)
5. When you ask for references, is it a red flag if their references are only from the past year?
Potentially, but not necessarily. What is important is if the references are from a similar project size or larger and how many. If there are only 3, ask for another 3. You may not need to check 6 but they should be able to have 6 at a minimum.
A. How would you ask for references from 5 or 10 years ago?
Ask how long the references have known the contractor, what project(s) the contractor completed for them and if they would still recommend them.
B. Is it risky to hire someone who hasn’t been in the business very long and who may not have many references?
Yes, although it doesn’t have to be a deal breaker.
Often, expert tradesmen will branch off from a bigger company they worked for prior to starting their own business. Even if they have not been in business for long, they should still have at least 4 5 character references and you’ll want to ask for their previous employer references.
This still does not guarantee craftsmanship or capability etc. This person would potentially be good for a handyman job or a small bathroom remodel to begin with.
Regardless of your decision, trust is extremely important in any relationship. Making sure they are upfront and honest about their experience or lack thereof is critical to making a sound decision for you and your family.
6. How would you know if the contractor you are considering has a current or valid license?
Virginia has a website that allows you to search by name, zip code or license number (www.dpor.virginia.gov/regulantlookup/) the easiest way is to Google “Virginia contractor”.
The search not only reveals their license number, certification dates and class of license, but any previous or existing complaints filed with the state.
Contractors are also required to have a Business/Professional/Occupational License (BPOL) for the specific area they are working in (Ex: Fairfax County business license). This is in addition to the state license, so make sure they already have one or that they provide it prior to contract).
7. Is it important that the contractor have their own insurance or does your homeowners insurance cover the contractor and workers while they are on your property?
Excellent question.
It’s critical that the contractor you choose have his or her own liability and worker’s compensation insurance. Also, if they hire sub contractors, the sub contractors need to be insured as well.
The contractors insurance protects the homeowner from their negligence, but does not protect the homeowner’s project from other risks like theft, vandalism, fire or other damage.
Builders Risk insurance should be added by the homeowner or the contractor to protect the project until it’s finished. This is extremely important and is inexpensive compared to the protection it offers (approximately 1% of total project cost.)
8. Do you recommend writing a contract with each contractor hired How do you start that process Do contractors have general contracts already drawn up?
Absolutely! Virginia licensing law requires it. Each contact needs to include:
- contractors business and license information
- total cost
- down payment and schedule of payments
- beginning and estimated end dates
- contract termination rights by either party
After you’ve identified the contractor you want to hire, ask them to place the details of the estimate into contract format. If you feel the details are unclear or all the details are not included ask your contractor to include them.
Having clear communication from the start ensures you are comfortable asking your contractor any questions you have about the project, contract and any item you do not understand. Both parties must proactively communicate to make a project successful.
9. How do you keep a realistic perspective on your project’s progress?
For any project over 2 weeks you should be provided a standard production schedule. Your contractor should provide you with this and with regular updates to the schedule. While it is normal for the schedule to be revised throughout the course of the project, it is important to have a schedule so that you are able to know what the contractor has scheduled and how they intend to complete the project in the amount of time estimated.
Good communication is key, so don’t hesitate to ask questions and occasionally inspect progress. Keep in mind that unknown circumstances can come up during the project that can’t be seen until drywall or flooring has been removed, regardless, each issue should be addressed quickly so as to not cause unnecessary delays.
10. You hear of so many jobs running over the timeframe that was promised. What rights or recourse do you have as the person who has hired the contractor?
There are a couple of reasons delays occur:
A. Proper preliminary work is not thoughtfully completed and changes are made on the fly.
Once the design work is complete, you want to do your best not to make a lot of changes during production. These changes will cost more than normal and delay the completion of the project. With planning, production should be the time when you are able to sit back, not worry about making any more product or design selections and allow the contractor to do their job of putting it all together.
I even suggest homeowners delay the start of their project in order to get the design complete, and all preliminary work finalized, instead of pushing for an earlier start date and making changes (and delays) as they go along.
B. Lack of a Production Schedule.
As I said before, your contractor should provide you with a production schedule and you should let them know you’re following along with the progress of your project.
When all is said and done and you feel your project was delayed or mishandled through no fault of your own, your best recourse would be to file a complaint with the state or refer to your contract to see what kind of legal ground you stand on.
11. What should your response be if a contractor asks for money up front Is there an industry standard amount to cover initial ordering of materials?
Typically contractors ask for 30-50% up front, the percentage varies from state to state.
- VA does not allow more than a 50% deposit prior to the start of work.
- MD does not allow more than 1/3 deposit prior to the start of work.
Do not give anyone money prior to having a signed contract (one you’re comfortable with).
Never pay cash.
12. If I hire a licensed and insured contractor that pulls all the permits then I will have a great high quality project right?
Not necessarily. Code is a bare minimum. A project done by permit does not mean the project will be completed on time, within budget, or in a quality manner. A permit only makes sure the very basics are done to ensure you and the next owners of the home have a safe house. And a license is no indication of a contractor’s (or their sub contractors) quality of work.
The best thing you can do is allow enough time to do the proper research and the upfront design and preliminary work prior to starting the bid process. Most importantly, trust your gut when it comes to finding the right fit for you and your family. You want to feel you have a partner throughout the process and if communication is lacking in any way during the early stages, it’s a good indication that you may want to move forward with another contractor.
