Hiring a reliable contractor at an affordable price can either be a hit or miss. Like all working relationships—whether with your doctor, your real estate agent, or your babysitter—you’ll need to trust them: Trust that the contractors will meet the negotiated schedule, trust the materials used are of high quality, and trust that the contractor won’t make last minute changes, thus inflating the agreed upon price.
Here are ten things you can do to help ensure that your experience with a contractor is a positive one, and more importantly, won’t break your bank:
1. Get EVERYTHING in writing!!
It’s the beginning of the project. You are excited and optimistic about that the work will progress. You’ve done some research and are happy with the contractor you have chosen. Although your contractor is reputable and professional, ensure you have any agreements, contracts and scope of work in writing. Make sure you also get any changes to your plans in writing. In the age of email there is no excuse. If you wait to hear about the price of a revision after the work is complete get ready to pay! This is how many large contractors make their money. Don’t blow your budget wide open with a small mistake like this, be firm that you need a price in writing, read the fine print.
2. Be educated on basic home construction before you start.
Your contractor will throw out basic terms like footings, joists, and soffits. In order to avoid getting frustrated or feeling lost in the conversation, you should read up and educate yourself. Check out the “basics of building/renovating your home” blog . If you are not sure what your contractor is talking about when they are throwing out new terms and talking about your lintels, don’t be afraid to ask for clarification. You should also be aware of how to read your permit drawings (if you have them). Spend some time looking through them at the beginning of the project and if you have an questions call the service that provided them for clarification.
3. Make quick and decisive decisions
When your contractor asks you a question like “do you want your bulkheads on the east wall, west, or both” be prepared to give a quick answer. It’s a good idea to sit down with your contractor at the onset of your project to ask what information they will require and at what stage of the project. If they call you up to ask you a question, chances are they are about to start on that section and need to know immediately to avoid delays. You should be prepared to give a clear answer. Avoid as much as you can flip flopping on answers and making changes after. This can lead to delays and rework which can increase the total costs.
4. Don’t be a push over
Be firm with your contractor when they approach you with problems and changes which impact scope and schedule. Ask “why” and get specific details. Suggest alternatives because sometimes they just want to pull a fast one to make more money or move the crew onto another job. Consider talking to a third party if you are uncertain. Make sure you check in with them regularly and remind them of the schedule “can’t wait until the floors are in on the 15th.”
5. Payment
The contractors need to pay their workers and suppliers on time and so you need to pay your contractor on time to avoid disgruntled workers and delays. Ask your contractor how they wish to be paid at the beginning of the project. Most contractors will appreciate weekly payment and if you can accommodate this, it works best. Set a date every week where you go over progress of the job and pay the contractor for the work complete. For example, 50% of drywall has been installed, so pay him 50% of the drywall budget minus 10% as a holdback. Avoid paying for work that has not been completed. If the end of the job is near but all of the money has been paid out, don’t be surprised if the work force has been reduced and transferred to another paying job.
6. Keep 10% holdback
10% holdback is common within the industry to ensure your contractor is paying the supplier. If the supplier has not been paid, they can put a lien your house until payment is received, which results in a massive headache. Insist at the beginning of the project that 10% holdback is mandatory. Keep an eye on the cost breakdown afterwards. You may notice that the breakdown of costs may shift heavier towards the earlier scope items to give the contractor a bit of insurance if they run out of money near the end and try to make an early exit. Ask that they adjust this immediately, and if they are hesitant consider another contractor. 10% is not a large part of the fee, and an experienced contractor should have enough capital in his bank to float this amount until the project is complete.
7. Keep an open mind
More often than not your contractor will approach you with an alternative to either save time or money. For instance, they may suggest the foundation wall of your new addition to be block wall rather than cast-in-place concrete because they can build it cheaper and quicker. It’s a good idea to do some research and see what options work best for you, based on your contractor’s advice. Make sure to ask yourself “how does this benefit me?” Will you see any of these savings and how much? Make sure you get an exact dollar amount before a revision is made.
8. Stay out of their way
There’s nothing contractors despise more than someone with little construction experience watching over and micromanaging what they do. Give them space and let them do their thing. This doesn’t mean that you shouldn’t check in with them occasionally, but don’t look over their shoulder. Aside from it being a nuisance, it can be unsafe hanging around the construction site where you can injure yourself and cause distractions. It’s also a good idea to remove as much of your furniture and clutter from their work environment to avoid them having to maneuver around it.
9. Don’t be overly concerned about cleanliness
The contractor should maintain a clean environment at the end of everyday (good practice), but don’t expect them to vacuum and dust. You are in a construction zone and you should be prepared for such.
10. Be a good host
These workers are going to be in your house for 8 hours a day (or more) for the next upcoming weeks. They will be working hard and will appreciate the basics like water and a bathroom (when available). If the only usable bathroom is in a finished part of the house, consider placing cardboard, or a plastic sheet down so the pathway to the bathroom doesn’t get dirty. Helping to keep the workers happy and comfortable should reflect back in a superior end product.
