4 Most Important Things to Keep in Mind when Hiring a Contractor
Have you bought a new home that needs repairs and remodeling work? Are you a homeowner struggling to keep your property in good shape? Or are you planning to renovate your home before selling it so that you can get top dollar for it?
In any of these scenarios, you will need to hire a contractor. Keep in mind, renovation work can turn into a money pit, if you are not careful in choosing who you will hire for the job.
Create a Scope of Work
Even before you start looking for a contractor, you should know what exactly you want him to accomplish. You should create a Scope of Work which outlines all renovation and remodeling tasks in detail.
If you are selling your home, you can hire a home inspector to come up with all defects with the property and based on the inspection report, you can pick which renovations are necessary and which ones you can ignore. There are two types of renovations: structural and cosmetic. If you have structural defects like a leaking roof, you will absolutely need to take care of them. You can decide which of the cosmetic repairs like wall paint will add value to your bottom line and include them in your Scope of Work accordingly. Ideally a Scope of Work document also includes estimated costs, materials required and deadlines (a timeframe for the project’s completion).
Do background check
There are four things you should absolutely know about a contractor:
- Licensing
- Registration
- Mandatory insurances
- Reputation
Keep in mind, building regulations are state-specific, so your contractor should meet all legal requirements specific to your area. You can find out if your contractor is licensed on contractors-license.org or ask your local building inspector. You should also verity if there are any complaints registered against the contractor with the Better Business Bureau and your state’s consumer protection agency. A contractor needs certain insurances like liability insurance and worker’s compensation insurance.
You can collect feedback about a contract by checking with his previous customers. If a friend of someone in your family used him, you should know:
- If he finished on time
- If there were any unexpected costs
- Was the quality of material used good and in line with the contract agreement?
Invite bids and don’t fall for the lowest one
Don’t act on your gut feelings when it comes to choosing a contract. You should invite written bids from many contractors based on the Scope of Work you created. If you don’t understand anything, ask upfront. Don’t fall for the lowest bid always if it’s too good to be true.
Renovation and remodeling work sometimes can take several weeks, so it’s necessary to choose a contractor who you will feel comfortable working with. Get to know early in the hiring process whether there are any issues like hostile attitude or the way he communicates.
Make sure the contract is comprehensive
Make sure you and the contractor enter into a contract. It should include every detail about the project. Details include (but are not limited to):
- Start and finish dates
- Description of each work
- Material that will be used (brand or make of the fixtures)
- Payment schedule
- Milestones and the final deadline.
Never pay a contract more than 30 percent upfront. You should release payment only when a certain milestone is completed. A portion of the total amount (at least 10 percent) should be paid after the completion of the project.
So these were some of the most important guidelines you should follow when hiring a contractor. As we mentioned earlier, how successfully you are able to complete a renovation or remodeling project will depend on who you hire for the job.