HIRING A CONTRACTOR

Everyone dreams of remodeling their house to make the perfect home. Months are spent combing thru @Pinterest and Houzz for the most beautiful pictures to spark your creative home design genius. Then there is the fawning over luxurious new finishes; cool Carrera marble, raw white oak floors and surprising color choices. Even basic white subway tiles take on a new allure when presented shiny and new with thin black accent molding. Unfortunately, all that, gets quickly tempered the minute construction begins. “There are always problems/delays/extra costs, It’s inevitable.” That’s what people say and we all grumble. I have gone thru many renovations and I am sad to admit, on a few occasions I have barely gotten out alive.

I am currently in Baltimore in where I have made the all-time rookie mistake; no contract with the builder! Ugh how could this have possibly happened?? I have flipped many houses. I’ve worked on numerous renovations how could I have made such a mistake?? --- because the builder was a friend of a friend. (SO WHAT!) I broke rule #1 in dealing with contractors. ALWAYS GET A CONTRACT!

I am new to Baltimore and relied on my sister’s connections in the city to find a GC. Her very good friend recommended someone who had just started his own company. And, although he had been a GC on other projects I was the first job under his own banner. I wanted to help him get started. He was a good worker and wanted to take the next step in building his business. And he was a very good friend of my sister’s very good friend and for these reasons I broke all the rules. WRONG! WRONG! WRONG! Big mistake! And now my mental health hangs in the balance. So, instead of dwelling on the fact that my small 1200 sq. ft rowhouse is now in its 5th month of construction, (estimated 2-3 mths.) and the GC has stopped communicating with me I’m going to use this as a teaching moment for myself. I am rewriting my contract and I will not start any new project without a signature – even if it’s my mother!

Here are the steps I usually take when hiring a contractor

#1 DO YOUR HOMEWORK.

The first step you need to take in hiring a contractor is to start doing your homework. The design part of the prep stage is important (and always the most fun) but it is just as important to make sure you have the right contractor. A bad design and/or a bad contractor is going to have miserable results. There are many websites that list licensed contractors in your area with client reviews. (houzz, Angies List, Home Advisor,….) Read Them!! Contact the reviewer if possible. Ask neighbors and friends for recommendations. Make sure you look for contractors close to where the property is located (short commutes for workers), look at contractors that have the most experience in the skill you need. Once you’ve read all the reviews and talk to as many people as you can, select at least 3 contractors to meet and bid on the project. Always get at least 3 bids which will also help you determine costs for the area.

Before meeting with the contractors do more research on the cost of your project. The internet is wonderful for giving all sorts of calculators for you to find out costs for just about every type of home remodel. You won’t get exact numbers but you will at least learn the ballpark figures. This will help when speaking with the contractor before and after you receive his quote.

#2 CONTRACTOR MEETING

During your first meeting with a potential contractor your goals are to;

• Make sure the contractor understands the full scope of the project

• Communicate to the contractor your expectations for the job

• Learn about the contractor’s experience, work ethic, and availability.

Make sure the contractor has allotted enough time for the meeting. You will need at least 1 hour. They may try to hurry you along but don’t let them leave without all your questions answered. Come prepared to give a presentation on your design ideas. Include in your presentation drawings, photos, and floorplans. These are all very helpful and will make it easier for the contractor to imagine your vision. It’s important that you listen to the contractor’s reaction to your design. If you sense any hesitation, this is a RED FLAG. Contractors don’t want to come right out and say they can’t do something. They usually say “it’s going to be very difficult/expensive”, “that’s not going to work” or my personal favorite “we/no one does it that way” I will tell you, everything is possible in residential design – it’s only a matter of money. And I don’t care if no one else does it my way, that means my design is original. This hesitation may also be a negotiating tactic to make you believe your vision is more expensive than usual. Keep calm and express confidently that you have done your research and you know what estimated costs are for this project. If a contractor is difficult at this stage that’s another RED FLAG. You are looking for someone to help you create your vision. Not make you live in theirs, based on their expertise, budget and desire to do the project. And you should never be looking at your contractor to make design decisions, even though he will feel the need to tell you all about what he would do with the project. Don’t be swayed, it’s not his house, and it’s not his design. If you need help with your design you should hire an Interior Designer/Architect. I will write more about this in a future blog post.

Not only does the contractor need to understand your design vision it is also a good time to bring up your expectations for a successful working relationship. Tell him that you plan to set a schedule of communication, daily, twice daily, or bi weekly. I would never go more than a week without speaking to your contractor. If you don’t then there is the worry, he will slack off on your project. Out of sight, out of mind. I personally talk to the GC at least once a day. I discuss what has been done that day and what will be on for the next day. Keeping the workers on schedule is a big part of the job. If the contractor doesn’t want to communicate that is a huge RED FLAG. Making a phone call is very simple. If they can’t handle a phone call then it doesn’t seem realistic they could handle the really tough stuff. If they can’t make a phone call once a day? – Then they will never be my contractor.

Expect that the contractor will give you a short description of his experience and hopefully he can show you some of his works in pictures. Tell them also to bring 3 references that you can call. And 3 houses that you can visit in the future. Or tell them to include these items in their quote. It is really important to see someone’s work. They can talk all they want but the proof is in the pudding as they say.

When asking for a quote tell them to just quote you on labor and material not finishes. The finishes are all the pretty details that make the design sing. The price of these fixtures differs wildly. It will be hard to compare quotes when you don’t know the quality of the fixtures each one is using. Get the bids based on labor and material only and pick out your own fixtures and pay separately. Contractors will try to get you to buy things thru them because they get a discount (and a commission). What happens is they bulk order toilets, vanities, lights…… and then push them off on you as if they were your design choices. Unless you want the most basic builder standard, pick out your own fixtures. They may give you a bit of push back but learn your new motto: “it is my house, my money, my design decisions”.

At this time I also give them a copy of my standard contract. They can take it with them and read it over. If there is a problem it’s best you discuss it sooner rather than later. My contract is the only one I’ll use. It is based on a standard builder’s contract but I’ve added legal clauses that are important to me, such as, penalties for missed deadlines.

If a contractor doesn’t feel comfortable signing my contract then he doesn’t have confidence that he can do the job on a schedule he sets himself. And so, once again, RED FLAG he won’t be my contractor. Thank you, next.

Make sure you get their GC license number so you can check to see if they have any complaints or litigation.

#3 CHOOSING YOUR CONTRACTOR

After you have had all your contractor meetings, called the references, seen their work and read their quotes – you are ready to make a decision. The quotes should come within 10%-15% of each other. If one is very expensive or very cheap that is another RED FLAG. Try to do a bit more in depth analysis of why they are more expensive or cheaper than the others. They may have added or excluded something. Once you are comfortable with the pricing aspect then choose the one you connect with the most. Having a pleasant relationship with your contractor is always advisable – even it if costs a bit extra. Here are some good questions to ask your contractor during the interview process that will help you get a sense of their worth ethic, personality and management style.

• How often is GC on building site?

• Will workers be on the site everyday?

• How often will GC communicate with client?

• How does the contractor handle missed deadlines?

• What does the contractor foresee as the biggest challenge of your project?

• Does the contractor have their own staff or do they subcontract out?

• What do they subcontract out?

• Are all subcontractors licensed? Or will they be working under GC license?

#4 The Contract and Signing the Contract

ALWAYS GET A CONTRACT!!!!!

The only time I do not have a contractor sign a contract is if it is for a very short 1-2 day project. The contract does not have to be a lengthy tome. It could be as short as a single page. It is only used as written proof of the agreement made between you and the contractor. It is written to eliminate any miscommunication of the agreement.

The client/contractor contract should include the following:

• Date

• Name of Client

• Name of Contractor (with license number)

• Scope of Project (in detail, blueprints, drawings…..)

• Price

• Payment Schedule

• Timelines

• Bonus

• Penalties

• Signatures

Contractors who won’t sign contracts are ones that you can’t trust. Don’t even try to negotiate with these guys to sign the contract, just move on, they are not people you want in your life.

#5 TROUBLE SHOOTING

Even the most prepared remodel will run into a hiccup or two along the way. If the contract was written correctly it will anticipate any likely issues and tell you how they should be resolved. The best way to make sure your renovation goes smoothly is to put everything in writing. I don’t know if it is a side effect of the job but contractors seem to have really bad memories. Make their job easier by documenting every conversation and meeting you have with the contractor, even if it is on a daily basis. After every conversation I have with the GC or his staff/subcontractor I send all relevant parties an email that lays out exactly what was discussed and the plan for going forward. If there is any misunderstanding these notes will become invaluable. If there is a change order or a major change in the plan the contract may have to be amended especially if price or timelines change. Even if you are all on the same page you must still change the contract so it reflects the new plan.

The way to avoid delays on your side is to make sure you abide by the payment schedule and make all design decisions in a timely fashion. Make sure the contractor tells you the exact time he will need a design decision, such as paint colors, bath fixtures…… Most things will need to be ordered and their delivery times differ so make sure you order early. Before construction starts I usually have all design decisions made. Once construction begins I start to order items. I either store at my home, client home or storage locker. Make sure to stay organized and remember everything that needs to be bought. If this sounds overwhelming you can always hire a Interior Designer to do it all for you.

This blog post is not meant to scare you off your project it is to protect you and to make sure you are getting what you want. Take a deep breath and know this will take time and energy. However, when it is all done it will be worth it and even better if you don’t kill your contractor.

Good Luck – and call if you need help.

#CONTRACTOR, #CONTRACTS