Sooner or later almost every one who owns a home will encounter the experience of hiring a contractor, weather its for a small repair, a remodel or an addition to an existing house. Having a house well maintained will help the house retain top value when and if you are putting it on the real estate market. But making improvements to a home should be made in a unbiased manner giving close attention to the recoup value of the investment. Statistics show that the best return on a remodel are the kitchen or an extra bathroom. Sometime the return on a kitchen can be as much as 125% of the investment.
But hiring a contractor is not an easy task. There are several things to consider, although one might be tempted to hire the contractor who submits the most reasonable bid. By the same token, paying more money for a project does not insure a stress free relationship nor higher quality. Things to consider are , experience, license status, discipline action against the licensee, funds available to the contractor, insurance, referrals, and attitude.
Experience
Choose a contractor that has been in business at least five years. In the first years of business the contractor is still defining his/her business practice. By this I mean how they will treat their cliental and how they resolve problems that arise from miss communication and work details.
License
All contractors are required to have a contractor's license bond of $10,000. This bond is not a guarantee of performance or competence, or of the contractor's financial responsibility. In fact, this bond is often not enough to cover the multiple complaints made against it. A contract bond guarantees both job completion and payment of all labor and materials. In general, the bonding company will not have to pay more than the face amount of the bond. While a license alone doesn't guarantee an excellent contractor, it is one way to weed out unlicensed amateurs. Most states also record complaints filed against contractors—you can look these up using the contractor's license number. Furthermore, contractors are also required by most local cities to obtain a city license and show proof of workman's comp.
Bank account
A contractor with five years of experience and a solid record of bank deposits will, in all probability, stay in business long enough to complete your project. It also indicates that the contractor has sufficient capital and doesn't need your business to pay this month's bills.
Insurance
The contractor should carry workers' compensation and general liability insurance. Lack of insurance could leave you liable for any injuries suffered on the job. Get copies of policies from the contractor's insurance company.
Referrals
Many contractors carry photo books to show samples of their work. But the only way to judge the workmanship is through an on-site inspection. Ask the contractor for names of recent clients, and arrange to examine projects similar to yours.
Attitude
Perhaps the most important aspect of contracting a job is the attitude of the contractor and the discernment of the homeowner as it relates to judgment of character of other people. Remember that most business people are on there best behavior on first consultations because they want to win the bid. But sharp discernment is able to see past the first impressions. Observe how the contractor treats you as a person when you ask questions regarding the job or his/her insurance riders, or referrals or even his/her financial statements. It is important to know these things and their attitudes reveal more then what's on paper.
The Art of the Bid
Bidding is most often done off a set of blue prints to the specifications of the homeowner. Most contractors draw or have a draftsperson or and architect draw the blue prints for them, but the best practice is to hire the draftsperson or architect yourself and then have the contractors bid off your plans. This is good practice because now you have a set of plans and every contractor is bidding on the same specs.
Project Specifications
A step further is design specifications. You may want to hire a designer to create project specifications if you're not comfortable doing them yourself. Specifications for a kitchen remodeling project, for example, might include cabinets, flooring, sinks, faucets, appliances, countertops, doors, windows, and any custom carpentry specifications, such as built-in shelves.
Cost Breakdown
Most contractors have their own breakdown sheets, but you can also provide one to make comparing bids easier:
Expenses
Itemize tasks such as subcontractor bids, building permits, and finish carpentry.
Materials
Specify the costs of all building materials.
Fixtures
List the costs of all fixtures to be installed.
Labor
Calculate the cost of labor. (Note that subcontractor labor should be included under Expenses.)
Total
Add the totals from the four categories (expenses, materials, fixtures, labor) to arrive at an estimated bid.
Avoiding Complaints and Problems
Some warning signs of possible trouble ahead are the following:
You can't verify the name, address and telephone number or credentials of the contractor.
The contractor gives you a toll-free phone number and a post office box as his or her address.
The salesperson tries to pressure you into signing a contract by using scare tactics, intimidation or threats. (If you are pressured into signing, remember you usually have three days to cancel a contract.)
The company or salesperson says your home will be used for advertising purposes (as a model job, or show-house, or by display of their sign), and that you will be given a special low price.
The contractor tells you this is a special price available only if you sign the contract today.
The contractor doesn't comply with your request for references, or the references have some reservations about the contractor's work.
You are unable to verify that the contractor is licensed, insured, and/or bonded when required.
You are asked to pay for the entire job in advance, or to pay cash to a salesperson instead of writing a check or money order to the company itself.
You are asked to sign a completion certificate for the job by appeal, threat, or trick, before the job is properly completed.
The best way to avoid problems is to follow the steps outlined here.
Link Helpers - Webmasters helping webmasters develop high value relevant links. Promoting ethical web-marketing using the time trusted pillars of relevance and popularity.
| | |