Choosing the right Contractor is the most important aspect of any home construction project. You must take your time and do your research to find a good qualified contractor if you want excellent quality at a fair price.
Determine exactly what you want done and write it down. This may sound a little basic at first but it is important. Remember what is not well defined is easily manipulated. If it is not in writing, it can be disputed. You do two things when you define your project in detail, and in writing. You find any missing aspects that you may have overlooked and you have good definition and expectations for your contractor.
Get three (3) bids for each trade that you will hire. Never rely on one bid, and always meet the contractor face to face at the site where the work is to be done. If you are uncomfortable with the contractor when they are bidding the job then it is going to be difficult when the two of you have to work out the details of your project. Remember cheaper is not always better!
Ask each contractor for references and make sure they are bonded and insured. Check their references and call the BBB (Better Business Bureau) in your area to see if they have any outstanding complaints.
Make sure they don’t sub the work out to a contractor that is not insured or bonded. Another danger of the contractor subbing work out is if they don’t pay their sub, the sub can put a mechanics lien on your house and you will have to pay even if you have already paid the contractor.
Set a definite timeframe for the work to begin and for completion and get it in writing. Nothing is worse than to have a project drag on not knowing when they are going to show up and finish.
Never pay for the entire project in advance. If you do, the contractor has no incentive to finish or even start. When you no longer have the money, you are no longer in control! Most contractors will require that you make some kind of a payment before they start the job. On a large project, hold back as much money as you can until the end. The incentive to finish must be motivated by the cash at the end of the project.
Topics: Contractors, Fix and Flip, Foreclosures, Renovation
