How to Find the Perfect Contractor
Whether you’re thinking about renovating the guest bath or want to give the master bathroom the whirlpool tub you’ve always dreamed of, you’ll want to find the right contractor – because a home remodel is only as good as who you hire. As a result of the sluggish housing market, many Americans are staying in their homes for a longer amount of time, and many are choosing to remodel and renovate along the way. With these tips, you can be sure you choose the perfect contractor for the job.
Chances are, you have a few friends and family members who have recently remodeled or renovated their home. By asking those whose homes have recently gone through remodels their opinion on their contractor, you’ll be able to get personal testimonials from a trusted source. Also, be sure to keep an eye out for neighbors’ projects that seem to be going well. The advantages of personal referrals include opinions you can truly trust, the option to gauge the quality of work firsthand, and, in all likelihood, the referring friend or family member has already shopped around to find the best offer in the area.
Make Plans & Get Bids
Once you have a list of contractors whose track record is clean and work ethic seems responsible, you’ll want to stop looking back at their past work and start looking forward to your own project. A reliable contractor will not only want a complete set of blueprints, but a general idea of what homeowners want out of the project and what they’d like to spend. In order to best compare bids, ask each contractor to break down the total cost into the following categories: materials, labor, profit margins, and other expenses. Generally, materials should account for 40% of the total cost, with the rest covering overhead. A typical profit margin for home renovation work is 15-20%, depending on the size and depth of the job.
Don’t Let Price Be Your Guide
If an offer sounds too good to be true, chances are it is. In fact, many contractors and home design professionals urge homeowners to throw out the lowest bid, as it could be a sign of desperation or low-quality work. Beyond technical competence, homeowners should look for someone they’re comfortable with. The single most important factor in choosing a contractor should be how well the two parties are able to communicate. At the end of the day, it’s better to spend more and work with someone you’re comfortable with, then spend less and end up with a contractor who is difficult to work with.
Confirm Licensing and Insurance
If your state licenses contractors, you can typically do an online license check. As far as insurance goes, the Better Business Bureau’s website indicates what the insurance requirements are for each state – so that’s a good place to find pertinent information. At the minimum, all contractors should have worker’s compensation insurance, so you’re not financially liable if one of their employees injures themselves while on the job. To verify, ask to see a copy of the contractor’s certificate of insurance. Any reliable contractor should have these items on hand and will gladly provide them upon request.
Don’t Ignore Red Flags
With a large number of scam artists posing as professional contractors, homeowners should be aware of who they’re dealing with. If a contractor pressures you for a quick hiring decision, accepts only cash, wants to skip the building permit, tries to cut you a deal using materials leftover from a previous project, or quotes a final price without seeing the job, consider cutting all ties and moving onto your next option. Although some reliable contractors solicit door to door, be wary if they’re not local to the area.
Put Everything in Writing
Once you’ve chosen a contractor, be sure to draw up a contract that details every step of the project, including payment schedules, proof of liability insurance, a start date, a projected completion date, specific materials and/or products to be used, and a requirement that the contractor obtain lien releases from all subcontractors and suppliers. Lien releases will protect you if he or she doesn’t pay their bills. Insisting on a clear contract isn’t a sign of mistrust, it’s a sign of insuring a successful renovation from start to finish. Happy home renovating!