Selecting a Contractor
The building process should be a fun, exciting and rewarding experience. In our first year of marriage my husband and I bought a piece of land, hired an architect and a contractor and built a house. We were young, inexperienced in the world of construction and naive. But I still look back on that experience as a fun and exciting time! Why? Despite our shortcomings, we fortunately hired honest, capable, experienced people. It was great! 27 years later, we still live in that house. Those experiences eventually lead me to become a designer / contractor – I loved the whole process. When selecting our contractor, my husband and I just flat got lucky. So, what do you need to know to hire a contractor without depending on luck?
Hire a person of Integrity
First and foremost, check into the integrity of the contractor/company you are considering hiring. If you want a quality product, it will be built by a person of integrity. How do you check out the contractor/company? Start with the little things. Do they return calls promptly? (If you can’t communicate well during the design / selling process, do you really think it will get better once construction starts?) Are their words consistent? (Do you catch them in contradictions?) Do they denigrate their competition? (The person who tries to build himself up by putting others down is a red flag to me.) Do they explain the process / choices / options / costs thoroughly so you can make good decisions? Do they have the heart of a teacher? An informed client is the best client.
Get on the internet and do your homework. Go to the Better Business Bureau for your city. Go to web sites such as Angie’s List, City Search or simply Google the company / contractor. See what others say. If the company has any history, you should find something about them on the internet. If they are a brand new company, take that into consideration. Everyone has to start someplace but you need to be aware of that. Is it a franchise operation? If so, make sure you check out your local franchise operator. If you find negative comments, ask the contractor directly about it. In every communication, be direct and honest and expect the same from the contactor.
Hire a contractor experienced in your type/size of project.
Many of the codes departments have online systems where you can search for the contractor. Find out what types of projects they are doing and the contract amount. Every company has a “sweet spot” – a type and price range of projects that they are the most comfortable. When your project is outside the bounds of their “normal” job, there is a greater chance of hiccups and snags.
Let’s talk about the “sweet spot”. This is where the contractor will shine. We all know that practice is the key to mastering a skill. Our 18 years of experience in building porches allows us to build more complicated structures with less effort and better results than someone without the same experience. Now if you ask me to re-model your kitchen, and we’ve done a few, it takes more effort on our part and we are more likely to stumble. I’m not saying – don’t hire ‘em if they are not in the sweet spot. If you have a good relationship and you want to work with them, hire them. Just know their strengths and weaknesses and set your level of expectations accordingly.
Expectations. That’s another topic. If you go to the dollar store to purchase a kitchen pan, you don’t expect the same quality as one purchased at a kitchen specialty store. You also expect a lower price. The same goes for contractors. Two contractors can both be people of integrity, but have different skill sets. Don’t hire a deck builder to build your kitchen cabinets. You probably will not be happy even though the deck builder has given you his best. Make sure you are hiring a contractor that has the skill to give you the quality for which you are looking.
Inspect the contractor’s work
Make sure you see at least one project the contractor has built. You should always expect the project to have structural integrity. But it is the finishing details that you need to see. Look at it with the same intensity you will be checking out your own project. We’ve had clients that visit our model porch, look it over and decided that’s just what they want. Then we build their porch and then they pull out their magnifying glass (and I mean that literally) to check it out. I’m not suggesting that you should not inspect your project carefully to make sure you get what was promised. I’m saying, you can’t expect your project to be at a higher level of quality than was promised – for the same money. By seeing a project first hand, and inspecting it carefully, you know what to expect from that contractor. If you want a higher quality, tell the contractor on the front end. The contractor should either decline the job if it is not in his skill set or step up to the challenge and charge you accordingly. And you should expect to pay more for more finished work.
Subs versus Employees
There are different types of construction companies – contractors that have no employees but sub-contract their work. Contractors that have some employees and some sub-contractors. Either system works. For example, one contractor may not need a full time carpenter, electrician, roofer, etc. To keep costs down, they employ them as needed. If the contractor has been in business for a while, they have competent, loyal sub-contractors who will make themselves available to him as much as possible. At The Porch Company, we need carpenters every day throughout the year. Therefore, they are our employees. But we don’t need roofers and electricians every day, so we sub-contract that work to our well vetted team of subs. Again, either system works. We prefer to have as much work done by our employees as possible to insure quality, consistency and efficient scheduling.
Fixed Bid versus Cost Plus
I am very opinionated about this. We work almost exclusively on a fixed bid basis. I think even a contractor of integrity is tempted to fall into inefficiency in the cost plus world. There’s just not a monetary incentive to keep costs down. By working on a fixed bid we must plan very well so we can be efficient with our time and materials to make a profit. One might argue that the fixed bid contractor will be tempted to cut corners to save money. The contractor’s reputation will be quickly ruined if they deliver an inferior project. Another argument for cost plus – especially in remodeling – is that there are too many unknowns to be able to bid the job. While there will be some surprises, a competent, experienced remodeler can anticipate most of these issues.
Contracts / Insurance / Permits
Always – ALWAYS – work from plans and a contract. Not plans drawn on a napkin – very specific, detailed plans so you know what you are getting. The contract should have the terms clearly laid out. Our typical terms have a deposit on the front end equal to the final payment. We take money on the front end to ensure that the client is committed to the project. But that same amount is due for the final payment – when the client is 100% satisfied and ALL punch list items are completed. The intermediate payments are based on progress. For example, we might get a payment when the roof is shingled. Do not base intermediate payments based on time (i.e. – in 2 weeks a payment is due.) The client should see progress before a payment is due.
Make sure the contractor carries both liability and workman’s compensation insurance. This is legally required because it helps protect the client from claims. The best way to know this is to ask for a Certificate of Insurance. Make sure the Certificate is mailed from the insurance company and is not a copy made by the contractor.
Make sure your contractor is licensed. Contractors will have a monetary limit on the amount of a contract they can take. Make sure your contractor can legally contract for your size project.
Ask your contractor if a permit is required. If he says “no”, contact your building codes department and verify. It is in the best interest of both the contractor and the client to have the job inspected. Be suspicious of a contractor who tries to avoid getting a permit. Also be suspicious of a contractor who asks the client to pull the permit.
Bottom Line
Please know that the vast majority of contractors are people of integrity that want to do the best job they can. Many unfortunate situations with contractors result from the contractor getting out of their sweet spot rather than being unscrupulous people. After you have thoroughly investigated your contractor, concluded that he/she is a person of integrity, has the skill to complete your job and is comfortable with the scope of work, please trust your judgment. Assume the positive!!! Clients can cause themselves much angst by second guessing their contractor due to unfounded suspicions. Assume mistakes are just that – mistakes. Everyone makes mistakes and your contractor – being the person of integrity you determined him to be – will do the right thing!!!
Here’s to happy building! It really is great fun!