Watching a report on 2020 the other night, I was completely surprised to listen to the statistics I heard. They were saying that only 2 out of 10 contractors were honest. This means only 20% will treat you fair and do what they say and or was contracted to do.
I am not sure I would believe that statement completely. That is a very high number. There are a few things to be aware of when considering a building-remodeling project.
#1 You should secure a building permit: If you ever sell your home or investment, the full disclosure laws require you to let the buyers know if you have had work done, and if permits were pulled. This may keep you out of a law suit in the future. A reputable contractor may be willing to do this work for you. A permit requires drawings in most cases. The contractor should be able to help and secure you a draftsman or architect for your project. This always takes time and will cost a fee. Patience is definitely required.
#2 After you have met : You should be comfortable with the contractor and he should be willing to work up an estimate based on your initial visit. Some jobs may be general enough that they could throw out a ball park figure. This will never be accurate ! Sometimes this will help save the contractor a lot of work. If he thinks possibly 45,000 and you were thinking 25,000. The project may be bigger than you imagined and you might need to go back to the drawing board or not move forward at all. If you are comfortable with the ballpark figure, then the contractor would not mind bidding out the project.
#3 The estimate : The cost break down should include all the work required. From plans and permits to demolition and construction. There should be a cost break down for each phase including materials required. Not all contractors provide a cost break down per phase but should break the estimate down in categories. This will make it easy for you to follow the progress.The dollar figure will be the same in the end. The complete cost should be on the estimate, with payment draws established as part of the contract. Your contractor should be able to explain each phase of the project and what you should expect. This also includes explaining the draw schedule.
#4 Acceptance of the Contract : If you are comfortable with the builder and he has done the above procedures. You may want to hire him. Call the local Registrar of Contractors and make sure the company is legitimate, and has no outstanding complaints. You may want to do this before you first meet. Most of the time on larger projects you may secure more than one bid. This is were you need to be careful on your decision. The lowest price is not always the best choice. Example : On two projects I bid on this year the customer accepted the lowest bid. One, I projected at 150,000. The winning bidder came in at 98,000. After visiting the owner during the project he had already spent 148,000 and was only in the framing stage. He had gone with the lowest bid and had accepted to pay for any cost overruns. Cost overruns should be projected in the bid. Most contractors know were these cost overruns will be, and can put a cost projection on them. If the cost don’t occur the buyer does not have to pay. The second project was a new build I projected at 335,000. The customer accepted a bid at 270,000. When the project was completed the final cost was 335,000. This was my nephew and it took him a year to get his cap five wire installed, that the contractor forgot, but had contracted for.
#5 Find a way to relieve stress : This sounds silly, but every remodeling project will require decisions to be made by the customers. Couples sometimes struggle over these requirements. You might try discussing a difference of opinion in front of your contractor during your first visit to test his abilities to negotiate and help you both make the right choice. Remember to have fun! The project will be completed and with the right contractor things will move along as smooth as possible.
It Ain’t All Work Jerry Brown
Owner of : OfficeOpen.com
