Looking For a Contractor to Update Your Home?
The idea of remodeling a home is exciting. There’s no shortage of design ideas and inspiration on HGTV, Pinterest, and even your local hardware store. It’s easy to get caught up in the image of your beautifully updated home that not only looks great but is worth more when you’re done. But, as we all know, reality rarely lines up with expectations.
As investors, we’ve dealt with our fair share of shoddy contractors. We also see countless homes that are partially remodeled and the owner needs to sell because they ran out of patience and/or money. Most of the time, their project was doomed because of the contractor they used. Finding the right contractor is one of the most important aspects of having a high-quality remodel completed on time and within budget.
Which begs the question… how do you find a good contractor?
Hiring The Right Contractor Can Make All the Difference
Choosing Between A General Or Sub Contractor
The first step is figuring out what kind of contractor to use. A general contractor acts as a project manager. They work with you to understand project goals and then come up with the course of action to reach them. They source materials, hire the right people, work with the county for permits, create a schedule, and supervise the project to make sure it’s completed properly and efficiently. A subcontractor, on the other hand, specializes in a particular field. Think of a painting, plumbing, HVAC, or roofing company. Each one can do one or two parts of your project, but most likely can’t complete a full remodel (even though all of them claim they can!).
Which one is right for you depends on how involved you want to be. If you have some construction or remodeling experience and have the time to screen (more on that below), schedule, and supervise subcontractors, you can significantly cut the cost of your project. Although they cost more, it’s safer to use a general contractor if you’re inexperienced or have limited time. They should know the work and labor you need, have a coordinated schedule, and be equipped to address any unforeseen issues (there are always some). Further, they usually have their own construction staff for smaller handyman-type tasks and can source materials at better prices. You still need to check in with the project (at least once or twice a week) to make sure things are going smoothly. But, you don’t need to micromanage general contractors as you do with subs.
Screen Contractors Like Your House Depends On It… It Does
Regardless of what type of contractor you choose, you need to do your homework. The contractor you select can make or break your project so make sure you pick a good one. You can’t just look at Yelp reviews and call it a day. Reviews are misleading because you have no idea what the scope of work was for the reviewer. A contractor may be great at a certain trade or project type, but ill-equipped to handle the work you need. Screen your candidates like an employee for any other job:
Make sure the contractor has the right qualifications and credentials. At a minimum, they should be licensed, bonded, and insured (most states make this information available online). Make sure they are licensed and have experience for the specific work you need on your project.
Ask for references and call them! Ask about the specifics and details regarding the scope of work (“SOW”), the timeline, and the costs (whether it was under or over budget). This will give you a good idea of what you can expect. The more you ask, the more likely you will be able to sniff out family or friends acting as fake “references.”
Verify their work. Ask to visit a current job site. Is their work and job site clean? Are they using quality materials? Are they cutting corners? Are workers sitting around and wasting time? Good contractors should never be out of work (otherwise they can’t keep their good labor). Contractors are only as good as their workers so you want to make sure they are working competently and diligently. They also shouldn’t have a problem with you seeing their real-life work unless they have something to hide.
Interview multiple candidates—at least three or more (the more the better). They should look at the property in person and take measurements. If they say they can quote you over the phone, that’s a hard pass. Ask each of them to give you an SOW and bid. Most contractors will land in the same general ballpark. Eliminate the outliers from the consideration. If the scope is completely off from the rest, it’s a red flag that they don’t have the knowledge or experience for your project. If they are completely off on price, they are either ignorant or purposely underbidding to get the job—they will find “problems” along the way to make it up. Notably, the lowest bids often end up costing more in the end. Shop around to screen, not get the lowest price.
It may sound like a lot of work, but it pays off to do the heavy lifting from the start to avoid headaches once your project is already underway.