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Hiring the Right
Contractor
Referrals
Hiring the right contractor can make or break your
project so it pays to spend the time up front to ensure
you are working with someone that is qualified and
reputable.
Start by getting referrals from friends and associates,
as well as, other contractors you may have a
relationship with and building suppliers. Find people
that are engaged in the industry and ask their opinions.
If you know of a property that is being worked on, stop
and talk to the contractor. This will give you a chance
to see their work first hand. Once you have several
potential candidates follow the steps below.
Specifications and Materials
The best way to get what you want is to spell out every
detail in writing and make it part of the contract.
Remember, anything that is left out will become an extra
and may end up costing you a lot more. It is also
important to make sure that you are comparing apples to
apples when getting bids from contractors. If they have
to make assumptions because you have not given them the
exact details you will not get a valid comparison
because the assumptions will seldom be the same.
Whether you are drawing the plans yourself or using a
professional designer you will need to create a detailed
list of specifications and materials to be used on your
project. This should spell out the construction methods
to be used and anything that is not clearly indicated by
the drawings, as well as, a detailed list of the exact
sizes and quality of materials to be used along with
size, model number and manufacturer of fixtures and
individual elements such as doors, cabinets, windows,
etc.
Get Bids in Writing
Once you have created your plans and specifications you
can now get bids on your project. You should get at
least three or more bids for any job. The more bids you
get the more you can be sure what the job should cost.
Again, make sure to give each contractor identical plans
so that you can make apples to apples comparisons.
Any changes should be communicated in writing to each
bidder. The lowest bid is not always the best bid. They
may have forgotten to include something in their
calculations or they may be bidding low just to get the
job and will try to increase the bid through changes
along the way or may just walk away when they start to
lose money.
References
Get references of previous customers, subcontractors and
suppliers. Verify that work was done to specification
and on time and that subs and suppliers were paid in a
timely fashion.
The Final Contract
Once you have chosen the winning bidder you will need to
get a written contract that is clear and leaves no room
for confusion as to what is expected. The contract
should include:
Detailed plans and description of work to be done by the
contractor (as well as any work you will perform)
including provisions for clearing debris from the site.
Type and quality (grade) of materials to be used.
(Described above).
Total cost of work.
Schedule of payments: The amount of payments and when
they will be made.
Retention Clause (A retention clause requires that a
certain percentage, such as 10%, of the cost is held
back until satisfactory completion).
Schedule of approximate dates when work will begin and
be completed.
Completion Clause Penalty if dates are not met.
Close-out clause showing how contract may be terminated
if things aren’t working out.
Property Lien Provisions making the contractor
responsible for obtaining lien releases from
subcontractors and suppliers so you don’t end up with
liens against the property or having to pay for things
twice if the contractor doesn’t pay them. You may also
consider requiring a completion bond which would provide
money to finish the project if the contractor fails to
complete the job or pay the subs and suppliers.
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