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FINDING THE RIGHT CONTRACTOR
Of course I might be biased, but I believe one of the first people you should ask when looking for a contractor is your architect. We work with contractors all day long. We know which ones are good and the ones you should stay away from. We can also help provide a contractor that specializes in your project type and scope.
The second best resource you have is of course friends and family. You should also look to your neighbors for who they have used and find out the experience they had with their project. Typically your neighbors will have similar home to you, generally built during the same era. You will be sharing from their experience when you go to remodel your home.
When asking around, try to be specific with your project and its needs. For example, tell people you are going to be remodeling your kitchen and you need a contractor that has experience installing kitchens. Ask people within your local organizations or associations.
Greater Atlanta Home Builders Association – http://www.atlantahomebuilders.com
Chamber of commerce
Internet resources. I am reluctant to advise internet searches, but with the advent of social media, we find less and less that people are getting completely scammed by contractors like they were in the past. A big part of their marketing is based on satisfied referrals and so the poor contractors are quickly weeded out.
http://www.houzz.com/professionals/general-contractor/atlanta
http://www.kudzu.com
Once you have a list of contractors its time to start calling around. These are some Questions to ask:
[check_list]- What project sizes do they work on?
- Are they willing to provide financial references, from suppliers or banks?
- Can they provide list of previous clients?
- How many other projects do they typically take on at a time?
Based on the phone interview pick 4 or so that you can meet with to discuss your project. They should be able to answer your questions in manner that puts you at ease. When finding a contractor personality is extremely important.
Follow up on referral list. Try to visit a current job site to see how your contractor works.
Provide them with plans
When bidding small jobs have them break out their bid into the following:
[check_list]- Cost of materials – generally 40% of the total cost
- Labor
- Profit
For larger jobs we have a breakdown based on csi specification numbers. The reason for this is so comparing contractor bids becomes easier. You are comparing apples to apples. Before selecting be sure you go through all the numbers with them and your architect. Together you will get a better understanding of what might have been missing or overlooked.
How much do you give them up front to get started?
For larger projects 10% at contract signing. 3 payments of 25% evenly spaced over duration of project then the retained 15% when every punch list item is complete.
A more detailed schedule of values can also be provided that list our all the projected expenses and what percentage of completion. A retain age amount is held until all work is complete. It is hard to do but if you have 3 bids and one is exceptionally low. throw it out. It is better to spend more to get someone you are comfortable with and will take care of your needs than to go with the lowest bid.
When the economy improves we are going to have a shortage of contractors. Cost plus or negotiated fees will become more standard.
Draw up a contract that details every step of the project. I suggest using the AIA contracts. The architect can help get the right contracts in order. Be sure to get this information up front and in the contract:
[check_list]- Payment schedule
- Proof of liability insurance and worker’s compensation payments
- A start date and projected completion date
- Specific materials and products to be used
- And a requirement that the contractor obtain lien releases (which protect you if he doesn’t pay his bills) from all subcontractors and suppliers
When under construction get any changes in writing. Be aware that any change could cost you money.
Photograph the progress – photos before drywall can save you tons of headache later.
Remember to make it fun. The process can be a stressful one. Full of the unexpected, especially during renovation work. If you form the right team from the beginning you will be able to productively and ideally painlessly move through the process and into your home or building have a positive experience.
Show wrap-up
Shoutouts for this weeks show goes to My wife. For giving me some great comments on ways to hopefully improve the show. Listening to myself talk is not my favorite thing to do, so I appreciate all the feedback i can get.
If you have that project in mind and ready to get going. Start shopping around for architects, then with their help find the right contractor. I am happy to help get you started with your project and would love to hear from you.
I wanted to end this show with a great quote from Henry Ford. He said:
“Coming together is the beginning. Keeping together is progress. Working together is success.”
