Hiring a Contractor

Hiring a Contractor

by John R. Schneider

Q. My husband and I would like to remodel our kitchen and family room. We had a set of plans drawn up by a designer and have spent the last three months deciding on what type of tile, cabinets and counters we want to have installed. We want to start looking for contractors to bid this job and wanted to know if you had any suggestions on finding the right contractor. We had a bad experience with a contractor two years ago when we had our master bathroom remodeled and don't want to go through that again.

K G, Montclair

A. Choosing the right contractor for the job is one of the most difficult problems facing home owners today. The success of any remodeling job depends upon the amount of preparation and planning that is done before you even enter into a contract with a contractor. Unfortunately, most consumers are not aware of the steps necessary to do this pre-planning properly.

One of the most common mistakes people make when hiring contractors is not to have a written contract and a detailed set of plans and specifications that clearly state the scope of the job. Without a contract and a detailed set of plans, your entire job could be subject to interpretation by the contractor. This is where almost all construction problems and complaints stem from.

Your contract should include a specific start and completion date for the work, and a specific definition of what will determine when the job is complete. If the job must be done by a certain date, put that in the contract along with a daily penalty ( $100.00 per day or whatever you and your contractor agree on) for every day the job runs over.

Your contract should clearly state what work is to be done, the type and quality of material to be used, and that permits for all work are to be obtained and signed off when the work is completed. This will prevent the contractor from installing lesser quality materials and ensure that someone will inspect their work.

You will also want to specify the terms of payment. Remember, a contractor cannot charge more than $1000.00 or 10% of the contract price as a down payment.

As the job progresses, your contractor will be entitled to payments for work completed. Determine before hand when progress payments will be made, and how much the payment will consist of. The payment should reflect the amount of work completed.

It is also important to establish the contractor's hourly rate for any work not specifically covered in the contract and whether or not there will be a mark-up of the price of material not specified. Contractors are allowed to mark up their costs on materials. You will need to establish how a "change order" will be written up and whether or not it needs to be signed by both parties before the work begins.

Almost every remodeling job will have change orders or additional work that is necessary now that was not part of the original contract. Find out what these additional items will cost you before you sign your contract, and how the change is to be documented. Besides having a detailed contract, material specifications, and set of plans, there is one more thing that you must do before actually hiring a contractor. You must verify his credibility, otherwise you may be dealing with an accident waiting to happen. This is the second most common mistake that people make.

You will need check his license number with the California State Contractor's License Board, verify the fact that he has liability insurance and workmans' compensation insurance, and actually check his references. Checking references can be a real eye opener for most people. Call previous clients and ask questions such as; "Did the contractor show up and complete the job on time?

Were you satisfied with his work?

Did he do the job for the agreed upon price?".

Then, take the time to actually visit a previous job to see the quality of workmanship and the overall appearance of the job.

If it is a large job (more than $25,000.00), you may also want to do a credit and background check of the contractor.

Finally, don't base your decision to go with one contractor over another, on price alone. If your contractors all bid off the same plans and specifications, price differences are usually associated with the quality of workmanship and materials. Remember, the lowest bid does not necessarily guarantee the best job.

By getting involved in the process and taking an active role in establishing what you expect and what the parameters of the job are, you can create a level of control over the job, that will allow you and your contractor to handle any problems that may arise during the course of work. If you have gone through the steps mentioned above, you should be able to know which contractor you will want to work with, and be able to complete your job in a timely manner, and at a price you expected to pay.

John R. Schneider is a licensed general building contractor and a certified residential code specialist. He is president of All About Homes, a residential inspection company, and has been performing code and construction consultations since 1985. Readers may address their comments to John Schneider, 24326 Mission Blvd. Suite 7, Hayward, Ca 94544. Fax number: 510 537-8666. Schneider will answer questions of general interest in the paper. He reserves the right to edit the letter for brevity and clarity. Readers are encouraged to contact a competent contractor or code consultant for specific information regarding questions they may have about their homes.