A well-planned home renovation project can be an excellent way to increase the value of your house while providing enhanced comfort and convenience for as long as you stay in your home. Probably the single most important part of the planning process is in choosing the right contractor for the job. Among those who have had a negative experience with a building-related project, the vast majority sighted repeated and ongoing problems with the contractor as the main source of their aggravation.
To avoid misunderstandings, poor workmanship and possible litigation, it is important to conduct the appropriate due diligence prior to entering into any contractual obligations. While some precautionary measures, such as a well-written contract and verifiable referrals are self evident, taking other less obvious measures can help ensure the construction experience will lead to a positive outcome. Here are six common mistakes to avoid when hiring a contractor.
Mistake #1: Taking Impulse Discounts
Contractors recognize that their chances of securing the job are diminished the second they leave the home. While many contractors respect the homeowners’ rights to make a well-informed decision, a good salesperson knows that it is important to try and close the deal as soon as possible. This motivation leads many contractors to offer “instant discounts” of 20% or more if the contract is signed immediately. It is important to avoid the temptation to enter into a contract under these circumstances. Most often the discount will still be available at a later date, and the risks associated with these subtle pressure tactics usually outweigh the rewards.
Mistake #2: Not Checking Into Contractor Complaints
Nearly every contractor will present a list of referrals from past customers who were satisfied with the quality and timeliness of their work. While checking these references can be helpful, there is no substitute for consulting unbiased sources to verify the contractor’s value. This can be accomplished by contacting the Department of Consumer Affairs for the state in which you reside. The Consumer Affairs office should maintain a complete list of complaints filed against each licensed contractor in their jurisdiction. They may also be able to provide assurance that the contractor is properly licensed and bonded. You should also check for any complaints with the Better Business Bureau.
Mistake #3: Paying Too Much Upfront
Contractors often say they require a 50% payment upfront and the remaining 50% to be paid upon completion. Unfortunately, some contractors are far less motivated to adhere to the construction schedule once they have 50% of the total amount. It is preferable to negotiate a 25% down payment, with two additional 25% draws, and the final 25% payment upon completion. This will ensure that the contractor is investing his own money in the project and will provide a greater incentive to meet or exceed deadlines.
Mistake #4: Not Insisting on Multiple Brand Choices
Most contractors buy their supplies and equipment through a local distributor. Product manufacturers will offer incentives to the distributor that are often passed on to the contractor to help increase sales. These incentives are provided in many forms, including cash rebates and merchandise. While the contractor may appreciate these rewards, the products being sold may not be the best value for the end user. Regardless of the products the contractor is promoting it is important to do your own research to explore competitive alternatives. Ultimately, it is your home, so you should have final say over the materials and products that are used in your home renovation.
Mistake #5: Glossing Over Technical Contract Language
Many people have a tendency to avoid asking questions relating to legal contract language for fear of appearing foolish or less educated. Contracts provided by contractors are often written for their benefit and are designed to give them an advantage in the event of a dispute or subsequent litigation. Legal language that is unclear or confusing should be explained to the homeowner’s satisfaction before a contract is signed. Any lingering doubts or ambiguities should be discussed with an attorney before signing.
Mistake #6: Making Decisions Based on Price Alone
While no one likes to pay more than they have to for their home renovation, going with the lowest estimate does not always give you the best value. Smart shoppers will meet with and get estimates from at least three or four different contractors before making a decision. But don’t just choose the one who offers you the lowest price or the makes the biggest promises. Experience, reliability, accessibility and the trust factor are important things to take into consideration before signing any contract. If you feel uneasy about a contractor for any reason you will want to keep shopping around, regardless of how good an offer he seems to be making.
Investing Time will Pay Dividends
Locating and hiring a qualified contractor with a solid reputation will substantially increase the likelihood that the finished construction project will exceed your expectations. Most importantly, have a clear understanding of all prices, products, time schedules and the inconvenience that will occur during construction. This will allow you to make the best decision for your home.
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