How to Hire a Contractor
Tom Silva shares eight tips to selecting and working with a qualified
contractor.

by Tom Silva






1. Get recommendations
Start with your friends and family and then check in with the National
Association of the Remodeling Industry for a list of members in your
area. You can also talk with a building inspector, who'll know which
contractors routinely meet code requirements, says This Old House
general contractor Tom Silva, or pay a visit to your local lumberyard,
which sees contractors regularly and knows which ones buy quality
materials and pay their bills on time.

2. Do phone interviews
Once you've assembled a list, Tom recommends that you make a quick
call to each of your prospects and ask them the following questions:

* Do they take on projects of your size?
* Are they willing to provide financial references, from suppliers
or banks?
* Can they give you a list of previous clients?
* How many other projects would they have going at the same time?
* How long have they worked with their subcontractors?

The answers to these questions will reveal the company's availability,
reliability, how much attention they'll be able to give your project
and how smoothly the work will go.

3. Meet face to face
Based on the phone interviews, pick three or four contractors to meet
for estimates and further discussion. A contractor should be able to
answer your questions satisfactorily and in a manner that puts you at
ease. Tom says that it's crucial that you two communicate well because
this person will be in your home for hours at a time. On the other
hand, don't let personality fool you. Check in with your state's
consumer protection agency and your local Better Business Bureau to
make sure contractors don't have a history of disputes with clients or
subcontractors.

4. Investigate the facts
Now that you've narrowed your list, put your research to use. Call up
former clients to find how their project went and ask to see the
finished product. But Tom says you shouldn't rely on results alone.
Even more important, visit a current job site and see for yourself how
the contractor works. Is the job site neat and safe? Are workers
courteous and careful with the homeowner's property?

5. Make plans, get bids
You have your short list of contractors whose track records seem clean
and whose work ethic looks responsible. Now it's time to stop looking
back at past work and start looking forward to your project. A
conscientious contractor will want not only a complete set of
blueprints but also a sense of what homeowners want out of a project
and what they plan to spend. To compare bids, ask everyone to break
down the cost of materials, labor, profit margins and other expenses.
Generally materials account for 40 percent of the total cost; the rest
covers overhead and the typical profit margin, which is 15 to 20
percent.

6. Set a payment schedule
Payment schedules can also speak to a contractor's financial status
and work ethic. If they want half the bid up front, they may have
financial problems or be worried that you won't pay the rest after
you've seen the work. For large projects, a schedule usually starts
with 10 percent at contract signing, three payments of 25 percent
evenly spaced over the duration of the project and a check for the
final 15 percent when you feel every item on the punch list has been
completed.

7. Don't let price be your guide
"Throw out the lowball bid," says Tom. "This contractor is probably
cutting corners or, worse, desperate for work" — hardly an encouraging
sign in a healthy economy. Beyond technical competence, comfort should
play an equal or greater role in your decision. The single most
important factor in choosing a contractor is how well you and he
communicate. All things being equal, it's better to spend more and get
someone you're comfortable with.

8. Put it in writing
Draw up a contract that details every step of the project: 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. Insisting on a clear
contract isn't about mistrust, Tom assures us. It's about insuring a
successful renovation.

Finally, remember that as soon as a change is made or a problem
uncovered, the price just increased and the project just got longer.
The four most expensive words in the English language? "While you're
at it...."

http://www.thisoldhouse.com/toh/know...9776%2C00.html


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"I was mean. I would see a girl across the ring and think, 'She's trying to take what I've fought for all my life.' Next thing, I'd be gouging eyes, pulling hair--whatever I had to do, that's what I did."
-- Lillian "Fabulous Moolah" Ellison (81)