Measure Bid Proposals
When considering a home improvement contractor, you should measure his bid proposal against the benefits (and risks) of hiring his company. Does he have a history of quality projects? Does he have a reputation for delays or change orders? Does he leave tasks unfinished when the major work is completed? Often, it may be difficult to get a clear picture of a contractor's history, but here are a few commonly accepted suggestions to follow when researching your choices:
- Check with your state's licensing board to make sure your contractor holds a current license. Most states require remodelers to have licenses, but it is up to you to confirm that your bidders are complying with regulations. Also contact authorities issuing credentials that each bidder claims to have, such as membership in the National Association of Home Builders or National Association of the Remodeling Industry.
- Review your bidders' insurance coverage. Make sure he has adequate liability protection in case of faulty workmanship, on-site injuries and damaged property. If you own highly valuable property, look for at least a $1,000,000 policy.
- Also check the Better Business Bureau and other independent agencies for complaints against each bidder. If a remodeler has a history of poor performance, dissatisfied customers will likely have filed a notice describing the issue. You may also want to check the local courthouse to see if any lawsuits have been filed against a contractor.
- Many industry insiders recommend reviewing previous work by contacting past customers (preferably local) and suggest seeing the work firsthand. By doing this you can guard against dealing with an unproven pro, and prevents you from hiring transient builders who contract a job and leave the area shortly thereafter. (This happens frequently following natural disasters.) Although this is a good way to get an idea about the contractor's ability, most times a bidder will not offer dissatisfied customers as references; your prospective renovators will want to show you their best work. Keep this in mind when reviewing references.
- Gather prices for materials from do-it-yourself suppliers, like Home Depot. This will give you an idea of what to expect when bidders submit their proposals. Most contractors charge a markup on products they purchase on your behalf, but you'll have a ballpark comparison to use.
- Review references and licensure of all subcontractors listed. Don't simply accept a general contractor's claims. Make sure everyone on the "team" has passed regulatory requirements. Most states require specialists - like plumbers and electricians - to hold a license before doing work.
- Finally, contact other trades people the contractor has worked with to gauge his reputation among peers in the industry. A contractor's relationship with subcontractors can tell you a lot about how he operates.
There is no hard-and-fast rule about how many bids you should request, but many home remodeling experts suggest contacting at least three contractors. Of course, the more you contact, the better you'll understand the level of expertise available. If you initially engage more than three, narrow your choices down to three top prospects. Then examine each one more closely; this includes examining how they write a contract. Ask to see samples of previous contracts. A well-written document will include specific details about the project. A poorly written example would read: Repair fence - $275.00. A stronger example will spell out exact deliverables like this: Repair fence section on property's north side. Remove 2 broken posts. Install 24'length of round Post and Rail fencing. Replace with rough p/t poplar (3 - 8' x 4"dia rails; 2 - 6' x 5" dia posts). Align level with existing fence. Reset listing post on right. Pack new posts in 2' of ¾"crushed stone. Customer will stain new section. Don't be afraid to ask for as many details in writing as possible. This will protect both parties through potential disagreements, most notably about materials used and expected appearance or durability. Many contractors strive to construct solid, appealing and durable work, but if the project details are vague, less scrupulous home remodelers could get away with delivering lower-grade work using cheap materials.