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Choosing a Contractor - Summary
So often, the consumer is only told to "get several estimates, and make sure they are licensed and insured." While this is important advice, there is so much more to be considered, to ensure a successful remodeling process. At Home Improvement Services, LLC (HIS, LLC), we believe that education leads to a better understanding of the process, which creates better relationships, and a higher level of satisfaction with remodeling projects. HIS, LLC is member of the local chapter of NARI, which is a nationwide association for members of the remodeling industry to help keep them at the top of current trends, safety issues, new products, and refined techniques used by cutting-edge companies across the country. Ronald L. Sobanek serves on the Educational Committee and the Strategic Planning Committee of the local NARI organization. Licensed and Insured In order to obtain a license in the Kansas City Metro Area a building or remodeling contractors must: 1) Have an owner or manager pass a written exam on technical and business matters. 2) Provide proof of Liability Insurance. 3) Provide proof of Workers' Compensation Insurance and Unemployment Insurance. 4) Disclose the organizational structure of the business. 5) Pay a license fee and obtain eight hours of Continuing Education Credits (CEC) each year. Price The other piece of advice given most often to consumers is: "Get several bids so you can compare price". Contractors all understand how important price is to your decision making process. It is important you understand the pitfalls of only considering price when there are so many other factors that affect your decision. In order for you to be able to compare price, all the bids have to be for the same project, the same products, the same specifications, and the same quality of work. This is almost impossible to realize. Reputation A contractor's reputation is one of his most valuable assets. A good contractor is very willing to share his reputation with his future clients. Does the contractor have a record of unresolved complaints with the Better Business Bureau (BBB) or other associations like the City License Bureau, the State Department of Commerce, or with any of his clients or competitors? These agencies investigate complaints from consumers alleging violations of law and rules. When necessary, these agencies take disciplinary action against a contractor's license. Level of Experience There are many questions you can ask to better understand the contractor's level and depth of experience. How long has the contractor been in business? Has the contractor performed a number of jobs like this particular job you are considering? Ask to see examples or pictures of jobs similar to yours. Ask to visit past jobs. Ask to visit current jobs. Talk about the quality of the work and decide if it will meet your standards. Interview past customers who had jobs like yours completed by the contractor. An experienced contractor should be able to offer a wide array of options and thus demonstrate knowledge of and experience with a variety of products, materials, and techniques. Customer References One of the most widely used and trusted practices in checking out a contractor is talking to his past customers. These are people who have had first-hand experience with the contractor you are considering. It is always important to ask for and check out referrals from past customers. These referrals should be current. The referral should be for a job similar to the one you are considering. The referral should be willing to answer all questions openly and honestly. Ask your prospective contractor to give you references of similar past jobs they have completed. Does he use Employees or Subcontractors It seems to matter greatly to some consumers whether or not a contractor will use his own employees or use subcontractors. There are several legitimate issues associated with this question, but it really is not an issue in most cases. Understand that the contractor is just as responsible for the subcontractors as he is for his own employees. It is solely the responsibility of the professional contractor to decide how and by whom the work will be completed. The contractor needs a wide margin of flexibility in this area because problems may arise and he needs to have the ability to solve the situation in a timely fashion. Many aspects of the remodeling process can only be completed by licensed subcontractors. Many aspects of the remodeling process can be completed by just about anyone, but it is only the person who performs that task all day, every day that becomes proficient and cost effective. Creativity So many times projects cry out for creative ideas that will help the project really reach a satisfying level. A professional contractor will be able to contribute many creative ideas that will enhance the project. A professional contractor has professional relationships with a wealth of designers, architects, and other creative people often necessary for your project. So many times, these elements are overlooked by less professional or inexperienced contractors. Ask your prospective contractor enough questions to find out if he is in a position to contribute these services. Design Services There are many projects that require some level of design. Almost every job that needs a permit needs plans. Some jobs require structural engineering. Some jobs require a registered architect. Some customers want an interior designer to help them with the features of the project. Design can play a small role in some projects and a very large role in other projects. Design is the process of creating a plan or drawing to show the appearance and workings of something before it is built. There are different levels of design detail in every job and the trick is to match the design skill level of the contractor with those required by the project. Communication with the Homeowner So much of the success of a project can hinge on the communication skills of all of the people involved in the project. There are so many details, so many decisions, so many factors to consider, and all of them usually significantly affected by time. The construction process usually goes through phases, such as design, estimating, bidding, contract negotiating, and production. The success of all of these phases is greatly dependant on the communication that takes place in each phase and subsequent phases are dependant on the communication in previous phases. Customer Service In the same sense that you will talk about a doctors "bedside manner," many contractors are rated on their customer service. So many factors can contribute negatively or positively to a consumer's perception about a contractors' customer service. Does he believe the customer is always right? Does he emphasize service and value a trusting relationship with you? Does he listen to and understand your needs and wants and work with you to ensure that the plans accurately reflect your expectations? When you discuss your priorities, does the contractor show enthusiasm for your ideas and suggest ways to make them work within your budget. Professional contractors can make suggestions or give examples of how their company has solved similar issues for other customers. They take the time to establish a personal rapport with you. Does the contractor engage in high-pressure sales tactics? How do you feel about working with this person? Is he honest, trustworthy, sexist, racist, chauvinist, or judgmental? In short do you feel comfortable with the person? It is next to impossible to have a healthy, constructive, working relationship with someone you dislike. The construction process can be tough enough by itself, without adding some of these painful dimensions. This is not saying you have to be friends with the person you are asked to deal with, but shouldn't there be a mutual respect and a good working relationship? Craftsmanship Some companies pay a lot of attention to all of the details in your home. They are very concerned about matching the details of the trim, the windows, or the species of the wood. Every house is unique in some particular way, especially to you. Do you want some thought given to the project and these details? Do you have some details that you would like to respect and copy in the new parts of your project? This attention to detail and the quality craftsmanship that is required to achieve it is not a given with every contractor. Craftsmanship and attention to detail are not developed overnight. They are developed over many years of working in homes like yours and gaining experience. Jobsite Clean Up Many consumers have had issues around the definition of clean up as it relates to the construction project. Some contractors assume you don't want to pay carpenters wages to have someone clean up the construction site. Some contractors clean up at the end of each business day and use terms like "broom-swept clean" to describe the amount of cleaning. Some contractors do an extra clean up at the end of the week. Some contractors provide a maid service clean up of the whole house when the project is done. Some projects can look pretty unorganized, in fact, downright dangerous. Some job sites never have anything left out of place. It is usually never the condition of the project as much as it is the expectations. If the homeowner assumed one thing and the contractor provided another thing, there could be problems. Included in the contract, should be clear statements stating what the contractor will and will not do along the lines of clean up. Business Location Many times, unsatisfied customers have made the statement, "I just could never track him down." Does your contractor live in the community? Is it easy for you to determine this contractor's business location or address? Be sure to watch for those who have no verifiable address or phone number or just have a P.O. Box number for their address. A viable contractor will have a business phone and a listing in the local telephone directory. Be cautions of the contractor who can only be reached on a cellular phone. It is important to a lot of people to keep their business in the community. It is important to a lot of people to know how to contact the people they are doing business with. Quality of Subcontractors Subcontractors are specialty contractors. They have one set of trade skills. They are required to have special licenses for their particular trades, i.e. electrical, plumbing, and heating. General contractors are not allowed to perform the work of the subcontractor because they are not licensed to do that work. Subcontractors are a very key element in almost every project. Subcontractors can make or break projects. They are not employees of the general contractor, so the contractor literally has no control over their schedule or how they do their work. The relationship between a professional contractor and a subcontractor is nurtured over many years of concerted effort on the part of both parties. Professional References It seldom occurs to homeowners to ask a contractor for professional references. This is an entirely legitimate question and concern. A professional contractor brings many business enterprises to the table to help complete all of the work they perform in a year. Their performance on your job is dependant on the level of the other professionals they have on their team. They can only be as good as the weakest link in their chain. Company History Some companies don't have any history. Some companies have a short history. Some companies have a very long, well documented history. Some companies have changed over the years. Their focus has changed. The type of work they do has changed. How they service their clients has changed. Some companies have experienced quick change every year they have been in business and find it hard to predict where they will go next year. Quick growth can put many strains on a company. Unless a person has served a strong apprenticeship with another contracting firm, it will be almost impossible for an individual to rapidly put together a company and make it grow in an organized fashion. It is difficult to develop a system that ensures great work while a company changes rapidly. Longevity also suggests financial stability. Organization on the Job Many professional contractors are very proactive about the type of organization they are. They have determined they want to be large or small. They have chosen weather they want to be a corporation, a limited partnership, or a sole proprietorship. They have decided if they are a general contractor (performing many if not all services) or only provide a specialized service. They have a target market and know they only work on residential or commercial or industrial projects. Some companies only work in certain areas or on certain types of structures. Some only perform certain types of projects (additions, second stories, kitchens, restorations, insurance work). Others seem to operate by the "seat of their pants" on a day to day basis, reacting to every situation as it comes along. Which type of company are you most comfortable with? Their level of organization will play an important role in the day to day interaction they have with you as a customer. Do they complete most of their work with their own employees? Do they subcontract a lot or all of the work? Do they have standards that they share with you outlining their expectations for their employees, their subcontractors, their suppliers? Ask to see a job in progress to get a feel for how a contractor does business. Try to imagine the work site in your home. Would this drive you crazy? Professional Associations or Affiliations Some contractors find little need to belong to organizations, while others are "joiners". There are many obvious benefits to belonging to organizations, yet some contractors seem to belong for all of the wrong reasons. Many businesses belong to the Better Business Bureau because it looks good and consumers expect it of them. Some contractors belong to an association to project the image of professionalism. They do it to buy credibility. The trick is to ask enough questions to determine which kind of contractor your prospective contractor is. Size of the Company Consumers believe that size matters in their failed relationships with contractors. They complain that the contractor was a "one man operation" and he took forever. They feel they were dealing with a huge operation and never talked to the same person twice. They experience contractors being "in over their head". They get handed off to the next division of the company so many times they lose track. All of these experiences relate to size. All of this could have been avoided if the consumer had asked simple questions and the contractor had made simple disclosures on the front end. Do you want to work with a huge company or a small, specialized company? As a rule, a smaller company does fewer jobs and can devote more personalized time to your project. Conversely, large companies typically have more efficient systems a greater division of labor, and are capable of a far greater range of projects. Normally, when working with a small company you will have one or two points of contact versus a large company where you may have more points of contact and a greater chance for miscommunication. Completeness of the Estimate One of the most confusing stages of dealing with a contractor can be "getting bids". Homeowners are always encouraged to obtain several bids, and most contractors will give homeowners an estimate of what they think the project will cost. It isn't until all of the details have been determined, that a contractor can give a firm bid on the whole project. The smaller the project, the less complicated the project, the easier it is for the contractor to put together an estimate. When the project is more complex, involves design, and/or has unique specifications, many contractors charge for estimates. Nailing down all of the details, getting bids from subcontractors, finding products that satisfy the customer, and designing the details of the project take a long time and involve a lot of work. Job Schedule There are many areas where the schedule affects the satisfaction of the project. Did the contractor take too long to get the project done? Did the contractor take too long to get back to you with answers to your questions? Did the contractor promise to bring over samples and then have to be reminded? Is the contractor too busy to give you the attention you want? These kinds of things could be early warning signs that schedule may be an issue throughout the project. Source of Business Talking to a contractor about where the bulk of his business comes from can tell you a lot about the company. Some contractors don't know where their business comes from and have never bothered to figure it out. Some companies only have a couple of customers and all of their business comes from them. Some companies have a lot of past customers and their business comes from past customers or referrals from past customers. Some companies advertise all over the place with big splashy ads and must rely on a lot of new calls. What about repeat business? Shouldn't a contractor who does quality work eventually not have to advertise as much as a new contractor due to repeat business and referrals from past customers? Community Involvement A contractors' business has to exist someplace. A contractor can't operate in a void or with complete disregard for the community it serves. That same contractor is dependent on that healthy, thriving community, and it is significant if a contractor plays a vibrant and supportive role in the community. What role does your prospective contractor play in your community? What organizations does he support? What groups is he an active member of? Are the employees involved in community groups and organizations? Many times, the importance of participating and giving back to the community is overlooked by disreputable contractors and their employees and appreciated by professional contractors. The Contract After all of the decisions have been made, the design has been completed, negotiations have taken place, the contractor of choice is asked to put together a contract. The contract between you and the contractor should be in writing and, at a minimum, should include (1) a summary of the work to be done; (2) provisions for the building permit; (3) estimated starting and completion dates; (4) provisions and procedures for handling Change Orders and the affect they will have on the project; (5) the schedule of payments; (6) a Lien Notice; (7) the Notice of Cancellation; and, (8) Warranties. Guarantees & Warranties There is often a lot of confusion about guarantees and warranty work, both on the part of the homeowner and the contractor. Many contractors fail to be clear about the guarantees they make regarding their finished products. contact
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