Who Do You Hire?

Once you have decided to hire a contractor to build a custom home, addition, or renovate or any other needs you may have and know, or at least have a good idea of what you want, choosing a general contractor is a crucial decision. It’s not something you should rush into.

The contractor you hire should have the technical, business and interpersonal skills, the tools and the experience needed to do the job you want done. Hire a contractor who has experience with projects similar to yours. This contractor will know what materials and techniques are needed for your work; and even better, about problems with similar work — and how to solve them.

Choosing a Contractor

At the first meeting, some may give you a rough estimate of costs, depending on the project’s scope and complexity. The first meeting is usually more to get to know the contractor and the contractor’s work. You want to find out as much as you can, so ask a lot of questions, such as:

• How long have you been in business?
• What kind of work do you specialize in?
• Have you done a similar job before?
• Will you use your own crew for the work or will you subcontract all or part of the job?
• How would you handle a specific problem related to this project (e.g., installing kitchen cabinets on your sloping floor)?
• How and when do you clean up, particularly fine dust?
• What work schedule will you follow?
• What kind of warranty do you offer and what does it cover?
• Do you carry workers’ compensation and liability insurance?
• Will you provide a written contract?
• Will you take out all required permits (e.g., building, plumbing, electrical)?

You won’t offend reputable firms with questions. If a contractor doesn’t seem to know much about the technical details of the job or doesn’t want to talk about them, you may have the wrong contractor.
If the contractor plans to do the whole job alone, make sure he or she has all the necessary skills and qualifications.

Most importantly, be sure you can get along with the contractor. If you cannot communicate effectively with the contractor, things can get very tense in a lengthy project. You want a contractor who will explain what’s going on as the project takes shape, who will discuss problems reasonably and who will work with you to make the result as good as it can be.

You also want someone who’s willing and able to help you refine your plans where possible, resulting in a more desirable and cost-effective project. A contractor who is knowledgeable about the type of work you’re doing should be able to suggest ways to get what you want and meet your budget.

The best proof of quality is satisfied customers. The contractors you decide to meet with should have references from at least three previous clients who have had similar work done. Don’t accept the references at face value. Phone them and ask about their experience with the contractor and their trades people and ask them if they were satisfied with the quality of the work. Were there any problems? Did the contractor keep them informed throughout the project? Did the contractor’s crew keep a clean work site? Was the work done on schedule? Were there changes to the scope of the work and if so how were they handled? Would they hire the contractor again or recommend the company to friends or family?

If the previous clients are willing, visit them to see the finished job. Their willingness itself is usually a sign that they were satisfied. Check with your local Better Business Bureau. It records complaints about contractors in your community.

Getting Estimates or Proposals

To get estimates, especially for substantial projects, you’ll need good-quality drawings and detailed specifications. You can either use an architect or designer or a draftsperson. Even with a small project, a set of written specifications is needed. Be as specific as you can: what type of flooring, what kind and brand of doors and windows, what kind of finishes you want.

For a large project, it can take two to three weeks for a contractor to prepare an estimate. Ask the contractor to submit it in person so you can discuss the estimate with them. Compare the estimate carefully and make sure that everything you ask for is in the estimate. It should include everything that the contractor will have to do to complete the job. Assume that anything not listed is not included in the price. As well, make sure the contractor provides you with a construction schedule.

In some cases, a contractor will give you a “fixed price” quote. A fixed price includes all the materials, labour, equipment and fees, plus contingencies, overhead and profit. In some cases allowances are established for items which you have yet to select, e.g., flooring and light fixtures. The allowance, which is only an estimate, is later adjusted once you have made your final selection.

If it is difficult to estimate just how much the job will cost — for example, for an old house that might need extra work — you can use the “time and material method” for contracts.

In a time and material contract, you pay the contractor the actual cost for labour, materials, equipment and a contracting fee. Time and Material contracts leave costs open-ended, so it’s best to set a limit so costs don’t get out of hand.

Remember, renovation may uncover hidden problems, so make sure you include a contingency budget to cover unforeseen costs.

Don’t automatically choose the contractor who gives the lowest estimate. It may be unrealistically low. The contractor may not have understood the project, may be underestimating what it will take to complete the work, or simply trying to get a price advantage over the competitors. In any case, you could risk unexpected and additional costs, or you may end up with a job that leaves you unsatisfied. Remember, you always get what you pay for.

Look for a fair price. Factor in any differences in what the contractors are offering and the skills they bring to the job. Then add the intangibles: reputation, willingness to make suggestions and offer advice, the likelihood of standing behind the work. Choose the contractor you feel will give you the best overall value for your money.

The Contract

A detailed written contract between you and the contractor you hire is essential to any renovation or home repair project, no matter its size. Even the smallest job should be put in writing.

Warranties

Professional contractors offer a warranty on their work and will come back if something goes wrong.

Working with your Contractor

Once the job is under way, you’ll see a lot of your contractor and the crew. The job will go much better if there is mutual respect and you co-operate with them. Talk with the contractor, so you know what’s going on and what might be needed from you — an empty driveway so the delivery van can bring in the new bathtub, for example. But don’t call every five minutes. Make a list of your questions and save them for a time which you are both available.

In spite of a clear, detailed contract, disputes can, and occasionally do, arise for any number of reasons. Good communication can go a long way in settling any disagreements between you and your contractor. As a first step, you should sit down together to discuss the problem calmly and seek a solution that you both can live with comfortably. This is usually the fastest, least expensive and ultimately, most satisfactory approach.

Try to be reasonable. Don’t overreact if something is wrong. Allow sufficient time for a response. As well, things the contractor can’t control, like bad weather and backordered components, can delay the job, so leave a little leeway in your schedule for them.

About Insurance

It’s important to make sure the contractor has workers’ compensation and third-party liability insurance for all the people on the job and damage they may cause ($2 million is standard, this may not be the case in rural areas). Your local homebuilders’ association is a good source of information for what is standard in your area. Don’t accept or assume any liability for the contractor or trades people.

As for your liability, your homeowner’s insurance policy may cover you during a project done by a renovator but you should always advise your insurance provider of any renovation work ahead of time. However, if you’re acting as your own general contractor and employing trades people, your policy won’t automatically cover you. You’ll have to ask your insurance company for temporary coverage, which will likely involve a small extra premium. Again, make sure any trades people you hire have their own insurance.