Why is it important to hire the right contractor?
Why is it important to hire the right contractor?
Choose your contractor carefully! No other decision will have a greater impact on the success or failure of your project. Great plans, contracts, and construction documents cannot get good work from someone lacking in skill or integrity. Find someone whom you can trust and feel comfortable working with. If you have to pay a little extra to hire the right person, you won’t regret it. The savings from hiring the low bidder often evaporate as the job progresses.
The general contractor may be called a builder, building contractor, remodeling contractor, etc. What makes him a “general” contractor is that he enters into a contract with the owner to complete a project and takes full responsibility to get the job done for the bid price.
Assume that there will be problems along the way and select a person whom you feel will work cooperatively with you to find the best solutions.
How to find the right contractor
Whether you are hiring a contractor for a residential or commercial property project, the first thing you want to consider is a contractor’s reputation.
Do you know anyone who has hired them previously?
What did previous clients say about their work and the value of it? Their reliability?
Their communication and punctuality?
When you meet a contractor, take note of their appearance and, if possible, the state of their vehicle. This can say a lot about a person’s organization and attention to detail. If there are fast food bags, empty water bottles, paperwork, and trash scattered everywhere, it seems likely that this is how your house is
If they don’t show up for your appointment, do not give them a second chance. If they are 20 minutes late, they had better have a good reason other than they was stuck in traffic. If it’s acceptable to them to be late or not show up before you hire them, you can bet that this behavior will remain consistent or even get worse after you hire them.
It is very important to thoroughly vet your contractor in the beginning before signing the contract. If you aren't’t careful about who you hire, it could cost you everything.
Research
- Get multiple estimates. You want to make sure you initially get estimates from more than one contractor, preferably around three.
- Go local. If possible, local contractors are your best option because they will be more familiar with local building codes and will always be close by if you have to contact them for an emergency.
- Check for proper licensing. If unlicensed, they will not be able to pull necessary permits, which will mean that your buildings are not up to local building codes and will not pass inspections. Unfortunately, you would then be held financially responsible for the repairs to meet those codes. Licensing is essential!
- Check for warranties. Warranties are great for both parties because they protect the contractor from having to come back for multiple repairs over a long period, and also ensure the homeowners that the work of the contractor will not be shoddy or sub-par. You want a warranty in writing.
- Check their past work. Look them up on the Better Business Bureau to check their reputation. You want a contractor with more than three years of experience, preferably. Ask for a list of references from their previous projects and follow up with these. You can also check their reputation and reviews on social media platforms
- Utilize best payment practices. Don’t pay in cash or the full total
upfront. Be wary of any contractor who demands either. We never recommend an initial payment but should you have to payout 1% and the rest of the payments should be on performance and completion
scale. Make sure payment be in the form of a check written to the company, not an individual if possible. -
1. How long have you been running your own crew?
2. Are you licensed and Insured? ( Ask for copies of both General Liability and workers comp is a non- negotiable.
3. Have you ever had to declare bankruptcy or operated your company under a different name?
4. Have you ever had to declare bankruptcy or operated your company under a different name?
5. Will you agree to sign lien releases before I pay you?
6. How often do you communicate with your customers?
7. How many projects do you have going on right now?
8. Do you have a sample of your contract and scope of work? 9. How do you handle payments?10. Are you willing to pay me a $100 dollars a day if you are more than two weeks behind on completion date?
11. Will you be at the job site everyday over seeing the project 12. Will you provide me daily updates
13. Will you offer a guarantee on your work, and, if so, what is the guarantee?
14. What is the daily work schedule?
15. Will you agree to including a termination clause in the contract that we co-write?
Flipping, Building and or Developing can be as exciting –and daunting – as embarking on a trip to an unknown land; but you don’t have to go into it blindly.
Ask these twenty questions to several contractors you’re considering for the job, and then hire the contractor who can provide the answers you want to hear.
Now make the best educated decision!
Become a SALT Member
SALT Capital seeks to bridge the gap between our members by brokering investor-to-investor transactions, whereby investors from all backgrounds and income levels can pool their resources together to gain direct access to a larger pool of real estate investment opportunities.
