Hammer Time! You and Your Remodeling Contractor.

Have you seen that television show where a building contractor hangs out at a home improvement store and approaches people about taking him (and his crew) home for a makeover? And it all happens in a few days, no loose ends, only an occasional headache, miraculously cured by a well-placed commercial. Well, if you’ve decided you want improvements around your home, clear all that Hollywood nonsense from your mind. Let’s talk real nuts and bolts about home improvement using a real contractor who has an office, not a camera.

So ever since you’ve seen the movie, “Under the Tuscan Sun”, you’ve wanted a kitchen that reflects Tuscany, with the works … a wall knocked down for a new layout, new appliances, new fixtures, new paint and new tile for the floor and walls. Now you just need someone to help you make this dream come true. Enter the professional contractor. You’ll work together to ensure your vision is indeed a dream and not a nightmare. How do you go about bringing aboard the right person for you? There are a number of things to do when choosing a contractor, so pull up a sawhorse and take a look...

Talk to friends/neighbors/co-workers for recommendations. Check with the National Association of Remodeling Industry for a list of members in your area. Choose your top three candidates.

Call each contractor and ask about:
      o Their resumes. Have they worked a project your size before?
      o Financial references. Are they all square with suppliers/financial institutions?
      o Schedules. How many other projects are they working on? Will they affect starting/finishing yours?
      o Past clients. Talk to the people who have worked with this contractor. Ask to see the finished jobs, if possible.
      o Relationships. How long have they worked with their present subcontractors?
      o Insurance. Is the contractor covered for such things as worker’s compensation, property damage and personal liability? Is he/she licensed?

Meet face to face. You should be at ease with your contractor. Communication should come easy as this person will be spending a lot of time with you while the job is in progress.

Investigate. Call those past clients and inquire about the contractor. Did he/she do the job to each client’s satisfaction? Visit the job site of a current client to see how the job is going.

Get bids. Have each contractor break down costs—materials, labor, profit margins, etc. As a guide, material usually accounts for about 40 percent of the total cost. A fair profit margin is 15-20 percent.

Ask about a payment schedule. Many payment schedules start with 10 percent at the contract signing and three payments of 25 percent spaced evenly over the length of the job. A final check for 15 percent is paid upon completion. Beware if a contractor asks for much more up front; he may have financial problems or be unsure whether or not you’ll pay after seeing his finished work. Remember, money is your only leverage for getting things done to your satisfaction.

It’s not a bad idea to throw out any low-ball bid. Many times this person may be cutting corners. Wouldn’t you rather spend a little more and work with someone with whom you’re comfortable?

Get everything in writing. A contract is important to make sure everyone remains on the same page. Here are some things to include:
      o The contractor’s name, address, phone number, etc.
      o A start date and completion date
      o A detailed listing of materials needed
      o Who will be responsible for demolition, cleanup, trash collection?
      o A requirement for a lien release (which protects you if the contractor doesn’t pay his bills)
      o Details of what the contractor will and will not do
      o Detailed financial terms: total price, payment schedule, cancellation penalty (if any). Review the contract thoroughly and be certain you understand every element before signing it.

Keep a job file. It should contain the contract, plans, any change of plans, invoices, specifications and correspondence with the contractor.

You’ll want to talk about the big remodel with your family. Be sure any children know the “off limits” section of the house while work is being done. Keep pets clear as well.

If you’re looking to finance a project, now’s a great time! Vantage has very attractive HELOC rates.