Top 10 Considerations for Hiring a Home Remodeling Contractor

If you don't want to have your own contracting nightmare to share, follow these 10 steps:

Consideration #1: Define Your Project

Homeowners decide to remodel for a variety of reasons. They may have outgrown their house and need more space. They may need to spruce things up to sell in a competitive market. Or, an update from old to new may better fit the homeowner's current lifestyle and desires.

Home remodeling remains a viable alternative to moving your life to another location. According to industry experts, choosing to remodel makes sense if the improvements are less than 30 percent of your home's value. You can get another room in your house, update a bathroom or kitchen, or create an outdoor living space without the upheaval caused by selling, buying and moving to a new home.

So, once you decide to stay-put and remodel, you first need to understand the typical players. Depending on your project, you may have one or more of the following professionals on your team:

* General Contractors -- These professionals oversee all aspects of your project, as well as work with your other team professionals like architects and designers. General contractors hire and supervise subcontractors, secure building permits, schedule municipal or county inspections, and more. * Architects – If you're doing a major remodel, you may consider hiring an architect to design your space. Architects experienced in home remodeling can help with structural changes and provide innovative options. * Designers – Like architects, designers can present options you may have never considered. Qualified design professionals understand how different elements work together and can deliver the look you've always wanted for a new space. * Design/Build Contractors – Think “one-stop shops' with these contracting professionals. They do the same work as a general contractor, but will usually have architects and/or certified designers on staff. They're able to manage your project from start to finish so you have one point of contact.

After you understand who you want to work with, you can start to think more about your specific project. During this first phase, you should work on:

* Generating design ideas – Before you meet with any contractors, get your creative juices flowing by visiting showrooms, building materials stores and model homes. Get additional ideas from magazines, websites and more.

Also, remember to be flexible even after you have some good ideas in hand. Once you hire your home remodeling contractor and designer, they'll have additional ideas you should consider.

* Translating your ideas until paper -- Try to define your project in as much detail as possible. What do you want to change? What elements can't you live without? What do you want as an end result? Take your ideas from above and start outlining your project in terms of scope of work, materials you want to use and more.

Keep in mind, you may be able to visualize what you want, but your contractor might not. Therefore, the more detail you commit to paper, the better chance you'll have of your remodeling contractor seeing the project through your eyes.

* Checking third-party requirements – Does your project meet your local zoning regulations? What special provisions need to be made for your Homeowners Association (HOA)? Do you need to meet any other regulatory or legal requirements?

A competent home remodeling contractor will help you get permits and meet other requirements. But you should attempt to understand any limitations before you get your heart set on a certain aspect of your project.

* Formalizing your expectations – Really think about how you want your contractor relationship to work. You'll have strangers in your home for an extended period, so decide upfront how want the work done and the quality you expect in the finished project.

Consideration #2: Establish a Budget

Once you have a good picture of what you want, you need to figure out how much it will cost. Learning about approximate labor and product costs can eliminate disappointment later. And unfortunately, things are usually more expensive than homeowners figure. To avoid having to scale-down your dream project, determine upfront if you can afford your initial plans.

Where should you start on the budget process? To arrive at a preliminary budget answer the following questions:

* How much money do you have to spend? Everyone's financial situation is different. Therefore, decide how much you have available for a remodeling project and what you can sensibly afford. Putting yourself in a financially vulnerable position doesn't make sense. If you can't afford $100,000 for a kitchen remodel, don't plan for one.

* What's your time frame for staying in the house? Many industry experts use the five year mark for determining remodeling feasibility. If you don't expect to stay past five years, you need to be careful your project recoups your investment and enhances your resale value. If you plan on staying in your home for more than five years, you can focus more on whatever you can afford that fits your lifestyle instead of resale value and return on investment.

* Is your remodeling project consistent with your neighborhood? In other words, if you live in a modest neighborhood, you may want to reconsider over-improving. Even if you don't think you'll ever move, you still want to keep your end value in-line with the neighborhood. On the flip side, if you live in a more affluent area, you don't want any improvements detracting from the neighborhood. Be sure your choices go hand-in-hand with the features and look of the other homes in the neighborhood.

* Have you planned for the unexpected? It's common to have unexpected issues pop up during remodeling, especially on older homes. You may not know how your budget may be impacted until you start tearing out walls and ceilings. Therefore, numerous industry experts recommend a 10% contingency for unplanned expenses or changes you want to make once construction commences.

* Do you have a process in place to track your project's expenses? Staying on budget takes discipline and work. Make sure you track all expenses throughout the project's duration. A spreadsheet or piece of paper should have a column for budgeted expenses and actual expenses. As estimated expenses become known, you can easily see if anything is going off-course. Then, you can make adjustments accordingly to get the project back on budget.

Consideration #3: Make a Short-List of Potential Remodeling Contractors

At this point, you're ready to start looking for qualified home remodeling contractors:

* Start with recommendations – Friends, family and neighbors should be your first stop for getting solid contractor suggestions. You can also check with the National Association of the Remodeling Industry to find members in your area. Local government employees in building departments may help, as well as workers at home improvement stores. You may be able to find out things like which companies regularly build without code violations and buy quality materials.

* Conduct some initial research – For those companies recommended to you or uncovered in other ways, you should do some preliminary research. Visit contractor websites to see which companies seem like a good fit for your project.

Also, check with your state's consumer protection agency, your local Better Business Bureau and the Registrar of Contractors to see if any of the candidates has a history of client or sub-contractor disputes. Websites like Angie's List can also provide good feedback.

* Develop your contractor short list -- You now want to hone-in on three or four companies to interview. Call each candidate to set-up a meeting time.

During your homework, you also need to be wary of common contracting scams and unseemly tactics. Pay particular attention to these red flags and avoid contractors that:

* Solicit business door-to-door * Offer special promotions for signing “today' * Only take cash for work performed * Require large upfront payments * Provide flimsy credentials or references you can't reach * Conduct business personally rather than on behalf of a company * Operate without a written agreement * Won't handle the permitting process * Only work during off-hours, such as nights and weekends * Provide a really low-ball estimate * Offer discounts for “materials left over from another job' * Operate from a location you can't visit or confirm * Pressure you to make a decision

Consideration #4: Interview Your Candidates

It's a good idea to start calling your top candidates for a short phone interview. Most importantly, you want to confirm each company handles projects sized like yours and is wants to take it on.

Then, make sure each remodeling contractor is willing to provide the information you request, like financial references, client references, current schedules, subcontractor info, and more. You want to gauge availability, reliability, the attention your project will likely get and your first impression of how you might work together.

Next, prepare for the face-to-face meeting for those contractors who passed your initial screening threshold. This meeting should focus on defining your project, providing your budget, determining if you “click' with the company and its reps, evaluating how each contractor communicates and outlining everything you need from the contractor to make a final decision.

Some specifics to ask include:

* Do they have any unresolved client complaints? You may not have uncovered any complaints during your initial research, but that doesn't mean none exist. They just may not have been reported or the contractor may have operated under a different business name.

* What credentials do they hold? Are they licensed and insured? Make sure you understand what's required for your state, county and/or municipality. You also want contractors to provide a current copy of their licensing credentials.

For insurance, contractors should have personal liability, worker's compensation, and property damage coverage. Verify current coverage by requesting copies of insurance certificates. You must eliminate any personal liability.

* How many projects similar in scope to yours have they completed? You need to be sure your project isn't too small or large for a contractor's qualifications. Get a list of projects in your area that are most like yours.

* Do they have a list of references for you to contact? You need to collect at least three to five names, addresses and phone numbers of previous clients. Find out how much repeat business the company enjoys. Also, see if the contractor can arrange for you to visit a completed project.

* Can you visit a current project in progress? Nothing will tell you more than the past and current work performance of any contractor. Contacting past references will give you an idea of how happy customers were with their finished product and how the process went. But, visiting a current project lets you see first-hand how a contractor manages the site – in other words, how neat, organized and safe it appears.

* Will the contractor handle the permitting process? Qualified contractors will manage the entire permitting process, as well as work with other entities that must provide approvals, like HOAs. This is an area you don't want to do on your own. Competent remodeling contractors will know exactly how to work with governmental building departments.

* What subcontractors will the contractor use? Find out what parts of your project will be handled by subcontractors, as well as which subcontractors they'll use by company name. You'll want to confirm every subcontractor on your project has the required licensing credentials. In addition, you need to protect yourself against mechanic's liens, which we'll discuss further in the contract section below.

* What are their project processes? Get a good feel for how each contractor operates. Do they have formalized processes in place? Do they have proven in-house operations that can streamline your project. Make sure you understand how quality will be maintained, change orders managed, schedules and budgets adhered to, and other project management issues.

* When will they submit a bid? How fast a home remodeling contractor gets back to you with a bid proposal will help you gauge their level of interest in your project and whether they truly can fit it in their schedule. The bid must clarify how much the project will cost, the scope of work and how long it will take.

* When will they provide a contract, if they're the winning bidder? If a company is Johnny-on-the-spot with a bid, don't give them the option to slack off after getting the job. Know exactly how long it will take them to provide a written agreement for you to review. Also, make sure you have the option of editing the agreement.

Finally, ask about anything you uncovered on their website or through other avenues that isn't clear. Your goal is to work with a well-established company with the expertise, experience and desire to work on your project.

Consideration #5: Vet Your Top Candidates

You should have collected a huge amount of information during your interviews; now's the time to verify it. Be careful of taking any contractor's word for anything. You've got too much at stake. At a minimum, confirm performance by doing the following:

* Know what you want to ask references and make the calls -- You'll want to learn things like if any project experienced cost over-runs not initiated by owner changes. Also find out if projects were delivered on-time at the quality levels expected. And, find out what the homeowner liked and disliked about working with the contractor.

* Visit the job sites you've arranged with the contractor -- You'll want to see how the contractor's work is holding up for previous projects. And, don't forget to visit a current job site to see how the contractor and its subs actually manage a project in-progress.

* Verify all paperwork they provided, including insurance certificates and licenses -- The copies you have are probably accurate, but don't take any chances!

Consideration #6: Review and Compare Bids

After you get all the bids submitted, make an apples-to-apples comparison. If you did a good job of explaining what you want, the bids should be fairly comparable in terms of what services and products each contractor will provide.

Here's what you should do when analyzing bids:

* Check for omissions -- If a contractor left something out and you think the company is a good candidate, have them re-bid your project. You must get comparable bids to do a meaningful analysis.

* Make sure every bid is explained in detail -- You want everything associated with the project to be spelled out. This doesn't mean a full-blown contract at this time, but a complete scope of work defined with materials specified, schedules provided and costs outlined by labor, materials and profit margins. Ask for any clarifications so you fully understand each bid before making a final decision.

* Review all drawings – Contractors that provide drawings and 3-D renderings of your project make it easy to see how much they understand what you want.

* Compare bids and note all differences -- After you've received all final bids, identify the areas where each contractor deviates from the others. Who is the cheapest? Which company has the shortest schedule?

* Don't be guided solely by price -- Everyone wants to pay the least amount of money. But, don't do so at the expense of getting a quality project exactly as you want it. Contractors must make certain profit margins to stay in business. If they provide low-ball quotes, they might have to “make up' the difference by using lower quality materials or cutting corners in their work.

Consideration #7: Understand Your Payment Options

If you've selected financially stable candidates with strong ethical backgrounds, you should be able to arrange a mutually acceptable payment schedule. Never agree to pay for a large chunk of the project upfront. Each contractor will have its own payment requirements and schedules. Understand your options will each contractor before making a final selection.

The following recommendations will help you avoid getting into a bad deal:

* Don't make payments with cash -- Use a check or credit card so you have some leverage if the relationship goes south.

* Pay as little upfront money as the contractor will allow -- You don't want to be any more over-exposed financially than you need to be.

* Make the payments contingent on performance milestones – You don't want to pay for work that hasn't been completed. Match your payments to work progress and only pay once defined work has been completed to your satisfaction.

* Don't make any final payments until certain requirements are met – The project must be completely finished and all issues resolved after a comprehensive walk-through with the contractor. You also need to ensure all subcontractors and suppliers have been paid by the contractor. Otherwise, you could be left holding the bag to satisfy these bills. Mechanic's liens can put you in an ugly situation.

Consideration #8: Put Everything in Writing

You're now at the point of making your final contractor selection. Once you award the job, you need to finalize an agreement before any work begins. A contract needs to include the items specified in the original bid, as well as a host of additional terms relevant to your project. Spell everything out and avoid all open-ended terms.

Here's a list of some of the specific things you need in the agreement:

* The basics – You want the contract to reflect the contractor's legal business name, address, phone number, licenses and insurance policies. It's imperative your contractor be insured against workers' compensations, property damage and personal liability in case of an accident on your property. Even though you collected this information during the selection process, have it included again in your final agreement.

* Project scope – This section of your contract must provide details of every aspect of the work to be performed. Don't assume your contractor will do everything you discussed about your project. If something isn't included in the contract, you risk having to pay more for that work. In addition, include all contractor obligations like managing the permitting process and other necessary approvals.

* Materials lists – The contractor needs to provide a comprehensive and exact list of products used in your project, as well as how any substitutions will be handled. If you got detailed bids, this information should simply be copied from the bid. Make sure the agreement identifies things like color, model, size, quantity, brand name and other specifications for each product or material used. You must also clarify responsibility for material selection, purchase, delivery acceptance and storage.

* Final costs – With an accurate scope of work and materials list, the final cost should be per the initial bid, unless, of course, you made changes. The contractor must spell-out all charges and identify all your financial obligations

* Schedules – On what date will the project begin and when will it end? To avoid the never-ending project, your contractor must commit to a schedule. This schedule should only be altered for issues beyond the contractor's control, like the weather, or to accommodate changes you make to the project scope. You'll need to understand how the contractor will adjust the schedule under all circumstances.

* Payment terms – Have the contractor include the payment schedule you previously discussed and agreed upon. You'll need to define each payment stage with the amount required and what work must be completed before the payment is made.

* Change orders – Put in writing all the processes you discussed during your evaluation, including how change orders will be handled. Also understand every change will affect the project's budget, schedule and payments.

* Final review – The contract needs to define how the walk-through will be conducted. You also need a formal statement on how the contractor will address all issues.

* Lien releases – For your protection, document the contractor's responsibility for obtaining lien releases. You can't assume liability if the contractor doesn't pay subs and suppliers.

* Project staffing -- Understand who will do the work at each project phase -- employees of the remodeling contractor or subcontractors. All subcontractors must be properly licensed, bonded and insured as well. You also want to be assured the people you met with during the selection process will be the team members on your project.

* Warranties and Guarantees – You need to know exactly who will be responsible for workmanship issues and material defects long after the project is completed. Make sure you understand what's covered, for how long, limitations and exclusions, and the process for submitting a claim.

* Job site clean-up – Don't forget to include the contractor's responsibility for cleaning up the job site, including removing all debris. You don't want to get stuck with this responsibility after the contractor is long gone.

* Cancellation clauses – You have a right to cancel a contract within three business days, if you signed the agreement in your home or other location besides the contractor's place of business. Also understand your liability if you decide to cancel the agreement after the three-day period and work has started. Plus, protect yourself by outlining the contractor's liability if they stop work on your project.

* Worker conduct – Here's where you want to lay down some ground rules for working in your home. What are acceptable times for starting and finishing work each day? Will you allow workers in your home during weekends and holidays? What areas of your home will be off-limits to workers? What worker behaviors are acceptable while working? What are the rules for job site cleanliness and safety?

Consideration #9: Understand the Construction Process and Expect Inconvenience

It's important you understand what happens during construction so your expectations remain in check. In most cases, remodeling is stressful for a homeowner once construction begins. Depending on your project, you may not have use of certain facilities in your home. Plus, you'll live with dust, noise and strangers throughout the project.

However, things can go more smoothly if you go into your project with your eyes wide open. You should expect the following construction phases during your project:

* Pre-Construction Meeting -- Before work beings, a meeting typically takes place with your project manager and other interested parties. You'll review contract terms, discuss project logistics, reiterate the communication process and resolve any open issues.

* Demolition -- During this phase, things get messy. You can expect several workers on-site during this process. However, a good remodeling contractor will go to great lengths to protect your home and possessions during the entire project.

* Site Work -- If concrete work is required for your project, it will begin at this point. You can also expect large machinery to be used at the remodeling site. Framing begins next and you can start to see the skeleton of your project. Finally, if your project requires county or city permitting, the first inspection typically takes place after framing is completed.

* Mechanical Installations -- After any concrete work and framing, your project will move to plumbing, electrical, HVAC and other mechanical work as required. This time consuming work is generally done by subcontractors and you can expect several permitting inspections during this phase.

* Drywall, Finishing and Fixtures -- After all mechanical installations are complete and inspected, any insulation and drywall work will be done. After this, doors, flooring, painting, cabinets, countertops, plumbing fixtures and lighting fixtures are installed.

* Substantial Completion and Punch List – You and your remodeling company will develop a “punch list' of small items left to be completed. Typically, you complete this phase a week or two after your project has reached substantial completion and after you have a chance to notice anything that might need fixing.

* Final Completion -- When the punch list work is completed and approved, you will be expected to pay your final invoice per the terms of your contract. Should you need to fix items associated with your remodeling project after final completion, your warranty will kick-in.

Consideration #10: Be an Active Team Member

Although you've hired a professional to manage your project, you still need to participate in certain tasks to ensure a successful outcome. Here's a list of a few things you should do:

* Keep good records – Store your project paperwork in one place, including your contract, change orders and communications. Photographs of work progress can also prove beneficial, especially if you have problems down the road.

* Check all bills – Before you make any payments, check the contractor's invoices carefully. Make sure they match your agreed upon terms within the contract. Resolve any discrepancies as soon as you notice them.

* Complete a checklist – Before signing off on the finished project, make sure all work meets the standards outlined in the contract, you have written warranties for materials and workmanship, you have proof all contractors have been paid, the job site has been sufficiently cleaned and you have approved all work. Make any final payments to the contractor only after you complete your checklist.

Becoming a Success Story…

Your home is probably your most valuable asset. Therefore, you need to put the effort into getting the best qualified contractor available. If you hire a company based on sound credentials like experience, expertise, reliability, competitive pricing, proven processes and a thorough understanding of your project, you'll likely find the experience rewarding.

By following these top 10 considerations for hiring a remodeling contractor, you can avoid a nightmare experience. Instead, you can look at your beautiful new kitchen, bathroom, room addition or outdoor space with a smile on your face!

Republic West Remodeling – Home of the Dream Assurance PlanTM

Republic West Remodeling makes the remodeling process as painless as possible. With over 18 years in business, we've learned a thing to two about how to efficiently complete projects to every customer's expectation. And our testimonials, references and track record back this up.

We've also developed the Dream Assurance Plan™, a custom remodeling process that strives to deliver a pleasant experience and a successful outcome for our customers. We're determined to transform the expectations that every remodeling project will be a nightmare.

The Dream Assurance Plan includes three concepts:

* Design & Visualization * Cost Certainty * Time Certainty

Republic West Remodeling assures your custom remodeling project will be as you visualized throughout the entire process – from creative design to detailed planning to execution and construction.

For more information on home remodeling, or to request a free, no obligation, design consultation, visit http://www.republicwestremodeling.com/remodeling-and-construction.php or call (480) 428-2695.

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