Selecting a General Contractor
This Old House general contractor Tom Silva discusses selecting a general contractor. “Start with your friends and family and then check in with the National Association of the Remodeling Industry or the National Association of Home Builders for a list of members in your area. I like his suggestions to get useful information. You can talk with a building inspector, who’ll know which contractors routinely meet code requirements, or pay a visit to your local lumberyard, which sees contractors regularly and knows which ones buy quality materials and pay their bills on time.
What does a “general” contractor (GC) do?
A GC enters into a contract with you to complete a project and takes full responsibility for the completion at the bid price. In general, the GC purchases the materials, hires the tradespeople, and brings in subcontractors. The subcontractors are responsible to the general contractor, not to you, the owner.
Selecting a General Contractor
Before hiring any contractor, make sure the GC is properly licensed. Most states or counties as well as many large cities or townships license contractors. As a rule, licensing entails passing a test to measure competency, while registering involves only payment of a fee. If a problem arises, a government agency may be able to pursue a licensed or registered contractor on your behalf.
Ask Questions
Consumers Report writes, “Ask for a list of previous customers; then call them or, better yet, visit their homes to look at the work. Ask some penetrating questions such as these:”
- Would you hire this contractor again?
- Were you satisfied with the quality of the work?
- How did the contractor handle cleanup each day?
- Was the contractor easy to talk to?
- How did the contractor handle differences and work changes?
- Was the job completed on time and at the bid? If not, why not?
Industry groups recommend that when selecting a general contractor, you get a written estimate from at least three contractors. We suggest at least five bids. An estimate should detail the work to be done, the materials needed, the labor required, and the length of time the job will take. Obtaining multiple estimates is a good idea. An estimate can evolve into a bid—a more detailed figure based on plans with actual dimensions. Seeking more than one bid will increase your odds of paying less. Once agreed to and signed by you and the contractor, a bid becomes a contract.
Beware the Lowest Bid when Selecting a General Contractor
The lowest bid doesn’t necessarily mean it is the best bid. Make sure you are comparing apples to apples. You might also buy your own materials to make sure the contractor isn’t substituting cheaper materials.
With a contractor, you want a project manager who will manage the sub-trades and make sure they are cooperative and stick to the schedule. Ask how the subs are paid, how often, and if they are paid as work is completed.
Put it in Writing
Draw up a contract that details every step of the project: payment schedule; proof of liability insurance and worker’s compensation payments; a start date and projected completion date. You want specific materials and products written down, and a requirement that the contractor obtains lien releases (which protect you if he doesn’t pay his bills) from all subcontractors and suppliers. Insisting on a clear contract isn’t about mistrust. It’s about ensuring a successful renovation.
Ask for FREE information about How to Sell Your House Fast.
Terra Firma Property Solutions, LLC is a professional, full-service real estate solutions firm.
We buy and sell properties throughout the greater Kansas City area. We specialize in buying distressed homes, then renovating and reselling them to home buyers and landlords. Terra Firma Property Solutions: excited to be part of the economic rejuvenation of Kansas City and its surrounding areas.
Call us today at (816) 866.0566
