Cheaper Isn't Always Better

Tips for Choosing a Reliable Contractor

In construction, the same scenario happens every day, costing homeowners and business owners tens of thousands of dollars. I hear examples of this from remorseful customers time after time. In one such example, a client was looking to save about $10,000 on a whole house remodel; after days of back-and-forth communication, trying to get the price within their budget, they decided to go a different route. They chose to do some of the work themselves and hire a cheaper contractor (one the bank wouldn't approve) to get the remodeling done. A few months went by, and one day I ran into the customer, and he told me how their remodeling project had turned into a construction nightmare. Not only had the homeowners overextended themselves, trying to keep costs down, but the cheaper contractor had somehow done major damage to the pool while installing a fence around it, costing around the $10k they were hoping to save. So even with their sweat equity in the project, they ended up spending even more than they would have paid to have the entire job completed initially. The stories go on, from prepaying for a small job and the contractor running with the money, to homeowners spending months and years fighting contractors in court.

So how can you make sure you don't become the next victim of a dishonest or fraudulent contractor? Get to know your contractor; are they someone you can trust? Do they carry General Liability Insurance? This is an absolute must! Ask for a visual plan or a 3D rendering of the project. All finishes, materials, and fixtures should be listed either on the plans, invoices, or in the contract; and all documents should be referenced in the contract. Make sure you know what is included and what isn't. Last, but not least, payments. Rarely should a contractor ask for more than 50-60% upfront, and on larger projects, there should be a draw schedule; either way, this info should be listed in the contract. Expect change orders; if you make changes after the contract is signed, there will be change orders and associated fees. Make sure you’re on the same page. If there seem to be communication issues, find a friend or a colleague who can help you, or you can hire a contractor/architect to help you arbitrate through it.

Finally, rather than shopping for the cheapest price, shop for someone who will bring you the highest level of quality and experience in construction. Many contractors offer cheaper prices by overlooking or covering hidden costs that will come up five to ten years down the road. Be sure you know what you’re getting. And good luck!