Whether you’re planning a minor renovation or a major remodel, finding a skilled and reliable professional can make all the difference in achieving your desired results. This guide offers eight tips from This Old House general contractor Tom Silva to help you navigate the process of hiring a contractor from start to finish.
What To Look for in a Contractor
When evaluating potential contractors, consider their qualifications and credentials, communication skills and transparency, and their business’s financial health. These qualities reflect their competence and reliability.
1. Contractor Recommendations
Finding a trustworthy contractor often starts with gathering recommendations from reliable sources. Talk to friends and family, as they’re more likely to give realistic views of their experiences. Personal recommendations can provide valuable insights into a contractor’s work quality, reliability, and professionalism. Additionally, you can ask neighbors who have recently completed similar projects.
Professional associations are another great resource for finding reputable contractors who consistently complete quality work and are in compliance with industry standards. Check with the National Association of the Remodeling Industry (NARI) and the National Association of Home Builders (NAHB) for lists of qualified professionals. Silva also recommends talking to building inspectors and even employees at local lumberyards, as they interact with contractors regularly and know which ones buy quality materials and pay their bills on time.
2. Conduct Phone Interviews
Once you’ve compiled a list of potential contractors in your area, conduct phone interviews to narrow down your options and assess who is the best fit for your needs.
Questions To Ask a Contractor in an Interview
Silva recommends asking the following questions during your phone interviews:
- Do they take on projects of your size?
- Are they willing to provide financial references from suppliers or banks?
- Can they give you a list of previous clients?
- How many other projects would they have going at the same time?
- How long have they worked with their subcontractors?
These questions will reveal the contractor’s experience, reliability, and ability to manage your project effectively. Pay attention to how quickly and carefully they answer your questions, as this can hint at their professionalism and communication skills.
Contractor Red Flags
During phone interviews, look for signs that the contractor might not have a reputable business, such as the following:
- Reluctance to provide references or financial information
- Pressure to make an immediate decision
- Unusually low bids compared to other contractors
- Lack of proper licensing or insurance
- Unwillingness to obtain necessary permits
If you encounter any of these red flags, remove that contractor from your list of potential candidates. Contractors reluctant to share basic information about their background or who pressure you to secure the project likely have underlying issues that could impact your project’s success.
3. Meeting with a Contractor
After conducting phone interviews, meet face-to-face with your top candidates to assess their professionalism, communication style, and fit for your project needs. Silva emphasizes finding a contractor who communicates well with you, since they will likely be in your house for an extended period. During these meetings, discuss your project in detail, ask for clarification on any concerns, and observe how well the contractor listens and responds to your ideas.
Pay attention to the contractor’s demeanor and how comfortable you feel interacting with them. However, Silva cautions, don’t let personality fool you—it’s important to balance personal compatibility with professional qualifications. Take the time to verify the contractor’s credentials and reputation by checking with your state’s consumer protection agency and the Better Business Bureau.
4. Investigating Background and Work History
Thoroughly researching a contractor’s background and work history will give you a more complete picture of their experience with your type of project to help you decide if they’re a good fit.
Questions to ask Contractor References
One way to verify a contractor’s work is to contact former clients to find out how their project went and ask to see the finished product. When speaking with references, ask about the contractor’s work quality, how well they stuck to timelines and budgets, and overall professionalism. Try to see any work the company has completed in person. Seeing past projects in person can also give you a better idea of the contractor’s craftsmanship and attention to detail. Silva also advises visiting a current work site, if possible, to observe the safety, cleanliness, and organization of the site, the management style, and the demeanor of the workers.
Verify License and Insurance
Before hiring a contractor, always verify their license and insurance coverage. Check with your local licensing board to ensure the contractor holds all required licenses for your project. Additionally, ask for proof of liability insurance and workers’ compensation coverage, which protects you from potential liability should an accident occur during the project.
5. Project Planning and Getting Bids
A well-defined project plan and budget ensures that you and the contractor clearly understand the project scope, costs, and timeline.
Bidding Breakdown
When comparing bids, look at a detailed cost breakdown for each potential contractor. Ask everyone to give a detailed outline of the cost of materials, labor, profit margins, and other expenses. Generally, materials account for about 40% of the total home renovation cost, with the remainder covering overhead and profit margins, which typically range from 15% to 20%.
This breakdown allows you to compare bids more accurately and identify significant discrepancies between contractors. It also provides transparency, helps avoid misunderstandings, and ensures that you and the contractor are on the same page regarding the scope and quality of materials. Silva advises not to take a bid that is significantly lower than the rest. “[That] contractor is probably cutting corners—or, worse, desperate for work.” This could foreshadow poor work quality, communication, and more.
Setting Realistic Timelines
Discuss the project timeline with each contractor and ensure it aligns with your expectations. Ask about factors that could affect the schedule, such as material availability or weather conditions. A reputable contractor should be able to provide a realistic timeline and explain any potential challenges that might arise during the project. They should also build in contingencies for delays to help keep the project on track and regularly review and update the timeline to address any delays.
6. Negotiating Payment and Finalizing Contract Terms
Once you’ve selected a contractor, it’s time to negotiate and finalize the contract terms. A clear, comprehensive contract in writing protects both you and the contractor and ensures the project is completed smoothly.
Payment Schedule and Project Milestones
A structured payment schedule protects both parties by ensuring consistent payment. It also motivates contractors to adhere to timelines and quality standards since payments are tied to achieving specific milestones. Always align payment schedules with project phases to maintain control over the project’s progression.
Silva advises against paying too much upfront, as this could indicate that the company has financial problems or is worried that you won’t pay the rest after you’ve seen the work. For large projects, he recommends a schedule that starts with 10% at contract signing, followed by three payments of 25% evenly spaced over the project duration, and a final 15% when the work is fully completed.
Addressing Potential Changes and Disputes
Change is unavoidable in most projects, but planning for it in advance will prevent misunderstandings and conflicts between you and your contractor. In your contract, clearly outline the process for requesting and approving changes to the project scope or handling unexpected issues, including how the issue or change will impact the project timeline and budget. Specify how disputes will be resolved, such as through mediation or arbitration, and make sure any changes or resolutions are clearly documented to avoid potential legal complications.
Be sure to handle these conversations promptly and calmly with a problem-solving attitude and willingness to be flexible and communicate openly.
7. Communicating With Your Contractor
Open communication and clear expectations can prevent misunderstandings and ensure smooth progress throughout the project, while making sure all parties are aligned with your vision.
Establish a regular communication schedule with your contractor, whether through weekly meetings, phone calls, or emails, to stay informed about the project’s progress and to address any concerns promptly. Be clear about your preferred method of communication and be responsive to your contractor’s questions or requests for decisions to avoid delays. Ensure that you also establish protocols for communicating emergencies or significant updates and changes.
8. Legal Considerations
Understanding the legal aspects of hiring a contractor can protect you from potential issues and ensure a smoother project experience.
Lien Releases
Lien releases protect you from claims against your property if the contractor fails to pay subcontractors or suppliers. This ensures that you’re not held responsible for unpaid bills related to your project. Silva recommends including a requirement in the contract that the contractor get lien releases from all subcontractors and suppliers. Make sure your contract includes clear terms about when lien releases should be presented. Typically, this can be outlined as a condition for payment for that particular phase of the project.
Building Permits and Inspections
Building permits and inspections ensure that your project meets local building codes and safety standards. A good contractor should be familiar with the permitting process and handle the necessary paperwork for you. Discuss who will obtain permits and schedule inspections during the planning phase. Timely, regular inspections throughout the project can help catch and address any issues early on, ensuring that the work meets all required standards.
Contractor Insurance Requirements
Insurance coverage is a critical layer of protection. Workers’ compensation ensures that you’re not held responsible in case of an injury or an accident on your property during the project. Liability insurance covers any property damage or accidents associated with the contractor’s work.
Confirm that your contractor carries adequate insurance coverage, including liability insurance and workers’ compensation. Request certificates of insurance and verify them with the insurance provider. Some homeowners choose to add their contractor as an additional insured party on their homeowners policy for the project’s duration, but discuss this with your insurance agent first.
Contractors: Our Conclusion
By following these eight pro tips, you can confidently hire the best contractor for your project, making your home renovation dreams into a reality. Remember to thoroughly research potential candidates, ask the right questions, and trust your instincts. A well-written contract, clear communication, and mutual respect between you and your contractor will lay the foundation for a successful renovation experience.