As much as you love your home and would not want anybody intruding in your sweet haven, there are certain things or improvements around the house that you cannot handle on your own. A good general contractor can be trusted to help with all kinds of construction and home improvement projects. What general contractors do is oversee the whole construction process. However, it is imperative to choose a reputable, efficient, and suitable contractor to ensure smooth running and proper completion of your projects.
Why You Should Select A Contractor Carefully
When you hire a general contractor, you are basically giving them the power to define how your home is going to look. Whether it is a new construction or other services like a remodel, painting, electric, plumbing, woodworking, flooring, roofing, siding, or renovation work, your choice of a contractor is going to largely affect the quality and efficiency of the work.
No one would want to risk the aesthetics and comfort of their home with an unskilled, inexperienced, or novice contractor who is not sure about what she or he is doing. Moreover, getting a general contractor who is good at what she or he does is also an economically sound decision as it can cut down the repair, maintenance, or adjustment works that may appear in the future.
Now that you know why you need to do your own research and spend time before you finalize a contractor for your home project, let’s look at some red flags to avoid a bad experience with your contractor.
Red Flags To Watch Out For When Hiring A Construction Company
A personalized home is a dream for most people, so an unpleasant experience with your general contractor can not only have a toll on your financial situation but can also affect you mentally and emotionally. Here are some warning signs you can look out for to prevent this from happening:
1. Mismatched Interests
While choosing a contractor for your project, you want to make sure that you are working towards the same goal. For example, some contractors wish to work on a cost-plus contract, where the contractors charge an extra profit percentage in addition to the labor and material costs. In this setup, the contractor is not obliged or required to finish the work in the agreed-upon time.
2. No Proof Of Claims
Believing everything that contractors tell you about their work with a blindfold on is a recipe for disaster. The company or the contractor must produce proof of the kind of work they claim to have done. They can validate their claims via reviews and testimonials from previous clients. It is on the homeowner to verify these details beforehand and any misalignment or lack of desired quality of work is a major red flag.
3. Vague Pricing
It is a big red flag when a contractor is not transparent about their pricing and the services they plan to include or exclude. Your contractor should be clear about how they arrive at the price they are quoting for the job. Openness about profit margins, labor costs, and markup prevents budget overruns. Overall, your contractor must be comfortable answering all your questions regarding the cost.
4. Poor Communication
You must pay attention to the way they communicate during the initial days of the project and not expect any transformation after the contract. If they are not attentive to your needs or fail to clearly communicate information regarding the project, it will hinder the realization of your vision. Make a judgment by analyzing how easy to understand or reach they are.
5. Lack Of Punctuality
If the contractor is consistently late to meetings or appointments, there is a very slim chance that they will be punctual once the work starts to finish on time. It indicates their casual attitude towards deadlines and targets. Such a behavior may also lead to additional costs due to delays in meeting timelines.
6. Undefined Design Process
A proper design process is how you determine the course of action for making the construction process a success. If the contractor is unable or unwilling to explain the design process to you, it indicates a lack of planning or capability to undertake and complete the project most efficiently. If you come across a lack of a proper design plan, it is a red flag you do not want to ignore.
7. Non-flexible Or Rigid Terms
The contract presented by the contractor may lead to serious issues in the future if you do not pay attention, especially if there are rigid terms that are biased and favor the contractor. A fair contract is one where the interests of both parties are protected and cared for. Consult a legal expert or closely read the clauses related to payment schedules, project timelines, termination of the contract, and dispute resolution to avoid unpleasant situations.
8. Absence Of License Or Insurance
Contractors require a license or legal permit to work in any Florida city. It is a sign of worry if your contractor fails to produce important papers like bonds, insurance, and licenses. In the case that they lack insurance, you may have to endure the cost of any damage or injury during the construction. You do not want to be in that situation, so you must check for the paperwork.
How Do I Know If A Contractor Is A Scammer?
Most homeowners realize that they have been a victim of a home improvement scam only after they either have been overcharged or left with unsatisfactory or half-done work. However, close attention to a few things at the beginning of the collaboration can provide significant insights into the intention of the contractor and hint how productive or seamless the project is going to be.
Here are a few signs that a contractor may be a scammer:
– There is a demand for 30-50% of the payment right up front.
What you can do
Never pay more than 10% at the beginning of a large-scale project, as it is sufficient to establish you as a serious customer.
– They try to convince you that a building permit is not required or ask you to apply for a homeowner’s permit.
What you can do
Stay firm in obtaining permits from authorities before starting the work.
– The contract is missing some details that you agreed upon verbally.
What you can do
– The contractor presents a sudden cost during or towards the end of the project, citing some structural problems.
What you can do
Why Is This Estimate So Cheap?
When you finally decide to get the home improvement project started, you try and get estimates from different contractors to compare and go with the best deal. It is understandable to lean a little bit towards the companies quoting less than others. However, an estimate significantly less than others, as exciting as it may appear, is more often than not an indication of something shady.
Construction, like any other business, is not beyond the fundamental economics. At the end of the day, a contractor needs to deliver a service that meets detailed specifications at an agreed-upon price and time.
Hiring amateur workers will cost less, but it will result in additional supervision or rework costs. On the other hand, efficient and experienced workers would not require much supervision, but they would charge more. Hence, cost-cutting is possible only to a certain extent while maintaining the quality of work. However, below are reasons why a contractor would quote considerably lower than others.
1. They Are Hungry For Money
In an attempt to grow quickly or due to the lack of smart and sustainable budgeting, some companies bid lower than others just to win the work. This strategy might just work on days of busy work, but when the market is slow, their primary goal becomes getting enough money to keep the bill collectors at bay.
Your Risk In Working With Them
When money is the sole motivator for taking up the work, the company may prioritize a more lucrative project in case one comes, leaving you with low-quality service and shoddy or incomplete work. Further, it may so happen that the price they quoted does not even cover the cost and you end up paying extra.
2. They Lack Experience or Expertise
When a contractor is not experienced enough or has adequate knowledge about the nuances of a particular task or how to go about it, she or he may give an estimate that is lower than the actual cost of accomplishing the work with desired results. With this strategy, the company may get the work, but down the line, it becomes impossible for them to complete the task. They will cut corners or cut their losses, not returning or stopping answering the phone altogether.
Your Risk In Working With Them
If you end up in this situation, unfortunately, you will have to look for another contractor who is willing to finish the incomplete work. Finding a contractor is a task big enough, you should not have to do it twice.
3. They Do Not Intend To Do The Full Job
Some professionals like plumbers and electricians, although crucial to almost all home improvement projects, take up the job but do not complete it with proper finishing. They often leave walls and ceilings open after installing the fixtures. This brings it down to the homeowner to again find someone to mend the open holes and finish up.
Your Risk In Working With Them
When you choose to go with a contractor that will only do part of the job, you end up paying more for the same job as you will have to hire another company to do the remaining job. It is always recommended to hire a contractor who will do the job from start to end so you only have to pay once.
4. They Don’t Plan To Work On The Project
As outlandish as it may sound, some contractors will only come your way to scam you by taking your money, maybe starting with the job but abandoning the job eventually. It is, unfortunately, quite common in the construction industry, and this is why you need to be extremely cautious when dealing with contractors initially.
Your Risk In Working With Them
This may be one of the worst-case scenarios you can find yourself in. Most probably, you will have to find a contractor that is willing to take up the unfinished work. However, reputed contractors would not want to engage with the work of another company, so you may have to pay for them to undo the work and start over.
5. They Use Cheap, Uninsured Labour
The importance of insurance is no longer a secret, and has become more important in the construction industry. Good contractors use only highly skilled and insured labor to ensure the quality of the work. However, there are a lot of contractors on the market that use unskilled, undocumented, and uninsured labor to be able to quote lower as they cost less.
Your Risk In Working With Them
Working with uninsured workers would mean that in case of any accident with the workers or property damage during the project, you will most likely be held liable to cover the cost of repair and injury. You do not want to take that risk.
Keeping these factors in mind when a contractor approaches you with a lower estimate can help you dodge a bullet in the future and save a bundle in the long run.
Contractor Hiring Checklist
Home improvement and ownership is not an easy endeavor and you do not want a novice, inefficient contractor to make it harder for you. A good contractor can significantly improve your experience by providing valuable and practical insights and helping you materialize your vision.
However, finding a good contractor is getting increasingly tougher these days with a number of contractors on the market, with inadequate skills or lack of positive values. But don’t you worry! Here’s a checklist that will make finding your match a lot less confusing:
Seek Multiple Bids
No matter how perfect the first contractor appears, always get at least three estimates during the bidding process before you make your choice. Compare their service, attention to detail, work methods, design process, materials, and timelines. This way, you can learn how each company works and how it handles business.
Prefer Local Business
One of the most important benefits of hiring a local contractor is their in-depth knowledge of construction in the area. They are well aware of the building codes in the areas and the permits required for the project. Plus, they are also easy to access and contact in case of issues that may arise in the future.
Scrutinize Past Projects
Find out details about and analyze their past works to figure out if they are able to deliver the quality you are hoping for. It also helps to determine their specialization and if they will be suitable for your project. If possible, talk to their past clients, get reviews, and inquire about their reputation in the market.
Have Reflective Interval
It is important to take your time while you are making this crucial decision of selecting a contractor for your home project. This is especially applicable when a contractor hurries you to sign a contract. Avoid companies that refuse to leave the contract overnight.
Discuss Payment Options And Schedule
Beware of the contractors that ask you to pay the full money upfront or make advance payment in cash in a hurry. Always pay via check or credit card or you may arrange financed payments for big-budget projects such as remodeling or new construction. Also, check if the payment schedule is fixed and in writing to establish how much is to be paid before, during, and at the end of the project.
Ensure Insurance Coverage
In order to stay safe and free from any additional liabilities during the construction process, you need to ensure that your contractor has insurance and bonding. You may ask for a certificate of insurance or COI and learn about the details of the insurance that the company carries, such as policy number, insurance company, and policy limits.
Keep A Written Record
If it is a big project, consider having the construction contract reviewed by a lawyer or a legal expert. Sometimes, what the contractor promises is shrewdly left out of the contract so that you don’t have any legal claims. Make it a point to have in writing everything that you expect to be done after the completion of the project.
Analyze Communication Channel
Proper communication between the contractor and the homeowner is a critical aspect of any successful home project. There should be an established channel for communication should one of the parties decide to discuss or inform the other party about the details of the project.
Check For Contractor License
When finding contractors, especially for an urgent job, you may be tempted to hire an unlicensed contractor because they tend to give a lower estimate for obvious reasons. But beware, as such a decision can come back to bite you. The importance of a contractor license is undeniable, as it protects you from any unforeseen liabilities.
The Department of Business and Professional Regulation (DBPR) is responsible for issuing the general contractor license in Florida. You can use the Verify a Licensee https://www.myfloridalicense.com/wl11.asp?mode=0&sid portal on their website to confirm your contractor’s licensing status.
Establish Contract Breach And Warranty
It is a sign of a suitable match if the contractor clearly specifies what constitutes a contract breach and leads to the termination of it to which the homeowner agrees. Also, a warranty with specified terms should be in place that defines how the callbacks and grievances would be addressed by the company and for what time period.
These were a few things to consider while selecting a general contractor for a home project. However, part of this information is not readily displayed or presented in front of the homeowner, and you have to be diligent enough to get to it. One effective way to assess the company would be to ask as many questions as you can.
Questions To Ask A Contractor
After you have followed the checklist and shortlisted the potential candidates for your work, you can meet with the contractors and ask questions to determine their suitability for the job. Here are a few questions you may ask:
- When did you start in the industry?
- Do you have any experience with similar projects? Please tell me about them.
- Are you licensed, and do you have the necessary permits?
- What would be the cost according to your estimate?
- Can you tell me the timeline for this project?
- Do you have insurance?
- How long do you or your company take to respond to a client’s call?
- On average, how long do you take to come back to a written, verbal, or in-person estimated scope of work and budget?
- What kind of customer service do you provide your clients? Please explain your customer service policy.
10. Is there any past or ongoing dispute with any of your clients?
11. Have you ever been in a lawsuit with any of your clients? Can you tell me what happened?
12. Have you filed a mechanic’s lien in your career so far?
13. What would be the communication channel during the project? Who will I be in direct contact with?
14. What is the size of your team? How many of your team members are licensed in each field?
15. Do you have subcontractors working with you?
16. How frequently do you provide project updates to the homeowner?
Seanote Construction is dedicated to providing you with your dream home in Florida with a professional team that is passionate about building. To discuss your plans, contact us at (352) 645-7561 or kayla@seanotefl.com.