How To Deal With Contractors

Dealing with Contractors effectively, first starts with you and how clearly detailed you can be. I have boiled this down to the rawest elements. This blog was written with the assumption that the homeowner possesses basic knowledge of home remodeling and costs associated.

1) Make a DETAILED list of repairs known to you

I can’t tell you how imperative it is to absolutely comb through your investment property as best as you can. Then write it on paper. This is commonly called the “Scope of Work”. Turn faucets and knobs, observe how well the water drains, open the cabinets, turn on the bathroom exhaust vent, switch on the ceiling fans, check for underlayment in the crawlspace. Be thorough when creating your list.  Most repairs should have been noticed during your initial walk through, but I promise you, there will be something of surprise. It is good practice to tack on an additional 5-10 percent when budgeting for “Uh-Ohs”.

In order for your contractor to understand your vision it is crucial your list is understandably detailed and organized by room. “Fix kitchen sink”, for example can be misconstrued, like a caveman explaining how to make fire to his clan. “Replace kitchen sink Hot/Cold Knobs with (insert item # from Lowes/Home Depot here.)” Yes, this process is monotonous, but will also assist in finalizing a realistic budget. Unless you have a relationship with a trusted contractor that understands how you operate, this is the best way to start and will be crucial later. Keep your scope of work in mind as you continue reading.

2) The Rule of Three

Obtain three referrals from a local REI Group (Real Estate Investing). Commonly found on Facebook, its safe to say, these guys and gals will know who to stay away from and who does quality work. Real Estate Agents are another good source. Check your future renovators’ reviews and ALWAYS ask if they are licensed and insured, have them show visual proof.

 Schedule a walkthrough with each one separately and talk through your detailed list. If they are seasoned contractors, they will appreciate the communication and possibly offer money-saving suggestions.  Ensure your vision is clear, from the exact paint color you chose, to the style of hardware finishes. During this process it is a giant red flag if the contractor is not recording repairs, asking questions, or taking measurements. Rest assured, that contractor won’t get my money. Three referrals, Three Bids.

3) Keep Your Mouth Shut and Do This Instead…

There are two things I do when speaking “Renovations” with multiple contractors. I always let them know they aren’t the only bid, and I NEVER tell them my budget. No need to share this information and in turn, I will never ask them to give me a “Ball Park” estimate on sight, especially if this is the first-time doing business with them.  Instead ask the Contractor to “Itemize” your bid. This will “line item” each repair so you can view it and what it cost separately. I have had to correct a mistaken $1,744 ceiling fan replacement once before, check it twice and make sure it makes sense. In compliments to itemizing your bid, remember that DETAILED scope of work we were supposed to make in the opening paragraph? The one you were supposed to remember? When you receive your itemized bid, compare it with your scope of work to make certain there is nothing added or missing. Compare, Compare, Compare! Once you have decided who is worthy of fixing your home, ensure there is a start and end date in the contract before you both sign.

4) And So, It Begins…

Once you have hired a contractor, they may ask for a deposit to secure materials. Tennessee law prohibits contractors from asking for a down payment of more than 1/3 of the total contract. There, I said it. Congratulations you are a step further to improving the look of your villa. It is good practice to make a few surprise visits during the project. Mainly, to inspect the quality of work being done. Most importantly, to observe how the project and its crew members are being supervised or managing by themselves. If there are corners being cut, or the integrity of the contractor’s crew is in question, I am sure to discuss it with them.

It seems I am presenting a brutish view on contractors; I believe there are more courteous professionals out there than not, but if you have not developed a trusting relationship with someone working on your home, it can be a costly risk not following these steps.

5) The Finale…

Your project is finished, and it is time to conduct a final walkthrough to give your blessing. Bring your Scope of Work and confirm each item has been repaired to your expectations. Ensure the newly installed doorknobs lock correctly, look for paint splotches on trim. Now is the time to let your inner stickler run free. Remember, be reasonable and discuss corrections with your contractor. I cannot stress enough how important your itemized scope of work is at this step. My very first mistake was not having this done and I had just about forgotten what repairs I had asked to be made at the end. Before I send you off on your renovation journey remember…

-Make a detailed Scope of Work

-Three referrals, three bids

-Never tell your budget

-Make surprise visits

-Conduct a final walkthrough