How many times have you seen a title like this and actually followed the information? I guess we are a little naive but humans like to think that we are impervious to bad things happening to us. I have had enough experience in business and personal life to know that is not always the case. Naturally, hiccups and problems will occur which you have little control over, but you can mitigate problems by controlling what is in your control… does that make sense? Good!
My most recent “I totally shouldn’t have done that” happened at the home which I am flipping in Hamilton. The whole house needed to be plastered, wall to wall and it was a lot of work. Now came the dilemma of who to hire. We went with the advice of our contractor and used trades people he had used in the past.
We knew the amount and scope of the job was going to be labor intense so we decided on paying the workers by the hour rather than by the job. After two weeks and $4000.00 in labor costs they weren’t even finished plastering the attic! We had to let them go and because of the cost we had already incurred decided that we needed to complete the job in house with our crew to maintain staying on budget.
These things happen to people who are in the construction industry and it happens to people in the public way more often. It is easier to pull the wool over someone’s eyes that doesn’t have a clue about where to begin. The good news is that majority of the time we can prevent a lot of disaster by following some simple and time tested rules.
If you are considering getting renovations done you should read the list I have made below which can almost ensure you won’t run into any problems.
1. You Get What You Pay For: Imagine you going into work tomorrow and your boss puts you in charge of the biggest account and says to you “by the way, your salary is cut in half” what kind of work would you put out?
People who are good at what they do place a value on what they do and those who heavily discount do so because it is the only way to get business. By seeking out the cheapest price you are going to be sacrificing the quality and you want to be able to enjoy your home for years to come. I always say that it better to hold off on a renovation unless you are able to pay the right person to do the job.
Of course you want to be price conscious, but you never want to be quality conscious. There are many great contractors out there who charge reasonable rates and do excellent work. Establish what your job will cost by obtaining 3-4 quotes and preferably by people who specialize in the kind of renovation you are getting done.
2. Seeing Is Believing: “Show Me” always leaves a better impression than “Tell Me”. Great contractors are passionate about what they do and usually have a portfolio of their previous jobs. Walk through a portfolio with a contractor and have them explain things in detail to you.
Ask them to see jobs they have done in person so you can visually inspect the work and see what you like or do not like. If they aren’t able to do that they should be able to provide you with the phone numbers of past clients. If they cannot do that I would begin to question how good they are.
3. Have a Firm Understanding Of The Terms Prior To Starting: Accountability or creating a situation which is win-win is a two way street. If you take the time to sit with your contractor and work through what is to be done, who is responsible for what and the overall timeline then you are helping to protect everyone.
Now if an issue arises during the job you can review the contract and the agreement to clarify who is responsible for what and it works well for maintaining focus. Nobody likes to be told they are doing something wrong and calmly reinforcing the contract is the best way to have somebody live up to their commitments and see the job through.
4. Make Sure Your Contractor Has A Registered Business: Paying cash might save you a little bit of money but it also ensures two things. Firstly, you do not have a valid contract in place so good luck trying to enforce it in court. Secondly, you do not know if your contractor has a registered business and is insured so if something goes wrong during the job you are stuck with the tab.
I’m not going to lie and say I have never done a cash deal, but in terms of protection you are leaving yourself vulnerable. You will also find many professionals will not accept cash payments which is also good. Take pride in knowing they are doing things by the book and that the people they employ are insured.
5. Pay For Materials and Labor Separately: If you can do this you save lots of money. It’s no secret that you get up charged on product and if you have the time to source your own material you will save money. Some contractors are against this method because it can be confusing but if set up properly you can make sure your money is going towards material before profit.
When you do this you can have the contract front loaded so that majority of the payment is used for material. Nobody should profit before a job is 100% complete. Also, if a dispute comes between you and your contractor you can at least rest assured that you haven’t wasted all of your money.
6. Only Make A Final Payment When The Job Is Done: More times than not, people end up paying the contractor without first having a walk-through of the project and signing off. Even if it is for something as little as a few touch ups, remember, someone is less likely to come back if they already have all their money.
A reasonable hold back is 10%. This is guaranteed to be all profit for the contractor and will not affect the work. Depending on the size of the job you may work out something different with your contractor but whatever you do, never pay in full until you have both agreed the job is complete.
7. Be Nice and Good Things Happen: The previous six steps can make it seem like contractors are a bunch of sneaky people and that couldn’t be further from the truth. This is the most important step of all and will by and large be the biggest reason why you have a better looking product than anyone else. All it takes is being nice, it is that simple.
Call me crazy but I believe the energy you put out is the exact same type of energy you will get in return. Contractors work hard and just like you, they appreciate people who are nice. Bringing them coffee, asking if they are hungry now and again and offering them a drink after a long day goes further than you could ever imagine.
I have saved thousands of dollars and had jobs done so much faster just by being nice. People like doing things for others when they are nice and it allows everyone to drop their guard and works well in creating a happy and effective work environment.
I hope this information helps you out when searching for a contractor. If you have any questions or want me to refer some people who I have dealt with in the past feel free to send me an e-mail. Have a safe and happy long weekend.