Vetting through contractors

[Brian Garrett]

What are the most critical questions to ask a new contractor when you are going through the vetting process? For example let's say I'm preparing to do my first flip but I do not have a specific property yet and I'm just interviewing contractors to have my ducks in a row so I know who I will use once I secure a deal. What questions and/or due diligence should I be doing? The obvious things are making sure they are licensed and insured, asking how long they have been a GC in the area, asking for before and after pictures of previous jobs and asking for references of previous clients. Is there anything else particularly I should ask or be on the lookout for? Thanks BP!

[J.R. Gutierrez]

Hey @Brian Garrett

I'm glad you're already thinking of the basic (and important) questions for your contractor interviews. I would present them with a basic scenario and ask some questions to try and get a good idea of how well they will perform. For example: I would tell them that the plan is to renovate the kitchen with new cabinets, appliances, countertop and backsplash. And update all the flooring throughout the house. Then I would ask questions like:

1. How many workers will be on site at a time?
2. How long would you estimate the project to run for?
3. Will you perform all the work in-house or sub it out?
4. Is your estimate itemized or lump summed? 
5. Can I purchase all the material and pay your labor only?

Questions 1 and 2 will help you determine if the contractor is staffed well enough to handle the project they are bidding. If he says it'll take 8 weeks with 3 guys on site; that, in my experience, is too long. Same if he say 3 weeks with 3 guys; probably full of it or cutting corners. Question 3 is for your protection. If he uses sub contractors and decides not to pay them; you may be hearing from them and possibly receive liens against the property. If they answer yes to this question: let them know you won't release payment without lien releases from the subs. Question 4 is meant so you can understand what your paying for. Any legit GC will always itemize their estimates. If they say "Home remodel - $25,000", trash it! Chances are you'll get into discussion about what is and isn't part of that $25,000. And questions 5 is an attempt to save some money. Most GCs will put a percentage on top of the cost of materials to "pay" for their time to go out and buy it. Save that percentage yourself and buy the material. Offer to meet them at the hardware store so they can hand pick what they need if you're not familiar with materials. 

Like @Natalie Vane said; you shouldn't have a problem getting contractors to walk the jobs with you, but even then these questions will help you pick a qualified GC.

Hope this helps!