Choosing the Right Contractor??

Question

All the investors experienced in remodeling and choosing contractors this post is for you. I'm currently going through a GC nightmare right now. I hired a remodeling company to do a complete remodel on my duplex and it has been a disaster from the start. The contractor she put in my house did a horrible wall texture job. Half of the money for the job had to be paid upfront, and once he received the cash and ruined the walls - he bolted. My question going forward when I need renovations done - What are the top things to look for when choosing a dedicated, RELIABLE, contractor? Mind you I did have a few other contractors come look at the property, send me bids, and like a dummy I just went with the lowest bid. Lesson learned. Please help me...

Mike Reynolds · Answer

@Rickey Wiley First rule is never pay 50% up front. I used to be a contractor. Now I just do my own stuff and a few side jobs for choice customers. At one point I had crews from Abilene Texas to Palm Beach Florida.

The key is understanding from both sides. From my view some customers scared me more than others. Its easy for me to get 10's of thousands of dollars into your project and not get paid. You on the other hand expect exactly what you paid for. What I did when I ran across a client I didn't know that I was unsure of was this. Depending on what job I was doing I would ask for 25-33% when (and only when) the materials were delivered. They didn't come off the truck until the check was in my hand. That showed the client I was willing to at least bring the materials out and for me it showed me the client was willing to pay. If I was out anything it was labor only.

For you, you should NEVER pay anyone up front without some kind of something in return. They are there at your pleasure, not the other way around. This is the only way to build trust. If you cant trust your contractor he or she needs to go the way of the dodo. This is not a building business it is a trust business. Don't accept excuses. There has to be a path to completion. Hold a bit more than they actually have in it. That keeps them honest. Only until you build that trust do you allow them leeway.

I hope you can get this resolved to your liking.

Matthew Paul · Answer

You went with the cheapest , problem Number 1 .

Now the GC is responsible for the work that the subs do . You go after the GC . Are they licensed ? If so file a complaint . If not then thats lesson number 2 .

As far as giving a deposit , ( maryland law ) a contractor can get 1/3 when the contract is signed , 1/3 when the work starts and the final upon completion .

Some say NEVER pay anything up front . When I hear that from a customer that they dont want to pay any deposit . I thank them for their time and I leave .   I dont let a tenant occupy a property without a deposit and first months rent . And I dont put any of my funds in a customers project . Dead beat customers are just as common .

Bryan Devitt · Answer

I would never start work for someone that didn't trust me with a deposit because if they don't trust me, that is a sign that I shouldn't trust them to pay me when it is finished. Even if it is a quick 1 day job, I take a deposit. I can't count how many times people have cancelled last minute and then I lost a day or weeks of work with no way to book something immediately to replace it. So if you want to get screwed, take  the lowest bid and the person willing to work with no deposit. I don't know anyone reputable that will do that for a new client

Chris Purcell · Answer

@Kevin Taney

You’re right.  Cause the contractor couldn’t just give you 3 numbers of his boys with a script to go off of.  I guess you’re right though, if you’re not smart enough to pass a reference check, next!

Kevin Taney · Answer

Or just listen to @Chris Purcell

Kevin Taney · Answer

You certainly ought to ask for references before hiring a GC.  I would recommend carefully screening them during your search.  At the very least, assure they're licensed and bonded and ask for references.  Call the given references and ask their opinion on the work done by the contractor.  Previous jobs should certainly encourage you toward or away from a given contractor.

Chris Purcell · Answer

Don’t pay anything upfront.  See pictures of their work.  Go to other job sites if you can.  Call references (could be useless).  Check insurance.  Licenses etc

Most importantly DO NOT pay upfront.  EVER.  I don’t care what excuse.  Do not do it.  Buy the materials yourself.  Get them delivered, pay and have them pick up.  Whatever

Once you make a payment, you lose all leverage you have.

Penny Tefke · Answer

I've learned to make sure they have a active license & insurance. Still becareful some people let other people use thier license for a price. Make sure you make contact with the name on license & insurance. Check the BBB.com. Good Luck

Choosing the Right Contractor??

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