All Forum Posts by: Bill Parsons

@Dele Ola

I think John is right on the money with draws for phase/task completion.  I am a GC in Cleveland and this is exactly how I structure payments and schedules with my clients.  Speaking from experience, it is precisely as John says, making the work far more manageable for the contractor if a particular phase can be focused on, and with the ongoing cashflow by way of draws it helps to eliminate any potential issues with the guy "running out of money".  And with regard to what you mentioned about it seeming like he was doing other jobs, unfortunately he probably is.  I have the same sort of problem with a few of my subs sometimes.

@Rajiv Gupta

I agree with J Scott. And I am a contractor. Best to keep the two separate.

I do not have one at the ready just this moment, however at the minimum, a solid contract should have the following:

1. Definition of terms

2. Description of work

3. Schedule of work

4. Payment schedule

5. Change work orders

6. Punchlists

They don't necessarily have to be in this order, nor do they have to be confined solely to these six. We have probably close to a dozen more in our contract, dealing with everything from customer-supplied materials, to licenses permits and fines, to default/right to stop work. but these six should be the minimum. #'s 2 through 5 are the most critical. #2 should spell out exactly what they will be doing on the job, including all the materials, with the names, brands, model numbers, and anything else that's of importance on the job. It should clearly define the scope of work. Included in the contract should also be any plans, specifications, drawings, photos of the proposed work, etc.

The payment schedule should be well-defined as well. With all due respect to any who may disagree, as regards downpayments, contractors are not lending institutions; just like no one buys a car without a downpayment. A portion of job costs should absolutely be given before commencing work/ at the contract signing.

Two other things that will give you a sense of if they're legit: The first is if they deal with changes to the work separately and with an additional form specifically for that purpose. They should present you with a sample copy at signing and explain how it factors in to the original contract. The second is the federal (and state if applicable) Notice of Right to Cancel, commonly called a Right of Rescission, which should be included in the contract by law.

No, definitely don't go with the lowballer; he'll be out of business within 18 months because he doesn't know what he's doing

@Whitney Rekowski

If I may offer the two cents of a lowly contractor...

I absolutely agree with Nick that unless you are a contractor, it's not worth it.  In addition to the financial end of things, despite what many think, a true contractor is far more knowledgeable in their field and can get the job done much more efficiently. Owners trying to rehab themselves often don't know little tricks such as adding a spoonful of dish soap to their mud to help eliminate air bubbles (and thereby, an additional coat), or that the process of coalescence in exterior paint is negatively affected by an ambient and/ or surface temperature below 50 degrees.

Being from Cleveland, unfortunately I can't much help with the Milwaukee area. However I can offer some general tips for vetting. For starters with regard to your husband's concerns and some of what Brandon was saying, "expensive" is rather relative. Yes, there are guys out there that are high, but many are reasonable, and at the end of the day, most of us in the trades hold firmly to the maxim that "you get what you pay for", and not a few owners aren't really willing to do that. Want a toilet swapped out for 30 bucks? Sure, you can find someone who will do it for that; but it will probably leak within a day. I know of someone in this neck of the woods that wanted a 40 by 40 basement completely finished (from bare block walls to livable space, complete with carpet and a full bath) and expected to only pay ten thousand for labor, materials, permits, etc.  Now, Remodeling Magazine's 2015 Cost vs. Value Report puts the cost of a 20 by 30 finished basement at 65K for the national average; quite a difference. So the best bet is to do some research into what a project might entail and what it might cost. One site that can give you a general idea of costs for your area is www.homewyse.com

Additionally, as concerns standards of quality, that is almost entirely affected by solid communication: you and your husband being perfectly clear to the contractor as to what you expect, as well as he or she asking questions, taking good notes and measurements, writing a thorough estimate, and a detailed contract (min. 10-12 pages in my opinion). Some things you should ask for, and which they should have no trouble producing for you, are proof of their current business liability insurance, Worker's Comp., and at least 2-3 references from previous customers, ideally including pictures and from those who have had work done similar to your project.  Get about 3 solid, detailed estimates (any more than that is really just tire-kicking) and if state licenses are required, such as electrical, ask to see their licenses. Be wary of sites like Home Advisor: they don't vet contractors, any more than they vet leads for us.

Hopefully this will give you a good start. Best of luck with your project!