Wednesday, June 9, 2010

Hiring The Right Contractor!

You are finally ready to hire a contractor?!

Signing perhaps tens of thousands of dollars of your hard earned money over to an expert in home improvement?

I'll bet that thought alone can make your stomach queasy, so why trust it to just anyone? It seems everyone has their own story of remodeling hell (or at least knows someone who has one). Oh, you never heard of remodeling hell? That's when the supposed quick and easy $5,000.00 remodel project has turned into $15,000.00 and taken 4 times as long as you expected, and 6 times as long as the contractor promised!

So how do you figure out who to hire? A google search for "hiring a contractor" comes up with over 756,000 hits. I have no desire to read through the redundant advice of thousands of expert websites telling me to check references, check insurance and licensing, contact the BBB and GET THREE BIDS!

Am I saying that checking references is a bad idea? Of course not.
Am I saying that checking insurance is a bad idea? Why, no!
Am I saying that checking licensing is a bad idea? Heck, no.
Contact the BBB? Sure, but make sure you read how they rate businesses.

Am I saying that getting three bids is a bad idea? YOU BET I AM!

The three bid process is nothing more than price shopping (and throat slashing) at it's worst form.

Why do I say this? Because more times than not people will go with the lowest price, without comparing the bids in an apples to apples comparison. You have to ask yourself why is he the lowest bid? Lack of insurance, or underinsured? Use of uninsured subcontractors as so-called employees? Not paying taxes? Substandard materials and workmanship? I could go on and on.

If you found out you needed open heart surgery, would you contact 3 heart surgeons and go with the lowest price? Absolutely not? Why, because it is your own health! So why do it with your home - your single most expensive investment in your entire lifetime!

At the same time, I am not saying that the highest bid will rule out all of the problems of the low-ball bidder. They can have great salespeople and tactics, but produce an inferior product.

So, you may be asking yourself, well, Mark, what ARE you suggesting?

Research, research, research! Though it may seem like a lot of legwork and a huge headache, it virtually eliminates your chances of entering into a remodeling hell. Here is what I suggest:

1. Ask friends, neighbors, relatives who has performed work for them recently.
2. Ask the contractor for references of people the contractor has performed similar work for. Just because your neighbor had Joe Pick-up Truck put a storm door on his porch does not necessarily mean he is qualified to add a 2nd story master suite addition.
3. Ask the references, would you hire the contractor again?
4. Visit the contractor's website. In this day and age most any reputable contractor should have a web presence with project photos, testimonials, etc.
5. Ask to see current certificates of Liability Insurance and Workers' Compensation (if applicable).
6. Check to see if the contractor is licensed. Here in Pennsylvania, we have no licensing, but a state-wide registration that houses information on the contractor such as location, website, insurance coverage and any legal judgements.

After all this legwork and research, your decision may be clear as day on who to hire. It also may come down to simply a feeling of being comfortable with the contractor. Remember, this is a person who could potentially spend months inside your home, it should be important that you feel comfortable with them from the start.

Not once in here did I mention price as a deciding factor.

Because if you are deciding on price alone you will no doubt be burned at some point.

History can oftentimes be a great teacher. And as Ben Franklin once said "The bitterness of poor quality remains long after the sweetness of a low price is forgotten."

So, folks, forget the 3 bids, and simply comparing price, look at the value added, quality and reputation when hiring a contractor.

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