WE HAVE DECIDED TO REMODEL…. NOW WHAT??
Next Steps… • Establish a budget • Obtain financing if necessary • Determine if you want to use a designer • If you do, begin looking for a design/build contractor or a designer and contractor separately
Next Steps, cont’d. • Make as many design choices as possible (granite or tile countertops, hardwood floors or vinyl, etc.) • This will be important in determining the actual cost of your project • Obtain completed “plans” or drawings • Select a contractor
How do I find A Contractor? Ask friends and neighbors • Who did they use for their project? • Were they happy with the outcome and process? • Would they hire that contractor again? Consult professional organizations: • NARI (The National Association of the Remodeling Industry) www.nari.org or www.narisj.org • NAHB (National Association of Home Builders) www.nahb.org.
What Things Should I Look For? Check license and insurance status • Contact the Contractors State License Board • Does the contractor have a license in good standing? • Does the contractor have current Workers’ Compensation Insurance? • Does the contractor have Liability Insurance?
How Do I Select The Right One? • Make appointments to interview potential contractors. Look for: • A professional • Someone you can TRUST with your home and family • A personality with which you are comfortable • Someone with experience • A certified, licensed professional that is affiliated with national trade organizations • A company that trains and monitors their employees
BEWARE OF “BUBBA” Would you want to spend a few months with this guy?
Questions to Ask • Prepare standard set of questions to ask each candidate • How long have you been a contractor? • Are you licensed? • How many projects like mine have you done? • What kind of insurance do you carry? • Who will actually do the work?
Questions, cont’d. • May I have a list of references from your recent projects? • Do you have any industry certifications? • Have you won any awards for your work? • How will I know the cost of the project? • What are your regular work hours? • Will we sign a contract for the scope of work? • What if I make changes after the project begins?
Danger Signs The lowest bid – If a contractor’s bid is very low it could signal: • Proper insurance is not maintained • The contractor is desperate for your business which could be an indicator of work quality and reliability • The contractor does not run a business that has staying power – warranties will be useless
Danger Signs, cont’d. No proof of insurance • You could be liable for injuries on the job. Ask if the contractor has: • Liability insurance • Property Damage • Personal Liability • Worker’s Compensation Insurance
Danger Signs, cont’d. “You don’t need a permit” • Be suspicious of any contractor that wants to do business illegally • This could indicate that the contractor does not want his work inspected
Danger Signs, cont’d. “I don’t take checks” • This could mean the contractor’s credit is questionable and subcontractors and suppliers may not get paid • There is no payment record when paying with cash
Danger Signs, cont’d. No written contract • Insist on a contract Poorly written or unprofessional looking contract • Don’t accept a contract with no address, phone number and/or license number • Be suspicious of contractor’s professionalism if contract is handwritten or unclear
What Makes A Good Contract? • Company name, address, phone number and license number • Clear and complete description of work • Well stated payment schedule corresponding with benchmarks of completed work • Clear commencement and completion dates • Specific description of materials to be used • Description of deposit: • The deposit (in the State of California) can be 10% of the contract total or $1,000 whichever is less
Thanks for Coming What questions can I answer for you?
Daniel Mackey Construction Incorporated 408-274-6060 www.danielmackeyconstruction.com