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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.

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next steps
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
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
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)


what things should i look for
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
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
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
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
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
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 d13
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 d14
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 d15
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
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
Thanks for Coming

What questions can I answer for you?


Daniel Mackey Construction Incorporated