Homeowners

How to Hire a Contractor — and Avoid a Home Remodeling Nightmare

Home Remodeling: How to Find and Hire the Right Contractor

Embarking on a home remodeling project can be both exciting and daunting. Whether you’re planning a simple refresh or a major overhaul, hiring the right contractor is crucial to ensuring a successful outcome. Here’s a guide to help homeowners navigate this process effectively.

Start with a Clear Plan

Before reaching out to contractors, define the scope of your project. Understand what changes you want to make, the materials you prefer, and your budget. A well-thought-out plan will help you communicate your needs clearly and avoid misunderstandings during the bidding process.

How to Find a Home Remodeling Contractor

Referrals — from neighbors, friends, or others —are a common source when looking for a remodeling contractor. Real estate professionals also recommend contractors and may offer extra assurance from their well-vetted network.

Before you hire a contractor, schedule three to five in-person interviews, gather bids, and thoroughly check the background of any you’re considering. Google the contractor’s name and their business.  See what turns up and if they have any complaints or lawsuits filed against them.

Check online reviews on Yelp, Angi, NextDoor, and elsewhere, but don’t base your decision only on those. I have been a victim on costly scam myself from a “friend” and will recommend to proceed with caution. Review sites are not all made equally, and not all reviewers are actually customers. Some review sites let anyone post reviews about the company.

Instead, I will recommend focusing on Better Business Bureau reviews and ratings. Companies pay to be a part of the BBB, and when the customer complains about services rendered, the BBB has to do an actual investigation of the situation. If the company has a bad BBB rating, this means they likely have failed to satisfy real customers who had real experiences.

You can also find out whether a contractor you’re considering has been certified by an industry organizations. For example, certification by the National Association of the Remodeling Industry recognizes highly experienced remodeling professionals who are capable of planning and managing complex remodeling projects. NARI offers a consumer search tool at its site to find remodelers in your area who’ve also agreed to abide by NARI’s code of ethics for professionalism.

Questions to Ask a Remodeling Contractor

Download as PDF

Experience

  • How many properties have you remodeled/flipped?
  • How long have you renovated homes?
  • How did you learn this trade?
  • What do you specialize in?
  • What makes you different from other renovation professionals?

Licensing, Insurance, and Bonding

  • What type of license do you hold?
  • How much insurance do you carry, and what does it cover?
  • Does your insurance cover anyone you hire as a subcontractor?
  • Are you bonded?

Project Costs

  • How detailed are your quotes?
  • Can you share a quote from a project you recently worked on so I can see how detailed it is?
  • Does your quote include materials and labor?
  • If your quote includes materials, do I have a say about the material selection?

Work History

  • Do you have pictures of projects?
  • Do you have at least three references?
  • Have you ever had a project go over money and time budget? If so, tell me about it.
  • Have you ever had an unhappy client, and how did you deal with it?

The Scope of the Project

  • Is there anything you can’t do regarding the project I’m proposing?
  • Do you subcontract anything to others?
  • Who do you hire as subcontractors?
  • How do you ensure the quality of your subcontractors’ work?
  • Do you pull permits?
  • How are you paid?
  • What percentage do you put into the project for possible incidentals?
  • Why do you think I should hire you for this job?

Why Remodeling Contractors Should Be Licensed, Bonded, and Insured

Being licensed, bonded, and insured can lend credibility to contractors and offer protection to homeowners, but these credentials come with some limitations, according to Rudin.

  • Licensed: The company has registered their business operations with the state contractor’s registrar. Some licenses allow a contractor to do one kind of work, but not another. It’s important to know the differences between these levels of licensure and what your specific project requires. Do a License Search at Nevada State Contractors Board
  • Bonded: This means they have a surety bond, so if your home is damaged, the bond will cover the loss. This is important because if the company isn’t bonded and an accident occurs, you’ll be on the line for the cost of repairs.
  • Insured: The company is protected against various risks and liabilities, such as if a worker has an accident on the job site or if they caused some sort of professional mistake.

8 Red Flags to Look for in a Remodeling Contractor

When you’re interviewing, background checking, or starting a relationship with a remodeling contractor, be leery of these eight red flags:

  1. Vague contracts: A written contract should spell out the scope of the work, materials, payment schedule, change orders, etc. If a contractor gives you a contract that is only one or two pages, that’s a red flag.
  2. Lack of consumer protections: A contract should protect you, the homeowner, as well as the contractor. Offer a contract addendum if needed. It is  recommended to include a clause that allows you to fire a contractor for shoddy work or for failing to show up at the jobsite for a specified time. Also, it is recommended the contract calls for a change order to be signed by both parties for any added fees. That will help avoid surprise invoices.
  3. Large down payments: The contract should outline a payment schedule based on work milestones, such as when framing is completed or rough plumbing or electricity is installed. It is a red flag: having to pay $30,000 before work even started. In Nevada, all that is required is 10% or $1,000, whichever is less. Negotiate that upfront cost because if you give away too much money right off the bat, they could drag their feet or use your money for another project.
  4. Refusal to pull permits: Many remodeling projects — like for fireplaces, outdoor kitchens, and room additions — require a permit from the city or county to ensure they’ll be completed up to code. Most remodeling contractors will file these on your behalf, but be cautious of those who don’t; it may be a sign they’re unlicensed. It is recommended having the contractor pull any permits because whoever obtains and signs for the permit is responsible for everything, including fees and fines if something ever goes wrong.
  5. Lack of communication: If you never spoke to the contractor until after you hired him and had to communicate through a salesperson first, it is a red flag. It is recommended to add the contract detail the frequency of communication.
  6. Failure to address lien waivers: A lien waiver can help protect homeowners in large remodeling projects. This ensures a contractor’s supplier can’t place a lien on your property if the contractor fails to pay the supplier a “mechanics lien” can be placed on your home during the remodel for this reason. The Lien can affect your  ability to sell the home until it is resolved.
  7. Low estimates: Homeowners may be tempted to choose the contractor with the lowest bid, but be skeptical. Low bids tend to be vague. They tend to just offer vague references to painting, plumbing, and electrical, with nothing broken out about the scope of work or materials used. Make sure costs are detailed.
  8. Lack of professionalism: It may seem judgmental to assess the quality of a contractor by their appearance and first impressions, but it can be one indicator in your toolkit. If the contractor arrives late or is continually difficult to reach, that reflect on how they’ll handle your project.

Bottom Line

Looking back on my unfortunate experience I likely could have avoided some of my remodeling nightmare by spotting the red flags. Those include the lack of communication, vague contracts, and the requirement to put down too much money upfront. So, if you start to notice something isn’t right, communicate that right away to the contractor. Always follow up with a written letter that summarizes what you said and uses language like, ‘I appreciate your help,’ or ‘I appreciate your attention to this,’ and ‘I look forward to getting this resolved.’ Document and take photos.

If you come to the point to file a complaint with the Nevada State Contractors Board here is were to go to start the process

Valentina

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