10 Secrets Your Contractor Keeps From You

Home renovation can be a daunting task, and finding the right contractor for the job can be even more challenging. While most contractors are reliable, it’s important to educate yourself about the project at hand to ensure the process goes smoothly. Here are 10 things your contractor may not want you to know:

1. Accepting the lowest bid doesn’t always mean you’re getting a good deal. It could result in cheap materials, unskilled workers and unforeseen complications.

2. Prepaying isn’t always the best option. Your contractor may prioritize jobs for which payment hasn’t been received yet, leaving your project on the back burner.

3. Choose a contractor who has been in business for at least three years.

4. Educate yourself about the project at hand to know what to look for and what to avoid.

5. Beware of door-to-door contractors. They may not have the proper licenses or insurance.

6. Don’t be fooled by the initial bid. Some contractors use subpar materials to lure you into paying for expensive upgrades.

7. Seek multiple bids and choose one that’s reasonable, but not cheap.

8. A good contractor will have a solid contract in place that outlines start and end dates, payment schedules, and any other important details.

9. Beware of contractors who demand large up-front payments for materials. This may be a sign of credit problems in their business.

10. Don’t be afraid to ask for references and check them thoroughly.

8: Conducting a Background Check is a Worthwhile Investment

It’s important to recognize that just like any other profession, contractors can also have a criminal past. Therefore, it’s recommended to conduct a background check before allowing any workmen into your home. These checks are easily accessible on the internet and are typically inexpensive, costing around $50.

A comprehensive background check will provide you with all the necessary information about your prospective contractor. It will include any complaints filed against them, examine their criminal history, investigate their status as a sex offender, evaluate their credit rating, bankruptcy status, and number of years in business. Additionally, the report will provide a civil records check, a scan for aliases, and a license and insurance check. While this check cannot guarantee that you will hire an honest, reliable, or competent contractor, it can provide you with the information needed to keep criminals out of your home.

Did You Know?

It’s important to be cautious when paying for a background check. Many suspicious background information sites exist on the internet. Be sure to use a reputable service that is accredited by the Better Business Bureau. As you will be providing your credit card information and detailed information about your contractor to this site, it’s crucial to ensure that the site is trustworthy.

7: Good Contractors Can Have Unqualified Subcontractors

A young and inexperienced subcontractor
Polka Dot/Thinkstock

While it’s true that a good contractor is in high demand, it’s important to note that their subcontractors may not have the same level of expertise. Many homeowners have hired reputable contractors only to discover that their jobs are being subcontracted to a novice workforce that changes daily. Although the contractor may still be present for a few hours during the project, they may not provide the guidance you expected and paid for.

To avoid this situation, ask your contractor if they plan on subcontracting any work. If so, inquire whether you can expect to see the same people working on your home every day. If your project requires an on-site supervisor, make sure to review their work, as they will have the most significant influence on the labor that goes into your home.

6: Stick to the Plan

While it’s natural to change your mind occasionally, it’s recommended to avoid doing so once the contractor has begun the job. Altering the project mid-way can be costly. For instance, adding an additional level to an under-construction deck may seem like a good idea, but it will require additional labor and supplies, and adjustments to the work you already paid for. In this case, the deck will have to be torn down and rebuilt to hold the additional weight. Therefore, it’s crucial to ensure that you’re getting what you want, or at least something that you can live with before signing the contract.

If you are considering a new plan, it is important to ask your contractor for an estimate. Once you have a written document outlining the changes that need to be made, how long they will take and how much it will cost, you can decide whether or not to make any spontaneous revisions. If you do decide to make changes, at least you won’t be caught off guard.

5: Losing Your Home

It is possible to lose your home during a renovation, even if everything goes according to plan and you have paid for everything in full. If you cannot pay your contractor, they may place a lien on your home. This means that any goods or services that were provided, such as lumber and carpentry, can be claimed by the parties who provided them. If you are unable to pay, the state can sell your house at auction to cover the debts.

To avoid this outcome, it is recommended to write multiple checks to the contractor, supplier, and subcontractor providing the goods or services instead of one large payment. It is also important to check with all parties involved before making the final payment to ensure they have been paid in full and have no grievances.

4: Door-to-Door Contractors

Beware of door-to-door contractors who offer cheap repairs. These contractors are often scam artists who will provide quick, shoddy work with cheap materials that will leave your property in worse condition than before.

According to Jonathan Dahl, author of “1,001 Things They Won’t Tell You: An Insider’s Guide to Spending, Saving, and Living Wisely,” these hoodwinking handymen scam more than $20 million a year from citizens in Colorado alone.

3: Using Cheap Materials

Contractors may use cheaper materials than what you paid for, hoping you won’t notice the difference. To ensure you are getting what you paid for, educate yourself on the materials you have selected for the project before accepting bids from contractors. This will allow you to recognize if the contractor is using cheaper, inferior materials.

2: Surplus of Supplies

Have you ever wondered where your extra rolls of insulation went?
iStockphoto/Thinkstock

Homeowners sometimes discover that they didn’t receive everything they paid for when their contractor declares the job complete. This may be due to either an intentional or unintentional mishandling of supplies. Unless you’re constantly keeping an eye on your contractor, it may be difficult to determine if you have received the right amount of insulation or if he has used enough expansion joints while paving your driveway. It is often easy to create an illusion of abundance even when there is a shortage. By the time you realize that something is missing, your contractor will be gone along with your money.

To avoid any such oversights, it is important to insist on a detailed line-item contract that provides a breakdown of the necessary supplies and expected expenses for the entire project. This way, you can easily detect if your contractor is stuffing extra rolls of insulation into his truck.

1: Always Verify References

A contractor’s reputation is as good as his former clients’ reviews. While there are many honest and skilled contractors available, checking references can help you find one that is a good fit for your needs. Do not just call any random name on the reference list; try calling recent and repeat clients and ask them specific questions about the contractor’s work. What kind of work did he do? How long did it take? Was he able to stay within the budget? Would they hire him again? Speaking to just a few references can provide a good idea of the quality of the contractor’s work.

Did You Know?

A contractor’s reference list can indicate their level of skill and experience. If the list contains 30 names, many of whom are repeat clients, it is a good sign. However, if the list is filled with family members and personal friends, it is best to look elsewhere for your contracting needs.

Additional Information

Related Readings

• 10 Essential DIY Safety Tips
• Expert Advice from Remodeling Professionals
• 5 Home Projects Worth Investing In
• Managing Your Contractors: A Guide
• Common Remodeling Mistakes to Avoid

Sources

• Dahl, Jonathan. “1,001 Things They Won’t Tell You: An Insider’s Guide to Spending, Saving, and Living Wisely.” (Aug. 8, 2010).http://books.google.com/books?id=s4aDwZ9RZTMC&pg=PA145&lpg=PA145&dq=”Close+to+95+percent+of+home-improvement+contractors”&source=bl&ots=6Dx4eIqN9H&sig=vIs_cHBabOwLNE3lyjjixOmEqao&hl=en&ei=alRoTJ-RJoG0lQemp_mfBQ&sa=X&oi=book_result&ct=result&resnum=3&ved=0CCAQ6AEwAg#v=onepage&q=%E2%80%9CClose%20to%2095%20percent%20of%20home-improvement%20contractors%22&f=false
• Home Reports. “Consumer Tips.” 2010. (Aug. 9, 2010).http://www.homereports.com/Content/6/Consumer-Tips
• Lipford, Danny. “Avoiding Contractor Scams.” 2010. (Aug. 9, 2010).http://www.dannylipford.com/diy-home-improvement/financial/avoiding-contractor-scams/
• Lombardi, Kate Stone. “A Contractor Horror Story? Join the Crowd.” New York Times. July 1, 2007. (Aug. 9, 2010).http://www.nytimes.com/2007/07/01/nyregion/nyregionspecial2/01colwe.html?_r=1
• Marks, Oliver. “The Top 5 Contractor Scams and How to Avoid Them.” Houselogic. Jan. 7, 2010. (Aug 9, 2010).http://www.houselogic.com/articles/top-5-contractor-scams-and-how-avoid-them/
• Nolo.com. “Home Improvement: How to Avoid Paying Twice” 2010. (Aug. 8, 2010).http://www.nolo.com/legal-encyclopedia/article-30220.html
• Oregon.gov. “Construction Contractors Board: Consumer Help.” 2010. (Aug. 8, 2010).http://www.oregon.gov/CCB/consumer_help.shtml
• Yahoo! “Avoid Common Home Repair Rip-offs.” 2010. (Aug. 8, 2010).http://loan.yahoo.com/m/living2.html
• Yahoo! “10 Things Your Contractor Won’t Tell You.” 2010. (Aug. 8, 2010).http://loan.yahoo.com/m/living1.html

FAQ

1. How much profit they are making on your project?

Contractors will rarely disclose how much they are making on your project. It’s important to get multiple quotes and do your research before deciding on a contractor. You can also ask for a breakdown of the costs and expenses to get a better understanding of the profit margin.

2. How much experience they have in your specific type of project?

Some contractors may be experienced in one area but not in another. It’s important to ask for references and examples of similar projects they have completed. This will give you an idea of their expertise and what to expect from them.

3. Whether they have insurance?

It’s important to make sure your contractor has insurance to cover any accidents or damages that may occur during the project. Ask for proof of insurance and make sure it’s up to date before starting any work.

4. Whether they are licensed?

Make sure your contractor is licensed to do the work you need. This will ensure they have the necessary qualifications and training to complete the project safely and efficiently.

5. Whether they will be subcontracting any of the work?

Some contractors may subcontract certain parts of the project to other companies or individuals. It’s important to know who will be working on your project and what their qualifications and experience are. Make sure the subcontractors are also licensed and insured.