Effective Management of Your Contractors

Home Improvement

If handled correctly, your general contractor can become a crucial member of your family. See more pictures of home construction here.
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For many homeowners, the world of renovation can be unfamiliar territory. First-time remodelers often end up spending more money than necessary due to their lack of knowledge about construction and material costs. Unscrupulous contractors can also deceive renovation rookies. It’s crucial to have an understanding of the process to keep an eye on your general contractor. They work for you, and you don’t want to be railroaded into decisions you’re uncomfortable with due to your lack of experience. Here are some tips on how you can manage the work of your general contractor.

Get Everything in Writing

Before you start any working relationship with your general contractor, ask for a detailed estimate of the work being done. Having this information in the beginning will make the rest of the job easier to manage. After agreeing on an estimate, protect yourself with an independent contractor agreement. Although you might think this is excessive, it’s essential to establish that the contractor and their employees aren’t your employees. You don’t want to be liable for a day laborer’s medical bills if they fall off a ladder onto your driveway. The document can also include details about the scope of work and a payment plan. Many novice homeowners have been caught off guard by sudden demands for full payment when everything wasn’t in writing ahead of time. If your general contractor refuses to sign a contract, then find someone else.

Be Present

One of the simplest ways to manage your contractor is by being present and keeping an eye on the work being done. You don’t want to micromanage, but checking progress regularly is a good idea. Some homeowners plan vacations around renovation projects and come home to a wall in the wrong place or a window they didn’t expect. It’s also helpful to be present to answer any questions the contractor may have. If you’re away at work all day, make sure you check the progress each evening and schedule regular weekly meetings with the contractor to ensure everything stays on schedule.

Manage Your Expectations

You should never settle for anything less than quality work, but you might need to be flexible with your timeframe and budget. Many construction jobs take longer and cost more than anticipated. Keep this in mind when budgeting, and allow for a potential 20% increase in cost. The same goes for time. Delays frequently happen in this line of work; it’s a part of the business. For this reason, don’t schedule a renovation project right before an essential date. If you’re hosting a wedding rehearsal dinner or have a work trip scheduled, allow for extra time in your schedule.

Did You Know?

With the current state of the housing market, it’s advisable to have at least 20% equity in your house before planning any significant renovations.

Additional Information

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Sources

• Lagorio, Christine. “Tips for Managing Independent Contractors.” inc.com, February 15, 2010. http://www.inc.com/guides/managing-independent-contractors.html
• “Managing Your Home Remodeling or Addition Project.” Installprosdealers.com, 2010. http://installprosdealers.com/articles/manage_remodeling.php
• Scott, J. “6 Essential Guidelines for Managing Your Contractors.” biggerpockets.com, 2010. http://www.biggerpockets.com/renewsblog/2010/04/14/6-rules-for-managing-your-contractors/

FAQ

1. What is a contractor?

A contractor is a self-employed individual or organization that performs specific services for a company or individual on a project-by-project basis. They are not employees of the company and are responsible for their own taxes, insurance, and expenses.

2. How do I find a contractor?

You can find a contractor through referrals from friends or business associates, online directories, or by posting on job boards. It’s important to research and interview potential contractors to ensure they have the necessary skills and experience for your project.

3. What should I include in a contract with a contractor?

A contract with a contractor should include the scope of work, payment terms, timelines, and any warranties or guarantees. It should also include provisions for termination and dispute resolution.

4. How do I manage a contractor’s work?

You can manage a contractor’s work by setting clear expectations and deadlines, providing regular feedback, and communicating regularly. It can also be helpful to establish a project management tool or software to track progress and deadlines.

5. What are some common challenges when working with contractors?

Some common challenges when working with contractors include miscommunication, missed deadlines, and disagreements over scope or payment. It’s important to address these issues promptly and openly to avoid further complications.

6. How do I ensure quality work from a contractor?

You can ensure quality work from a contractor by setting clear expectations, providing detailed instructions, and monitoring progress regularly. It can also be helpful to establish a system for quality control and testing.

7. How do I handle disputes with a contractor?

If a dispute arises with a contractor, it’s important to address it promptly and openly. This may involve renegotiating the terms of the contract, seeking mediation, or terminating the contract altogether.

8. Do I need to provide insurance for a contractor?

No, you are not required to provide insurance for a contractor. However, you should ensure that they have their own liability insurance to protect against accidents or damages that may occur during the project.

9. How do I ensure confidentiality with a contractor?

You can ensure confidentiality with a contractor by including a nondisclosure agreement in the contract. This agreement prohibits the contractor from disclosing any confidential information about your business or project.

10. How do I handle taxes for a contractor?

You are not responsible for withholding taxes for a contractor. They are responsible for their own taxes and should provide you with a Form W-9 and a 1099 at the end of the year.

11. What are some best practices for managing contractors?

Some best practices for managing contractors include setting clear expectations, communicating regularly, monitoring progress, and providing feedback. It’s also important to establish a good working relationship based on mutual trust and respect.