I look back on one of my earliest blogs (8 years ago! What?!) and it was titled, “How to Find a Good Contractor”. That one still has some really good and relevant content that you should check out, but this is a reboot, revisit, or maybe even an expanded version of that first blog.
So, is this your first time working with a contractor? If so, that’s actually good because that’s who I’m going to tailor this blog towards. There are a lot of first-time homeowners out there with the current economy we’re (thankfully) experiencing! I meet a lot of new people that have just purchased a home, regardless of it being a new 2020 build or a 1900s (or even 1800s) house and want to make updates, improvements, or repairs to their dwellings. Perhaps you’ve dealt with contractors a lot, and that’s OK too. I hope that this will add some new tips or a different view point to consider.
I’ll keep this short and sweet. Let’s look at these 3 rules to help you prepare for your next upcoming project. And yes, I will be coming from the contractor’s perspective so that you can see what makes us tick and gets us excited about helping you reach your project’s full potential.
Rule #1 Have a Budget (even if you don’t know how much things cost)
Short Tip:
Even if you don’t know how much a Tesla costs, haven’t done any research, and are broke as a joke, don’t waste the car salesman’s time! If you have $10k for a $50k kitchen project, that’s OK! You may need to get financing or save up for a longer period, but don’t be disillusioned when things simply cost more than what you can afford right now.
The Long of It:
Most people view working with contractors as a general “cat and mouse” game. But to be honest, there is nothing more disheartening and frustrating than spending a bunch of time with someone that can’t even afford the project they want in the first place. It’s like going into an interview that has all the trigger words to get a hopeful applicant excited, only to learn during the interview, or especially after numerous emails and custom tailoring your resume, that the job pays minimum wage! Bummer deal and it feels like a waste of time!
Often times people will call longer-tenured, experienced, and well-established companies for smaller handyman-type projects (or larger ones too) only to learn that their rates are higher than what they could have ever dreamed of. Sometimes even resulting in offense or disgust by the homeowner. I would recommend reaching out to a handyman company, or do further research on finding a company that specializes in the type of project you’re looking at having done. A small project for a really large company (although not true 100% of the time) can result in a higher rate due to their overhead needs, experience, and schedule. The requisite of a business is to make a profit, and just like anyone working for an employer, your expectation is that the longer you’ve been doing it the more you want to be compensated for your expertise, relationships, and systems you’ve developed.
For years I would show up to jobs and provide a ton of advice, design ideas, sketches, mock up budgets, etc. etc. …all for free. But as I’ve matured in this business and have grown I’ve developed a lot of relationships and am known for providing really great insight into problems that I now charge a fee for. That wasn’t the case in the early years as I was trying to get established. So, don’t be surprised if you encounter different businesses handling estimates and consultations in different ways. It’s always a good idea to ask if the estimate or consultations are free because you’re asking for that person’s time to invest in your project regardless of if they win it or not. Don’t be turned off necessarily if the answer is, “Yes, we do charge XYZ for a consult.” Ask what you’re going to get in return for the fee, and it may very well be worth your time and money even if you don’t select that specific contractor.
The moral of Rule #1 is do some initial research to at least have a preliminary ball park budget if you can. Be willing to pay for a consultation/estimate if you need help scoping the job and understanding what it really takes, not what it HGTV-takes!
Rule #2 Be Flexible & Hospitable
Short Tip:
Construction is one of the most fluid and ever-changing industries that’s out there. Forecasting how a project will go can be as difficult as a Western Washington weather forecaster telling you it’s going to be sunny in…well, any time of the year! So take a chill pill, relax — a welcoming and inviting environment improves everyone’s performance (and can dramatically affect your bottom line).
The Long of It:
I may not have an elaborate spread sheet or cool infographic to back this one up, but here’s my experience. The jobs where the homeowners are hospitable and even go out of their way to have water, or pizza, or a homemade sandwich for a worker or crew seem to go easier, more efficiently, and overall just more enjoyable and fun. I know it sounds so cheesy, and I’m not implying that this is a 100% requisite. Nor am I implying that you do this every day. Some of you may read this and say, “yeah right, I’m already paying an arm and a leg”, or “their job is to do work on my home, not for me to feed them” and I will NOT argue about those points. But think of the coaches, teachers, or bosses whose instruction you’ve been under before that hovered over your shoulder, were demanding, and just miserable to be around. Generally speaking, most people do not perform their best when someone is waiting for something to go wrong, or just being an unreasonable grump. Creating a working relationship that shows you want the best work and a positive environment helps everyone involved.
For example, we had a roof top job last Spring where the homeowner had bottled waters and some simple snacks out daily. What a treat! My crew appreciated it so much and everyone just had that extra half-step pep!
If first impressions are everything, think about how you’re presenting yourself to the contractor. It is a two-way street. Do you come across as someone you would want to work for? Hint: If you ask yourself this question out loud in front of your family and friends, “Would someone like to work for me in my home?” and all of them including the dog are shaking their head NO!!! …you may need to reconsider how and who you will hire as a contractor to have a successful experience.
A good outline of scope items and plans are great to share when fielding estimates, but coming across as bossy or a “know it all” is usually a red flag for a contractor. Basically what goes through our minds is “Ohhh, I think Mr. or Mrs. Smith is going to be the one that has the never ending punchlists because he/she’s convinced it can be better, or that his/her son, husband, uncle, deceased great great grandfather can do the job better. This will be a nightmare job and not profitable. Where’s the front door again so I can get out of here?”
Again, the requisite of a business is to be profitable. If a homeowner comes across as (or just plain is) demanding, unreasonable, or unpleasant, that is a deterrent to getting a competitive bid. Some contractors refer to those clients as receiving a “P.I.T.A. fee”, If you haven’t heard of that, I suggest you Google it. 🙂 A business may attain profitability by being better at serving the client, having higher quality, a longer warranty, etc, but none of those things are doable if a business can’t make money. Provide the contractor with an environment where they are excited to work with you and be proactive in finding equitable solutions if and when things don’t turn out exactly the way everyone wanted it to go (that happens from time to time). You will be surprised by how that energy is contagious!
The moral of Rule #2 is to select the contractor that will best fit your needs, not just with budget but also personality (I’ll even go as far as calling it chemistry) and company culture. If the contractor comes across as a total… “donkey” and you’re sweet as pie, it may not be the best fit even if all else isn’t equal (that grumpy contractor was really ‘CHEAP’). Remember, price doesn’t always equal a great fit! This goes both ways, be someone that you would love to work for!
Rule #3 Pay on Time
Short Tip:
You get paid every couple of weeks from your job. Now imagine your boss forgetting your paycheck or delaying it unreasonably. Do your bills stop coming in? Short answer: No. Pay on time and maintain a great working relationship for the future.
The Long of It:
Cash flow. Cash flow. Cash flow. There is nothing more stressful to a contractor than that nasty beast that can rear its ugly head when a client doesn’t pay on time. This can lead to delays in material deliveries, installations, and is just not good business on behalf of the homeowner. Know your contract, know your progress payment terms, and have payment ready to go when those mile markers are attained. That goes a huge distance for any contractor because it communicates respect, courtesy, and professionalism.
I’ve had experiences across the board, but the ones that stick out are the clients that were irresponsible and slow to pay. I’ve had one that took nearly 6 months to pay that was about to be sent to collections when the text message came, “Oh, you didn’t get the check I mailed you?” Mind you, she lived practically in a mansion and certainly had the funds for a small $3,500 project and had been reminded of her outstanding balance numerous times. It just showed a lack of respect and courtesy… She too had a business and it certainly didn’t reflect whom she would want to come across as. I’ve had many other instances that are varying shades of “slow” as a small business. So this rule is a very important one. Remember to set your contractor up for success too.
My suggestion is to make sure the payment terms set everyone up for success so that the contractor is being paid at mile markers that keeps funding in line with the work performed. In other words, as much as it’s uncomfortable to think of paying ½ of the payment up front before anything is done, it’s just as challenging when you’re trying to complete a project and have completed 99.9% and have only been paid 50%. Maybe a good route would be to make it a 30/30/30/10 where the payments would be more spread out (30% increments until the last 10% for completion) for a midsize or larger project. If you’ve done your research on the contractor of your choice and they are trustworthy, don’t be alarmed if they ask for 50% upfront for a small project. But do your due diligence first. It is also inconsiderate to use final payment as your “opportunity” to negotiate. If you agreed upon a price and put your name on that signature line, pay the bill on time.
The moral of Rule #3 is to treat others the way you want to be treated. Be courteous and prepared to pay. Make it a point that you understand how important it is for payments to be ready for your project’s success. You’ll likely be surprised how much smoother and better performing your construction experience goes!
