Wednesday, October 1, 2008

Home Renovation Part 3: The Contractor

You should consider only reputable contractors with solid specific referrals. You should ask the referrals at least the following questions:
  • What did you like and dislike about the contractor?
  • Are there any problems with the quality of the work after a few years? Did the contractor fix those problems? Did the contractor charge money to fix the problems?
  • Did the contractor finish the job on time?
  • How did the contractor handle changes to the project?
  • What else could you tell me about the contractor?
I found that there are two types of general contractors: the contractors who give you a fixed-price estimate of the project, and the contractors who charge you as you go for the time & materials, and add a surcharge on top of the materials. The contractors of the first kind will add charges for extra or unforeseen work.

Another distinction between the contractors is the number of people they employ. Some contractors employ a large number of workers and only a few subcontractors, so they can assign many more people to work on your project and finish it in less time. Others employ fewer permanent workers and many more subcontractors. The second kind of contractors typically cannot complete the project as quickly as the first kind.

The first kind of contractors may employ an interior designer or a member of their team who can help you choose the myriad items that are needed for the project (faucets, tiles, medicine cabinets, etc). If you trust your contractor and you have less time to take care of the details, you may ask the contractor to pick something nice for many of the needed items. One of our neighbors did just this. The result was nice but not spectacular. Their bathrooms came out a little bland but nice overall.

When you compare the contract proposals, you should be aware that the contracts may cover different parts of the project, and you will need to pay the rest to individual subcontractors. For example, we got offers from two contractors. One excluded painting and carpets. Both excluded the A/C system, which was billed separately.

When you compare the contact proposals, you should compute the total project cost. You may find that the money you pay to your contractor is only a fraction of the total project cost. You have to add all of the extras that are not covered in the contract: the the kitchen cabinets and vanities, the A/C system, the counter tops, tiles, wallpaper, carpets, light fixtures, kitchen & bath plumbing supplies, bath accessories, glass doors for shower and bathtub, mirrors, dumpster disposal, and all extra work billed by time & material.

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