1. Initial Contractor Selection

  Your home may be your most valuable financial asset. That's why it's important to be cautious when you hire someone to work on it. Home improvement, repair and maintenance contractors often advertise. However, don't consider an ad an indication of the quality of a contractors work! Quite often some of the very best contractors do little or no advertising and stay very busy from referral business. Two recommendations for an initial contractor search are 1) through the local Denver/Boulder Better Business Bureau (denver.bbb.org), click on the "Find A BBB Accredited Business" button, 2) get a referral from a trusted acquaintance. If a contractor is not a member and in good standing with the BBB, be cautious. Do a thorough job,  remember many poor contractors may be doing or have done business under several different names, which allows them to hide their poor reputation.

2. Initial Contractor Evaluation

  Prior to contacting a contractor prepare a simple written outline highlighting your perspective of the scope of your project and questions to ask (call or e-mail LTS Builders, we'd be glad to provide you with a free project scope and question outline template).  A good contractor will answer all your questions and add the required detail to your scope outline. Ask for a written proposal based on the scope.  Sit down with the contractor and review the scope and proposal prior making any decisions.  Remember there are NO STUPID QUESTIONS.  If you are comparing proposals make sure the scope and quality of materials/craftsmanship are the same. A low price proposal is not necessarily bad, just beware of the old adage “you get what you pay for,” as this often applies to the home improvement industry. If you are considering a contractor based strictly on the lowest price just make sure you have done your homework and understand exactly what you are and are not getting at that price. Compare the details of the proposals and ask questions to define where the differences are. 

3. Contractor License And Insurance Review

  Ask to see a copy of the contractor's license and certificate of insurance. Many contractor's still don't have both or have let them lapse. Make sure they have both and they are current. 

4. Contractor References

  Local references are good to have, but just remember a questionable contractor is not going to provide poor references.  If you do get references don't be afraid to call them and ask specific questions like: "Were you satisfied with the work?" "Did they start and finish on time?" "Was there ample communication between the contractor and homeowner?"  

 5. Contractor Comfort Level

  Most Importantly - Ask yourself, "Do I feel comfortable working with this person for the duration of my project. Do I feel they are a good businessmen as well as a good contractor?" The key to a successful relationship with your contractor and a successful project is communication. If you don't feel comfortable communicating with this person, it is likely that problems will arise. 

6. Contract

  Once you've selected a contractor candidate ask them for a written contract and sit down to review it prior to signing. The written contract should define:
 
a) The terms and conditions. 
 What is the working relationship and expectations for both the client and the contractor.

b) The scope of the project. 
 What are the basic items that the project entails and what work/materials are included or excluded, during what defined project duration. Sucessful projects all begin with these details documented to the satisfaction of both parties. This will lessen the chance that change orders may occur.

c) A documented change order process. 
  In the remodeling business, it may be difficult to identify every perceivable project item in the initial project scope so a few change orders can occur, they should not be major cost items. Some examples might be, hidden problems that might be inside a wall or under a floor.  Items that can't be foreseen by you or your contractor.
  Additionally, you may decide you would like to request changes once the project is underway.  Customers, often, can better visualize their project once it's underway and decide to make minor changes.
  A pre-defined change order process that details how changes are identified, agreed upon and priced, requiring the written consent of both parties prior to any change order execution is critical. 
  It is important to BE CAREFUL HERE, change orders often are how many unreputable or poorly organized contractor's make up for:

            - A poorly defined proposal.
            - Price low balling in order to win a project, Often expensive change orders result. 
            - Poor project management.

d) A payment schedule. 
  A reasonable down payment in the 10-15% range is normal. Insist on milestone billing (this type of billing allows you to make payments to your contractor only as they complete pre-defined phases of the project, ie: completion of demolition or framing or flooring, etc). Don’t make the final payment or sign an affidavit of final release until you are satisfied with the work. NEVER PAY IN CASH! 

 7. Project Completion

  Keep all paperwork related to your project in one place. This includes copies of the contract, any change orders and correspondence to or from your home improvement professionals. Make your contractor aware of any concerns or problems as soon as they come to your attention so resolution can be addressed without delaying the work. Do a final walk thru with your contractor and create  a written punch list of any items that need attention, make sure all items are rectified prior to final payment. 

      We hope these help and please give us a call if you have questions 303-902-4134.

 

 

 

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