Just earlier today two of my best friends called me desperate for my help to get them a contractor to build them an ADU (accessory dwelling unit, aka Granny Flat) behind their home in Ventura, CA.
They even offered to let my construction crew stay in the primary house while they built the ADU over the garage.
Unfortunately, that’s not a practical solution for our company based in San Diego. So, I spent a couple of hours doing research and digging into my professional network to give them a few warm leads.
But I don’t want them to blindly sign a contract and hire someone based on the fact a friend told me “he’s a great guy!”
I’m writing this as a guideline for them, and anyone trying to hire a great contractor.
Maxable can also help you find the best contractor for you through our reliable network of professionals. Contact us today.
Hire a Great Contractor? Finding One Is The First Challenge.
Why is it so hard to find a great contractor, who is affordable, does a great job and finishes on time?
If money is no object, you can find professional, reputable general contracting companies.
If you can afford to pay over $75k – $100k for a kitchen remodel, you’ll love the experience you get.
But…if you’re a regular person that has a budget, an affordable contractor that you can trust to do a great job is hard to find. Why?
Oftentimes, the contractor is doing their own business development, bidding, client management, cost management, and they are swinging hammers too!
Many times, it’s also a one-man show.
This is a huge burden for a small business owner to manage all these different aspects of running a successful contracting business that can deliver the service levels that modern consumers have come to expect.
Despite all of these factors, I’m going to share my top recommendations on how to find and hire a great contractor.
Step 1: Conduct Some Research | How to Hire a Great Contractor
Do your research and ask around several different circles for a recommendation.
Check with your Realtor, your neighbors, or anyone you know that may have done a remodel or addition recently. You could even ask your friends on your social media networks for suggestions.
Many online sources can also help you identify potential contractors too: Yelp and Houzz are a couple of options.
Once you have narrowed down your list, take an in-depth look at the company online. Check out their website and social media presence.
Are they doing the kind of projects you need them to do? Pictures are great, but they can also be deceiving.
Step 2: Check Their Status | How to Hire a Great Contractor
Check their licensing to make sure it’s active on www.cslb.com and click “check a license.” Ask the company for a copy of their insurance to make sure it’s current.
These easy checks will ensure you hire a great contractor that’s ready to get to work!
Step 3: Schedule A Meeting | How to Hire a Great Contractor
Meet with the contractor directly. In-person is preferred, but over-the-phone works too for a preliminary screening.
When you’re looking to hire a great contractor, here are some important considerations to help evaluate your first conversation with them:
- Does the contractor communicate well?
- Are they professional and do you like them enough to work with them for the next 4-12 weeks or more?
- Do they pick up the phone and call you back promptly?
- Ask if you can tour an active job site with them or see recently finished projects.
- What is the management structure?
- After the salesperson visits, will you see them again?
- Is the person bidding the job also doing the work?
- Will they subcontract out the entire job so you don’t see the initial salesperson again?
And don’t forget to . . .
Step 4: Connect With Their Clients | How to Hire a Great Contractor
Get references from 3 recent clients, and then ask them:
- How was the communication before and during the project?
- Did the contractor finish the job on time and on the budget?
- Did you have any issues with change orders or in general?
- Were there any surprises, good or bad?
- Would you work with them again and refer them to your friends?
Step 5: Evaluate the Proposal | How to Hire a Great Contractor
Lastly, comparing a proposal can be tricky, so it’s important to understand what you are looking at and make sure you are comparing apples to apples.
Here are things to consider:
- Does the scope of work cover the same job between different proposals?
- Are there any exclusions for labor or materials?
- Are any areas or item costs low-balled, so you get up-charged later?
- Cost isn’t the only factor, you get what you pay for. Would you pay slightly more for a company that can get the work done on-time and on-budget with less stress to you?
That’s it. There’s your formula for due diligence to hire a great contractor.
It’s not easy…but it’s not impossible either.
This will take you a few hours to do, but if you are planning to spend $50k and 4 weeks away from your home, it will be well worth it.
Like my grandfather said, “A stitch in time, saves nine.”
Follow these steps and be confident in your judgment to hire a great contractor and get that project done!
Want recommendations from Maxable? We work with a network of amazing (and personally vetted) contractors. Reach out to us and we can connect you for quotes.
During the process of finding the right contractor, there are some other important factors to keep in the back of your mind, especially if this is your first big experience with construction.
Keep reading to learn more!
What Does a General Contractor Charge?
The basic formula involves calculating labor and material costs.
Then there is a percentage charge for project management oversight and a markup percentage.
Don’t confuse markup with profit.
Markup has to cover all the contractor’s overhead which includes: office expenses/rent, accounting/invoicing, insurance, licenses, legal fees, and much more. After all that is paid, the contractor still has to have some money left over to feed his family!
A report from the National Association of Home Builders stated that the best remodeling contractors net less than 4% profit! If your contractor isn’t getting paid properly, he may not have the money to complete the job, or even be in business for your next remodel project.
Another thing that often happens is that contractors will leave your job to do a more urgent (i.e. better paying) job, leaving your project on hold indefinitely.
How Do I Deal With a General Contractor?
First, you have to be able to trust your contractor.
Share what your budget is so your contractor can best advise you on how to maximize your project and get as much as you want done. A great company that’s reputable will be able to work with you based on your budget and tell you what can or can’t be done.
If you’re looking for great general contractors give us a call and we can make some recommendations.
Treat this as a collaborative relationship so be transparent and don’t be coy about what you want to be done.
How Do You Negotiate With a General Contractor?
This comes down to the quality you want, level of material finishes, how time-consuming and technical the build is and what level of experience you expect.
Be open, honest and transparent with what your goals are. If you are building a kitchen and you want high-end finishes, cabinets, and appliances, you’ll have to expect to pay for that premium.
How Much Should I Pay a General Contractor?
Typically a contractor is paid in phases as the work gets done. Initially, you’ll pay a $1,000 deposit, and perhaps an initial payment for materials.
After that, you’ll get invoiced either weekly, bi-weekly, or as milestones are completed in the project.
Your final payment should be made after the job is complete and you are satisfied with the work.
Make sure to not complete your final payment until the work is 100% complete.
How Much Does it Cost to Hire a General Contractor?
This depends on the size and scope of the project. Once Maxable connects you with potential contractors, you’ll have a better idea of costs.
Can a Homeowner Be a General Contractor?
Yes and no. Ask yourself these questions:
- What level of experience do you have in home remodeling?
- Do you know the construction code?
- Do you know the sequence of how trades should come in to do your project?
- You also have the liability for the overall project.
Consider the opportunity cost of being your own general contractor.
- Will you be able to do your regular job while managing this project?
- Can you get it done as fast as a hired GC could get it done?
You’ll have to deal with the headaches of dealing with multiple moving pieces, no-show sub-contractors, late material deliveries, and all the surprises that come with a project.
It’s hard enough to find a good contractor. Imagine how tough it is to find a good plumber, tile setter, painter, electrician, etc. Then you have to schedule each of them based on their availability and the timeline of your project.
We know this is a lot to consider, but rest assured you do not have to go through it alone! Maxable and your future contractor are here to help, so do not hesitate to contact us.
Thanks, Henish Pulickal, the CEO of California Home Company, for the guest post. You can view his website here.
Plan, hire, and manage your ADU project with Maxable.
At Maxable, we believe that building an ADU should be fun and exciting. You shouldn’t have to be the one to deal with confusing obstacles like permitting snafus or ever-changing regulations. We’ll be by your side every step of the way and connect you to experienced designers and general contractors in your area to make sure your project goes as smoothly as possible.
Leave the headaches to us! Check your address and see what Maxable can do for your home during a free ADU Planning Call.
