Finding a Good Contractor

Avoiding Remodeling Rip-offs

Margaret came to us in a third attempt to remodel a bathroom. The first time around, she hired a contractor—referred to her by someone she thought she could trust—who turned out to be unlicensed and unreliable; in addition to shoddy workmanship, that contractor ran off with 100 percent of his fee even though he’d finished only about 75 percent of the project.

Now out a significant dollar amount and left with an incomplete bathroom remodel, Margaret hired an acquaintance who assured her he could finish the job. As you can guess, he was not only unqualified but also incompetent, botching drywall and paint jobs, among other complications. The result was an even more expensive mess and still no finished bathroom.

On her third and final try, she came to us at Quality Renovations, a licensed contractor in Berthoud who completed the job right and in time for Margaret’s special summer birthday bash.

In fact, Quality Renovations charging her a cent to fix her bathroom, and a local retailer donated $500 in supplies. Our goal? To restore Margaret’s faith in our industry and to use her story to help future customers.
In hindsight, I’m sure Margaret wishes she had contacted someone like us from the start. True, she couldn’t have predicted the first contractor would leave her in the lurch. But there are ways she could have avoided him altogether. To avoid the same home-improvement hassles on your own project, follow these tips when considering contractors:

1. Get realistic prices.

   There are so many ways to obtain the wrong estimates. Whether it’s asking a friend what she paid for a similar job, or visiting a web site that allows you to input measurements of a given area and magically producing a dollar amount, these methods are incomplete.

   A computer program can’t take into account the condition of the specific area or any hidden issues. And your friend may have hired someone who’s unlicensed but luckily didn’t encounter the same problems as Margaret.

   A good example is a basement finish where a homeowner wants to install a bathroom. And oftentimes even though it’s “roughed in,” i.e. the homebuilder designated the bathroom space with roughed-in plumbing, more often than not it’s simply in the wrong spot.

   That means we have to hire someone to jackhammer out the concrete and move the plumbing to the proper space. Then it must be properly permitted and inspected to ensure the project can proceed.
   None of these costs can be factored in via a computer program. And even if you hire as a contractor a skilled tradesperson—be it the best drywaller or painter in your area—he’s not likely to anticipate the true scope of the project.

   Bottom line is that there’s only ONE effective way to obtain a realistic project cost: invite licensed contractors to your home to measure and assess your space, and select the one who will deliver a consistent experience at a fair price.

2. Ask for updated references.

   We’re not talking about a satisfied customer from four years ago; you need to speak to a customer who’s had work completed within the last year. And if the contractor can’t come up with a solid list of references, that’s a red flag.

   Perhaps that means he hasn’t been able to keep up with projects lately. Maybe he’s had recent problems with vendors and trade partners, and he currently doesn’t have any happy customers because of project delays. Or it’s possible he’s only completed one project in five years.

   The fact is that you won’t know how skilled a potential contractor is on the job unless he provides a thorough, updated reference list.

3. Do your homework.

   There are several ways to check a potential contractor’s background, and it takes very little effort.
   For starters, ask if the contractor has a website you can review before your first meeting. While not the only indicator, in this digital age it’s a quick way to gauge his work and expertise.

   Also check to see if his company appears on Houzz, a popular home-design site, or a service-review site such as Angie’s List. Again, these aren’t failsafe but merely a start toward ascertaining a contractor’s experience.

   You may also want to determine if the contractor is affiliated with a local organization such as the chamber of commerce or if he’s in good standing with the Better Business Bureau. Such affiliations lend credibility to the contractor and establish the legitimacy of his business.

   Finally, it’s critical to determine whether the potential contractor is licensed in your city. If you’re in doubt, simply contact your town’s building department to verify licensure.

   Keep in mind that we’re not suggesting homeowners be suspicious of every contractor because there are so many good ones out there. But if you’re at all in doubt, there are plenty of ways to verify facts.

4. Establish realistic expectations.

   Some studies I’ve read indicate that homeowners routinely underestimate the cost of home-improvement projects by as much as 50 percent. But it’s crucial to understand that quality workmanship will cost you. Period. And it’s not just about the contractor getting a paycheck.

   Like any other business, we contractors have to pay overhead costs that go beyond materials and labor. Again, we have to be licensed in every city we work in, which costs money. We also have to carry liability insurance, protecting both our company and the homeowner should any unexpected issues come up during a project. It’s all part of our overhead.

   Further, there are costs associated with a project that aren’t obvious. In addition to the man hours required to complete a job, there are the ones required to prepare for one: hours of measuring, researching and estimating. Basically, creating an accurate project proposal requires time.
   And there are other details to consider: setting up trash services, making equipment purchases, and outlaying gas and staff costs to pick up/deliver materials. And don’t forget the cost of permits, which can sometimes make up 5 percent of the project’s cost.

   There are so many horror stories we hear from clients who’ve come to us after choosing a cheaper competitor. More often than not, the “contractor” was unlicensed and didn’t pull permits, thus he cut corners to complete the job cheaply and quickly.

   In this industry, cheaper doesn’t always mean better. So, at the very least, get at least three estimates from legitimate contractors for comparison.