Considerations for choosing a contractor
The Low Bid
You have heard it or read it in the newspaper.
XYZ Construction is the low bidder on city project.
What you may not realize is that XYZ had to put up 10% ( In the form of a bond) of the bid price to be able to give a bid and the bond remains to insure that XYZ finishes the project to the exact specifications.
The project was designed and engineered by licenced professionals. Detailed plans and specifications were prepared, plans that state the quality and location of every beam, board, nail and bolt to be installed, including the tightness of the bolt, ect.
The project will be built by a superior co, using highly skilled and highly paid tradesmen and subcontractors.
As the project proceeds the designers will be constantly exercising oversight over every detail of the project. XYZ will be doing likewise over their tradesmen and subcontractors.
Building inspectors although very adept at their profession are more like locks.... they keep honest people honest. They are expert at what they see at the footing shell and finished stages. Because of budget constraints they are not able to be on the project every day like the architect. Every day a critical process is being performed on the project.
The above method of bringing quality to home owners is seldom used in residential home building and remodeling mostly due to the high cost. However by doing some “homework” a home owner can come very close.
When you hire a residential, general contractor, the contractor is usually also performing as your “architect” and “engineer”. As we have seen in the XYZ example, it is this elementthat is the most important in the projects success.
About General Contractors
A general contractor should be knowledgeable about every aspect of your project. Lets take for instance a roof, a seemingly simple project. A roof project commonly involves the trades or knowledgeable of, frame and siding carpenters and gutters and flashing tinners, along with the knowledge of building codes. In today’s quest for roofing speed one is lucky to get the roofing applied correctly, let alone the roofers performing carpenters and tinners trades. I won’t bring up the ability to read the code book. The general contractor will insure that all of the trades will be performed correctly including the roof and that every thing is to code and specifications. Many contractors today rely on a subcontractors knowledge for their own knowledge. Who supervises who in such a situation? The contractor should be pro actively involved and supervising all of the trades and subcontractors, through some what less scrutiny is needed with the licenced trades.
The 2nd most important element is the 10% bond. Only sound contractors can obtain such a bond. In effect the bond insures a worthy contractor and a cash commitment. You will be unlikely to obtain such a solid protection on your residential project.
The 3rd most important element is the obligations and close ties the designer has with the owner.... and the arms length relationship the designer has with the contractor. Your protection will only come from selecting a contractor with strong fiduciary and obligatory values for protecting the home owner.
Remember experience, experience, experience? Put one of each behind; buiding, business and customer relations.
Be careful not to confuse building experience with business experience.
Many fine craftsmen have virtually no business and customer relations skills.
According to the better business bureau
“Remodeling complaints are almost as big of an industry as the remodeling industry.”
According to the national association of the remodeling industry-NARI
“Statistics show that 9 out of 10 remodeling businesses (general and specialty) fail within 5 years.”
Both of these statements can be made because of the contractors lack of skill in one or more of the “experiences”
Any honest contractor would challenge another contractor that would deny the following statement.
“All contractors gain some experience at the expense of owners.”
The Longer a contractor is in business, the less chance they will gain significant experience at your expense.
Although many contractors are not in the phone book, the yellow pages tend to support NARI’s statement. Here is a 6 and 12 year survey of the Columbia GTE/ Verizon /Centurytel yellow pages for remodeling and building contractors. You may see the full survey of general and specialty contractors by clicking at the index page.
General Remodeling Home
Year Contractors Contractors Builders
Listings in 07 142 44 26
Remaining from 01 59 6 15
Remaining from 95 24 5 7
Total 89/Remaining 07 (Note 1) 89 83/13 42/3 30/6
Came and went (Note 2 90-06 313 205 83
(Note 1) The Total in the book in 89/the total remaining in 07 of the 89 total.
(Note 2) Not listen in 89 or 07 but listed in 90 through 06.
It seems unbelievable but the books tell the truth and they are available at our office for examination.
Although the ramifications of choosing the wrong contractor are scary, uncovering the “pesky details” to help you with your “homework” is really not that difficult. There are a lot of good contractors in Columbia so there is little reason for you to compromise your standards, and don’t forget to verify, never, never, never take our word for it. Always keep in mind the “four faces.”
The following are recommendations that tend to be the minimum. You may have good reasons to accept less and thankfully people did this for me, but you may need to put some extra in your budget just in case.
Years in business- Experience at staying in business 10 or less, unless you know differently... don’t take the chance, 15 or more years is better, at least at 15 years they should be about finished getting significant additional education at the expense of home owners
How- In lieu of a stack of phone books, the Columbia business license office will be able to confirm licenses back into the 80s. If the contractor doesn’t have a current license you should... turn them in. If the contractor doesn’t have a local history make them supply verifiable information and if necessary the costs of verification. This action should be applied as needed to every aspect of doing your “homework.”
Years Experience- Less than 15, unless you know differently... don’t take the chance, 20 or more years is better and only if they have experience from footing to roof cap. A carpenter that has only “trimmed for most of the 15 years experience is probably only a highly skilled trim carpenter.
How- Just like you did to secure your employment. A simple verifiable chained resume of their employment and business history.
Customer relations- Years in business, years as a construction superintendent or production management or any business where interaction with customers was part of the job.
How- Again a simple verifiable resume along with customer references, such references will be addressed later here-in.
Accessability- Will you be able to reach the “owner” any day at any time, of course in a reasonable manner and time.
How- An unlisted phone number or address is a tip off, if you can’t get these... don’t take the chance. You should expect nothing less then to have all manners of access and communication to the owner if an emergency arises and/or you have trouble with the owners employees. Don’t forget that the contractor is also your designer.... the architect so to speak..... your protection.
Continuing education and commitment to the industry- The contractor should show that they are involved in the industry and interested in expanding their three critical experiences.
How- Membership in industry associations and subscribing to their codes of ethic, civic service, industry education classes, career center classes, etc. All verifiable.
References- Be satisfied with their references, keeping in mind that the worst contractors around can come up with a half dozen or so glowing references.
How- Why not a list of all of their past customers? Or at least the past 5 or 10 contiguous years, along with the glowing references. Verifiable? Sure if they don’t already have it, they should be able to compile it through their bank records, although it will be up to you to verify it.
