How do I avoid a terrible contractor?

Remodeling projects are some of the most expensive investments you'll ever make.  How do you know you're entrusting your hard earned cash, home and all those who live there to someone trustworthy?​

Before I became a construction company owner, I worked for over a decade in the business world.  One of my business gigs was franchise consulting for a large tax corporation.  My job was to help franchisees fully maximize their connection to our brand and do my best to advise them how to grow their business.  I quickly learned that the best tax professionals often didn't have the skill set to be effective tax office owners.  

The same is true in the construction world.  Just because someone knows how to build beautiful things, doesn't mean they have a lick of business acumen.  

We've personally seen terrible mismanagement in the form of a low-bid contractor who literally shuttered his businesses overnight.  Another walked off a half-way completed job when he realized money had run out.  We've seen terrible final products including foundations that didn't support additions properly, load bearing walls left unsupported, leaky tile jobs and rotten exterior walls just to name a few.​
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What do all of these projects have in common?  They were either done by a low-bid contractor or a contractor who had no idea how to manage a project effectively combined with a homeowner who didn't fully consider the value of a good contractor.  

What is the difference between cost and value?
Cost is defined as "an amount that has to be paid or spent to buy or obtain something".  Value, includes cost, but encompasses much more.  It is "the importance, worth or usefulness of something" and/or "a person's principles or standards of behavior; one's judgment of what is important in life."  

Cost is simply the dollar value placed on a project.  
It's the price tag and nothing more.  It's a piece of the value proposition, but isn't the only factor in determining value.  

Value is everything else you care about in regards to your project.  
It's making sure the final product is useful and worth what you paid for it. It's a project completed with great communication, high standards, in a timely manner and with quality that will last for years. It's alleviating the pain point that's causing you to want to demolish part of your living space and rebuild it despite the inconvenience that will bring.  And much more...

Here are some questions to help weed out insolvent, sketchy or just plain clueless contractors by considering not just the cost of a project, but also the value of a project and a good contractor.

Important questions to ask yourself about value:

• Why is this project important to me and/or my family?  
• How will a new kitchen/bathroom/basement improve my life?  
• What pain point will it eliminate?  Will it give us more space, better function, an updated look, a place for our parents/kids to live, etc.  
• Is it worth the temporary inconvenience that it will cause?
• If I'm considering a low bidder, what will that mean for the quality of the project?
• Do I like the contractor and others who work for him/her?  Does he/she seem like someone I would like to interact with everyday?  

Important questions to ask potential contractors about the value (or liability) they bring to the table:
Communication & Customer Service:

• Tell me about your communication style. How often will you visit my job site, answer my calls, emails and texts?
• How will you handle situations when something goes wrong with materials or subcontractors?
• What do you do to mitigate construction mess?
• Do you have a list of past clients I can speak with?
• Tell me about a time when a client was disappointed.  How did you handle the situation and what did you learn from it?​

Solvency:

• How do you calculate your deposit amount and what do you do with deposits?  
• How can I ensure you won't spend my deposit before any materials are ordered for my project?
• Which subcontractors can I speak with? (Ask them if they get paid timely. Did you know subcontractors can put liens on your house if they aren't paid timely?)
• What's your current ratio? (If they don't know what this is or can't provide it, they have no idea if their liabilities exceed their assets. You're looking for a number greater than 1.)
• Are you charging enough to cover overhead and make a profit? (I mean, you want them to be in business for the long haul, right?!)

Time Management:

• How many projects do you work on simultaneously? 
• How can I ensure that my project will progress in a timely fashion?
• What kind of delays have happened on past projects & how did you deal with them?

Subcontractors:

• How will I know that there are good people working in my house since my spouse, kids, animals and valuables live there too?
• How frequently have you worked with your electrician, plumber, painter, framer, etc.?
• What qualities do you look for in your subcontractors?
• Tell me about a time when a subcontractor didn't meet your or your client's expectations.  What did you do?
• Are your subcontractors insured?

Integrity:

• Are you insured?
• Will you permit my job, so that the city doesn't close down my project before completion?
• What kind of materials will you use and how will they hold up for the long haul?
• Why do you enjoy this kind of work?
• Do you have a construction agreement that will spell out your responsibilities and mine, payment terms, etc.?

Planning & Project Management

• Will the end product of this renovation be what I want?  How will I ensure that before you ever swing a hammer?
• How can I ensure that we will be on the same page about the plan for this project?
• Who does design work for your projects?  Who is your architect?
• What kind of project management software do you use for communication & scheduling?

Experience:

• How long have you been doing this kind of work?
• Tell me about a project you've done that's similar to mine.
• What is your web address and where are you rated online (Yelp, Facebook, Houzz, etc.).
• Which structural engineer do you work with and do we need one for my project?
• Tell me about your business/project management experience (not  construction experience, but experience running a business...they are two very different things!)

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There are about 100 more questions that could be asked to uncover the true value of the contractor you are interviewing.  

From a contractor's perspective, we've learned that we can't be "cheap", because we don't want to provide a cheap final product.   

When shopping for a contractor, make sure to consider value in addition to cost to help avoid a construction nightmare.  We hope these questions will help you do just that!

All the best,
Brook

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Bunn & Sons Home Renovations provides general contractor, kitchen and bath remodeling, basement finishing and custom carpentry services in the Broomfield, Arvada, Louisville, Lafayette, Boulder, Westminster, Erie and other North Denver Metro areas.  Contact us at hello@bunnandsons.com or 303.625.4045 today!