How to Effectively Pick Contractors
One big challenge many people encounter when working in a new area or embarking on a new large project is finding the right people to do the job and do it right. We have a ton of experience doing large projects with different vendors/contractors. So, we will go into some best practices of how to find the best contractors.
Trusted Referral
The number one way we find quality vendors to work with is through independent referrals from people we know and trust. One key suggestion here is to ensure that the referral isn’t a close relative or friend, rather someone that they have professionally done work with before. It should go without saying, but be sure to get details from the person about their experience with them. Did they do the job on time? Was the project completed on budget? How was the quality of the work? Was communication satisfactory?
Reviews and Visiting the Jobsite
The next thing we like to do is scour the internet for any reviews on the contractor’s business. If there are any negative reviews, it may be prudent to ask the contractor directly about them. Next, get a list of active job sites from them and try to randomly visit one. This could tell a lot about the general cleanliness of the job site. And, you can confirm if the workers are productive. We try to engage with workers to get an idea of their motivation and know-how. We walk the site together with the contractor. This last part can be the most telling part of the vetting process.
Get At least 3 Bids
When you first start working in an area or bidding on a new kind of job, we always recommend getting three bids. This will give you a good idea of what fair pricing is and makes sure you have a baseline for future projects. Also, contractors bid out jobs so differently. We have had some that just charge a fee on top of cost, others where they charge labor and you buy materials. And in others, it’s an all-inclusive bid where their profit is built in.
We are always wary of the cheapest bid. We’d rather have more middle-of-the-road pricing but have more confidence that the job will be done right, on time, and on budget. If there are issues that come up that make the contractor have to charge more, they are very communicative about it and it doesn’t come as a surprise later. It is also possible that you may not like any of these bids and may need to get more. With at least three bids, you should have a pretty good idea of the proper scope of work and where pricing should land.
Start with Smaller Jobs
We like trying to give new contractors smaller jobs at first. This way, we can see the quality for ourselves and see how they perform before we commit to a much larger job. If the contractor is not adequate, then there is less for them to mess up. We also try never to give more than a 10% deposit upfront. Make sure that you do not pay for different stages of construction until after the work is complete and you have proof of such.
Getting to a Trusted Group of Contractors
Eventually, you will be at a point where you have a trusted group of contractors/vendors that can get the job done the way you like and on budget. You still need to continually keep them accountable, however. Make sure to check up on them regularly and meet and go over progress and budgets. Over time, we have seen some contractors get a little too comfortable and their work starts to slip. If they know you continually have an eye on a project, they are more likely to continue to perform at the same level, if not better.
It takes quite a bit of work to find good people so be prepared that this might not happen right away. We have experienced some construction people that are not reliable and this can make it challenging to get the job done. When you find good people, hold onto them for dear life and make sure they are adequately compensated so that they stick around.
Lastly, make sure to treat all of your contractors/vendors with the utmost respect and make sure to show your appreciation on regular basis. Without these valuable team members, your progress will slow and your profits will surely take a hit.