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Does your kitchen need a facelift or maybe even a new floorplan? Is your master bedroom too small? Is it time to finish that unfinished basement? If so, it's time you joined the ranks of millions of other Americans, who today spend hundreds of billions of dollars per year on home remodeling.
Home remodeling not only makes your house more comfortable and attractive, it's also an investment -- especially in a booming real estate market like Colorado's. But remodeling is expensive, and therefore merits careful planning before the project begins.
An important part of planning is hiring a good remodeling contractor.
Look for a license
A licensed general contractor can oversee the entire project, including carpentry, drywall, electrical work, plumbing and other construction subspecialties. The contractor and his employees will probably not do all this work themselves; they will hire appropriate subcontractors for the work they are not licensed to do.
It's important to hire only a licensed contractor. The license allows him to draw a building permit from the city or county. It also gives you legal recourse if something goes wrong. Moreover, most unlicensed contractors don't carry appropriate bonding and insurance. Ask to see the contractor's license and some additional form of identification. Also ensure that the contractor is insured against claims covering workers? compensation, property damage and personal liability.
Choosing a contractor
To find a good remodeling contractor, ask friends and neighbors for names of contractors they've been happy with. Check the Yellow Pages. Call your Better Business Bureau and your city building department.
Once you've compiled a list of potential contractors, call 3 or 4 and interview them in person or over the phone. Ask lots of tough questions. Ask for local references. Call their references and, if possible, go out and look at finished projects. Some consumers even try to find projects in progress to see how the contractor works and to speak with the homeowner about the contractor's work habits and communication skills on the job.
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Get 3 or 4 bids before choosing a contractor. The more carefully you plan your project before the bidding process, the more accurate those bids will be. For a kitchen remodel, for example, you should not only have a good idea of the new floorplan, you should have chosen locations and specific products for windows and doors, appliances, cabinets, flooring, fixtures and as many other details as possible. An architect can help you draw up blueprints that the contractor can review in compiling his bid. Remodeling software is also a good planning tool for the homeowner with a good eye for design.
In reviewing the bids, make sure that all bids are based on the same set of specifications. Discuss the bids in detail with each contractor and make sure you understand the reason for any variations in price. Sometimes a higher price may be worth it if, for example, the materials are higher quality or the work is more extensive.
Beware of any bid substantially lower than the others. It probably indicates that the contractor has cut corners or has made a mistake in calculating expenses. If a bid sounds too good to be true, it probably is.
Finally, trust your gut reaction. If you "click" with a certain contractor's personality, he has ample experience in the type of project you?re planning and his references are glowing, you're probably a good match.
The contract's the key
Once you've chosen a contractor, insist on a detailed, written contract that includes everything you've agreed on. Spell out exactly what the contractor will and will not do. Be sure the financial terms of the contract are clear. The contract should stipulate the total price, project schedule, when payments will be made and whether there is a cancellation penalty.
Generally, the down payment on a remodeling contract shouldn't exceed 10% of the total project cost. As the work progresses, never let your payments get ahead of the contractor's work. And make sure the contract provides for a "retention," which is a percentage of the total fee that you retain until the job is completed to your satisfaction.
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