Hiring A Contractor

Once you have interviewed renovators, checked their references and received written price quotes from those you are interested in hiring, it's time to decide who will be doing your job.

Renovators should be allowed adequate time to prepare a bid for your project. and you must ensure that each renovator is working with the same plans and specifications. For all but the simplest projects, you should expect the renovator to present their bid in person, so that they can discuss each aspect with you and answer any question you may have.

Once you have met with the renovators who are bidding on your job, you should review each set of bid documents carefully before deciding who to hire.

You should compare every aspect of their bids-the description of the work, specifications (materials and products), price and allowances, deposit and payment milestones, project schedule and any additional recommendations or ideas for your project.
You should also review the information you collected during and after your initial round of renovator interviews-your initial impressions of each renovator, and what their previous customers had to say about them.

You must decide the importance of each aspect of your evaluation. While overall price is important, it is only one factor. Many homeowners who have successfully completed major home renovations speak about the importance of "peace of mind"-working with a renovator they trusted and felt confident in.

If you have a particularly strong sense of confidence in one of the renovators, they are probably your best choice, even if their price is not the lowest. In the end, you should choose the renovator based on your sense of the overall value they can provide to you.

As you begin to look for a contractor, you need to think about how you will judge those you choose to interview.

Presentation. Professional contractors operate in a business-like manner. They respect your schedule and show up for appointments on time. They present themselves well, are organized and deal with your questions and concerns directly. They earn your confidence because they follow through on promises—if they say they will call you back tomorrow, they do. How a contractor deals with you before a contract is signed tells you a lot about how you can expect to be treated once the job begins.
Communication. Home repair and renovation is a "people business" and good contractors are good listeners and communicators. Professional contractors must "translate" your ideas and goals into a workable plan and then deliver what you expect. This requires a solid working relationship and good rapport. If you're not comfortable with contractors you interview or don't feel you can communicate with them effectively, you should keep looking to find the right person for your job.
Skills and experience. Repairing or renovating a home can be a far more complex task than building it in the first place. It takes years of experience in the business before most contractors are ready to manage a major project on their own. It also involves a lot of different types of work, some of which require specialized expertise. Whatever the scope and nature of your project, your contractor needs to have solid experience with that type of work. They also need to prove to you that they do.
Professional reputation. Established contractors will provide you with references from previous customers, and in fact, you shouldn't even have to ask for them. They also work with a network of other businesses within your community-banks, material suppliers and other trades. It's a good idea to ask a contractors for references to any of these people to find out about their reputation within the industry itself.
Proper business practices. Professional contractors don’t cut corners when it comes to business liability insurance, Workers’ Compensation coverage, obtaining building permits and running their business properly. They will always provide you with a written contract before the work begins. And they won’t suggest that they can give you a “special deal” if you pay them in cash and “skip the paperwork”. Anyone who does isn’t a professional.

Professional home renovation contractors offer a number of golden rules to help homeowners achieve their renovation goals.

Know what you want. Take the time you need to explore the possibilities for your home and develop a firm plan. Begins with the fundamentals—what do you need and how you want your "new" home to look, feel and work for you and your family. Once you have a clear idea of the "big picture", your contractor will help you work out all the details.
Set a realistic budget. Decide as early as possible how much money you want to spend—this allows you and your contractor to focus on the work that is doable within that budget. Experienced contractors can provide sound cost advice and recommendations. Sit down with your lender and discuss the amount you can reasonably afford and the most suitable financing options. Remember that your budget should cover everything that may arise from the renovation, including such items as new drapery, blinds, furniture and appliances.
Plan for the long term. Thinking ahead avoids short-term renovations that may need to be redone in the future. Discuss your short- and long-term goals openly with your contractor. Professional contractors can conduct a thorough inspection of your home and offer suggestions for the most effective sequencing of work over a period of time.
Don't jeopardize the quality of your renovation by compromising on the quality of products or materials. If it's worth doing, it's worth doing well, and that means using products that offer the right combination of performance, durability and aesthetics. Experienced contractors can help you choose the best products within your budget.
Don't choose a contractor on price alone. While it is always tempting to go for the lowest price, you need to consider the implications. Does the contractor understand what's involved in your project and have the necessary experience? Will they offer a warranty on the work? Will the contractor still be in business if you need to call back?
Protect yourself. Dealing with a professional contractor is your greatest protection against an incompetent or unfinished job. A written contract spells out the arrangements between you and your contractor and describes your renovation in detail. Professional contractors also carry Workers' Compensation coverage, liability insurance and any licenses required by your province or municipality.

Price is a critical aspect of your renovation project. What will it cost to do the job you want? Alternatively, how far can you go on a set budget?

Determining the cost of a small project is usually fairly simple. On larger projects, it often happens as a series of discussions between you and a renovator as you develop the vision and fine-tune the plans for your home. On some projects, it may be a good idea to hire someone to develop the design and the plans first as a separate job. Many renovators offer a full range of services, including design and plans development. Alternatively, you may choose to work with a designer or architect and then tender the actual work to renovators.

Guesstimates
Experienced renovators can sometimes offer an educated opinion or price range on the spot, based on similar jobs they have done in the past-for instance, a per-square-foot estimate for additions or basement recreation rooms, or a rough cost estimate for upgrading your bathroom. This can be helpful upfront to make sure that there is a realistic fit between what you would like to do and the budget your have in mind. However, be aware that the cost of a project can vary greatly, depending on many factors, including the current condition of your home and the types of products you want to use.
Bids, or estimates
For all and purposes, bids and estimates are the same, if written down-a renovator's offer to perform your renovation for a specified price, based on a detailed description of the work to be done. It will specify materials, products, labour, subtrades, and so on, with accompanying costs. A written offer is legally binding and becomes part of the contract between you and the renovator, should you accept it.

Make sure that you provide each renovator with exactly the same information; otherwise you will not be able to compare bids. This information may include plans, ranging from simple sketches or diagrams to full construction drawings needed for projects that involve altering the structure of your home. Specifications are detailed descriptions of the materials and products you want to be used in your project.

How many bids should you get? There are no hard and fast rules. Generally, prudent consumer advice tends to favour three bids-more is seldom necessary if you have selected the candidates with care.

However, that's not the only approach. On large projects, it is not uncommon for homeowners to interview several renovators, check their references and previous projects, and then choose one company to work with throughout the whole process, including developing plans and budgets as well as doing the actual work.

In the end it comes down to trust and confidence-trust that you have chosen the right renovator for the job, and confidence that you will get what you want.

It is common practice for contractors hired for a home repair or renovation project to require a deposit or prepayment to signify the homeowner’s commitment to the project—the contractor’s reassurance that you will not back out of the contract at the last minute. The prepayment may also serve to cover some the contractor’s upfront expenses, in case you cancel the work. However, the practice can easily be abused by unprofessional or unscrupulous contractors, and it is important for consumers to know what is reasonable and appropriate.

The recommended prepayment is between 10 and 15 percent of the total value of the project, but it can vary. Some contractors may ask for a small, nominal deposit only, or none at all. On the other hand, they may request a larger amount if they have to order special products such as windows or kitchen cabinets. In such cases, a deposit of 10% to 50% of the cost may be required. For custom-made products, you could be asked to pay the full price upfront.

Proceed with caution if a contractor demands a large prepayment. They may say that they need it to “buy materials”, but reputable contractors have a running account with suppliers and don’t need to pay for materials in advance. They may cite “start-up costs”, but an established company should be able to manage normal expenses as a matter of routine. On special orders requiring a sizeable deposit, you may want to make the cheque payable to the manufacturer or supplier rather than the contractor.

Never give someone any money unless you have a written contract, and never pay for the entire job upfront, no matter how much of a “deal” you are promised. If you are not comfortable with the contractor’s demands or explanations, don’t sign the contract and don’t pay any money. Look for someone else.

The deposit should always be noted in the contract as part of the payment schedule. You should always pay by cheque or credit card, not in cash, and make sure you get a receipt specifying the date, the amount and the reason for the payment, such as “deposit on windows” or “initial down payment for siding replacement”. Without such details, it can be more difficult to prove what the payment was intended for, in case of a dispute.

All areas have legislation aimed at protecting consumers against contractors who use pressure tactics or fraudulent practices to gain business. For instance, “direct sellers” regulations set out requirements for licensing, a written contract and a “cooling-off period”, most often 10 days, when a purchaser can cancel a contract for any reason and get their deposit back. Direct sellers include home repair and renovation contractors who knock on your door to solicit business, such as driveway paving and roofing companies, for instance.

Where there are no specific rules, it becomes a matter of common sense when you want to cancel the contract before the work begins. Most professional contractors will let you cancel and return your deposit without penalty but they will want to be reimbursed for expenses incurred to date. They may also charge you for time spent on organizing your project. Contracts may include a cancellation clause in case either party has to back out of the project, before or during the work.

The contract should also set out the payment schedule. On a small job, there may be only one final payment following the deposit; on larger projects, you can expect to make several. Ideally every payment should be tied to a specific milestone, e.g. framing of an addition, or installation of kitchen cabinets, rather than to the renovator’s timesheets. This is the easiest way for you to keep track of your budget and ensure that costs are matched by the progress of your project.