Finding The Right Renovation Help

Remodeling your home is never as easy as you’d planned. But you can minimize the inevitable headaches with the right professional help. Here’s an 8-step action plan.

1. Establish a preliminary budget

This figure will be revised—probably upwards—before you sign a contract, but don’t waste time on what you can’t afford. Look at your savings account and, if necessary, get a home improvement loan.

2. Define the project

Make two lists: basics and upgrades. Start with basics like a new bathroom on the second floor, 8' x 10', with tub, shower, toilet and sink. Do you want a vanity cabinet? Linen storage? Windows? Once you’ve put this list on paper, list upgrades based on cost. This is the list for the whirlpool tub, custom tilework and countertops.

3. Decide whether to hire a design professional

Contractors can advise you on small projects. But it’s unlikely they will spend much time counseling before you’ve signed a contract. For inexpensive design help, try the skilled designers at home improvement superstores like Lowe’s or Home Depot.

If you have a design plan in your head, be clear about it. The more complete and specific your plans, whether your own or the work of design professionals, the more accurate the estimates, and the happier you’ll be with the finished work.

4. Build a referral list

Compare notes with, and get referrals from, neighbors, friends and workmates. Note signs posted at houses under renovation. Request a list of local members from the National Association of the Remodeling Industry and check each firm with the Better Business Bureau. Your lumberyard or home improvement center will have a good idea who’s working steadily and pays bills on time.

Interview prospects by telephone. Describe your project and ask if the firm would be interested in bidding (your job might be too big or too small). Find out if there’s a waiting list. A successful contractor may be unavailable for several months but may be worth the wait. In fact, a long wait time can indicate work ethic. An overly available contractor may schedule too many jobs at once, or worse, have a cash flow problem he or she hopes to correct with your down payment.

5. Get to know the contenders

Meet contractors at job sites to observe how they approach their work. If the site is a mess, the contractor shows up late or you witness disgruntled workers or homeowners, you should hear warning bells. If you meet at your own home, follow up with at least one observational visit. Ask for client referrals and follow up with phone calls. Even satisfied clients will share the negatives if probed carefully.

6. Compare bids

Ideally, you want three. Do not ask for a bid unless you are genuinely impressed with the contractor and seriously interested in hiring him or her. Bidding forms vary: scrutinize every line to see which areas need clarifying before you can compare the offers—which you must to make a good decision. Reject offers that lump work and material together without detail. Wildly different prices should prompt you to ask for explanation. Offers should clearly state payment schedule, work timeline and process for handling unexpected changes.

7. Select your contractor

Price is just one part of the decision. A higher price is no guarantee that you’ll work well with a particular contractor. Think over the factors you can’t easily measure: friendliness, good communication. Choose the candidate most willing to meet your standards, with superior workmanship and the patience to explain his or her pricing structure to your satisfaction. Remember, you’re not hiring a best friend but a professional who will take responsibility for getting the work done correctly and efficiently.

8. Make a contract checklist

If in doubt, have an attorney familiar with real estate and construction law review the agreement. It should include:

• Terms of cancellation

• Proof of the contractor’s current liability insurance (policy limits should cover the value of your entire house) and Worker’s Compensation

• Specific materials and products to be used

• Lien releases from every subcontractor and supplier, which protect you if the contractor doesn’t pay his bills

• Down payment of 30% or less of the total estimate

• A final payment of 10% or more due upon completion

Also, get the changes you want in writing before the work is done.

For extra protection, get the contractor’s bond number, and ask the bond company the total amount of coverage. If your contractor disappears, file a claim promptly.