Anyone with a little know-how, a truck, and a bunch of tools can call themselves a professional contractor. But are they really? In Illinois alone over 3,000 cases of home repair fraud are reported annually. And while the contractor you consider hiring may not try to actively defraud you, a low ball bid should be entertained with great caution.

Professional contractors, home builders, and remodelers are like any small business or sole proprietorship—they have overhead and expenses to factor into the cost of their services. For contractors, the cost of buying and maintaining equipment, tools, and transportation are a given. But it is the cost of insurance, bonding, and providing an unforgettable client experience that really hit a contractor’s bottom line.

Read these three reasons to learn why you shouldn’t hire the cheapest contractor you can find.

1.     Your Cheap Contractor is Probably Under Insured

A good contractor carries liability insurance.   This insurance helps protect you and your home in the case of an accident or damage to you property.  Contractors who can offer you a price significantly lower than other bidders may be under insured, or in some cases, operating without insurance at all! Always ask for proof of insurance and be sure that the coverage levels are adequate to cover your home.

2.     A Cheap Contractor Won’t Provide You With Extra Security

Bonds are another expense for contractors which may increase the costs of their services. A bond is an extra piece of security provided to you by your contractor in the event they don’t fulfill their contractual obligation or leave you with costly problems. While some states, including Texas, require bonding as a standard part of doing business, many do not.  A contractor must be sufficiently reputable and credit worthy for the insurance company to accept the risk for your project.  A contractor who can’t or won’t offer proof of bonding as a standard part of doing business may have financial problems or could even be a fraud.

3.     A Cheap Contractor Doesn’t Care About Your Experience

Running a website, providing online project management resources to clients, joining professional organizations, and using outside verification systems like www.servicemagic.com  are all client focused service features which cost your contractor money to provide for you. Online project management allows you to view details of your project in real time, membership in organizations ensures your contractor is up to date with trends and resources in their trade, and outside verification means they spent money to have their credentials verified by a third party so you don’t need to do it yourself.  A contractor who can afford to charge you very little probably won’t bother to provide you with any of these benefits.

Remember; be wary of the lowest bidder on your project. Ask yourself what they have sacrificed or cut out of their materials or business expenses to work for such a low fee?   What kind of work will they do?  Will they finish the job?  What if you have to call them back…will they come?

Always verify credentials, check references, and never begin work without signing a detailed contract.

For most people it is probably hard to distinguish one contractor from another. You talk about the project, they place a bid, you accept the bid, sign a contract, and then they start (and hopefully finish) your project. The price of the contractor’s services or perhaps the logo on their truck is about the only thing that distinguishes one contractor from the other in your mind.

But what if you met a contractor who did things differently?

Blue Ribbon Homes wants to provide you with a better home remodeling/home building experience. We go to great lengths to make sure that the entire process-- from the initial meeting and planning stages, through the actual design and construction-- is transparent, painless and even enjoyable. We call it The Blue Ribbon Experience™.

The Blue Ribbon Experience™ is a client focused approach to contracting. We know you are a little wary of contractors, that you think we are all same—out to make a fast buck with little concern for you or your home. The Blue Ribbon Experience™ has been created to put you at ease and make you feel secure during your construction project. 

The experience begins with your very first conversation with us. We will answer your questions; provide references, offer proof of insurance and licensing, anything to assure you that you are hiring a company which is professional, customer focused, and honest.

But it doesn’t stop there. Once you hire us for your project you will be given access to a secure area of our website designed just for our clients. You can view photos of your project, request/approve changes to the work in process, choose finishes and fixtures, ask and answer questions via email, or simply view the calendar of scheduled work. The Blue Ribbon Experience™ allows you to be “hands on” with your home construction project without ever touching a tool!

We want you to remember us after your project has been completed; not as “just another contractor” but as a company who listened, who took as much pride in your home as you do, and who provided you with an unforgettable home remodeling/home building experience.

That’s The Blue Ribbon Experience™.

It all started with “This Old House”, with Bob Villa and his gang of happy contractors wielding hammers, levels, and tape measures -- they made home improvements and renovations look so simple. HGTV quickly jumped into the act with “Weekend Warriors” and other DIY (Do-It- Yourself) shows.  Again, the projects looked so simple, cost effective, and fun.  These shows made everyone in America think “I can do my own home improvement project too.”  But can you really? Consider these four tips before you tear down that wall in your living room or spend $2000 on those laminate wood floors that you plan to install yourself.

1.     Know your reasons for doing the project.

If the only reason you have strapped on a tool belt and decided to become a “do-it-yourselfer” is to save money, think very hard about your decision before you begin. “In many cases,” says Dean Herriges, secretary for the National Association of the Remodeling industry, “the cost of correcting a mistake often exceeds what a homeowner would have spent to hire a professional in the first place.” 

2.     Do your research.

Watching one show on HGTV doesn’t really make you an expert on your own bathroom remodel.  In reality, the show caught your interest, and made you realize you can’t live with your ugly bathroom one more minute.  Ok, fine.  Do research before you start.  Consult with a local home remodeler, read a few books on the subject, take a few classes at your local Lowes or Home Depot.  Borrow a handy friend  for the weekend to help.

3.     Consider the difficulty involved.

All home improvement and remodeling projects are not created equal. Installing a ceramic tile floor in your bathroom will be less difficult than installing wood floors throughout your entire house. Building a deck will be easier than building an enclosed sun porch. Ask yourself if you have the time and required skill level to see the project through to the end. This is a particularly important consideration if the project you are dying to tackle involves structural systems like electrical, plumbing or load bearing walls.

4.     Hire out a portion of the project.

Maybe you have a project where you really do have the skill and time to handle some of it, but aspects of the job are beyond your skill level? Call in a contractor or home remodeler to handle parts of the job for you. Using a contractor for only a portion of the job will save you money and ensure that the tricky parts are finished correctly.

DIY home projects can be fun and rewarding if you don’t bite off more than you can chew. Look for more  home repair tips and DIY projects in future issues of The Blue Ribbon Homes newsletter.

 

Hiring the right contractor for your home improvement project is a difficult decision and should not be rushed into. You want to hire a contractor who has the technical, business, and communication skills needed to make your project a success. To find out if the contractor you are considering is right for your project, schedule an interview!

In virtually every employment situation, interviews are the determining factor in a job offer. Why should hiring a contractor be any different? Start by looking for several suitable contractors. Ask for referrals from friends and neighbors, check the Better Business Bureau, and visit contractor’s websites on the internet. Once you have selected a few contractors that seem like a good fit, contact them to set up a time to discuss your project.

Use the first meeting to get to know the contractor and their work. Make sure the contractor has experience with the type of project you have in mind, that they can show you a portfolio of previous work, and that they can provide you with references of other happy clients. Don’t let the contractor do all of the talking or ask all of the questions. You are the one doing the hiring, remember?

Ask the following questions to get the most out of your meeting:

      ·         How long have you been in business?
 

      ·         What kinds of work are you licensed to do?

      ·         Do you carry liability insurance?

      ·         Are they bonded?

      ·         What type of work do you specialize in?

      ·         Have you done a similar job before?

      ·         How will you approach my project?

      ·         Will you use your own crew for the work?

      ·         Will you subcontract all or any parts of the job?

      ·         How do you handle clean up of the job site?

      ·         What work schedule will you follow?

      ·         Will you provide a written contract?

      ·         Will you take out all required permits (e.g., building, plumbing, electrical)?

You won’t offend a reputable contractor with your questions. If a contractor doesn’t seem to know much about the technical details of the job or doesn’t want to talk about them, you may have the wrong contractor.

Most importantly, be sure you like and can communicate with the contractor. Depending on the scope of the job, the contractor you hire could be in and around your home for months. You want to hire a contractor you feel comfortable with, who will answer all of your questions, who will explain the project to you every step of the way.

Asking  the right questions in the beginning of your home improvement project is the first step to making it a success.