Choosing a builder
Seven questions to ask before you sign a remodeling contract
The questions that separate a comparable bid from a cheap one, from a contractor who would rather you asked them.
We lose bids. Sometimes to a better builder, which is fine, and sometimes to a number that was never real, which is worse for everyone including the homeowner. These seven questions will tell you which kind of bid you are holding, and any contractor worth hiring will be pleased you asked.
1. What are the allowances, and what product do they buy?
An allowance is a placeholder for something you have not chosen yet. If the tile allowance is $4 a square foot, the contract is assuming builder-grade ceramic. If you have been showing everyone photographs of zellige, that allowance will be exceeded by several thousand dollars and the contract price is fiction. Ask for the allowance sheet to name an actual product at an actual price.
2. What is explicitly excluded?
Read the exclusions section before the inclusions. The common omissions are painting, flooring outside the immediate room, appliance installation, electrical panel upgrades, permit fees, dumpster and disposal, and anything described as an unforeseen condition. Two bids with the same bottom line and different exclusions are not the same price.
3. Who will actually be in my house?
Ask whether the carpenters are employees or subcontractors, who the project manager is by name, and whether that person is managing three jobs or eight. The answer to the last one tells you how quickly your questions get answered in week six.
4. Can I see a certificate of insurance, issued to me?
Not a photocopy of one from last year. Ask for a current certificate of general liability and workers' compensation sent directly from the insurance agent, naming you as certificate holder. It costs the contractor nothing and takes a day. If it takes longer than a day, that is your answer.
5. What is the payment schedule tied to?
Progress payments should be tied to completed milestones you can see: rough-in inspection passed, drywall complete, cabinets installed. They should not be tied to calendar dates, and they should never run ahead of the work. A deposit larger than about a third of the contract on a residential project is worth asking hard questions about.
6. How do change orders work?
You want a written process: the contractor stops, documents the condition, prices it, and gets your signature before proceeding. Ask what their change order rate is on projects like yours and what the most common cause is. Any honest builder can tell you, because they have watched it happen a hundred times.
7. What does the warranty cover and for how long?
One year on workmanship is the industry standard. Longer is better, but only if it is written down with a clear scope. Ask specifically what is excluded, how you make a claim, and whether they have ever actually come back. Then ask a past client the same question.
A low bid is not a discount. It is a prediction about who pays for the difference later.
Two more worth asking
Ask for three references from projects finished twelve to twenty-four months ago, not last month. Recent clients are still in the glow. Clients a year out know whether the caulk held, whether anyone came back, and whether the drawers still close. Then ask whether you can see a project that went wrong and how it was resolved. Every builder has one. The ones who will talk about it are the ones to hire.
If you want a second opinion on a bid you already have, send it over. We will read it and tell you what we see, including when the answer is that it looks like a good deal.
