Your new home renovation or construction project is a huge investment, and requires significant planning and preparation. At Jedan Brothers, we have given advice on our blog about what to look for in a contractor, however we have learned that giving advice on what NOT to do can be equally valuable. If you are considering hiring a general contractor, here are 3 things not to do before you choose your company.
1. Don’t Choose Based on the Lowest Price
When a contractor significantly under-bids it raises some huge red flags. A legitimate, trustworthy contractor should have liability insurance, be in good standing with WCB, a business licence, pay taxes, etc. A contractor who under-bids the others significantly may not be charging enough to cover all these expenses, which means either 1) they may not have insurance, WCB, etc. or 2) they may increase the price half way through the job, costing you much more than was originally quoted.
2. Don’t Pay Up Front
While giving a percentage for a down payment is expected, do not give your contractor the entire amount up front. Legitimate contractors have supplier accounts and credit which they use to purchase materials. If the contractor is asking for the full amount up front, considering using a different contractor. However, it is a good idea to set up a payment schedule, so that the contractor can get paid as the project progresses, and you can pay-as-you-go rather than making one large lump sum payment.
3. Don’t Hire Without a Contract.
Make sure to get a cost breakdown and a signed contract when you hire your contractor. If your potential contractor refuses, or insists on a verbal agreement, hire someone else. It is the only way business should be done with a contractor.
For more information on hiring a contractor, or to book a free estimate, contact us today at 604-968-3076.