Venturing into home renovations or construction projects is undoubtedly a formidable undertaking. It signifies a substantial financial investment and a commitment of time, energy, and effort, underscoring the necessity for thoughtful planning and strategic foresight. At Jedan Brothers, we make it our mission to routinely share advice and insights on our blog, spotlighting the ideal qualities you should prioritize when selecting a contractor. Over time, however, we’ve realized that highlighting potential missteps and pitfalls is just as crucial. If the prospect of hiring a general contractor is on your horizon, understanding these three common errors and how to prevent them can prove invaluable in your selection process.
Number 1: Resist the Lure of the Lowest Bid
While cost-effectiveness is undeniably important when assessing potential contractors, it’s vital to avoid choosing based solely on the lowest bid. If you encounter a contractor whose bid drastically undercuts their competitors, you should view this as a potential red flag. A contractor who operates with integrity and professionalism will typically factor in a range of necessary overhead costs into their pricing. These include expenses related to liability insurance, a strong standing with the Workers Compensation Board (WCB), a current business license, and fulfillment of their tax obligations.
A suspiciously low bid could suggest that the contractor has either not accounted for these vital expenses or is neglecting them outright. Two potential risk scenarios emerge here: 1) the contractor could be operating without the appropriate insurance, WCB coverage, or necessary licensing – a gamble that could prove costly in the face of unforeseen accidents or legal complications, or 2) the contractor might initially lure you in with a deceptively low quote, only to inflate the cost halfway through the project, leaving you blindsided by a final bill far exceeding the original estimate.
Number 2: Say ‘No’ to Full Payment Upfront
Traditionally, it’s reasonable for contractors to request a percentage of the total cost as a down payment before commencing the project. However, if a contractor demands the total amount upfront, this should be a cautionary signal. Established, reputable contractors typically have pre-existing accounts with suppliers and adequate credit lines to finance the purchase of necessary materials for the job.
A contractor insisting on full payment upfront may exhibit financial instability or unethical practices. It’s recommended to consider other alternatives in such a situation. A preferable approach is to negotiate a mutually agreeable payment schedule that aligns the payment milestones with the project’s progress. This strategy ensures the contractor receives consistent payment for work completed, while you, as the client, can spread the project cost throughout the work, avoiding the burden of a massive one-time payment.
Number 3: Never Proceed without a Formal Contract
When finalizing your agreement with a contractor, it is paramount to insist on a comprehensive cost breakdown and a formal, signed contract. If your potential contractor attempts to bypass this crucial step or insists on proceeding based purely on a verbal agreement, it’s a clear indication to continue your search elsewhere. A formal, written agreement provides an essential layer of protection and clarity for both parties, detailing the project’s scope, the expected timeline, the cost breakdown, and the agreed payment schedule. It’s not just a best practice in conducting business with a contractor – it’s a non-negotiable requirement for a professional, transparent, and successful partnership.
For a more comprehensive understanding of how to navigate the process of hiring a contractor, or to schedule a no-obligation estimate, don’t hesitate to reach out to us at Jedan Brothers Contracting at 604-968-3076. Our dedicated team of professionals is ready and eager to assist you on your journey towards a successful home renovation or construction project.”