Hiring Contractors /Multiple Bids

[Brian Glasspoole]

Hello Everyone, 

One thing that might help someone on a rehab or flip investment is to try to always get 3 separate estimates for any medium/large projects. I am an ex contractor and county inspector. I have seen grossly over priced proposals from unscrupulous contractors over three times a fairly priced estimate. 

One additional way to help quality assurance is to insist on a building permit if the is anything other than minor work involved. Your local city/county building department will have permit requirements on their website, but will most likely perform inspections on non required items if you purchase a permit and request that they inspect the item in question if you are uncertain of the quality/code compliance of the work.  

Another item to check is if the contractor actually has a license. State contractor laws vary greatly. Some states such as WA do not require a written test, only to pay a monetary fee to the state and get a small insurance policy/bond. CA requires contractors take a written proficiency test for their respective trade. 

[Brian Glasspoole]

Hi Chip,

Depending on location there are often contractor associations which might help locate contractors. The government agency I worked for did not allow us to recommend one specific contractor, but did allow us to give out contractor information if we gave out three different people. The county/city inspector near you usually knows the good ones and can help. 
RE agents often know contractors as well. My Agent recommended a good electrician for a rehab who did great work around 1/2 the price of his competitors bid. 
As for the fully employed, that can be tough. Larger companies might be a good option as well.  They might charge more money thus reducing your profit, but are often more well oiled machines and have processes on getting bids out/work done etc. The overhead for large companies can drive their prices up, but you get the work done and can more easily get warranty work covered.