Making Sure Your Contractors Stays on Budget and on Time!

Hiring a Contractor

When hiring a contractor there are many things to consider.  To make the most profit on your investment you want your project completed right, on time, and on budget.  For many, this means hiring a contractor.  The most important thing to do when hiring a contractor for the first time is to do a ton of research.  Search for reviews, ask for several references, check their portfolio, ask about experience, check insurance, license, perform background checks, anything that you are able to do to ensure your contractor is legitimate.  Don't just go with your first quote.  Get several quotes for the work and compare the price and experience of all of them.  

Set Expectations

Make sure that you get a timeline from your contractor and form a realistic completion date based on the amount of work.  Keep in mind, if you are on a short timeline your cost may go up due to your contractor needing more labor. Don't be unrealistic about your scope of work.  If your contractor says a job needs two weeks to finish right, don't rush them to do it in one week and have a rushed job that will not hold up.  While you want the best price, you also want to make sure that you aren't going with the cheapest materials that will end up not holding up and may end up costing you more in replacements later. 

Staying on Budget and on Time

One of the first things you will want to do is shop materials and products that you will want in your project.  If you don't know what light fixture you want in all of the bedrooms you leave an allowance in the budget when getting a bid.  This creates a huge window for fluctuation in your final cost.  Avoid leaving allowances like this. Have an idea of what you want to spend on each part of the rehab.  

Next, make sure you establish good communication with your contractor.  Be on-site each day before work begins, exchange numbers and discuss times that are acceptable for calling and texting one another. 

Writing all details down can also help keep things on track.  Record progress, changes, delivery dates, etc. 

Double check as you go.  Check serial numbers against recipes and invoices, blueprints against placements and make notes of any quality issues or discrepancies.  

Pay only when the work is finished.  Your initial down payment should not be more than 10% and as a project is completed make a payment, but do not pay for work in advance.  When creating your contract set it up to have a certain amount of payments throughout the project and final payment should not be made until the work is completed and your contractor and you both agree that the work is finished to satisfaction. 

Be good to your team!  Bringing them drinks, being respectful and kind, make sure they have a bathroom to use etc.