The first thing I would say about finding a good contractor is to not choose (necessarily) the lowest bid. I am absolutely not saying that lowest bid might not be the way to go but “don't base your selection simply on money”.
I've coached clients who have chosen the lowest bid on painting their home and they've seen the painter leave after they've completed half the job, and never return to finish the work. There have been contractors who have come out and given a bid and, when the client calls them back, they don't return the call or they don't show up for the follow-up (sign the contract) appointment.
I understand that this can be really frustrating, however, let's look at some of the possible reasons (perhaps even 85% of the reasons) that this might be the case.
A lot of times the contractor will come out to bid an exterior paint job. Let's say that you get two more bids and each of those bids is $1500 more than the lowest bid from the first contractor you interviewed. Do you know the difference in those bids? Do you have any idea what materials they must use and how much paint they must purchase and is that even included in the bid?
I coached a homeowner once who had gotten a bid on an exterior paint job and it was much lower than the other two bids she'd gotten. She called me to come help her distinguish what the difference was. I found that the lowest bid had not included the paint.
Since painting houses is something I've done a lot both personally and with my crew, I let her know approximately how much paint was needed and the approximate cost. It turned out to be about $800 to purchase the paint, the primer etc. When we added that $800 onto the lowest bid it came within $100 - $200 of the highest bids.
The point of hiring a remodel coach is to help you distinguish what the differences are in the bids. If the bids are similar and the bid sheet is laid out very specifically and clearly, it's pretty easy for you to do that yourself. However, if it gets down to being a very detailed bid because, let's say it's a room addition and there's a lot more materials and work involved, then it might not be so easy for you to distinguish what the differences are and what may or may not be included.
Another example of compatibility is when the economy is really flowing and remodeling is up a lot of contractors might be booked out for a year. The subcontractors they use might also be booked out that far. However, even if you talk to someone who is booked out in advance, it's always good to pay attention to:
Do they return phone calls?
Do they show up to talk to you about your project?
Have they suggested “would you like to start the procedure even though I'm booked as far in advance since you’d like to use my company?”
Because the fact is, when we experience an economic downturn and remodeling is down, I as a contractor might be really sorry if I haven't returned your calls, or kept in communication with you, because I was just so busy I didn't “need you” and now, boy do I wish I had kept in touch.
It's really important to pay attention to how the communication works along those lines because that is also going to tell you if it's a good match. The bottom line is every contractor is not for you. Even if a friend used a particular company and you met them as you followed the progress of their job and really liked the crew, the company and the quality of work, that doesn't mean you and that company would be compatible - because every job is different and every personality is different.
A remodel coach can help you come up with a questionnaire that addresses such things as “did the contractor want to bid your job?”, “had they done similar work?” and questions designed to suit your project. This way, you will have clarity in your communication as far as being able to tell the contractor exactly what it is you want and what your expectations are.
I'm not simply talking about what you want as far as the color of your tile, or deciding between a Jacuzzi tub or a regular tub, I'm talking about deeper expectations such as the time they arrive for work, the bathrooms they use, how they interact with your family, etc. These are all really important questions, especially if you're doing a project that is longer than two weeks. Once you get beyond the two weeks, you're entering into more of a long-term relationship and having a coach who is on your side as well as on the contractor's side (because the bottom line is, you want this to be a win-win situation), makes it work well for everyone - which is how dream remodels are created and nightmares are avoided.
So, when thinking about doing a remodeling project, look at the compatibility factor when hiring a contractor.
Stay tuned for more in my upcoming book: Remodel 411 – The Relationship of Remodeling.
Reva Kussmaul
CEO – Eye For Detail Inc.
http://www.eyefordetail.biz
Saturday, June 26, 2010
Thursday, June 10, 2010
Win/Win and Communication
I have heard it said that if you run a remodeling business, knowing what to charge and how to communicate about money, it doesn't matter if you know the formula for mixing a mud floor for the bathroom or not (you want a subcontractor who knows that formula). What you want to know is how to estimate properly the time it takes for that project, not to walk on it before it dries and charge enough money for the job.
I'm always encouraging contractors that I coach to retain great quality craftsman and get them to see remodeling not just as the job they have for this month or this year but as a lifetime career for them and their employees.
When you're considering hiring a remodeling company, one of the things you want to know is how long have their employees been with them and what are the benefits the employees get from working with that company. I don't necessarily mean their pay or insurance. I'm talking about the value they receive in going to work every day. For example, if they enjoy going to work every day, you’ll probably get a craftsman quality job.
I coached a client whose remodel turned into a nightmare because the crew and the project manager weren’t what they needed to be as far as bringing a good experience to the table. I knew this particular contractor and I also knew who the crew had been and who the current crew was that worked on my client’s remodel.
The client shared with me that they had given this contractor many leads in the past and everyone was absolutely thrilled with not only the experience, but with the quality of the job. What I shared with the client was that the crew had changed from the time they’d given the contractor all of those referrals to the time they decided to do a remodeling project on their new home. It wasn't that the contractor/owner of the company had changed, the crew had changed.
I often give the example of a good sitcom or one-hour drama on television; it's not just about the lead of the show, it’s about the ensemble cast. A good crew headed up by a lead carpenter, headed up by a “on top of their game” project manager, headed up at the very top of totem pole by a good contractor/owner is what makes for a quality experience on a remodel project.
The contractor/owner of the company can know everything about remodeling when it comes to banging nails, hanging the drywall or installing the tile but if they don't manage the project well or have a project manager on board who can lead the orchestra, so to speak, the job becomes a nightmare.
That was what happened in the case of this particular client I coached several years ago. It took several sessions to get them to understand that it wasn't personal. What was personal is that, prior to the remodel, they didn’t ask me, or anyone else that could advise them, to “find out who the crew is, how long they've been around and who is managing the crew”.
The remodeling industry needs new methods in order to bring higher value to the customer and in turn higher profitability to the contractor. This contractor may have made a very good profit on the job but there really wasn't value and experience brought to the customer. Therefore, that homeowner would never refer that company again.nIt was absolutely not a win-win situation.
So a good coach can function as the communication conduit between the contractor, the homeowner, the subcontractors and the project manager and sometimes all it really takes is a good coach to get things off to a smooth start and help keep them on track.
Stay tuned for more in my upcoming book: Remodel 411 – The Relationship of Remodeling.
Reva Kussmaul
CEO – Eye For Detail Inc.
http://www.eyefordetail.biz
I'm always encouraging contractors that I coach to retain great quality craftsman and get them to see remodeling not just as the job they have for this month or this year but as a lifetime career for them and their employees.
When you're considering hiring a remodeling company, one of the things you want to know is how long have their employees been with them and what are the benefits the employees get from working with that company. I don't necessarily mean their pay or insurance. I'm talking about the value they receive in going to work every day. For example, if they enjoy going to work every day, you’ll probably get a craftsman quality job.
I coached a client whose remodel turned into a nightmare because the crew and the project manager weren’t what they needed to be as far as bringing a good experience to the table. I knew this particular contractor and I also knew who the crew had been and who the current crew was that worked on my client’s remodel.
The client shared with me that they had given this contractor many leads in the past and everyone was absolutely thrilled with not only the experience, but with the quality of the job. What I shared with the client was that the crew had changed from the time they’d given the contractor all of those referrals to the time they decided to do a remodeling project on their new home. It wasn't that the contractor/owner of the company had changed, the crew had changed.
I often give the example of a good sitcom or one-hour drama on television; it's not just about the lead of the show, it’s about the ensemble cast. A good crew headed up by a lead carpenter, headed up by a “on top of their game” project manager, headed up at the very top of totem pole by a good contractor/owner is what makes for a quality experience on a remodel project.
The contractor/owner of the company can know everything about remodeling when it comes to banging nails, hanging the drywall or installing the tile but if they don't manage the project well or have a project manager on board who can lead the orchestra, so to speak, the job becomes a nightmare.
That was what happened in the case of this particular client I coached several years ago. It took several sessions to get them to understand that it wasn't personal. What was personal is that, prior to the remodel, they didn’t ask me, or anyone else that could advise them, to “find out who the crew is, how long they've been around and who is managing the crew”.
The remodeling industry needs new methods in order to bring higher value to the customer and in turn higher profitability to the contractor. This contractor may have made a very good profit on the job but there really wasn't value and experience brought to the customer. Therefore, that homeowner would never refer that company again.nIt was absolutely not a win-win situation.
So a good coach can function as the communication conduit between the contractor, the homeowner, the subcontractors and the project manager and sometimes all it really takes is a good coach to get things off to a smooth start and help keep them on track.
Stay tuned for more in my upcoming book: Remodel 411 – The Relationship of Remodeling.
Reva Kussmaul
CEO – Eye For Detail Inc.
http://www.eyefordetail.biz
Tuesday, June 1, 2010
Tips for Avoiding Remodeling Nightmares
Your house is a mess. You can't use your bathroom or kitchen. Strangers come and go all day. Just some everyday occurrences during a home improvement project that can disrupt your world and make life miserable! But...the results can be well worth the trouble. A remodel well done can bring enjoyment and add value to your home for years to come.
Sometimes, however, working with contractors is worse than a natural disaster. If the workmen do shoddy work, overcharge, or never finish the job, the result can be a nightmare. The following tips on working with a contractor can help make sure your improvement turns out the way you expect.
Be a part of the process
Know exactly what you want before you pick up the phone to start calling contractors for pricing. Research the market to find out what you like. Pick out specific products (by brand name, model and style) to include in the renovation. For example, if you're updating your bathroom, go to home centers and check out all the latest fixtures and faucets. When you call in contractors for prices, tell them which brand and style you've chosen. Don't leave the choice of materials up to the contractor or you're likely to get the less expensive on-the-shelf products available, which may or may not be to your liking.
Get a Written Contract
Use a written agreement for any work you are having done in or on your home. Make sure the contract states what is to be done, in as much detail as possible, has a price for said work, outlines possible delays and overages and a start/completion date. A common complaint is that the job always takes longer then a contractor estimated. If you want to avoid this, ask about a "time of the essence" clause, which charges a penalty to the contractor if the job takes too long. The contract should also set forth a payment schedule. As a general rule, put up a small down payment to get on the books and space out the balance; we call these incremental payments. Reserve at least 10% of the total amount for a final payment and release this money only after you are satisfied with the work. This amount depends on the size and length of the job and should always be discussed and agreed upon by both parties prior to the contract signing so it’s clear. Don’t sign the contract until you’re clear about the details.
If a contractor doesn't give you a contract, you don’t want to work with that contractor. This happens all the time and it’s the biggest reason I’m called in and by that time we’re mediating and not just coaching. Coaching is going to cost you less in the long run, not just my costs, but any amounts you’ve paid the contractor to do the “wrong job” followed by hiring a contractor to do the “right job”.
Change Orders
If additional work comes up that is outside the scope of work in the original contract, this must be in writing as well. Don’t simply have a verbal agreement regarding any changes you or the contractor makes. If construction is underway and something unforeseen comes up that changes the original work, have communication about it, specifically: how much will that cost? why was it an unforeseen and how much time will that add to the job? Don’t sign the change order until you’re clear about the details.
Check Insurance & License
Do the research when it comes to the contractor you choose. Your state probably has a website for checking these items.
Written Record
Keep a folder for all paperwork pertaining to the remodel so you can refer to it if necessary if there are any questions. For larger jobs, keep notes of conversations you've had with contractors over challenges, changes, etc. This may seem like a lot of work but having a thorough written record of day-to-day events can make a big difference in helping you win any dispute, which might possibly come up.
Stay tuned for more in my upcoming book: Remodel 411 – The Relationship of Remodeling.
Reva Kussmaul
CEO – Eye For Detail Inc.
http://www.eyefordetail.biz
Sometimes, however, working with contractors is worse than a natural disaster. If the workmen do shoddy work, overcharge, or never finish the job, the result can be a nightmare. The following tips on working with a contractor can help make sure your improvement turns out the way you expect.
Be a part of the process
Know exactly what you want before you pick up the phone to start calling contractors for pricing. Research the market to find out what you like. Pick out specific products (by brand name, model and style) to include in the renovation. For example, if you're updating your bathroom, go to home centers and check out all the latest fixtures and faucets. When you call in contractors for prices, tell them which brand and style you've chosen. Don't leave the choice of materials up to the contractor or you're likely to get the less expensive on-the-shelf products available, which may or may not be to your liking.
Get a Written Contract
Use a written agreement for any work you are having done in or on your home. Make sure the contract states what is to be done, in as much detail as possible, has a price for said work, outlines possible delays and overages and a start/completion date. A common complaint is that the job always takes longer then a contractor estimated. If you want to avoid this, ask about a "time of the essence" clause, which charges a penalty to the contractor if the job takes too long. The contract should also set forth a payment schedule. As a general rule, put up a small down payment to get on the books and space out the balance; we call these incremental payments. Reserve at least 10% of the total amount for a final payment and release this money only after you are satisfied with the work. This amount depends on the size and length of the job and should always be discussed and agreed upon by both parties prior to the contract signing so it’s clear. Don’t sign the contract until you’re clear about the details.
If a contractor doesn't give you a contract, you don’t want to work with that contractor. This happens all the time and it’s the biggest reason I’m called in and by that time we’re mediating and not just coaching. Coaching is going to cost you less in the long run, not just my costs, but any amounts you’ve paid the contractor to do the “wrong job” followed by hiring a contractor to do the “right job”.
Change Orders
If additional work comes up that is outside the scope of work in the original contract, this must be in writing as well. Don’t simply have a verbal agreement regarding any changes you or the contractor makes. If construction is underway and something unforeseen comes up that changes the original work, have communication about it, specifically: how much will that cost? why was it an unforeseen and how much time will that add to the job? Don’t sign the change order until you’re clear about the details.
Check Insurance & License
Do the research when it comes to the contractor you choose. Your state probably has a website for checking these items.
Written Record
Keep a folder for all paperwork pertaining to the remodel so you can refer to it if necessary if there are any questions. For larger jobs, keep notes of conversations you've had with contractors over challenges, changes, etc. This may seem like a lot of work but having a thorough written record of day-to-day events can make a big difference in helping you win any dispute, which might possibly come up.
Stay tuned for more in my upcoming book: Remodel 411 – The Relationship of Remodeling.
Reva Kussmaul
CEO – Eye For Detail Inc.
http://www.eyefordetail.biz
Saturday, May 22, 2010
Are you a "good" client or a "bad" client?
I put the words good and bad in quotations because, as I've as I’ve discussed before, this is not about being right or wrong - yet these are words we definitely understand. We hear so much about a bad contractor, a nightmare remodel, yet we've all grown up with the quote "the customer is always right."
So I want to address the clients as the remodeling relationship progresses, who they are and what they bring to the table.
One of my previous articles was about a client who wants to help in order to save money. I've talked about how this doesn't save them money because, for myself as a contractor when I enter into a remodel, I have my whole crew and I am the project manager. So I don't need anyone, especially the client, doing their own demo, going to the paint store or going to the hardware store. In fact, this may even increase the cost because, if they get the wrong paint and I have to go to the paint store, I have to pay my crew that extra time. It wasn't any fault of mine or the crew’s that the job was delayed.
If the homeowner goes to the store to buy, let's say crown molding, and they don't get enough, then my crew chief has to go to the store to buy exactly the amount that was needed. If, let's say, the store was out of that particular crown molding and we had to get another type or wait for the same crown molding to come in, then more money is being spent because the crown molding the client purchased can't be used. The client may end up having to pay for the downtime if there's nothing else on the job that can be done while waiting for the new order, thereby causing the crew to be delayed.
I want to talk a little bit about referring and how a client who has been happy with the results refers a construction company.
I had a client (she was a coaching client), who decided that she really wanted to act as the general contractor on her own project. This is absolutely okay and she did a good job getting the remodel that she had envisioned.
However, the project manager she hired to help her look at bids, go over contracts, and keep things moving, was what she termed a “nightmare”.
She put in a lot more work because eventually she fired that project manager and she took over as the general contractor and the project manager. Now this can absolutely be done, and be done effectively. However, if you're not used to doing this for a living, it becomes your entire life, because there's a lot more that goes into a remodel than just “this is what I want the kitchen to look like, I've hired everybody and it'll just get done”.
That's not the case. This client realized that if she had hired my company, not only to do the work but also to do the project management, she could have acted as the general contractor, paid all of the subs, put my company on payroll (as a project manager) and gotten the job that she wanted - without all of the nightmares and the delay in schedules that did occur.
I was talking to a friend who said that she really knew she could have done a better job had she had me and it would've been easier on her, so she wanted to refer me to friends and some of her clients. However, she wanted to be the project manager on the job if she did that.
I told our mutual friend that it would not work because she is referring someone to me and in doing so she must let go of that "lead". Her wanting to be the project manager is, in essence, wanting to make sure that my company does exactly what she feels it should do in relation to what our expertise is.
Said simply, she wanted to keep track of the lead and make sure that it went the way she wanted it to go for her referral. I told the mutual friend that this wouldn't work for me because I have a crew, I am the contractor and I am the project manager. Now, in the past, I have hired project managers, but they have worked with my company and managed the projects after having been trained by me.
The bottom-line is I told the mutual friend that, if she wanted to refer people to me, that would be great but she must let go of the need to control that referral. If she could not find a way to make herself do that than she needed to start her own business and that's fine too.
Stay tuned for more in my upcoming book: Remodel 411 – The Relationship of Remodeling.
Reva Kussmaul
CEO – Eye For Detail Inc.
http://www.eyefordetail.biz
So I want to address the clients as the remodeling relationship progresses, who they are and what they bring to the table.
One of my previous articles was about a client who wants to help in order to save money. I've talked about how this doesn't save them money because, for myself as a contractor when I enter into a remodel, I have my whole crew and I am the project manager. So I don't need anyone, especially the client, doing their own demo, going to the paint store or going to the hardware store. In fact, this may even increase the cost because, if they get the wrong paint and I have to go to the paint store, I have to pay my crew that extra time. It wasn't any fault of mine or the crew’s that the job was delayed.
If the homeowner goes to the store to buy, let's say crown molding, and they don't get enough, then my crew chief has to go to the store to buy exactly the amount that was needed. If, let's say, the store was out of that particular crown molding and we had to get another type or wait for the same crown molding to come in, then more money is being spent because the crown molding the client purchased can't be used. The client may end up having to pay for the downtime if there's nothing else on the job that can be done while waiting for the new order, thereby causing the crew to be delayed.
I want to talk a little bit about referring and how a client who has been happy with the results refers a construction company.
I had a client (she was a coaching client), who decided that she really wanted to act as the general contractor on her own project. This is absolutely okay and she did a good job getting the remodel that she had envisioned.
However, the project manager she hired to help her look at bids, go over contracts, and keep things moving, was what she termed a “nightmare”.
She put in a lot more work because eventually she fired that project manager and she took over as the general contractor and the project manager. Now this can absolutely be done, and be done effectively. However, if you're not used to doing this for a living, it becomes your entire life, because there's a lot more that goes into a remodel than just “this is what I want the kitchen to look like, I've hired everybody and it'll just get done”.
That's not the case. This client realized that if she had hired my company, not only to do the work but also to do the project management, she could have acted as the general contractor, paid all of the subs, put my company on payroll (as a project manager) and gotten the job that she wanted - without all of the nightmares and the delay in schedules that did occur.
I was talking to a friend who said that she really knew she could have done a better job had she had me and it would've been easier on her, so she wanted to refer me to friends and some of her clients. However, she wanted to be the project manager on the job if she did that.
I told our mutual friend that it would not work because she is referring someone to me and in doing so she must let go of that "lead". Her wanting to be the project manager is, in essence, wanting to make sure that my company does exactly what she feels it should do in relation to what our expertise is.
Said simply, she wanted to keep track of the lead and make sure that it went the way she wanted it to go for her referral. I told the mutual friend that this wouldn't work for me because I have a crew, I am the contractor and I am the project manager. Now, in the past, I have hired project managers, but they have worked with my company and managed the projects after having been trained by me.
The bottom-line is I told the mutual friend that, if she wanted to refer people to me, that would be great but she must let go of the need to control that referral. If she could not find a way to make herself do that than she needed to start her own business and that's fine too.
Stay tuned for more in my upcoming book: Remodel 411 – The Relationship of Remodeling.
Reva Kussmaul
CEO – Eye For Detail Inc.
http://www.eyefordetail.biz
Thursday, May 6, 2010
Listening Is Really An Important Part of Communication
There was an article in Remodeling Magazine about a contractor in Illinois who took on a client who wanted a new, custom home built. He was very proud of his work and took many photographs throughout the job.
From the onset the plans were disturbing to him and he went to the client with his concerns. The designer wasn’t a licensed architect but was a friend of the new homeowners. The contractor expressed to the clients that he felt the second and third story framing wouldn’t support the weight of the roof structure, especially if the roof came under any kind of dense weight.
His gut told him to stop but he didn’t listen. He proceeded with the plans as they were drawn since the designer assured the client that “it would all come out OK”.
One month after completion of the project a foot of snow dropped on the new house, followed by shifting temperatures, which caused the snow to melt and then freeze again. Two weeks later he got a phone call that there was a “problem with the shingles buckling”.
Soon everything from a leaky attic to crumbling drywall was occurring and the contractor was being sued for $310,000.00.
This was not only a nightmare for the homeowners but for the contractor as well.
If you are going to have a friend draw up plans for a new home, room addition or remodel make sure they are qualified. If your contractor comes to you with this drastic concern - LISTEN!!
This is where both the listening and honest, open communication is necessary. Always talk about something like this. Call a meeting between all parties and talk about it. Is there really need for concern? If so, get it solved before you go any further.
The other aspect of this project is, why did this homeowner “hire” a friend to draw up plans? Perhaps because they couldn’t afford to hire a licensed architect as well as have the remodel done.
This is where the open, honest discussion about money comes into play. Plan ahead for the cost of a large project and if it needs to be done in segments to be affordable – do it in segments.
The contractor needed to be able to honestly discuss this with his potential clients and, if necessary, say no to the job.
Reva Kussmaul
CEO – Eye For Detail Inc.
http://www.eyefordetail.biz
From the onset the plans were disturbing to him and he went to the client with his concerns. The designer wasn’t a licensed architect but was a friend of the new homeowners. The contractor expressed to the clients that he felt the second and third story framing wouldn’t support the weight of the roof structure, especially if the roof came under any kind of dense weight.
His gut told him to stop but he didn’t listen. He proceeded with the plans as they were drawn since the designer assured the client that “it would all come out OK”.
One month after completion of the project a foot of snow dropped on the new house, followed by shifting temperatures, which caused the snow to melt and then freeze again. Two weeks later he got a phone call that there was a “problem with the shingles buckling”.
Soon everything from a leaky attic to crumbling drywall was occurring and the contractor was being sued for $310,000.00.
This was not only a nightmare for the homeowners but for the contractor as well.
If you are going to have a friend draw up plans for a new home, room addition or remodel make sure they are qualified. If your contractor comes to you with this drastic concern - LISTEN!!
This is where both the listening and honest, open communication is necessary. Always talk about something like this. Call a meeting between all parties and talk about it. Is there really need for concern? If so, get it solved before you go any further.
The other aspect of this project is, why did this homeowner “hire” a friend to draw up plans? Perhaps because they couldn’t afford to hire a licensed architect as well as have the remodel done.
This is where the open, honest discussion about money comes into play. Plan ahead for the cost of a large project and if it needs to be done in segments to be affordable – do it in segments.
The contractor needed to be able to honestly discuss this with his potential clients and, if necessary, say no to the job.
Reva Kussmaul
CEO – Eye For Detail Inc.
http://www.eyefordetail.biz
Homeowners and Contractors: Are You Right for One Another?
What both homeowners and contractors must both remember is this, not every homeowner a contractor interviews is a good client for them and not every contractor a homeowner interviews is a good fit for them. That is why it’s preventative “medicine” for both parties to talk to a coach and get clarity about “are you right for one another”? Hence, the dating phase of the remodeling project that’s coming down the pike.
Keep in mind when you’re interviewing contractors, they “should” also be interviewing you.
As I’ve said, this is a relationship, not just a remodel. It would stand to reason, then, that both sides would be interviewing the other.
For a long time it has been assumed that it is only the customer who has a choice in the hiring process.
I want to be clear that this is absolutely not so. Think of it as a date – each party is “checking out” the other.
Since there is really no continuing education for contractors provided by any of the states (that I’m aware of), it is up to us to educate ourselves not only on the aspects of building but of running a business as well.
Remodeling Magazine is one of the best magazines in the remodeling/home improvement industry. It is for industry professionals but homeowners have access on-line at www.remodeling.com
In September of 2002 there was a Q & A with several contractors on Just Saying No – How to turn away a client you have reason to suspect may be difficult. Particularly in these economically challenging times (and, really, anytime) if either party feels the relationship isn’t a good fit, say no.
It’s never a good thing to waste time, money and, particularly, emotion on entering into the “wrong” relationship.
I would encourage each of you to be courteous enough to let the contractors you do not choose know that you are not choosing them. They’re taking the time to come and meet with you to estimate your project – they like to know what’s going on with you as well.
In life, if you are courteous you (usually) get courteous back. If you not confident that you know exactly how to go about this particular conversation, call me, I can empower you with the to be able to say no.
Reva Kussmaul
CEO – Eye For Detail Inc.
http://www.eyefordetail.biz
Keep in mind when you’re interviewing contractors, they “should” also be interviewing you.
As I’ve said, this is a relationship, not just a remodel. It would stand to reason, then, that both sides would be interviewing the other.
For a long time it has been assumed that it is only the customer who has a choice in the hiring process.
I want to be clear that this is absolutely not so. Think of it as a date – each party is “checking out” the other.
Since there is really no continuing education for contractors provided by any of the states (that I’m aware of), it is up to us to educate ourselves not only on the aspects of building but of running a business as well.
Remodeling Magazine is one of the best magazines in the remodeling/home improvement industry. It is for industry professionals but homeowners have access on-line at www.remodeling.com
In September of 2002 there was a Q & A with several contractors on Just Saying No – How to turn away a client you have reason to suspect may be difficult. Particularly in these economically challenging times (and, really, anytime) if either party feels the relationship isn’t a good fit, say no.
It’s never a good thing to waste time, money and, particularly, emotion on entering into the “wrong” relationship.
I would encourage each of you to be courteous enough to let the contractors you do not choose know that you are not choosing them. They’re taking the time to come and meet with you to estimate your project – they like to know what’s going on with you as well.
In life, if you are courteous you (usually) get courteous back. If you not confident that you know exactly how to go about this particular conversation, call me, I can empower you with the to be able to say no.
Reva Kussmaul
CEO – Eye For Detail Inc.
http://www.eyefordetail.biz
Keep A Close Eye On Your Bottom Line By Carefully Monitoring The Details
If you’re a contractor who isn’t making a profit - the job isn’t going to go well because you’ll feel resentful – even though it’s with yourself – about not making enough money once again.
1. Know exactly how much you need to earn personally so you can plug you into your business-spending plan. In other words, a personal spending plan must be created and then you move on to creating a business-spending plan with your salary figured in.
2. Debug every job in the set up phase by making all decisions up front, right down to the final color and type of knobs. Get your products in order and on-site, if possible, before you begin the job. Prepare a complete materials list and line up all sub-contractors and make sure all work orders and bids are final with the exception of change orders.
3. Have a preconstruction conference with your client. Go over all the procedures and schedules as well as supply lists and find out if the supplier is delivering materials and if not who is? This saves time and $$.
4. Make sure you discuss exactly how change orders are going to be handled. It’s easier to know this up front rather than at the time of a change. Change orders must be written, signed (by both parties) and collected before they are started, as soon as they are completed or in the next progress payment but knowing this before the job begins will save hassles. It’s easy to forget or wait until the end of a job but this can create a major nightmare for both parties. It can also create a feeling of being ripped off if you don’t discuss this with the client clearly and directly.
5. Make sure the payment schedule reads “at start of” rather than “on completion of” a project phase. This way it’s clear, however, if there’s a broken window get in writing that will be fixed before the end of the project phase in question. Find out at the beginning of the project who will be collecting the money and when. If a phase is complete and payment is due - PAY YOUR CONTRACTOR!! Neither party should allow monies to be held up for any reason if phases are completed in a timely fashion and the payment is scheduled in the contract.
6. The final payment due should be between $1,000 - $2,500 and must be paid upon completion of the remodel including touch-ups or punch list items. Prepare and sign a pre-completion list when the job is 98% complete. Contractors should be very clear about this initially and homeowners must abide by this on their end. If any item on the punch list is not complete hold back 200% of its cost, but the client must pay the final payment balance minus this percentage until it’s complete unless you make other arrangements. Allowing a hold of up to $15,000 because the knobs aren’t on the kitchen cabinets is not acceptable.
7. Neither party should let down their guard from beginning to end. Remember this is a 50/50 relationship and can be a dream if you simply communicate and stay focused on the purpose - which is a completed, quality project.
The goal is a win/win situation – the contractor gets all monies due (including change orders) and referrals and the homeowner gets the project and experience they paid for.
Reva Kussmaul
CEO – Eye For Detail Inc.
http://www.eyefordetail.biz
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