How to Choose the Correct General Contractor
Choosing a general contractor is the next important choice you will need to make if you are ready to start a renovation or remodeling project. The success or failure of your renovation project will ultimately depend on your choice of contractor to partner with you throughout the process. Think of it this way: you wouldn’t let anyone into your house, would you? However, with a contractor, you will not only open up your home but also permit their team to rebuild and demolish a significant portion of the building.
Asking the right questions before choosing a contractor is vital to finding a reliable, efficient contractor. Here are the top tips you should consider when selecting a general contractor.
How old is the general contractor company? On average, one out of every twelve small businesses in the country closes every year. According to the U.S. Small Business Administration’s FAQ list, only about 50% of small businesses operate after five years.
You will undoubtedly be working with a successful business person who has done everything necessary to keep his business running if you find a general contractor who has been in business for 3, 5, or 10 years or more. Clearly, you are dealing with a professional because this is a challenging task. In this industry, longevity demonstrates business acumen, the ability to control financial flows, and, most importantly, the ability to maintain a good reputation.
Investigate the Facts
Use your research after you’ve narrowed down your list. Find out about the progress of a client’s previous project by calling and asking to see the completed work. Tom, however, advises against relying solely on results. Visit the current job site and watch the contractor in action; this is even more important. Is the workplace safe and well-maintained? Do employees respect and care for the homeowner’s property?
INSURANCE, BONDING, & LICENSING
Ensure your general contractors have all the necessary permits to work in your state. If you ask them to include a copy of their license in their proposal or clarification answer, you can verify this. The next thing you should check is the status of your construction company. If the business can’t get the job done or doesn’t do it well, this will help keep you safe. Also, ensure they have the appropriate worker’s compensation, liability, and property damage insurance limits. In your request for qualification or offer, you require proof of insurance.
Real Estate Investment Experience
Are there real estate investors among the clients of the general contractor? You need a general contractor with expertise in remediation projects for a fix and turnaround business. Major home renovations are the specialty of the best general contractors. We need general contractors who are great at renovating the rest of the house because many general contractors excel at renovating bathrooms and kitchens, including living rooms, bedrooms, siding, landscaping, roofing, electricity, and more.
Set a Payment Schedule
Developing a payment schedule ahead of time is an important tip when hiring a contractor. Payment plans may contain information about the contractor’s financial position and work ethic. They may be in financial difficulty or concerned that you will only pay the rest after seeing the work if they ask for half the upfront rate. A typical payment schedule for large projects starts with 10% at the signing of the contract, three payments of 25% over the project, and a check for the remaining 15% when you feel that all items on the list of shortcomings have been completed.
The Bottom Line
Predictability is the main advantage of working with general contractors. The skilled person who manages the entire project is the general contractor. This frees up your time so you can focus on activities that will help your company expand, such as finding new investment opportunities, raising money, and hiring essential employees.
Hiring a general contractor can be more than the cost of doing the work yourself. However, you can be sure that you are working smarter, not harder, in your real estate business if you identify, qualify and hire the best general contractors.