Episode 1928
10 Questions to Ask Before You Hand Over Your Wallet to a Contractor
Hiring a contractor can feel like picking the right partner for a dance—get it wrong, and you might end up stepping on some toes! That’s why we’re diving into the nitty-gritty with Eric G as he shares his top 10 questions to ask before you let just anyone waltz into your home for a remodel or renovation. From checking if they’re licensed and insured (because you don’t want to be liable for someone else's bad day) to making sure they offer clear written estimates that won’t leave you guessing, we’ve got you covered. We’re talking about the essentials—like how to ensure they’re not just good with a hammer but also experts in the specific project you’re tackling. So grab a comfy seat, put on those thinking caps, and let’s get ready to dance our way through the contractor hiring process with style and a sprinkle of fun!
When diving into the nitty-gritty of hiring a contractor, there’s no shortage of things you need to keep in mind. Eric G lays it all out on the table with his top 10 questions that could save you from a world of hurt—or at least a couple of headaches! First off, we're talking licenses, bonds, and insurance. You want to ensure your contractor is legit. No one wants a fly-by-night operation showing up at their doorstep with a toolbox and a dream. Eric emphasizes the importance of understanding your local laws, which can vary significantly. Some areas have stringent regulations while others are more of a free-for-all. It’s like trying to navigate a maze blindfolded—without the right information, you could end up in a sticky situation.
Next on the list? Background checks! Yep, it's not just for potential romantic partners; you should do the same for your contractor. A quick Google search can unearth a treasure trove of information. Look for reviews, past projects, and maybe even a juicy scandal or two (hey, we’re all human, right?). You wouldn’t want to hire someone with a track record of disappearing with clients' deposits or worse, leaving a trail of chaos behind them. Eric also stresses the importance of clear written estimates. If your contractor hands you a vague number scribbled on a napkin, run for the hills! You need detailed estimates that outline every single aspect of your project, from materials to labor costs, to ensure you’re not caught off-guard later.
But wait, there's more! Eric digs into the expertise of your contractor. Are they a jack-of-all-trades or a master of one? If you’re hiring someone to put in a new roof, you want a roofer, not a guy who thinks he can wing it because he once watched a YouTube tutorial. Communication is also key. Are they responsive, friendly, and organized? You want to work with someone who respects your time and keeps you in the loop. Lastly, Eric touches on payment schedules, permits, and whether they will supply project plans—because nothing says “I’m a professional” like a well-laid-out plan. So buckle up, listeners, because Eric G is here to make sure you don’t get burned when hiring your contractor!
Takeaways:
- Before hiring a contractor, make sure they are licensed, bonded, and insured for everyone's safety.
- Always ask for clear, detailed written estimates to avoid nasty surprises during your project.
- It's crucial to verify that the contractor has expertise in the specific type of project you're undertaking.
- Checking their references and previous work can save you from hiring a 'sledgehammer contractor' disaster.
- Don't be shy to ask about their payment schedule and ensure it's clearly outlined in the contract.
- Make sure they are responsible for pulling all necessary permits to keep your project on the right side of the law.
To get your questions answered by Eric G give us a call in the studio at 833-239-4144 24/7 and Eric G will get back to you and answer your question and you might end up in a future episode of Around the House.
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Information given on the Around the House Show should not be considered construction or design advice for your specific project, nor is it intended to replace consulting at your home or jobsite by a building professional. The views and opinions expressed by those interviewed on the podcast are those of the guests and do not necessarily reflect the views and opinions of the Around the House Show.
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SiteHype Designs.com
To get your website back on track or create a brand new one vist my friend of nearly 20 years at https://sitehypedesigns.com/ tell him Eric G sent you for a special friends and family discount.
For your next BBQ check out MonumentGrills.com
Order your new Monument Grill online and get it in 3-5 days for your next BBQ! Monument Grills combines cutting-edge technology with reliable performance. Our grills are engineered for consistent heat, durability, and precision, ensuring every meal is cooked to perfection. With advanced features and dependable craftsmanship, you can trust Monument Grills to elevate your outdoor cooking experience.
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Transcript
Foreign.
Speaker A:It's around the house.
Speaker A:On this episode of around the House, I want the contractor to come out and go, that's 120 to $150,000 project.
Speaker A:And you go, okay, I can only spend 140.
Speaker A:Contractor goes, all right, I can do you a detailed bid.
Speaker A:It's going to cost you 400 bucks, but I'll give that money to you and put it towards your deposit when you order it.
Speaker A:That to me at this point is fair because they're going to have to take a work and itemize everything out, spend the time, put it down to give you a hard estimate for this project.
Speaker A:Now they can give you allowances.
Speaker A:They can go down and say kitchen cabinetry, $32,000.
Speaker A:You see what I mean?
Speaker A:And put some specs in.
Speaker A:This is.
Speaker A:This is black walnut, flat slab.
Speaker A:When it comes to remodeling or renovating your home, there is a lot to know and we have got you covered.
Speaker A:This is around the house.
Speaker A:Welcome to the round the house show, the next generation home improvement.
Speaker A:I'm Eric G.
Speaker A:Thanks for joining me today.
Speaker A:This hour is brought to you by our friends at Monument Grills.
Speaker A:Check them out for the most ridiculous barbecue under 900 bucks.
Speaker A:Yeah, it's something that everybody can afford out there.
Speaker A:Check them out@monument.com today.
Speaker A:I thought it is February.
Speaker A:People are planning those big projects, whether it's a remodel, whether it's a.
Speaker A:A big project like a deck or fence.
Speaker A:And you don't have time and you're hiring a contractor.
Speaker A:So I thought let's come up with my top 10 questions that you should ask before you hire that contractor.
Speaker A:Now these are the things that I think that you need to know so you can make that decision on if they're legitimate, are they real?
Speaker A:Are they giving you a decent project completion date, are they giving you all those little things and a fair price?
Speaker A:So we're going to dive into this today.
Speaker A:If you're new to the show, you can find us@aroundthehouseonline.com.
Speaker A:make sure you follow all of our social media pages.
Speaker A:Just look for the around the house show or the real around the house show.
Speaker A:We are the original around the house show up there.
Speaker A:Coming up here in a few months on year 37.
Speaker A:Yeah, we've been around for a little bit.
Speaker A:Okay, guys, so here's the first thing.
Speaker A:Now these rules can be a little bit different because across the country, we do not have standardized rules for contractors as far as what's required to be a contractor.
Speaker A:In some states, you have to Have a license, bond, insurance, continuing education.
Speaker A:You need to fill out your paperwork and the moment that your insurance lapses within minutes, your license gets pulled off the state website.
Speaker A:Now, there's other ways out there that I see that it's pretty much a free for all where they don't really have contractor licensing.
Speaker A:There are some states that have local licensing, which means a contractor could have six licenses, depending on what city, township, county they work in.
Speaker A:There are no hard and fast rules.
Speaker A:The first thing I want you to do is understand what your laws and rules are figure out, do some research, go online and see what they require.
Speaker A:Sometimes it's even, you know, what's in the contract, how they do business with you.
Speaker A:That can be a big deal.
Speaker A: contractor can get fined like: Speaker A:So it's a big deal in some areas.
Speaker A:So understand your local laws.
Speaker A:And that's not on this list, but it's one of the first things you should do.
Speaker A:So you're educated in the process to see if you've got somebody that's fly by night or following the rules.
Speaker A:So the first one here, generally speaking, I want them to be licensed, bonded, and have full insurance.
Speaker A:So if there's not a requirement for a license in your area, make sure they have a bond and they have an insurance.
Speaker A:And if they have employees, make sure that they're paying workers compensation for that.
Speaker A:Because here's why.
Speaker A:When you hire someone to come work in your house and they're going to tackle that next project, you want to make sure that the people there working for him are his employees and he's paying for their workers comp.
Speaker A:You don't want one of them to get hurt and you to get drug into a lawsuit saying that you were the employer.
Speaker A:I've seen this happen before and all of a sudden you're in trouble.
Speaker A:So we want to make sure that they have.
Speaker A:Here's one rule, and this is why some, this is a way that some of these contractors, 95% of them are awesome out there.
Speaker A:They follow the rules, they're legitimate business people, and they just want to do what's right for you and your home and provide themselves a living wage.
Speaker A:But here's what happens with some of the bad ones.
Speaker A:They will sit there, they will get their contractor's license and say, nope, I got no employees.
Speaker A:I'm not paying any employment taxes, and they're paying cash to the people working on your job site.
Speaker A:If they get Hurt.
Speaker A:Let's say they fall off the roof because they're doing some roof cleaning, you may be found liable or partially liable for that injury.
Speaker A:So that's why you want to make sure they have the license bond and workers compensation insurance on top of that.
Speaker A:So if you have a licensing board that's state run, it's really easy.
Speaker A:Reach out to them.
Speaker A:If you have a local license, call up the local area or city and say, who does your contractor's licensing?
Speaker A:All right, Are these guys following the rules?
Speaker A:Do a little research early on.
Speaker A:Now, I want to do this before I even call for a quote.
Speaker A:If I look up or somebody refers me there, this is where you do the research.
Speaker A:Because there's no reason wasting your time getting an estimate and taking hours out of your day discussing the project.
Speaker A:If they're not going to be a good contractor, that's going to follow the rules.
Speaker A:Now, the other thing I want you to make sure is, are you talking to the right person?
Speaker A:Is it a former employee that drives up with a magnet on the side of the truck and his old business cards and is skimming off the license of his former employer?
Speaker A:So that is something you can do a little further on in the research just to make sure.
Speaker A:One easy way to do that is to call in to the company and ask for that person.
Speaker A:And if you call in saying, hey, I'd like to talk to Jacob, call the main number, not their cell phone they gave you.
Speaker A:If they go, oh, Jacob's out in the field.
Speaker A:Oh, okay.
Speaker A:Yeah, he's working on a quote for me.
Speaker A:Can you have him call me back?
Speaker A:That way you've closed the loop in the office to make sure they know what's going on.
Speaker A:A little trick with you at the salespeople.
Speaker A:You want to verify if those people are actually working there for the company or if they're trying to skim off the license.
Speaker A:I have seen this happen.
Speaker A:I've seen contractors do that with friends, and then they get burned and they lose their license when a project goes sideways.
Speaker A:So be really careful of that.
Speaker A:Next up, do some kind of a background check.
Speaker A:See what's going on.
Speaker A:We have talked about the sledgehammer contractor.
Speaker A:My friend Amber.
Speaker A:We were on the show a couple years ago with this.
Speaker A:He's the guy that came Colorado and decided to repo her poorly remodeled bathroom because she said, whoa, this thing's not done, and we're not escalating or speeding up your payment rate.
Speaker A:This looks horrible.
Speaker A:He got mad about that because he hadn't got paid and came into her house, even though she wasn't.
Speaker A:She didn't give him permission to be there.
Speaker A:And he broke into her house, trespassed and destroyed her bathroom.
Speaker A:The good news was the bathroom was going to have to be destroyed because it was so badly done and had to be all torn out.
Speaker A:But here's the problem.
Speaker A:This guy is out there working in a contractor, not in Colorado.
Speaker A:He's someplace else.
Speaker A:He could be in your town.
Speaker A:And showing up as a legitimate contractor now, he's got a felony now on his, you know, a few felonies, probably on his record because he had to do some time for that.
Speaker A:This guy is not the guy you want working on your house with that kind of record and that kind of anger and low quality work issues.
Speaker A:Now, I have no problems with people that have turned their life around, former cons.
Speaker A:They have done their time, they're out, they got their life turned around.
Speaker A:I love those stories.
Speaker A:And I have no problem hiring some of those people.
Speaker A:I don't.
Speaker A:There's a lot of great people out there.
Speaker A:You know my buddy Dave Dahl from Dave's Killer Bread, great example.
Speaker A:That guy there ended up taking a ton of time, doing a ton of time, did some bad stuff, got out of prison and built his own bread company and then spent his entire time while he owned that bread company hiring people coming out of prison to help get their lives turned around.
Speaker A:So I'm in full support of that.
Speaker A:I just want to make sure that you're hiring somebody that's not there, that's got warrants, that has the wrong people.
Speaker A:So do some research, do some googling, see what you can find on the people.
Speaker A:And if you can find out who the ownership is, take a look.
Speaker A:Because I know of a kitchen design firm up in Seattle right now that is in a multi million dollar lawsuit.
Speaker A:And those guys, you don't see it anywhere.
Speaker A:But if you hire them right now to do a kitchen remodel, you could be in a world of hurt where their world comes crashing down and your kitchen's halfway done.
Speaker A:So these are things I want you to be very careful of and that'll help protect that project.
Speaker A:So do your background check on the people and the business and make sure you take a look at those previous projects.
Speaker A:What have they done?
Speaker A:Talk to some people.
Speaker A:Now when we come back, we're going to dive into this more about those top 10 questions.
Speaker A:We come back, we'll dive into those top 10 questions for contractors just as soon as around the house returns.
Speaker A:But kids these days will never understand what it's like to play an instrument and be in a band.
Speaker A:What's up?
Speaker A:This is Sticks it in ya and Satchel from Steel Panther.
Speaker A:And you are listening to around the House with Eric G.
Speaker A:Yeah, we love Eric G.
Speaker A:And you should, too.
Speaker A:1987.
Speaker A:I never wanna leave.
Speaker A:Welcome back to the around the House show, the next generation of home improvement.
Speaker A:I'm Eric G.
Speaker A:Thanks for joining me today.
Speaker A:We've been talking about my top 10 questions that you should ask a contractor before hiring them.
Speaker A:And this hour is brought to you by our friends at Monument Grills to check them out@monumentgrills.com and if you want to find out more about us, anything about the around the House show, head to aroundthehouse online.com we've been talking about these questions.
Speaker A:Ask these contractors before you hire them.
Speaker A:And I think this is some of the most important stuff for these first ones right here and the third one on my list, we talked about license bond insurance, whether or not they have workers compensation for their employees.
Speaker A:B was or number two was doing your background check.
Speaker A:Number three, clear written estimates.
Speaker A:And this is a huge one warning number one for me on a contract or even a proposal kitchen design, kitchen remodel.
Speaker A:And a number that does you absolutely no good because here's why.
Speaker A:You can take that exact same kitchen space and probably do a remodel with the lowest quality materials and the lowest quality labor.
Speaker A:Let's just pick a round number, $50,000.
Speaker A:Now you can go in and do that same project for $350,000.
Speaker A:If you went out and spent the crazy world on that.
Speaker A:Now your numbers, unless it's written out, is probably the 50,000, whether you like it or not, because there's no description of what's going into it.
Speaker A:So I want to see like a kitchen remodel, for instance.
Speaker A:I want to see 4, 5, 6 pages to the estimate.
Speaker A:I want to see estimate.
Speaker A:I want to have it broken out.
Speaker A:Now here's the thing.
Speaker A:Now that I've got the contractor screaming at me, that takes hours.
Speaker A:You're right, it does take hours.
Speaker A:But here's how I see it.
Speaker A:If you hire a design firm or design build firm or you've got a kitchen design you're working with a designer on and they bring the contractor out, I want the contractor to come out and go, that's 120 to $150,000 project.
Speaker A:And you go, okay, I can only spend 140.
Speaker A:Contractor goes, all right, I can do you a detailed bid.
Speaker A:It's going to cost you 400 bucks but I'll give that money to you and put it towards your deposit when you order it.
Speaker A:That to me at this point is fair because they're gonna have to take a workday and itemize everything out, spend the time, put it down to give you a hard estimate for this project.
Speaker A:Now they can give you allowances.
Speaker A:They can go down and say kitchen cabinetry, $32,000.
Speaker A:You see what I mean?
Speaker A:And put some specs in.
Speaker A:This is, this is black walnut flat slab veneer, soft close plywood box construction.
Speaker A:I want to see knobs, handles, what's the electrician?
Speaker A:I want to see the stone countertop fabrication.
Speaker A:I want to see all those things lined up with all the details.
Speaker A:So that way you can go, oh, wow, I don't want laminate and I want stone.
Speaker A:Okay, that's a different price.
Speaker A:So you can get that dialed down and get that.
Speaker A:I'm perfectly okay with you having to pay for that because I don't think anybody out there should be working for free because at this point you're not under contract.
Speaker A:But you want to see those details and they're going to have to spend some significant time on it.
Speaker A:So it's okay to pay for that as long as you're getting that back in the price of it.
Speaker A:And so that way you know, and they're going to be held accountable to those numbers to some extent.
Speaker A:So these are things that you want to make sure about.
Speaker A:So take the time and get that clear written estimate.
Speaker A:So the other question I have for you is that estimate that is now pretty much ready to go to contract, is that written to be legal in your area?
Speaker A:So that's where knowing all of your rules and laws and at least having a general understanding of what happens in your area will help you be better informed on getting through that.
Speaker A:So something to think about.
Speaker A:But I want to see that thing is dialed in beautifully.
Speaker A:Perfect handwritten estimates.
Speaker A:That's a problem to me.
Speaker A:I would much rather see something that was used in one of the new computer systems.
Speaker A:Because I tell you what, these new systems that you see out there really help manage construction companies.
Speaker A:They'll manage their cash flow, they'll manage their incoming projects.
Speaker A:Contractors that use the latest technology in managing their job sites, their costs, their profits, expenses, orders, all that stuff are generally more organized and more committed to a smooth workflow than somebody writing you an estimate on a yellow legal pad.
Speaker A:That's something to consider as well.
Speaker A:Those are all warning signs to me.
Speaker A:Are there great contractors that write them up at a.
Speaker A:And a book that Come out there and maybe they're doing a small project.
Speaker A:Yeah, I have no problem with that.
Speaker A:But with remodels or big projects, I want to see things itemized out.
Speaker A:So the next one, guys, is an important one.
Speaker A:And this happens when the economy gets a little rough like it is now.
Speaker A:Are they an expert in this kind of project?
Speaker A:Do you have a roofer that's saying he could pour a concrete pad for your hot tub out back?
Speaker A:Do you have a finish carpenter that thinks they know how to do tile?
Speaker A:You see where I'm going with this?
Speaker A:I want to make sure that the people that are hired know what they're doing.
Speaker A:And you're paying for experts in their trade and they know what should be in there and what shouldn't.
Speaker A:So making sure that you're hiring the right people for this project, I don't want you to hire somebody.
Speaker A:I've seen a lot of guys do this before.
Speaker A:I'm going to give it a shot.
Speaker A:I don't want to be your first one.
Speaker A:So the roofers should be roofers.
Speaker A:The window siding guys should be window siding guys.
Speaker A:Deck builder should be a deck builder.
Speaker A:There's a lot of little tricks to all of that that you should really follow to make sure that you've got it dialed in.
Speaker A:So dial those things in.
Speaker A:Don't be the first.
Speaker A:And a lot of manufacturers like H vac Roofing, a lot of these companies, when you look at the material suppliers, they have training, they have ratings, and if you're hiring a tile person, are they, do they have the CTA number?
Speaker A:Are they a tradesperson by license?
Speaker A:Have they gotten any certifications in their field?
Speaker A:These are all great things to ask.
Speaker A:Make sure that these people are who they say they are and they're a pro.
Speaker A:Now, the next one here is important.
Speaker A:And some contractors give this out and are very open book.
Speaker A:And some don't want to give anybody how they do their business.
Speaker A:And the question that I always have is, how do they operate?
Speaker A:Are they buying materials and marking them up?
Speaker A:Do they tell you to go out and buy the materials and they install them?
Speaker A:And actually, that is one of my warning signs.
Speaker A:When a contractor says, you go out and buy all the materials and I'll put them in.
Speaker A:You are now deferring a lot of liability to yourself, including warranty work.
Speaker A:Because in many cases, if you supplied the products, that contractor only has to put a warranty on their installation.
Speaker A:Which means if your state has a one year warranty for contractors and the faucet valve quits in the shower and you've got to tear it out to get it in there.
Speaker A:If it's defective and it was installed properly, you're responsible to pay them to do it.
Speaker A:So you might be saving 20% trying to order it online, but you could be taking a huge risk by letting them buy it at cheaper marketing up a little bit and you end up playing close to retail.
Speaker A:Now we're getting into the nuts and bolts of this when we get back.
Speaker A:So I want you to understand what the pluses and minuses of this are because it's a really different look at how this can cost you a lot of money while you're trying to save it.
Speaker A:To find out more about us or send me a tip or something you want heard on this show, head to around the house online.com we'll be right back with more of around the House.
Speaker A:Hey, this is Ron Keel, the metal cowboy from Keel the the Ron Keel Band and Steeler.
Speaker A:We are rocking around the house with Eric G.
Speaker A:Ray is you.
Speaker A:Welcome back to the around the House show, the next generation of home improvement.
Speaker A:Thanks for joining me today.
Speaker A: 're going to hire one here in: Speaker A:And this hour is brought to you by our friends at Monty McGrills.
Speaker A:Check them out at moneymcgrills.com so we were talking about here, how does the contractor operate?
Speaker A:And I want to reset this a little bit for those that are just joining us on the radio here coming back from break.
Speaker A:When you hire a contractor, there are risks and warranties that you have to deal with.
Speaker A:Now that contractor seriously can go out, buy the materials, they're going to get it at a reduced rate.
Speaker A:Things like plumbing and lighting can have more than lumber and building materials, but they're going to get that at a cheaper rate.
Speaker A:Now many of them mark them up 20, 25% because they have to go pick it up.
Speaker A:They've got to order it, they've got to put all that in and those dollars run through their books.
Speaker A:So they're getting taxed on all that stuff, depending on the tax, how they go.
Speaker A:So you really want to make sure that they're covered.
Speaker A:So they're staying in business.
Speaker A:But by them supplying materials, they're also on the hook for whatever your warranty rules are in your state.
Speaker A:So that's really important.
Speaker A:What can happen is if you say, oh, no, I'm gonna buy the products or the contractor says you buy the Products, I'll put them in many times when I see that the contractor doesn't have credit, doesn't want to go to Home Depot and go buy it, because they're gonna go down there, put it on a credit card, waiting for your deposit or whatever.
Speaker A:And they don't have to warranty it.
Speaker A:So these are all questions that I go, okay, that's weird.
Speaker A:I want that contractor buying the materials and their subs and.
Speaker A:Or their subs.
Speaker A:Because I want the plumber, if it gets installed correctly or there's the defective plumbing, plumber runs out and fixes it.
Speaker A:It was bad, take care of it.
Speaker A:I don't want that to be on me as a homeowner.
Speaker A:So something to consider there.
Speaker A:Now the other thing is I really want them for you to follow up and ask.
Speaker A:Really let me be a little more clear with that.
Speaker A:I want you to make sure that all the subcontractors that they use are licensed, bonded and insured.
Speaker A:Is that a licensed plumber, Licensed electrician.
Speaker A:A good contractor has his or her subcontractors that they work with time and time out.
Speaker A:These are their people.
Speaker A:Now where that helps you, and this is where diyers get in trouble sometimes is that contractor could be worth half a million dollars to these people if they're a busy contractor.
Speaker A:So if you're a homeowner and you've got electrician supposed to show up at your house today, and you're a one time use maybe twice, and the contractor calls up, that contractor's gonna get the electrician first.
Speaker A:Cause they know, hey, that's my bread and butter, Mr.
Speaker A:Homeowner.
Speaker A:I'm sorry, gonna have to wait for you over here.
Speaker A:We had something come up, can't make it today.
Speaker A:I'll be there tomorrow or late today.
Speaker A:Reschedule where the contractor is going to get them out there because they want that business, they want that relationship.
Speaker A:So that strength is super important.
Speaker A:So poke around that a little bit to find out more information.
Speaker A:Now one of the biggest things that's getting that really gets missed in a contract, this is something that I just go, wow, this is crazy.
Speaker A:And that is the payment schedule.
Speaker A:I want to make sure that payment schedule is written out and is ironclad.
Speaker A:Like I want to see it dialed in a hundred percent, this much down, this much at this progress.
Speaker A:Because here's where the issues come up.
Speaker A:And we talked about it a few weeks ago and we had a construction attorney on here.
Speaker A:And these are really those things that I think that we should pay attention to.
Speaker A:Sometimes you will Have a big deposit.
Speaker A:Now, it could be written out differently because some states limit as much of a deposit you put down.
Speaker A:Now, I don't want to put a deposit down until I have the entire scope out and we know exactly what's going in there.
Speaker A:Like, the design work is done.
Speaker A:That's where things need to be done.
Speaker A:Because again, I've seen this go badly more than once.
Speaker A:And what happens is that you'll get the contract and they don't put in the payment schedules.
Speaker A:All of a sudden, you got the contractor at the end of the first week going, hey, can you pay me for this weeks?
Speaker A:And you're like, I just paid you deposit.
Speaker A:I know, but that paid for parts.
Speaker A:Can you pay me this week?
Speaker A:You want that spelled out?
Speaker A:Sometimes with big projects like a deck kitchen or a bathroom, you're ordering all these custom pieces.
Speaker A:And many showrooms, places like that, they require you to pay in full to be ordered.
Speaker A:So if you've got a $250,000 kitchen model and you've got $125,000 worth of stuff that's getting ordered, I see putting a deposit down and then having to pay all of that upfront for the materials, I think it's legitimate.
Speaker A:I don't think that the contractor has to be your bank and carry the cost for that.
Speaker A:So there's a fine line there.
Speaker A:So you need to understand what the materials are and where those are going to get paid for.
Speaker A:Because otherwise you're getting into a weird position that's going to happen.
Speaker A:Do you want to give them and say, okay, hey, I want to have receipts showing this stuff is paid for?
Speaker A:Because the last thing you want to do is have them put it on something where the contractor doesn't pay for it.
Speaker A:It's on their account.
Speaker A:And all of a sudden they run into financial problems, and you've got a lien on your house, and you're having to battle that saying, look, here's my receipt.
Speaker A:I paid for it.
Speaker A:So these are the things you really want to do to protect yourself with that.
Speaker A:So a clear payment schedule.
Speaker A:And there need to be benchmarks.
Speaker A:And I don't mean that when the drywall's finished, no, like, painting is completed, all done, you want to have these benchmarks in there so it's very clear how are you going to pay?
Speaker A:Is going to be a check, can be a bank transfer.
Speaker A:How is that going to get paid out?
Speaker A:Now, another thing, on a side note on this, if you're doing a home improvement construction loan, I totally understand if that contractor has to charge you more for jumping through the thousands of hoops for the bank.
Speaker A:Because sometimes you'll have a bank showing up out there doing a.
Speaker A:They want all this paperwork, they want all these progress pictures.
Speaker A:They're going to have their own inspector coming out before they cut the check to the contractor for the next one.
Speaker A:These can be some of the hardest projects to manage because cash flow is always late.
Speaker A:The bank is always difficult to work with, and they don't understand construction that well.
Speaker A:And so what happens is they like to get the cart before the horse a little bit.
Speaker A:And I've seen that.
Speaker A:So expect to pay 10 or 15% more because there is 20% more work on the management side for the contractor.
Speaker A:So don't be surprised if you get one of those construction loans to rebuild your house.
Speaker A:That can be an issue when you're working with the banks.
Speaker A:It's really tough.
Speaker A:It's really tough.
Speaker A:So that's all I want to talk about with how do they operate?
Speaker A:I want to make sure that they're operating smoothly and that you're not getting caught up in the middle of that.
Speaker A:And of course, just how are you paying them money?
Speaker A:That's a big one.
Speaker A:So the next thing I want to talk about is how they operate.
Speaker A:And this is where you need to be very careful to watch how things happen.
Speaker A:How are they showing up on time?
Speaker A:Are they showing up when they say they're going to be at your house at 3:00?
Speaker A:Are they at your house at 3:00 to talk about the estimate or the first meet and greet?
Speaker A:Are they good at that?
Speaker A:Are they on time when they show up for the next meeting?
Speaker A:Are they prepared for that meeting?
Speaker A:These are all questions I have.
Speaker A:Are they giving you clear and open communication?
Speaker A:What are they doing?
Speaker A:Are they communicating?
Speaker A:Do they do emails?
Speaker A:How do they communicate?
Speaker A:Because right now, this is your honeymoon period.
Speaker A:This is the best part of the project right now as far as your relationship with the contractor.
Speaker A:Because a month in on a big project, you're tired of seeing them.
Speaker A:You want your house back.
Speaker A:You don't want all these people, even though you maybe have become friends with them.
Speaker A:You don't want them around your house.
Speaker A:You want your privacy.
Speaker A:You don't have to get up at 7 o'clock in the morning and get dressed on a weekday off that you took off to do some stuff, but they're romping around your house doing a project.
Speaker A:So these are things that you need to be very careful of watching.
Speaker A:And that way you're going to be okay with it so far.
Speaker A:Let's recap what we've talked about so far before we go out to break here.
Speaker A:My first question was license, bond and insurance.
Speaker A:My second one was background checks, finding out everything there, clear written estimates.
Speaker A:I want to make sure that they give you that.
Speaker A:Are they an expert in the kind of project that you're hiring them to do?
Speaker A:How do they operate?
Speaker A:What is their standard operating procedures in quotes, markups, all that kind of stuff?
Speaker A:And do they have a written payment schedule for you with progress payments?
Speaker A:And the last one we're talking about here, take a temperature check on how they work for you.
Speaker A:You have to do that.
Speaker A:It's not so much a question, but it's a question you have to ask yourself, how good are these people and do I want to work with them long term?
Speaker A:Do I trust them?
Speaker A:Your gut probably correct.
Speaker A:All right.
Speaker A:We come back.
Speaker A:We've got the last segment here.
Speaker A:We'll wrap this up.
Speaker A:We're talking contractors.
Speaker A:What are your questions that you should be asking them just as soon as AROUND THE HOUSE returns.
Speaker A:Welcome back to the around the House show, the next generation of home improvement.
Speaker A:I am Eric G.
Speaker A:If you're just joining us, we've been talking about my top 10 tips.
Speaker A:Basically, those questions you should be asking the contractor before you hire them.
Speaker A:This hour is brought to you by our friends at Monument Grills.
Speaker A:Check them out@monumentgrills.com we've been cruising through the list here, and when we went out to break, we were wrapping up, taking a temperature check and making sure that their personality is going to work with you and how they operate because it's in the honeymoon period.
Speaker A:The questions I want you to notice, maybe not physically ask, but take a look at their organization.
Speaker A:If they show up and if this is like a big remodel project, if they show up and you're looking at it going, man, their folder's a hot mess.
Speaker A:They can't find anything we've talked about.
Speaker A:There's no organization that's a concern.
Speaker A:And again, back to that computer program again.
Speaker A:I want to see if they're using some kind of a job site program for a better communication system for you because that makes a big difference right there and how they communicate and how they track all the millions of little pieces on your job site.
Speaker A:So the next one here is I want to find out who their major suppliers are they work with for your project.
Speaker A:And I would stop by and ask people around the showroom, around the lumberyard, if you're getting ready to tackle A big project.
Speaker A:Hey, how is Mike's construction company to work with?
Speaker A:Pretty good.
Speaker A:See what they say go down.
Speaker A:If you're going to the lumberyard and you're picking out decking, for instance, if you're down there talking to them about decking, colors and stuff, just ask the question, go, hey, what's Mike like to work with?
Speaker A:Is he pretty solid?
Speaker A:And they go, oh, he's one of our favorite contractors.
Speaker A:Everything else, if you see him choke and go, if you see him, he needs to come pay his bill, you got a bigger problem.
Speaker A:So ask around and see how they work with you can really get when you're in picking stuff out.
Speaker A:Hey, how's he to work with?
Speaker A:Pretty good.
Speaker A:Oh, he's our favorite.
Speaker A:All right.
Speaker A:That means he pays his bills and probably not bringing a bunch of problems in there after the fact for warranty work or things like that.
Speaker A:If he's got a good relationship, she's got a good relationship with the suppliers, then you're probably on the right road.
Speaker A:Now, here's the next one.
Speaker A:And this can be pretty tough.
Speaker A:And this is one of those that I look at and go, I don't know, this is a little rough.
Speaker A:Are they supposed to pull the building permits in your area?
Speaker A:So if you're doing a second story deck, a big warning sign for me is when they send you, the homeowner down to get the permits.
Speaker A:Because in my area, they want the building department wants the contractor to come down and do it, but that also forces them to get in front of the city and to be a legitimate, licensed bonded contractor.
Speaker A:If that doesn't happen, you've got a problem.
Speaker A:If they're trying to push it over on you, that's another warning sign.
Speaker A:Now, if that's the way things operate in your area, nothing wrong with that.
Speaker A:That's just how it works.
Speaker A:So this is where, again, you need to be sure on what you're working with as far as your local codes, laws, and everything else.
Speaker A:When you need that permit, when you don't.
Speaker A:And I also, when a contractor goes, ah, you don't need a permit for that.
Speaker A:As you're doing your research and as you're asking questions, I would make sure.
Speaker A:Do you have that verified and figured out?
Speaker A:Because I want to make sure that you're getting the permits you need for that.
Speaker A:You're paying for the job to do, right?
Speaker A:You want that done right?
Speaker A:I make sure that they're out there inspecting it.
Speaker A:You're paying for that.
Speaker A:Make sure you're doing that permit and you're getting it dialed in.
Speaker A:So that's the next one right there.
Speaker A:And here's the other one here.
Speaker A:When you're working on a kitchen remodel and you've hired somebody or a bathroom remodel, these all require plans so you can look at it.
Speaker A:Especially if you're pulling permits on it, they want to see the plans.
Speaker A:Are they going to supply those to you when you sign on the dotted line?
Speaker A:Now, you could be working directly with a designer.
Speaker A:I totally get that.
Speaker A:But if you're working through the contractor and the cabinet supplier, for instance, are they supplying you with the drawings so you can take a look at them?
Speaker A:Now, I don't expect that contractor to supply you with drawings until you've got some kind of deposit made because someone has sat down and drawn that.
Speaker A:Now, if you've paid a designer to do it, that's great.
Speaker A:But they're not supposed to be really supplying those to you until the appropriate fees, deposits or whatever have been paid.
Speaker A:But those plans are something that are going to define this project.
Speaker A:So when you go to contract, for instance, on a kitchen and bath remodel, you want to have a door sample.
Speaker A:You want to have this stuff.
Speaker A:So you want to ask if they're going to be giving you at the time of contract all the plans and stuff so you can approve them because you're going to.
Speaker A:If you have stain colors, you'll be signing off on a stain color, a door sample.
Speaker A:Now, if you're weeks, week or two from going to contract, you want to have that door sample.
Speaker A:So did the contractor order one for you or get one from the supplier?
Speaker A:I want you signing off on all the right stuff because that protects you and it also sets an expectation for that.
Speaker A:Now, I'm in a group and it's a great group on social media.
Speaker A:I do a lot of different stuff.
Speaker A:I'm in one called Ask the Appraiser.
Speaker A:And I'm also one this.
Speaker A:It's a really good cabinet group and it's a lot of fun one.
Speaker A:And it's Ask a cabinet Maker.
Speaker A:And so I'm in that group as well.
Speaker A:And if I tell you what the biggest problems that we have, it is huge.
Speaker A:If you look at the problems that show up on that group, it is the number one thing that I see of installed cabinets and this private group is almost 32,000 members.
Speaker A:The number one thing that I see go sideways is the contractor, slash, cabinet maker not getting all the right information for approvals to the client homeowner.
Speaker A:Here's what I see.
Speaker A:If you could just watch a group and learn.
Speaker A:This is where it is.
Speaker A:It is not the major cabinet manufacturers that have the problems in this group.
Speaker A:It is the small contractor slash cabinet shop.
Speaker A:Now it could be both where it's a contractor and he's building the cabinets.
Speaker A:It is the finishes, it is the customer expectations.
Speaker A:It is all of that miscommunication.
Speaker A:And quite frankly, some of the cabinets that are in there that are like painted white literally look like a five year old finger painted these things on there.
Speaker A:I mean it is absolutely horrible.
Speaker A:And I feel bad for many of these people because there is.
Speaker A:They're in their own nightmare.
Speaker A:So this in the cabinetry side of it is where you stop that from happening, is those expectations.
Speaker A:Have you looked at a kitchen that they've made?
Speaker A:Has your contractor looked at it?
Speaker A:I to these days I would not do a cabinet package for that's finished in place.
Speaker A:Too many problems.
Speaker A:You want those factory finished.
Speaker A:It's just not as good a finish on there.
Speaker A:You can't do the same finish in the house that you can do with a factory applied finish.
Speaker A:It just doesn't work that way.
Speaker A:But you're seeing this happen with all these small contractors and cabinet makers.
Speaker A:If you've got the smaller the cabinet maker, the more I want to see their finished work that you can go put your hands on it and see if it meets your expectations because that is going to be, you know, really what you've got.
Speaker A:So this is such a catch 22 of spending the time to do your research and making sure that it's all written down in the contract.
Speaker A:Because here's the thing, when it comes to doing a project with cabinets.
Speaker A:Oh, I'm having custom cabinets made or I'm having an Amish guy make them.
Speaker A:That's awesome.
Speaker A:But none of that requires the word quality to be part of it.
Speaker A:Custom just means you've got somebody there making it for your project.
Speaker A:Guess what?
Speaker A:If you walk into a independent kitchen and bath retailer that sells craft made Vantage, you can order a kitchen where the sizes were made custom.
Speaker A:If you need a 12 and a half inch cabinet box, they'll make one for you.
Speaker A:Technically, that is a custom cabinet.
Speaker A:They can do some custom finishes, they can do some custom this, that is a custom cabinet.
Speaker A:But I tell you what, you see the hot messes with custom and be very careful with that because it can burn you really badly.
Speaker A:And I hate to see that.
Speaker A:So let's go over our list real quick here.
Speaker A:These are the things that I want you that my top 10 things that you should be asking or considering before you hire that contractor.
Speaker A:License, bond and insurance.
Speaker A:2.
Speaker A:Background check, do a Google search.
Speaker A:Ask around.
Speaker A:3.
Speaker A:Clear written estimates, detailed.
Speaker A:Number four, are they an expert in this kind of project?
Speaker A:You don't want to be the guinea pig.
Speaker A:Number five, how do they operate?
Speaker A:Markups, all that kind of stuff so you can understand.
Speaker A:Six, do they have a written payment schedule with progress payments in your contract?
Speaker A:Ask if they don't, it should be there.
Speaker A:Don't sign one without it.
Speaker A:Make sure you do a temperature check on how they work with you.
Speaker A:Ask questions of how they operate, what you can expect, ways to communicate, text, phone number, email and I like emails because they are written and they can be introduced in court if things go badly.
Speaker A:I much rather have an email over a phone call so you have it backed up.
Speaker A:Next, talk to their major suppliers.
Speaker A:Ask who they are.
Speaker A:Go chat with them for big projects, ask.
Speaker A:See how they work together.
Speaker A:Number nine, they're responsible for pulling permits in your area.
Speaker A:Ask them, verify it.
Speaker A:And last, will they supply project plans and drawings for those larger projects?
Speaker A:All right everybody, that's the end of the show here for this one.
Speaker A:Those are my top tips for hiring that contractor and those questions or things you should be asking or researching.
Speaker A:If you have any questions on it, send me a message.
Speaker A:Roundthehousonline.com I'm Eric G.
Speaker A:Thanks for tuning in to around the House.
Speaker A:We'll see you next week.
