Step 1 - Be Prepared
There is a lot to think about when planning a home improvement project. The better prepared you are from the start the more smoothly the project will go. Larger projects will require plans prepared by an architectural designer. The Internet and home furnishings and design magazines are great resources to start collecting information and ideas. The contractors must have a good understanding of your needs, wishes, and limitations to provide a comprehensive bid and scope of work. Having a solid idea of design, material choices, and budget are critical to ensure you receive comparable, apples to apples proposals.
Step 2 - Interview Contractors
You could be working closely with a contractor in your home for several months. Selecting a professional that is well-suited for your particular type of project, has a solid reputation, and who possesses an agreeable personality are all important considerations. Take a few minutes initially on the phone with each prospective contractor to help determine who you want to consider for your project. Have they worked on similar projects as yours? Can they provide references for those projects? Will they provide financial references from suppliers? What is their availability for your project? Narrow it down to three or four contractors who satisfied your initial questions and schedule an appointment to meet in person. In the meantime, check with the Washington State Department of Labor & Industries and Better Business Bureau for any disputes with clients or subcontractors.
Step 3 - Review Proposals
A comprehensive proposal should include a scope of work, materials needed/agreed upon, subcontractors to be used, estimated time to complete the project, price, permit fees, payment terms, warranties, and procedures for change orders. For large projects, a payment schedule typically starts with 10-20 percent at contract signing, three payments of 25 percent evenly spaced over the duration of the project, and a check for the final 5-15 percent when you feel every item on the punch list has been completed.
You get what you pay for is especially true when hiring a contractor. Beware of the lowball bid. The contractor may be cutting corners or desperate for work, both cause for concern. Hiring a contractor that is not licensed, bonded, and insured places the consumer at significant risk and can cost thousands more in the long run. Most importantly, you want to select someone who is reputable, competent, and communicates well. Ultimately, it is best to spend a bit more on a contractor who provides quality work and who you are comfortable having in your home.
Step 4 - Check References
Before making your decision final, check with some references of former clients, preferably who had projects similar to yours. Ask if you can see the finished product. Visit a current job site. Does it appear safe? Are subcontractors and employees professional and courteous? Are proper measures being taken to protect the homeowner's property?
Step 5 - Finalize A Contract
Once you decide on a contractor, have a final contract drawn up that details the original scope of work and proposal including materials, subcontractors, price, permit fees, payment terms, warranties, and change order procedures; proof of liability insurance, worker's compensation payments, and a security or performance bond; start date and projected completion date; and a requirement that the contractor obtain lien releases from all subcontractors and suppliers. For residential jobs over $1000, the contractor must provide the property owner a Disclosure Statement outlining the customer's rights and responsibilities and information regarding liens.
Taking time to initially go through these 5 Steps will greatly improve the chance of your project being completed to your full satisfaction. Once the job is underway, take time to meet with the contractor regularly to ensure the work is progressing according to the contract and schedule. Check that the proper permits have been obtained and required inspections are conducted.
Once the project is completed, do a final walk-through with the contractor. Make sure any items on the punch list are completed before making final payment. If you request lien release documents, avoid making final payment for work performed until you have received the lien release.