Here It Is ! The Ultimate Guide to Choosing a Remodeling Contractor

(We've also emailed you a pdf copy)

In This Guide

  1. Types of Contractors: Big ‘C’ vs Little ‘c’
  2. The 5 Tool Contractor
  3. 4 Steps To Evaluate a Contractor 
  4. Understanding Estimates: Comparing Apples to Apples
  5. The #1 Question To Ask every contractor you speak with. 

Most people experience some apprehension and overwhelm when looking to hire a contractor to work in their home because we’ve all heard the horror stories and want to make a smart choice.

This no nonsense educational guide will give you the tools, information and resources to help you find the right contractor for you and your project.

There are lots of different kinds of contractors out there all with different ideas about service, quality and the nature of their business. Not every contractor is right for every homeowner and vice versa.

For simple projects you might not need a full service Design Build Remodeling Contractor.   But if you do need a high level of service it makes no sense to hire a contractor who does not have the staff or systems provide those services.

 

First A Few Definitions: Small ‘c’ vs Big ‘C’ Contractors

The term contractor can be confusing because people use it in different ways. The first thing you need to be aware of is the difference between a contractor (small ‘c’) and a Contractor (capital ‘C’). Anyone can call themselves a contractor (small ‘c’). Think drywall contractor or tile contractor. Some remodeling contractors are also a small ‘c’. Small ‘c’ means unlicensed and while a drywall contractor or tile contractor do not need a license a remodeling contractor most certainly Does. 

Only a state licensed professional can call themselves a Contractor (with a capital ‘C’). 

Contractor with a Capital ‘C’

When we use the term contractor we are referring to a State Certified Contractor (aka licensed contractor). According to state law, these are the only people who can pull permits and hire subcontractors to work on a kitchen or bathroom remodel. 

Subcontractor ( A type of small ‘c’ contractor)

A sub contractor (aka tradesman or trade contractor) performs a single type of work, like carpentry or drywall. There is no state licensing for this type of professional and they are not permitted to pull permits or hire subs. These companies my say they are licensed but are referring to their city operating license, not a Contractors license. 

Specialty Subcontractors (a big ‘C’ contractor)

Plumbers, electricians and HVAC professionals also need to be licensed by the state to perform their specialty in your home. Even a big ‘C’ contractor can not perform plumbing, electric or HVAC work without the proper license. 

Handyman Service (small ‘c’ contractor)

Handyman companies will often call themselves contractors or remodeling contractors but be aware most of these businesses are of the ‘small c’ variety. They are great resources for light remodeling, wood rot repair and other misc repairs around the house but most are not licensed or insured for any significant remodeling work.

How Can You Tell The Difference? Look for the license #

Licensed Contractors are required to post their license number on their website, trucks, trailer, business card etc… Our license # is CRC1331326 for example. You can also visit myfloridalicense.com to check the license of any contractor.

There are 3 main types of Contractor licenses in Florida: Residential Contractors, Building Contractors and General Contractors.

Residential contractors can work on any single family home up to 2 stories. Building Contractors can work on taller residential structures and do light commercial work. General Contractors can do anything.

Any of those 3 types of contractor can work on your home, though usually General Contractors focus more on new homes and commercial work and are not experienced in residential remodeling.

 

Do you need a licensed Contractor? 

The scope of work for your project will help you decide the minimum qualifications the contractor you need to hire. Here’s a short chart that might help:

Need A License

Don’t Need A License
Any time subcontractors are hired Install Pavers or concrete walkway
Anytime a permit is needed Interior or exterior painting
Build a Carport or Sunroom Drywall work (unless a moving load bearing wall is involved)
New Roofing and Roof Repairs Install flooring or tile
Kitchen remodel if plumbing, electric or walls are being moved Install cabinets and counters (if no plumbing or elec)
Any plumbing, HVAC or Electric work Trim work like baseboard or crown molding
New or replacement Windows or Exterior Doors simple woodrot repairs that are not structural
Bathroom Remodel is plumbing, electrical or walls are being moved New or replacement interior doors
Waterproofing a shower Install Glass shower enclosure
An important warning: If you use an unlicensed contractor neither your homeowners insurance or the contractor’s general liability insurance will cover you in case of any issues. Un-permitted work could also affect the sale of your home. 

Can You Act As Your Own Contractor?

In Florida you can pull permits and act as the contractor for your primary residence. Whether you want to do that  depends on a few questions:

  • Do you have the necessary building knowledge?
  • Do you have the necessary product knowledge?
  • Do you have the time to manage the project?
  • Do you have a source of reliable subcontractors?
  • Does your homeowners insurance cover you in case of accidental damage?

Hiring a contractor to run your project adds about 30% to the cost of a project. If you can manage those things on your own then you might be able to act as the contractor on your project.

Be aware though that your homeowners insurance does not protect you from liability issues the way a contractors general liability insurance does. 

The 5 Tool Contractor

Nathan Dishington once wrote a great blog post about the 5 Tool Contractor. Here’s his original post.

Here is our summary: In baseball they use the term “5 Tool Player” to describe someone who has all 5 of the main strengths that make up a great player. They are: speed, arm strength, defense, hitting for average and hitting for power.  The 5 tool baseball player is very rare and they do not come along very often.

Having a 5 tool contractor on your team is no different. Are they rare and hard to find? Absolutely,  but if you can find one, you are ensured top notch results. 

Here are the 5 Qualities You Want in A Contractor

1. Hands On Experience

They may not work in the field anymore but the best contractors started our swinging a hammer on site and knows the ins and out of construction. They also have a love of building science and are constantly learning about new methods and passing that information on to their employees and trade partners. 

2. Communication 

Often overlooked and the main source of problems on a project. A good contractor has systems and processes in place to ensure you are kept up to date on progress and to deal with any issues or changes. 

3. Design and Product Selection

The best contractors will provide you the design work. Either by subcontracting with or local designer or, ideally, by having in-house design staff. Far too many contractors leave the design work up to the homeowner to figure out and it almost always causes trouble during the project.

4. Administration.

Contractors have a business to run and the best ones run their business efficiently and profitably. Unfortunately a large number of contractors do not do this and when they start having business problems it can adversely affect your project.

There are 5 main administrative skills a contractor must have: 

Accurate Budgeting – you want your contractor to be profitable. You’d be surprised how many projects get abandoned or delayed when I contractor realizes the underbid and aren’t going to make any money on a job.

Scheduling – A contractor has to schedule design meetings, subcontractor bids,, materials deliveries, on site work and inspections. Creating, maintaining and communicating schedules is critical to a successful project. The best project managers will use industry specific project management software.

Record Keeping. Starting a project without a detailed scope of work and plans is akin to driving in a foreign country without GPS. Just don’t do it.

An Office – The best contractors will have an office and support staff to help with permitting, insurance, ordering, customer services and more.

HR – A successful contractor needs good people. Providing ongoing training and support plus dealing with workers comp, payroll, taxes, licensing, legal compliance are critical to running a successful business.

5. A Great Team.

To be the best you have to work with the best. Good contractors spend years cultivating relationships with the best trade partners and vendors available. 

4 Steps To Follow When Hiring A Contractor

Hiring a contractor for a large remodeling project takes time. Plan for at least a month of doing research and collecting estimates. It can take 2 or 3 weeks from the initial phone call until you get your estimate, even longer for some contractors. 

 

There are 4 Basic Steps to follow:

1) Research your options 

2) Make The Initial Phone Call

3) Schedule The Initial Estimate 

4) Compare The Quotes

Step 1.

Research Your Options

Usually when we ask ‘what type of contractor are you looking for’ we get an answer something like this:

 “I want someone who can do a quality job at an affordable price”

While that’s a good sentiment it’s not a very useful criteria for choosing a contractor as the word ‘quality’ and ‘affordable’ mean different things to different people.

Make A Short List Of Contrators

  • Start with A Google Search
  • Ask Friends on Facebook
  • Call Your Local Builders Association and Ask for Referrals

What Are You Looking For In a Contractor?

Here are some things to consider:

  • Do you need design help?
  • Do you need help with product selections?
  • Is a ‘jack of all trades’ type guy OK or do you want specialists to each part of the work?
  • Should they provide all materials or will you buy, pick up and store everything?
  • How important is a clean organized jobsite to you?
  • How important are daily communication and progress reports?
  • How important is an accurate schedule and project that finishes on time?

 

With those questions in mind start your research:

Check Their Online Reputation

While online reviews are not the only qualification they can help you evaluate potential candidates. Be sure to take the time to read the reviews and any responses the contractor gives (good contractors will respond to all reviews good or bad).

Watch out for short reviews like “these guys are great” or reviews with no comment at all. In remodeling, when a customer takes the time to leave a review they typically write a longer paragraph to explain their experience. Short reviews could be fake or just from friends of the contractor.

And don’t be scared off by bad reviews right away. If everything else about the contractor seem good, make note of the bad reviews and ask about them when you call, their answer can say a lot about them.

 

Visit their website and spend some time looking around

It’s 2019, it’s reasonable to expect a contractor will have a website that explains how they work and who they work with. It will answer a lot of the questions we’ve outlined below.

Not having a website shouldn’t be a complete disqualifier but it does indicate that they may not be in this for the long term or that they lack a certain amount of business sohistication.

 

Post to social media to see if any friends have had experience with them

Many communities in Tallahassee have Facebook groups or Next Door groups that are great for asking about local contractors.

 

Check license and insurance info (this should be on their website)

License and insurance info should be on the contractors website but if not you can find their license on DBPRs website. You can’t have a valid contractors license without valid general liability insurance.

Step 2.

The Initial Phone Call:

When you start to make calls make sure you are in a quiet place without any distractions. Good Contractors will be ready to spend 15 or 20 minutes on the phone with you to answer all your questions during the initial phone call.

What to look for one the first call:

  • Do they answer on the first call?
  • If not do the get back to you within a few hours?
  • Do they follow up phone calls with emails to confirm meeting dates etc…
  • When they answer do they sound professional or just say “yeah?”
  • Do they take time to explain things to you on the phone or do they sound rushed and distracted or bored?

What to tell them on the first call:

A good contractor is going to ask a series of questions so they can understand your project and what your expectations are. You should be ready to tell them:

  • What you would like done (or the problems you are having if you’re not sure exactly what can be done)
  • How long you’ve been thinking about remodeling
  • When you would like the project to start
  • If you’ve remodeled before
  • What qualities you’re looking for in a contractor
  • What your priorities are: lowest price, design and product selection help, dust control, fast completion etc…
  • How you got their info and why you chose to call them (as opposed to a different contractor)
  • Your approximate budget (if you know it)

Questions to ask on the first call:

  • Tell me about your estimate and design process
  • Describe a typical project from start to finish
  • Do provide all permits and working drawings?
  • How long have you worked with your sub contractors?
  • Do you do background checks and insurance checks on your subs?
  • How many projects like mine do you do in a year?
  • How long a typical project like mine takes to plan and take to complete
  • What would be a typical cost range for project like mine?
  • When is the next available time on your schedule for a project like mine?
  • What it the coverage of your general liability insurance?
    • The state minimum is $300,000, we recommend they have a $1,000,000 policy
  • Do you carry commercial auto insurance?
  • Do you carry workers compensation insurance?

Step 3.

The First Appointment:

Most contractors will start with a visit to your home in order to give you an estimate. How they act and perform on the initial visit can say a lot about their work practices in general.

Things to look for:

  • Did they confirm the appointment ahead of time?
  • Were they on time?
  • If they were not on time did they call ahead to let you know they were running late?
  • Do they look clean and professional?
  • Do they listen to you during the appt?
  • Do they seem knowledgeable?
  • Do they seem organized?
  • Do they take detailed notes and measurements?
  • Do you get a good feeling from them?
  • Bonus – sneak a peak at their work vehicle- is it clean and organized or is it a hot mess?

After the First Appointment

How a contractor acts after your initial appointment is also important. If they are unresponsive or slow to reply that could indicate trouble. How they behave before you sign a contract with you is a good indicator for how they will behave after you sign the contract.

  • Do they send a follow up email?
  • How long does it take to get your estimate?
  • How responsive are they to follow up calls or emails from you?

Optional: The Second Appointment

Some contractors will want to meet a second time so they can review the estimate with you and answer questions / make changes based on your feedback. Others will not. It’s my opinion that the best contractors will want to meet with you to review the estimate in person. Its the best way to make sure there are no misunderstandings and that you fully understand the quote being given.

How Long Until You Get The Estimate?

If it takes a long time (more than 5 to 7 working days) to get an estimate from a contractor its a sign that they are either

1) Disorganized 

2) Not familiar with estimting your type of project or

3) Really are not interested but are not professional enought to tell you.

The exception would be if they reached out to let you know why it was taking so long. 

Step 4.

Comparing Experiences and Quotes

The final step in the process is comparing the experience you’ve had with different contractors and comparing their quotes. 

Comparing Estimates

Here’s what to look for in the actual estimate:

  • A good estimate starts with accurate measurements. If your contractor does not take accurate measurement during the initial visit I would consider that a red flag.
  • A good estimate is itemized, each part of the project should be costed separately. This allows for a better discussion of changes that can be made if the estimate exceeds your budget but it also helps you to understand all the costs involved in the project.
  • A good estimate takes time to produce. Typically it takes at least 60 to 90 minutes of measuring and discussing the project and another few hours in the office. Estimates given on site after only a brief discussion should be considered ballpark figures only.

Comparing experiences:

  • Gut feeling – did you like them?
  • Did they always act professionally?
  • Was communication timely?
  • Was their truck clean, organized and well maintained?
  • Were they always clear about what to expect?
  • Did they seem knowledgeable and experienced about projects like yours?
  • Were they honest about things they did not know or would need to research?
  • Did you get to meet other people in the company? How was that experience?
  • Can you imagine these people being in your home for 6 weeks or more?

Comparing Quotes

Comparing quotes can be more of a challenge. Sometimes the prices can be so far apart it’s hard to understand why. And estimates are not written in the same format from contractor to contractor.

5 Reasons Prices Might Be Different

 

1. MarkUp and Profit

You can’t control the markup and profit your contractor will charge but the best contractors are going to have higher markup and profit numbers. They use that money to invest in staff training, better equipment and to have an emergency fund for when things might go wrong on a project. 

Contractors who don’t charge enough to cover these costs are always running out of money to cover basic expenses. They may use cheaper materials and equipment to cover the difference, opt out of important insurance coverage or worse. 

3. Allowances – Realistic or Not?

Allowances are budget amounts included in the estimate for things like cabinetry and plumbing fixtures. Many contractors will low ball these numbers to make their bid look cheaper. Once you realize the cost of these items is thousands more than the estimate indicated it’s often too late to change contractors. 

3. Design and product selection costs

Some contractors do not provide any design or selection services, they will leave that to you. Others will say they do design work but actually will just send you to another showroom in town and leave you alone to work with them. The design and selection costs are not included in their bid. 

4. Permits and working drawings

Some contractors include the cost of permits and working drawings, others do not and will charge for them as a change order after the project is approved. 

5. Accuracy – Could they just be wrong?

Some bids are just plain not accurate. Either the contractor forgot something or greatly underestimated the cost of something. This can be very dangerous because once the contractor realizes their error they will either bail on the job or start cutting corners to make up the difference. 

How to Evaluate The Accuracy of An Estimate

The scope of work generally governs the labor costs in an estimate. The allowance sheet outlines the materials to be installed. We’ll review both here and explain how to compare them. 

1. Examine the Scope of Work

A detailed scope of work will list everything to be done on a project and include 4 important pieces of information:

  1. Description of the work, incl who provides the materials
  2. Type and Quantity of materials 
  3. Method of installation and quality standard 
  4. Who will provide the materials

It’s not unusual for the scope of work on a kitchen or bathroom remodel to be 4 or 5 pages long. For example:

A Good Line in a Scope of work:  

Install Engineered Wood Flooring

Remove 120 linear feet of shoe molding in kitchen

Remove existing vinyl flooring in kitchen, including any glue residue

Level floors to within ¼  inch over 10 feet, no depressions should exceed ⅛ inch

Install vapor barrier

Install  250 sq ft of engineered wood flooring over concrete slab. Floating install. 

Install 120 sq ft of new shoe molding

painting and caulking of shoe molding to be done by homeowner. 

MKB will provide all flooring and install materials

See Allowance sheet for details on exact flooring included in the estimate. 

This outlines clearly what is to be done, how it is to be done and to what standard. It lists the quantity and identified who will purchase the materails. It also lists what will not be done. 

Bad Line in a Scope of work: 

Install 250 sf of wood flooring

This ‘bad’ version leaves too many unaswered questions and that can spell trouble. It’s another good reason to pay for an estimate. When you pay for a service you get a better result. Many free estimates are worthless.

2. Are the Allowances Detailed and Accurate?

Just like the scope of work the material allowances must be detailed and accurate. Allowance should also be line itemed and have the following information:

  1. Description of the product of fixtures
  2. Quantity and quality of the product
  3. Budget amount allowed in the estimate

You always want to check that the allowance amount is reasonable. Some contractors will low ball the allowance sheet (sometimes intentionally but often because they just don’t know how much things cost because they are not product experts). For example: 

A good allowance item:

Kitchen Cabinets

10 Base cabinets, 9 wall cabinets and 2 tall pantry cabinets

Allure series cabinets from Fabuwood, Galaxy frost door style and color

Includes Blum soft close door and drawer hardware, 

½ inch plywood construction and wood drawer boxes with dovetail joinery. 

3 drawer bases, 1 spice pullout and 1 trash pullout included

$5800.00 Allowance (to be updated once kitchen design is complete)

This clearly outlines what material is included in the estimate. You can research that item further if you like to make sure it’s what you want and check that the allowance amount is reasonable for that item. 

 A bad allowance item

Kitchen Cabinets:  $5800 allowance

 By comparison the bad allowance line item leave much to be desired. It gives you little to no information to help you make a decision.

 

Finally: The #1 Question To Ask A Contractor 

As you can tell from reading above there are a lot of questions to ask when researching a contractor. But there is one question that is not commonly asked that can be very helpful. 

“Tell me about a time when a project did not go as planned and how did you deal with it?”

Not every project goes well. Mistakes and unfortunate things do happen. What’s important is how does the contractor react when they do happen. Asking them this question can offer some valuable insights into how they work. 

  • Do they blame the bad project on the customer or on a subcontractor?
  • Do they take full responsibility and explain how they rectified the situation?
  • Do they avoid or evade the question? 
  • Do they talk about changes to their proceedures to avoid a similar incident?

This is a good question to ask in person, either at the first or second meeting with a contractor. You could also ask them about a bad review you found. Most kitchen or bath remodels take 6 to 8 weeks to complete. When’s the last time 6 or 8 weeks of your life went by without something going a little haywire? 

A good contractor needs to have a system in place to deal with unforseen problems and the unexpected.

More information:

If you’re still hungry for information we’re happy to help. You can email us at hello@mcmanuskb.com or give us a call at 850-354-8090. I hope you found this helpful and thanks for reading!

    Paul McManus
    McManus Kitchen and Bath
    www.6hu.fd9.myftpupload.com