By Lance McCarthy
I took the easy way out last week. I talked about how ineffective the competitive bid is, but then I give you three silly (but better) ways to pick a contractor? Come on Lance, you can do better than that.
So this week, I want to answer some questions, then give you some great questions to ask. These tools should do a better job of helping you end up in a relationship with a contractor that is a good fit for you.
First, questions for me:
1. Where do I find a good contractor? First, of course ask your friends for people they trust (I’m sure you are already doing this). Second, check with NARI (the National Association of the Remodeling Industry). NARI is an association that includes many of the best and most ethical contractors in Kansas City. It is one of the only legit associations for guys that remodel. Finally, check online. “The Google” can be a great researching tool for local talent. ***If the contractor happens to write witty and informative columns for an amazing local online newspaper, that is a sure sign they are great!
2. How do I pick? Since the competitive bid has become obsolete, I suggest replacing it with the “competitive interview”. This means spending much less energy in the early stage focusing on guesstimate bids, and more energy spent evaluating the quality and fit of the potential company. This makes it much easier to talk to as many candidates as you need to find someone you can trust. (I’ll give you some top secret questions to ask in that interview).
3. How should the process work? Different companies have different processes, but the steps should go something like this…
1) Interview candidates
2) Select a contractor
3) “Rough-draft” design a space/create a budget
4) Refine the design and the budget
5) Get down to the penny and the inch and the color; build everything on paper
6) Sign the contract and start making a mess!
Now some top secret questions for the competitive interview!
1. Can I see your certificate of insurance? A legit company have-bare minimum- $1 million general liability policy as well as a worker’s compensation policy.
2. How does the IRC 2012 affect your work? The IRC (International Residential Code) is a big fat book of building codes, and most cities have adopted the 2012 version of this code. These include some great improvements to insulation and safety (among other things) that a competent contractor should easily be able to discuss.
3. What sorts of projects are NOT a good fit for your company? Every company has things they are better at and worse at. Look for an honest answer of things that would be outside their sweet spot either because of size or scope.
4. What is your lead-to-accept ratio? Translation: How many of the phone calls turn into actual jobs? If they don’t know, then they don’t have a good handle on their business. Less than 20% means they may be overpriced or they are sales companies masquerading as contractors. Over 40% could mean they are under-priced (which can be just as bad for a homeowner).