- This topic has 19 replies, 11 voices, and was last updated 13 years, 2 months ago by UCGal.
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September 21, 2011 at 2:21 PM #19152September 21, 2011 at 3:10 PM #729603earlyretirementParticipant
I’ve done over 50 renovations and my approach with contractors is to get at least 3 very detailed quotes from them. Especially important is breaking down the labor vs. the actual materials.
I’d do a bit of extra work as I’d supply them with an excel spreadsheet to fill in the cost for each thing in each room. That way I could easily see where the differences were.
And then it’s just a matter of them either agreeing to go lower or match another quote or not.
It was a really educational experience for me as many times, contractor A would show me how they were able to get it down or explain it was impossible, etc.
Some contractors are busier than others and value their time more. But the key is just seeing where the differences are and seeing if they will agree to match it.
It’s been my experience, if you’re really cool with them and not a jerk about it, most will match others if it’s truly and apples to apples comparison of the quotes/materials.
September 21, 2011 at 8:10 PM #729607ocrenterParticipantFrom what I’ve seen, a typical contractor most likely end up making about 10% of the actual cost of the project. So if you get a good breakdown on material cost, and figuring $100/day/laborer, you can roughly figure out if his charge is within reason. If he comes so highly recommended, and the cost is just a little higher, that’s prob worth it for peace of mind.
September 22, 2011 at 10:23 AM #729623UCGalParticipantI think everyone here has heard me preach about doing full due diligence.
Check his/her license on the CSLB website. Things to look for on that site:
– change in bond insurer (especially if there’s a gap or it changed not on an annual basis – this *could* indicate that they had a bond paid out.)
– complaints. If there is a complaint that shows on the website it means it was pretty serious complaint and that the CSLB – which my limited experience suggests – tries to reject EVERY claim – deemed it worthy of not just investigation, but referral for legal action. Our complaint did not show on the website till it was ready to be referred to the state AG’s office.https://www2.cslb.ca.gov/OnlineServices/CheckLicenseII/checklicense.aspx
Check to see if they are being sued or have been sued a lot. In San Diego you can do party name searches using the link below. Check under the corporation name (if there is one) and the principal’s name(s).
http://www.sdcourt.ca.gov/portal/page?_pageid=55,1&_dad=portal&_schema=PORTAL
Check to see if they are lien happy – again, check under the company name and the personal name. In San Diego you can do this with a search of the online county recorders database. If they file a lot of mechanics liens it could be a red flag.
http://arcc.co.san-diego.ca.us/services/grantorgrantee/search.aspx
If they have a corporation, check their corporate status. Expired or suspended corporations are NOT allowed to issue contracts (although they can complete already started contracts.) They also can’t legally defend themselves in court – which is a quandary if things go bad. (At least the way our attorney explained it to us.) If it’s suspended, it may be due to non-payment of taxes – which might be an indication they are resource limited and don’t have the cash flow to be contracting.
You can check the corporate status on the SOS’ website.Finally, if you are worried at all about their finances – you can see if they’ve filed for bankruptcy on the federal pacer site. You have to register and provide credit card info – in case you order docs… but it’s virtually free. (I think I was billed $1.20 once.)
http://www.pacer.gov/findcase.html
Keep in mind, I’m coming to this from the viewpoint of someone who hired a contractor who we thought was great… till it all blew up. So I have a mindset of really paying attention to details when hiring a contractor.
Become familiar with the legal process of hiring a contractor who will be hiring subs. Learn what a “20 day notice” is. And make sure you get releases. Learn the nuances (like the “20 day” things means it can only look back 20 days from when it is served… the process it needs to be served, etc.) When things blew up we had some collections threats and lien threats from subs who had failed to file the preliminary liens in the time frame. There’s an overview description of this on the CSLB website.
All that said – I wish you good luck and happy remodeling. I know there are good contractors out there. (At least I’ve heard rumors of this. LOL)
September 22, 2011 at 10:46 AM #729624EconProfParticipantWow–really good stuff UCGal!
Your post should be saved for future reference by anyone considering hiring a contractor for a big job.
This also shows the value of Piggington.com.September 22, 2011 at 11:24 AM #729629kcal09Participant[quote=UCGal]I think everyone here has heard me preach about doing full due diligence.
Check his/her license on the CSLB website. Things to look for on that site:
– change in bond insurer (especially if there’s a gap or it changed not on an annual basis – this *could* indicate that they had a bond paid out.)
– complaints. If there is a complaint that shows on the website it means it was pretty serious complaint and that the CSLB – which my limited experience suggests – tries to reject EVERY claim – deemed it worthy of not just investigation, but referral for legal action. Our complaint did not show on the website till it was ready to be referred to the state AG’s office.https://www2.cslb.ca.gov/OnlineServices/CheckLicenseII/checklicense.aspx
Check to see if they are being sued or have been sued a lot. In San Diego you can do party name searches using the link below. Check under the corporation name (if there is one) and the principal’s name(s).
http://www.sdcourt.ca.gov/portal/page?_pageid=55,1&_dad=portal&_schema=PORTAL
Check to see if they are lien happy – again, check under the company name and the personal name. In San Diego you can do this with a search of the online county recorders database. If they file a lot of mechanics liens it could be a red flag.
http://arcc.co.san-diego.ca.us/services/grantorgrantee/search.aspx
If they have a corporation, check their corporate status. Expired or suspended corporations are NOT allowed to issue contracts (although they can complete already started contracts.) They also can’t legally defend themselves in court – which is a quandary if things go bad. (At least the way our attorney explained it to us.) If it’s suspended, it may be due to non-payment of taxes – which might be an indication they are resource limited and don’t have the cash flow to be contracting.
You can check the corporate status on the SOS’ website.Finally, if you are worried at all about their finances – you can see if they’ve filed for bankruptcy on the federal pacer site. You have to register and provide credit card info – in case you order docs… but it’s virtually free. (I think I was billed $1.20 once.)
http://www.pacer.gov/findcase.html
Keep in mind, I’m coming to this from the viewpoint of someone who hired a contractor who we thought was great… till it all blew up. So I have a mindset of really paying attention to details when hiring a contractor.
Become familiar with the legal process of hiring a contractor who will be hiring subs. Learn what a “20 day notice” is. And make sure you get releases. Learn the nuances (like the “20 day” things means it can only look back 20 days from when it is served… the process it needs to be served, etc.) When things blew up we had some collections threats and lien threats from subs who had failed to file the preliminary liens in the time frame. There’s an overview description of this on the CSLB website.
All that said – I wish you good luck and happy remodeling. I know there are good contractors out there. (At least I’ve heard rumors of this. LOL)[/quote]
Thanks a lot for the extensive reponse-I really appreciate it!
September 22, 2011 at 12:15 PM #729633UCGalParticipant[quote=EconProf]Wow–really good stuff UCGal!
Your post should be saved for future reference by anyone considering hiring a contractor for a big job.
This also shows the value of Piggington.com.[/quote]
I just wish I hadn’t learned some of this the hard way.I just wish it were fool proof. But it’s a starting point to weed out the worst folks.
September 22, 2011 at 12:45 PM #729636jParticipantLearn about joint checks. It can save you from buying stuff twice if your contractor goes belly up.
September 22, 2011 at 3:34 PM #729646UCGalParticipant[quote=j]Learn about joint checks. It can save you from buying stuff twice if your contractor goes belly up.[/quote]
This is good advice.
Unfortunately, both of our contractors didn’t like the idea. (Perhaps that should have been a clue.)And – if the job is big enough, you might consider a fund-control account. I know Dixieline has this service. This is basically an escrow account that will cut the checks to the contractor. It reassures the contractor that you have the $$ to pay for the job. And it provides the homeowner with another check/balance that milestones are met before checks are cut.
September 22, 2011 at 4:47 PM #729647JazzmanParticipantWhere is the best place to look for a contractor apart from recommendations?
September 22, 2011 at 5:41 PM #729652anParticipantPersonally, when I deal with contractors, I will try and buy the materials myself. Then hire the contractor to do the labor. I won’t pay them a dime until they finish. When they need to buy materials to complete the job, I always tell them to have the vendor give me a call when they’re at the cash register and I’ll give them my credit card info. So, the contract don’t have to pay a dime to do the job. But then they won’t get paid till they finish the job as well. I’m not sure how a hard project would work, but I would try to follow that philosophy. I’ve complete gutted out my house, put in new kitchen, bath, flooring, etc. and that method have worked out well. I tend to fill the garage with materials, then contact the contractors.
September 22, 2011 at 11:51 PM #729677CA renterParticipant[quote=UCGal]I think everyone here has heard me preach about doing full due diligence.
Check his/her license on the CSLB website. Things to look for on that site:
– change in bond insurer (especially if there’s a gap or it changed not on an annual basis – this *could* indicate that they had a bond paid out.)
– complaints. If there is a complaint that shows on the website it means it was pretty serious complaint and that the CSLB – which my limited experience suggests – tries to reject EVERY claim – deemed it worthy of not just investigation, but referral for legal action. Our complaint did not show on the website till it was ready to be referred to the state AG’s office.https://www2.cslb.ca.gov/OnlineServices/CheckLicenseII/checklicense.aspx
Check to see if they are being sued or have been sued a lot. In San Diego you can do party name searches using the link below. Check under the corporation name (if there is one) and the principal’s name(s).
http://www.sdcourt.ca.gov/portal/page?_pageid=55,1&_dad=portal&_schema=PORTAL
Check to see if they are lien happy – again, check under the company name and the personal name. In San Diego you can do this with a search of the online county recorders database. If they file a lot of mechanics liens it could be a red flag.
http://arcc.co.san-diego.ca.us/services/grantorgrantee/search.aspx
If they have a corporation, check their corporate status. Expired or suspended corporations are NOT allowed to issue contracts (although they can complete already started contracts.) They also can’t legally defend themselves in court – which is a quandary if things go bad. (At least the way our attorney explained it to us.) If it’s suspended, it may be due to non-payment of taxes – which might be an indication they are resource limited and don’t have the cash flow to be contracting.
You can check the corporate status on the SOS’ website.Finally, if you are worried at all about their finances – you can see if they’ve filed for bankruptcy on the federal pacer site. You have to register and provide credit card info – in case you order docs… but it’s virtually free. (I think I was billed $1.20 once.)
http://www.pacer.gov/findcase.html
Keep in mind, I’m coming to this from the viewpoint of someone who hired a contractor who we thought was great… till it all blew up. So I have a mindset of really paying attention to details when hiring a contractor.
Become familiar with the legal process of hiring a contractor who will be hiring subs. Learn what a “20 day notice” is. And make sure you get releases. Learn the nuances (like the “20 day” things means it can only look back 20 days from when it is served… the process it needs to be served, etc.) When things blew up we had some collections threats and lien threats from subs who had failed to file the preliminary liens in the time frame. There’s an overview description of this on the CSLB website.
All that said – I wish you good luck and happy remodeling. I know there are good contractors out there. (At least I’ve heard rumors of this. LOL)[/quote]
THANK YOU, UCGAL!!!!
We are also looking to add on to a house we just bought (closing escrow tomorrow). Your info here is invaluable.
We owe you, big time!
September 23, 2011 at 7:53 AM #729688bearishgurlParticipantCongratulations, CAR! I’m very happy for you and your family!
September 23, 2011 at 12:20 PM #729710UCGalParticipantCongratulations to you CAR, Mr CAR, and the younger CARs.
We may need to start calling you CAB. LolSeptember 23, 2011 at 12:44 PM #729714svelteParticipant[quote=UCGal]
I know there are good contractors out there. (At least I’ve heard rumors of this. LOL)[/quote]You made great points and I’ve saved your msg off for future reference.
Another thing to remember is that contractors change over time. We hired one 4 years ago that was fantastic, so when we needed more work this year we gave him a ring. This time around he had questionable, rude subs come into my house, fought with me over what he had originally agreed to do (though it was outlined in writing), and ended up getting me so angry I won’t use him again. What a difference 4 years can make.
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