Expert Tips

TOP 7 THINGS TO KNOW BEFORE HIRING A GENERAL CONTRACTOR

There are plenty of folks that are capable, through job and/or personal experience, to "Do It Yourself" their own renovations. Outside of those individuals, the rest of the population will benefit greatly by utilizing a professional general contractor.

Just like any other profession, a general contractor’s job is to be knowledgeable in all things construction. A professional general contractor will rarely encounter a situation that they haven't seen before and will have the resources to handle anything that presents itself. A general contractor will also have a regularly used group of subcontractors that specialize in individual areas of construction, thereby greatly decreasing the time the project will take compared to using a jack-of-all trades to complete the renovation.

Your general contractor will ultimately make or break your project. Choosing the best one is one of, if not the, most important decision you will make so be sure to verify all aspects of his or her credentials.

To do this, start by asking friends and neighbors for recommendations. Speaking with past and present clients of a general contractor is the best way to see if you will be happy working with a particular general contractor. Real estate agents and architects can be great resources for references as well.

Once you have a list of possible general contractors, contact each with a list of prepared questions. For example:

• Are you insured?

• Do you have a list of references I may contact?

• Do you have experience with my type of project?

• Do you provide on site estimates?

• Do you provide a detailed scope-of-work?

• Do you have a detailed contract?

• How do you handle payment?

• When would you be able to start on my project?

The next step is to meet potential general contractors in person to discuss the project in detail and to see how you interact.

Unfortunately, it's no secret that reviews can be fabricated, or purchased from unscrupulous companies. Amazon even tags its reviews with "verified buyer" to help consumers feel they can trust the review.

Most general contractors are not the size of Amazon so it’s easier to check if reviews are verified. Any review received should be from an actual client, so contacting the general contractor and asking to communicate with the client leaving the review shouldn’t be an issue. Most clients that are willing to take the time to leave a review on line or on a website, wish the company well and will likely be happy to speak with potential new clients.

General contractors rely on previous clients to earn additional business. Ask your general contractor for a current list of past and present client references to be sure the general contractor’s business practices line up with your needs.

Every general contractor needs to carry general liability insurance. It takes a legitimate company with a clean record for an insurer to write a General Liability Policy. So, if you're considering a general contractor that doesn't carry this insurance you should not move forward.

General Liability will cover bodily injury to anyone on the job site and will also protect the general contractor in case of litigation. In addition to General Liability for a new build or a large renovation, the general contractor will need to carry a Builder's Risk Policy. This policy will protect the structure during construction from damage caused by a worker or storms.

While you’re waiting to receive the estimate from your chosen general contractor, this is a good time to do some research on finishes that appeal to you. Look at light fixtures, plumbing fixtures, tile, carpet, wood flooring, counter tops, cabinets, etc. Anything that you will choose once the project gets going.

These are the items in the estimate that will be allowances. Your general contractor will put a number in the estimate that is generally what most people will need to purchase these items, but if you do some work up front and then give the general contractor the amounts you believe you will spend, it will help with the accuracy of your estimate. This is especially useful when borrowing money for your renovation.

For example, If you like a ceiling fan that is on the higher end of cost and your general contractor only allowed for a middle of the road cost, you will need to come up with the “over allowance” amount. Besides, it’s fun to look at all these things! One other option is if you’re using a designer for your project, have them do presentation boards with costs.

Most general contractors offer free estimates because money has everything to do with your decision, so it's really not possible to make a decision without knowing the cost for your project. However, the "free" estimate can range from big picture, to specific and detailed. More detailed estimates take more time for contractors to produce, but they can also provide more information which is invaluable when comparing estimates from multiple contractors.

Just like any other profession, general contractors contemplate the time and effort necessary to complete detailed estimates not knowing if they will be hired. Depending on whether or not you have plans produced will determine the level of estimate and scope of work you should receive before you hire a general contractor for your project. When no plans are to be produced, you should receive an estimate and corresponding scope of work that explains in detail what is included for the cost so as not to generate multiple change orders (additional costs) through the project. When having plans done after the estimate is provided, these plans should be given to the general contractor to develop a detailed scope of work based on the plans and a revised estimate, if necessary.

Always be sure the original estimate and the revised estimate are dated and identified separately to eliminate any confusion as to which one is the working, or final estimate. One sure way to add stress to your project is to think something is included in the original estimate, only to have your general contractor tell you it was not included. Be sure you know before you start what is included in the cost by reading all of the details.

When looking at the total cost of your renovation or new build, a good way to look at it is by separating the "shell" costs from the "finish out" costs. The shell cost will include all the build costs along with your mechanicals (HVAC, plumbing & electrical). These costs will usually be hard numbers within the estimate. Where the variables come in is with the finish out numbers. Things such as tile, plumbing fixtures, light fixtures, cabinets, countertops, etc. Pretty much anything that you as the client will be choosing. These items are usually added into the estimate as an allowance number and will increase or decrease depending on your choices. When comparing estimates between general contractor be sure to look at these two aspects of the estimate to be sure you are comparing apples to apples.

In the era of the internet, clients have many options to provide them with all the necessary documents for permit ready plans. However, there are several things to keep in mind when hiring either a licensed architect or professional draftsman.

In general, city code compliance is designed using the current year of International Residential Code (IRC 2018). But, each city has the ability to enforce additional code compliance requirements. For instance, what is required in Richardson to meet code, may not be the same in Dallas, or McKinney. So if you hire an architect or draftsman that is not familiar with your local code and your general contractor submits the plans to your city building department for a permit, the plans may not meet code and will be returned with required changes.

Hiring a general contractor that produces permit ready plans will eliminate any additional charges for code changes, and also insures that any drafting errors in the plans, often realized in the field, are handled by the general contractor on site rather than working further with the architect, or draftsman.

For renovations, when it is necessary to pull a permit is something your general contractor will evaluate and discuss with you. In general, adding square footage, any load bearing structural changes, plumbing moves, HVAC upgrades and electrical upgrades will require a permit. Every time you need a permit, the city will also require permit ready plans prior to issuing the permit for your general contractor.

WHAT TO DO BEFORE CONSTRUCTION GETS UNDERWAY

Communication between the client and the general contractor will drive the project. Honest, open communication can solve even the largest problem. Knowing what each is thinking and feeling at all times is the key to a successful project. No area is immune from this rule.

This can be accomplished through text, phone calls, meetings or email. Choose what works best for you, but be sure to set up a regular means of communication.

Projects that will be funded by a bank have very strict policies and procedures to follow. Being prepared for it will shorten the amount of time it will take to receive your funding and start the project.

Most general contractors will have one or more relationships with a lender through previous projects. Using your general contractor lender will help move the process along because the general contractor will know upfront what they need to provide the bank to assist you with your paperwork. This does not mean you can't use another lender, and there should be no business connection between the general contractor and the lender.

Whether for a renovation or a new build, the overall process goes like this:

1. The bank will require your credit information and financial records to start the process.

2. Next, they will require a detailed estimate and scope of work from your general contractor — along with the contact information for your general contractor.

3. The general contractor will then need to submit information to the bank such as references, proof of insurance, and company solvency information.

4. Once the loan and the general contractor are approved, the bank will okay the project start.

5. Most banks will not provide any upfront (mobilization) funds, so depending on your general contractor, you may need to provide these funds — usually 10%.

As the project moves along, your general contractor will submit a draw request for you to submit to the bank. These requests must be for work completed and materials purchased. The bank will then request an on-site inspection (for a fee to be paid by the borrower) to confirm the draw request. If all is as submitted, the bank will disburse the funds to you to then deliver to your general contractor. This process usually takes five working days.

In addition to a detailed estimate and scope of work, it is good business practice to receive a detailed contract from your general contractor. The contract should explain how non-job specific items are handled by the company.

Projects can evolve during the course of construction so having additional information is always good. Be sure to read the contract and discuss any items you need further clarification or would like adjusted to better fit your project.

Once your general contractor has committed to a timeline for your project and you are on their schedule, regular communication on start and finish dates should be seamless. Your final estimate and contract need to reflect these dates and any deviation due to any reason should be communicated immediately.

Each renovation is different so it is difficult to apply timelines to a kitchen, bath, or home addition renovation. Once the general contractor has had a chance to view the job and discuss options with the client, they will be able to give you a reasonable estimate of the time it will take, barring any unknown circumstances.

When building a new home, time to find land, design of the home and engineering of the design will rely on multiple factors and will depend greatly on your participation. Once complete, city permitting is the next step. From permitting to completion the average new build will take between nine and 12 months. Depending on your start date, weather can come into play and possibly delay the project.

In general, anytime it is necessary to pull a permit, you will need to add on no less than four weeks for plan generation, and no less than three weeks for a permit to be issued.

A lot of things can change the schedule, but communication on these items is critical. Discussing the big picture with your general contractor up front will help you understand how the process affects the schedule, which things have long lead times, and how you can help keep things on schedule.

Choosing to live in your home during a renovation will depend on several factors you will need to consider, such as the size or extent of the renovation, and the areas included. There are no hard and fast rules, but here are some things to consider

If you are adding on living space, but not touching existing areas, staying in your home is usually a good decision. If the added space is above the existing and your roof will need to be opened, this would be the time to reconsider. Once the new addition is "dried in", and not open to the elements, it would be safe to return.

Another thing to consider is your ability to deal with dust and debris. As hard as we try to contain the construction dust and debris with regular job site clean-up and plastic sheeting, the nature of construction is dirt and dust will find its way into every nook and cranny. People that have breathing issues, or sensitivity in any way (including visual), will be better off finding an alternate place to live.

Most homes have more than one bathroom, but unfortunately, most of us do not have multiple kitchens. Turning an extra bathroom into a kitchen during the renovation may seem like a good idea in the beginning, but after a few weeks this may serve as a huge stressor.

If you have children, they can easily find themselves in areas that are not safe; not to mention all the issues already mentioned. And if you have pets, it can be absolutely heartbreaking to see, or hear, a frightened animal who is experiencing loud noises and intruders everywhere while there is nothing they can do about it.

Depending on the extent of your project and how it may affect the neighbors, you may be served well by letting your immediate neighbors know of your pending project start and stop dates.

Some neighbors can become quite agitated by construction and take it upon themselves to cause all kinds of problems for you and your general contractor. Complaints range from noise, equipment, porta-potty issues, design of a home or addition, vegetation damage etc. Sometimes complaints are valid and your general contractor needs to be attentive and take responsibility for any issues caused by their crews. Other times, complaints are just that, complaints.

When this happens it can be as simple as picking up debris that has encroached on your neighbor's property to having to deal with a complaint to the city or HOA that your new home or addition does not meet city code.

Take a minute to assess your project with your neighbors in mind and decide the best next steps.

WHAT TO EXPECT DURING CONSTRUCTION

Most general contractors have a lead on their team that provides job site supervision and project management. These team members are responsible for making sure all of the general contractors instructions are being carried out each day.

These team members communicate with you and the general contractor throughout the project, and at regularly scheduled project management meetings with the general contractor. Depending on the size of your project and the need for daily supervision, your general contractor will charge a percentage of the estimate for these services.

Demolition requires a rather large receptacle to hold the debris until such time that it can be removed. The size of the dumpster will depend on the anticipated debris, as well as what can be housed on the property in a convenient location to be filled.

When a dumpster is not an option, due to the size of the property or access to the property for delivery and removal, a regular trash pick up should be performed to keep the job site free from trash and debris.

It is not recommended to allow workers to use a spare bathroom inside the home, so making arrangements for a portable toilet to be brought in for all workers to use during the project should be made.

When pulling a permit with the city, each main, non-cosmetic phase of the project will include on-site city inspections, and will need to be signed off prior to moving onto the next phase of the project. There is no charge for these inspections and your general contractor will handle them with all of the subcontractors responsible for the work.

The city will apply all up-to-date codes to your project. When renovating there may be items not included in your original estimate that may need to be brought up to code. These will be communicated as necessary by your general contractor. When it is not necessary to pull a permit by the city, it is a good idea for the client to inspect the project at each phase to ensure things are being installed as expected. Don’t be shy about asking your general contractor questions at any phase.

When you are lucky enough to have a great sense of what you like and don't like in design, working with your family, friends and your general contractor is likely going to be enough to have a fabulous outcome.

However, if you feel you don't have a good sense for what goes with what and you want to have more advice, most general contractors have a staff member that can work with you. They can go with you to vendors to assist with choices, as well as provide websites to use and then work with you to tie everything together.

The cost to do this is usually a fraction of the cost of a designer. For those clients looking for a professional designer or design firm, hiring this service is an option as well. When using a designer, they will provide your choices to the general contractor to determine square footage and quantities. When working with a designer, be sure to provide them with your estimate allowances if you want to stay on budget.

General contractors understand that sometimes a client's budget is tight enough that they feel they can save some money by offering to help with areas of construction and/or purchasing items themselves.

While most general contractors will allow item purchases — known as "provided by owner" — most will not work with you on co-construction projects. When you purchase items yourself, these items will not be subject to any profit and overhead, nor will you be assisted with the purchase.

General contractors know a lot about things that may not be so obvious to you when purchasing items like lighting fixtures, plumbing fixtures and appliances. Be sure you understand what you're taking on before you do this or you may find yourself with hefty returns, restock fees, and delays in the timeline for things that won't work for your project.

Alternatively, most general contractors will allow for a flat fee to assist with these items that is less than the normal overall percentage.

A professional general contractor should do everything they can to include all project costs as defined by you and or your plans, in the original bid for the job. This is not to say that errors, or hidden issues, can't happen, and your contract should cover how these situations will be handled.

When you have your plans produced by someone other than your general contractor, you may also receive change orders based on plans versus actual field measurements. When a change order is produced, most of the time it’s because the client is adding or changing items from the original estimate and scope of work. When a change order is necessary, a written detailed item and cost should be provided to you.

When your intentions are to pay for the project with cash, following the bank process for disbursement is still the best way for you to pay for your project. Be leery of any general contractor that looks for payments when the work has not been completed or materials are not on order or onsite.

When paying for the project yourself, you become the inspector. Pay as you go for work complete and materials purchased for each draw request.

General contracting is a very rewarding profession. They are welcomed into your home with the wonderful task of making you fall in love with your home as if you just bought it again, only better. They get to know you and your family and how you want to live in your home. They often care for your pets during the process and get to know them while they learn to trust us, as they trust you.

General contractors manage every aspect of your project, including:

• the subcontractors working on the job

• securing and paying for all materials used in your project

• payments and change orders

• permitting and city inspections.

• communication about the project to ensure everything is going as planned and on schedule.

For these services, among others, general contractors charge a percentage of the estimate to cover profit and overhead.

THE FINAL STEPS & DETAILS

Congratulations, you’re almost done! As you near the finish line, now is the time to put the final inspection to the project. All along, your project manager/job site supervisor has been inspecting each phase of the project, and if you are following our advice, so have you.

These ongoing inspections should leave very little for the punch list. Using a roll of blue painters tape, you will be asked to point out any issues by placing a piece of tape, or creating a written list to be given to your general contractor. You should expect any issues to be addressed to your satisfaction in a timely manner.

A very important step in the process is to have your general contractor or project manager provide you with the brand, color number and sheen for all interior and exterior painted surfaces. There will come a day when you want to do touch ups and this information will be invaluable.

Professional general contractors should warranty their work for one year from completion of the project. Your contract should detail out warranty information and you should ask your general contractor any questions you have after reading your contract.