Deciding on a Construction Company

 by Greg Cryns

            When it comes to hiring a contractor to build your home, there are a few things you need to keep in mind.  Remember that 

you’re hiring someone to create the home your family will be living in for years to come.  Your home is also one of the most important and expensive investments you’ll make.

            You don’t want to trust the building of such an important thing to just anyone.  You’ll need to take the extra time to find a quality contractor for your home.  By taking this time up front, you’ll spend less time in the end worrying and trying to take care of problems.

            Find out from the people you trust in life who they’ve used for construction jobs.  Word of mouth is one of the best ways to find out about quality contractors.  Find out from friends, family, and coworkers what companies have done work for them.  When you have a few names, it’s a good idea to do a little more research.

            Contact your local licensing board to make sure that the contractor has a license that’s in good standing.  In addition, you should check with the Better Business Bureau to determine whether any complaints have been made against the contractor.  Ask the contractor for several references from people who’ve hired them in the past.

            Once you have verified a contractor’s reputation from references and legal licenses, you’ll need to get some bids.  It’s a good idea to get at least three bids before you make a final decision on any one contractor.

            As you compare the three bids, you should take note of the types of materials and the cost of labor.  While the least expensive bid may appeal to your bank account, you need to make sure you go with the bid that provides the highest quality for the project you need done. 

            Going with the cheapest contractor could mean going with someone who won’t deliver what they’ve promised.  At the same time, that’s not necessarily true.  Be frank and open with your contractors.  Ask questions and find out how they’ve arrived at the figures they present to you.

            When you’ve compared bids and made a decision, it’s time to hire the company that you think is best.  At this point you’ll want to be very detailed about how the company expects to be paid, what deadlines they’re willing to meet, and what will happen if they don’t meet those deadlines.

            Your contract should be very detailed.  It should cover the quantity, description, and anything else specific to every job that’s being done.  The more vague the contract is, the less likely it is you’ll get what you really want.  Everything must be in writing to protect both you and the construction company.

 

Greg Cryns is the owner of Flat Fee Real Estate Guide - http://www.flatfeerealestateguide.com