Whether you’re a REI professional or homeowner, finding quality contractors is a challenge. There was a time in my life when I would’ve happily paid twice their rate if I could’ve found a plumber who simply showed up when they said they would be on site.
I’ve read some of the articles around how to find good, responsible workers who take pride in doing quality work. Suggestions such as checking with local inspectors, checking up on references, checking the Better Business Bureau for any complaints against them, etc. but this can quickly become a huge time sync.
I wanted to put the same question to this group and get a sense of what people do in the real world.
From my own experience, I start with Angie’s List (http://www.angieslist.com) to compile a list of candidate contractors and then bring in 3-4 of the top ranked ones for an estimate and interview. From those, I’ll follow up on their references and make my final decision based on that feedback and their quotes.
Referrals from friends and colleages… If something doesn’t go right, I’ll get another referral. My repair guy has tons of connections so all I have to do is tell him what I want done. He works out the details. He was a referral from our Realtor and has become a good friend of mine.
Angie’s list is great as are quality referrals from friends and family. Having worked in construction over 16 years and as a licensed G.C. I would place a lot of emphasis on the reputation and quality of work that you will hear from those you trust. You can also check your state’s general contractors website for license and info to be sure they are up to date and legitimate.
Referrals are the best way to get good contractors, but you need to know some real estate investors to really know which ones are the best and yet still don’t charge retail pricing (eg you don’t want to pay $300 for a plumbing job that can be done for $100). But Craigslist, Angies List and your local classifieds make very good places to find handymen and contractors too. One big thing that I will recommend is never, ever pay someone up front. Always have the work done to your satisfaction and then pay them…make no exceptions in the beginning. As you get more experienced with rehabbing, you can look at doing draws, etc with your workmen … but you need to build a relationship of trust with that person or those people first, and that takes time.
I am a contractor for REI's. I will be purchasing a few properties in the very near future to rehab. I find it best to purchase all materials. This eliminates issues of quality and financial risk. Provide them on site for the contarctor. The Home Depot delivery charge is small and gets everything there. Any good contractor can get alot done in 2-3 hours. I have 5 Home Depot's within 30 minutes and have never made a trip in less than 2 hours. I can't pass a Starbucks without stopping. The point is it takes time to pull the order, load it, and drive it to the site. This is your contractor not a delivery guy, let him focus on what he does.
Be very clear how the money is coming. Demo complete=Draw, Drywall hung Finished=Draw, or whatever works for you both. ALWAYS have a hold back amount that is significant enough to be a motivator that is not payable until the final punch list is complete. Be very clear that if the contractor does need to pick someting up for the job payment will be made when reciept is presented and always be available to o.k. a purchase by phone. " I tryed to call you we needed _______ but you didn't answer, so we quit early" will cost you money as the project will drag. Know what it costs you per day to carry a property you'll see how it can add up quick.
Be willing to give a guy a chance but don't extend yourself financially. You property is your project not your contractor. When dealing with a new contractor be on site daily you'll be able to tell right away what the deal is.
Asking from friends for recommendations will help. It would be very comfortable to have a contractor whose services has been tested and proven to be perfect, competent, and reliable. Also a contractor who’s from a company which is certified in giving quality service is more likely to be considered.
Hope this helps!
I believe personal referrals are hands down the best way to find quality contractors. Even then you need to be careful because a contractor may have done a good job for your personal friend, but for whatever reason they may do a terrible job for you.
I like to have new contractors start on a small project for me at one of my properties. I’m basically testing them out to see if I want them to work on a larger scale for me. I’m looking for…
Dependability - Do they show up on time and complete the work when they say they will?
Quality - Is their work at the quality I expect and that I’m paying for?
Cost - Are they honest and reasonable with their cost? Or are they trying to take me for an idiot?
If a contractor does a good job on their first small job, I’ll add another job or two and watch them again. Basically you’ve got to be in control of the situation. You’ve got to give yourself the opportunity to get rid of bad contractors. If you turn a property over to them and let them go, you’ll be in for a rude and expensive awakening.
Set their schedule by giving them specific jobs to complete, when they do it and you’re happy, give them another one. I’ve given contractors the entire job and never been happy with the results. They seem to get lost in all the work that needs to be done and end up doing a little bit of everything and not quickly finishing anything.
Once you find a good contractor and you’ve taught them how you want the jobs done - keep them! A great contractor who just does the work and does it well is such a valuable part of your team.
I have found them through word of mouth and advertising. I found one through a direct mailer (it’s called valu-pak here), that I really like. Found a couple on craigslist.
Please remember it is not always about price, just because someone charges more does not make them a better contractor. And on the flip side be wary of someone charging way below everyone else.
It is always best to get three quotes and really make sure the contractor understands the scope of work to get an accurate estimate.
Yes, business referral is the top way to get reputable contractors. Aside from this, look into the years of experience and how well established they are. Of course check if the contractor is registered to do business.
I’ll agree with GRIDcorp here. I order all materials on my own. That keeps a relationship with my suppliers and I know them all personally. I ask them when I need someone and have never had a bad referral from someone that I do business with like that. Keeping materials out of their hands avoids risk and a markup, and they are usually more than happy to work for an hourly rate on smaller jobs, which is usually better for you too. My lumberyard will deliver and I make it clear that I can get something delivered same day with nothing more than a phone call and it goes on my account, not theirs.
I had an experience with a contractor that I liked. I hired him to build a deck. He bid the job and gave me a materials list, which I ordered. I made it clear when he got the job that I wanted it done before I went on vacation so I could pay him immediately, and he said he could do it but then it rained for three days straight.
I went and talked to him before I left and told him to email me pictures of the completed deck and I would send a check immediately. He did that on a tuesday evening, and I expedited a check to him that he had friday (at additional cost on my part). He was upset that it took me so long to pay him and won’t look at work I have now. I don’t feel bad about it because I paid him pretty fast and neither of us could help the rain (he knew when he took the job that I was leaving for vacation). It’s just a shame because now I can’t use him again.