Wednesday, February 23, 2011

Evaluating an Estimate

This is an extremely important aspect of successfully hiring a Contractor. Let’s break it down into sections and address each one.

The Scope of Work:
This defines what the contractor is doing for you. Make sure it covers all the things you want completed. It should also spell out any preparation work, protection of surrounding areas, clean up, etc.

Contractor Representations
Here I’m just concerned with the contractor’s willingness to put in writing any of the verbal representations he or she has made to you to get the job. If they have made oral commitments but won't put them in writing, that’s a REJECT.

Price
Look for a contract price that is well broken down, clear and easily understood. If it is unclear then they have not taken the time to understand your requirements, the scope of work, or the job. I would not necessarily make the selection only on price.

Incentives

It is extremely important that the contractor NOT offer you a discount or cash incentives for immediately signing the contract.

Contract Payment Terms
Try to be invoiced by mail after the work is completed, but expect most to want payment right after work is done. If they want cash, that’s not a great sign. If materials were needed before work can start (e.g., roofer or painter), they want an initial payment for materials. Try to minimize this amount as much as you can. I don't recommend you ever pay more than 33% up front and ONLY agree to that with a very reputable company.

Bob Formisano
AIA is an architect and builder
Home Repair Guide
About.com