Hiring a general contractor: 5 tips for finding “the one”

Do they have everything that you are looking for? The first thing you need to verify is the necessary credentials and experience that the contractor will need for your project. What licenses and insurance are needed? Have they done projects like yours before?

Our project was in California which meant confirming the California Contractors State License Board requirements. Do a Google search for your state to find out what is needed and confirm that the contractor in question is compliant with all requirements.

Check their website to see what projects they’ve already done. Have they done projects similar to yours? How long have they been in business?

Do you Google a date before you go out? Well, if you aren’t usually the stalker type, now is the time to become one :). Research as much as you can about the general contractor. Ideally, you have a referral from a friend.

Another way to find potential general contractors is to drive around your neighborhood; typically contractors will put up signs in front of their projects in progress. If there are subcontractors in front of the job site, ask how they like working with the general contractor. They may or may not tell you. Try asking them how long they have worked with them. If they have worked with them for a long time, that is a good sign that they like them.

Another way to find contractors or verify their reputation is with vendors. For example, we were at a local shop that sold fireplace inserts, and got some great intel on a couple of the contractors we were considering. You might also try the appliance store or local tile/stone store. If the subcontractors and vendors like working with a general contractor, that’s a great start.

Do a thorough online search for any reviews you can find; Yelp, Facebook, Nextdoor, and the Better Business Bureau are a few places to look.

If you do get referrals, ask detailed questions. Beyond “did you like your contractor?”, try “what’s one thing you wish your general contractor did better?” Ask “how did you communicate with the general contractor (email, phone, text)?” and “were they responsive?”. Ask “did they meet the budget and timelines per the original bid?”, “did you have any disagreements?” and if so, “how did they handle it?”. Ask “would you work with them again?”. This should help give you a clear picture of their experience and any strengths and weaknesses of the general contractor.

Before you sign a contract with a general contractor, have a few phone conversations and meet in person. As they say in dating, if they don’t treat you well when you’re dating, they certainly won’t treat you well when you’re married! If a builder isn’t pleasant to talk to when they are trying to get your business, it’s certainly not going to get better during the project.

Schedule time to discuss your project. How hard is it to get a phone call set up? Will they meet you in person? Are they polite and taking the time to address your questions? Once you are reviewing bids, send any questions about your bid over email. Is the builder timely and detail oriented in their response?

Ask them how many projects they take on at the same time. Have they done projects similar in scope to yours? Do they have a portfolio of their work? Will they let you tour one of their projects? Will they introduce you to former clients? How long have they worked with their subcontractors? Are some dedicated/on-staff?

As you are asking these questions take note of their answers and also how you feel. As long as you are being polite, they should not get defensive or dismiss any questions you have. You should feel comfortable and confident in their responses.

We recommend getting 3-4 bids. Each bid should include a detailed itemized list of the work to be done. Major categories, including cost of both labor and materials should be broken out (such as demolition, concrete/foundation, framing work, plumbing work, electrical, HVAC etc…).

There may be a combination of fixed cost work as well as allowances. Allowances are line items with associated budget noted. However, you might come in under or over these allowances. For example, in one bid we received the framing was a fixed cost, but the exterior stone work was an allowance. This is due to the fact that the framing is fairly certain based on the plans, but the cost of the stone work will depend on the stone you (the client) select, and the associated labor cost that will be required accordingly. Profit and overhead should also be broken out.

If the bid seems too good to be true, it probably is. If one bid is significantly less than the others, they may be omitting certain work, or under bidding just to get the job, with the plan to hit you with change orders later. You also don’t want them cutting corners to save money, resulting in poor work.

Check what isn’t included in the bid such as inspection fees, surface mount fixtures, appliances, landscape/hardscape/drainage, water meter update or gas meter relocation etc… Be sure that you are comparing apples to apples when reviewing bids.

You also want to check when each builder can start the job and how long they expect it to take. Discuss a payment schedule; this tells you how the contractor manages money and also your risk. You don’t want to pay for 50% of the project when only 10% is complete.

Follow your head and your heart and trust your gut when selecting a contractor. Ultimately the contractor has a lot of control and a good relationship with trust and good communication is key. They are responsible for managing the subcontractors and the allowances. They control the timeline which is always subject to change.

If they wanted to, they could come up with many excuses as to why something is more expensive and/or going to take longer. It is difficult to know what is realistic because they are the expert and have the transparency into the project and you do not. Is that unknown plumbing issue really the reason for the delay, or did his/her team get pulled onto another project or not show up when they were supposed to? It’s hard for you to know the truth so you must rely on your contractor’s word.

You will want to document your agreement in a contract and include the detailed scope of work, start date, estimated time for completing the contract, payment schedule, and any relevant Terms and Conditions including the change order process and how long the builder warranties their work.

Ultimately if you trust your builder and like working with them, your project will go much more smoothly and hopefully you’ll end up with the house of your dreams!