The Fine Print
What “Is” and “Is Not” Included in the Bid
Sometimes a contractor must make allowances or assumptions in their bid, such as material quantity, access to your home, etc. Also, they will sometimes specify what they exclude in the bid. Carefully review assumptions and exclusions with the contractor. Question them as to the reasonableness of any assumptions and exclusions. Do it in a nice way, but do it. If not, these items will likely become a Change Order later. When you are evaluating and comparing bids between contractors, assumptions and exclusions highlight where you have an apple and an orange.
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.
SUMMARY:
I hope this overview provided useful information on successfully hiring, managing and working with contractors. Don’t be afraid to ask for help from one of these pros when needed. That’s their job 7 days a week. Sometimes it’s just fun to watch someone work on your house and take the weekend for yourself!
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