Choosing contractors can be tricky business
A couple of weeks ago I talked about how to find the right contractor and the right questions you need to ask. But now I’ve been getting questions about the kinds of answers you should be hearing, and the truth is, it depends on the job. That’s why the research you do before speaking to contractors is so important.
But there are definitely a few things you wouldn’t want to hear from any contractor you’re thinking of hiring:
CASH JOBS
I know what you’re thinking: There’s nothing wrong with cash jobs if it can save you some money. But here’s the problem: You leave no paper trail, which puts you in a vulnerable position — not your contractor. You are the one running the risk if something goes wrong, because there is no proof of the transaction or of the job even happening if you’re only working with cash.
Cash jobs also tend to mean no permits, which means no one will be inspecting the work — all bad news for you, the homeowner.
BIG DEPOSIT OR RETAINER
Let me guess — it’s because they need the money to purchase materials. Contractors who don’t have enough cash or extra stock to get jobs started, which in most case really just means demolition, either aren’t doing many jobs or their business isn’t doing so well. Would you want a contractor like that? No. You want a professional who doesn’t need too much cash today to get tomorrow’s job started.
Ultimately, it depends on the job and what’s involved, but typically, no contractor should ask for more than 10 per cent as a deposit or retainer. I’ve heard of some asking for as much as 65 per cent upfront. That’s a big red flag. And I know I’m going to get emails about this, but the truth is there are some contractors who don’t even ask for a deposit on small jobs.
A deposit or retainer serves one purpose: to protect the contractors. They want to know you’re serious about the job and that you’re going to pay for the work they do. It’s a security measure; it shouldn’t be used as a payment.
NOT IN BUSINESS LONG
Whether these contractors are just starting out or they’ve changed their business name, it’s not good news for you. Even if contractors are just starting out, they should have references and a portfolio of finished jobs — it could be a buddy’s basement or a neighbour’s backyard. And they must have insurance!
They should have a list of jobs they’ve completed, and of happy clients. You don’t want your reno to be their second, fourth or fifth. You want to know they can do the job right, a million times with their eyes closed, and that it lasts — and only time can tell you that.
NO CONTRACT
A contract is not a one-page, line-by-line list of materials and sub-trades. That’s an estimate. A contract should be several pages long and contain every detail about the job, including start and end times, what happens if there’s a change order, and a payment schedule tied to milestones — the most common are roughin, drywall and completed.
The rough-in stage is when electrical and plumbing have been installed but not yet connected to fixtures. The drywall stage is when drywall can go up and all mechanics are done. The completed stage is when about 90 per cent of the job is finished. You hold on to the last 10 per cent of the contract price for 45 days to make sure your contractor has delivered on everything outlined in the contract, including paying sub-trades. The last thing you want is a lien on your property.
Bottom line: If a contractor has no experience, no references, no contract, no insurance, works with no permits and gives you no paper trail, it’s a no-brainer: Move along.