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5 Things Contractors Do Not Often Tell Homeowners

It is not uncommon for homeowners to want to spruce up their homes and add personal touches. To make sure these renovation projects go well, homeowners need to do their homework and choose a reputable contractor who will do quality work. In addition to doing research, getting referrals, and asking necessary questions, homeowners need to be aware of five things contractors are not revealing.

1. A Contractor Who Bids Much Cheaper Than the Norm Is a Bad Sign

To get the best bang for their buck, homeowners must obtain at least three bids for the work they want to have done. If homeowners find one contractor who is bidding far below what others are, this is a red flag. Contractors who give lowball bids are more likely to do poor-quality work and even skip out on the job. Homeowners need to look at the bids that are closer to one another in price and choose the lowest of those.

2. Homeowners Can Pay Dearly If the Contractor Is Not Properly Insured

If contractors are not properly insured, homeowners can be held liable if contractors get injured on the job. At a minimum, contractors must at least carry workers’ compensation and liability insurance. Before a job begins, homeowners need to ask to see proof of insurance. A reputable contractor will not become upset when asked to provide proof of insurance.

3. Many Contractors Use Boilerplate Agreements

While there is nothing wrong with using a standard contract document, it is also necessary for contractors to include exact details about the work that will be done in the agreement. Contractors who only use boilerplate agreements have much wiggle room to add extra fees to pad their pockets and cut corners if they desire. Agreements that are descriptive leave less room for misunderstandings.

4. Some Contractors Can Pad the Bill When Working with Higher Income Clients

Homeowners who live in larger homes and earn a nice salary can fall victim to contractors who pad the bill to squeeze out more money. To avoid falling victim to this practice, homeowners need to pay careful attention to what others are saying about the work that has been done for previous customers, and they need to be clear about the cost of the work before projects begin.

5. Contractors Mark Up the Cost of Materials and Labor

Let’s face it, contractors need to pay to keep their businesses going, as they need to pay employees and other overhead costs. One practice contractors often engage in to cover business costs is marking up all materials and labor. Markups can be as low as 7% and as high as 20%. To save the most money, homeowners need to ask about cost markup. Or, they can ask what supplies are needed and offer to purchase the materials for the contractor.

Before beginning any home improvement project, homeowners need to ask to see a portfolio of work. Honest and reputable contractors will have no problems fulfilling this request because they understand that furnishing their portfolios for homeowners to see provides peace of mind. If you are a resident of Ann Arbor, MI or any of the surrounding areas, contact Multi-Craft Construction Inc for all your kitchen remodeling, bathroom remodeling, and other home improvement needs.