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molanic

How to not get screwed on renovations?

molanic
9 years ago

My folks are long overdue for some exterior house work (siding, roof, gutters). The house was built in the 60s and the siding is mostly some kind of pressboard product. They bought the house in the mid 80's and had it repainted once in '92 so the siding is in pretty bad shape now with peeling paint, some rot, etc. They had plans to do vinyl for quite a while but big medical problems and life etc. got in the way.

The gutters and roof were done about 10 years ago after a big hail storm so at least insurance covered part of it, but the roofing work was kind of shoddy. Now we are looking into having it all done finally and trying to find a reputable contractor to do the work.

I have always watched a lot of shows like "This Old House" and "Holmes on Homes", and have been reading up on a lot of the options for these renovations. I also read Mike Holmes book which had a lot of info on finding a good contractor. It was a little depressing and validated what I kind of already knew. He said with contractors you have the good, the bad, and the ugly. The ugly are the real scammers who take your money and run but luckily they only make up 10%. The good are the 20% who have all the proper licenses, insurance, knowledge, skill, and trustworthiness. The remaining 70% are the bad who may have good intentions but just have no idea how to do things right. Ugggh.

He said finding a good one that you can work with should take at least as long as the actual project. That the good pros don't need to advertise or be in the yellow pages because they get so much work by word-of-mouth references. You need to talk to everyone to get names and interview about 20 and get quotes from no less than 5. They need portfolios and references that will talk to you and let you visit their homes to see the work firsthand.

You need to do searches on their corporation to make sure they didn't dissolve and reform under new name to avoid lawsuit payments. They need their own full-time employees because any sub-contractors used will require the same level of scrutiny. They should not be available to do your job anytime soon, because if they aren't booked ahead of time they are no good. They should always have all their work permitted and inspected gladly. They should never ask for more than 10% down (max $2,500) because real pros don't need your money to get supplies to start a project. Then he said you should also educate yourself enough to know exactly what you want done, supplies needed, cost, and how long it should take. Then be there throughout the process to make sure it all gets done right. It all sounds like really good advice, but how many people can/will do all that?

The whole references thing always throws me because we have found people that way before and had issues with them. Everybody's standards are different. Then all the online review type things seem quite easy to fudge. Some people have no idea how to leave a helpful review. Don't know much about the unbiased nature of Angie's List and Home Advisor. Yelp is open to anyone I think and I saw quite a few one star reviews for nothing more than not getting a return phone call about work, which seems spiteful and unhelpful. A few contractor websites linked to GuildQuality which seems like some kind of survey service. Most of those reviews were one sentence about great service and overwhelmingly positive. But I guess if the contractor is providing the list of customers to survey they aren't going to include the ones that are pissed off!

We only talked to one company so far and were not impressed. If you try to educate yourself about the work and ask specifics often they poo-poo you and say it isn't done that way. He also talked about what we could "get-away" with doing without a permit or with a permit for different types of work because, "they never check what the permit is for just that it is in the window." Sigh.
So, does anyone have any other tips for those of us less experienced in not get screwed?

I plan to do another post with some pictures another day regarding specific issues with siding and roofing since there seems to be some disagreement in the right way to do things even in the books I'm reading on the subject.

Comments (9)

  • PRO
    Joseph Corlett, LLC
    9 years ago
    last modified: 9 years ago

    Mike Holmes is full of crap.

    I'm going to ask you how many other bids you've gotten. If you won't tell me and who they're from, we're done. If the other two are from reputable guys, I may give you a third, but I'm giving no one a fourth or fifth bid. If my reputation doesn't stop your shopping, we aren't right for each other.

  • snoonyb
    9 years ago
    last modified: 9 years ago

    Yep!
    Thats what I would do.
    Take nothing from a TV show other than, part of the process, because the dirty part is not shown.

    Each state has, in one form or another, contractor licensing agencies and their lien laws. published.

    You need to make yourself aware of the rules, so you do not need an attny, explaining the business and professional code.

    You should also visit the building dept. and ask what Items of concern, will require a permit, and why.

    Because we say so, isn't an answer.

    There are product warranties, and process warranties.

    There are a number of financing tools available, each with their own restrictions, including cash.

    Time is money, don't waste ours. Do your homework, it will be appreciated.

  • worthy
    9 years ago
    last modified: 9 years ago

    there seems to be some disagreement in the right way to do things even in the books I'm reading on the subject.

    There's rarely one "right way" to do anything anywhere! From surgery to engineering specs to re-roofing a house.

    What you want are informed, experienced, licenced tradespersons who don't run from oversight. But when it comes to renovations, it seems most homeowners look to one thing: price. And if they can skip "hassles" with Codes, by-laws, licences, permits, taxes, insurance, workman's compensation, all the better!

  • handymac
    9 years ago
    last modified: 9 years ago

    First of all, how many other bids a person is getting is none of a prospective bidders business. And if a business asks, I would automatically think of dropping that business as a prospect.

    The best way to find competent small job companies(roofing/painting/etc.) is to find satisfied customers. The best way to start looking is to look for the businesses that have been in business the longest. 20 or more years, for instance.

    You need a company that can do siding and roofing. That will probably not include the companies that advertise siding or roofing 'deals'. It will include general construction companies specializing in residential work. There are a couple of companies in Kansas City that fit that mold. They have been in business for decades. There should be similar companies in other cities.

    Do NOT consider any person/company that suggests they can do work without permits! Research the local rules, you might be able to pull 'Homeowner' permits---saving some money. Bu8t, you will assume responsibility for all the coverage of the permit(scheduling inspections/etc.

    I've done legally unpermitted work(once with the city inspector inspecting the house next door daily---we talked) because I followed the local rules. But, I never told any home owner I would flout/evade local codes/rules.

    I stopped working before the social sites(Angies List/etc) really got going. But, Angies List and similar sites are a poor replacement for due diligence and research into companies. Kinda like the Better Business Bureau---they don't bite the hand that pays them money. I was once told I could not file a complaint against a company because I was a disgruntled customer. They were right, I had given that company 2 years to correct the flaws---and they did not.

    So, finding a decent work force for the projects you want done will take way longer than the actual work, but when done well, you don't need follow up time/effort/expense.

  • molanic
    Original Author
    9 years ago
    last modified: 9 years ago

    I wouldn't say Mike Holmes is totally full of crap, just that he has some unrealistic expectations of contractors and homeowners. I read all of his guidelines and understand his reasoning behind it, but can't see many contractors or homeowners able to do all those things. I am looking into everything to the best of my ability and know there is no way we will be talking to 20 different companies.

    I wish we could find more people by real references and reputation but around here most people do just go for the lowest price or do lipstick type jobs themselves and it shows. We don't want to do a "just cover it up" until the next sucker buys the house type of job which unfortunately we see a lot of.

    I watch the tv shows and read the books not just for the before and after reveal, but to see some techniques in action. They may spend half an episode of "Ask This Old House" showing how to install window or roof flashing their way with all the steps. Then you realize that maybe only one of those steps was done on your own house and your neighbors and that's probably why there is rot. That is why we're trying to learn more about the "proper" techniques/codes and asking questions.

    I say "proper" in quotes, because I do understand there is more than one way to do things right. The Internet has been both a godsend and a curse in that regard. No matter what subject you look up you'll get three different opinions on what is best.

    We are definitely not shopping for the lowest price, but rather knowledgeable people who aren't afraid of the building inspector or specific questions from a homeowner. We for sure don't want to waste any company's time, because talking to them is our time as well.

    The one guy we talked to already keep getting off track and talking about dogs and birds while he was here. I think that was a tactic to avoid answering the questions we were asking and to try and make a friendly connection. Like we're going to pick your company because you seem nice and have a cute dog. We also said we would be fine with him e-mailing or mailing us the quote information after he wrote it up, but he insisted on making another trip out to pitch it to us. I'm trying to be polite and not waste anyone's time, but I want information about the work and some reassurance of competency in the company, not a new friend.

  • houston70sranch
    9 years ago
    last modified: 9 years ago

    Just wanted to say hi OP! I'm in the exact same situation (looking for a great contractor). I also happen to be in Texas and the state does not regulate contractors.

    I've personally acted as my own GC for a whole house update about 8 years ago but that was just for finishes (new flooring, fixtures, lighting, paint..etc).

    Now I have to find an actual General Contractor because I want toilets moved, closets built, and closets expanded etc. and it seems to be a lot harder to find a good GC than to find a great plumber or a great carpenter, etc.

    I agree with a lot of Mike Holmes says, however some of the advice is moot if there is no state licensing agency for contractors. Additionally I think five bids is too many--unless you don't like the PEOPLE who gave the bids.

    I feel uncomfortable telling any bidder who else will bid on the job. Why do they need to know? I noticed some ask this and feel it is an inappropriate question since I can't see what that knowledge does for them. Would appreciate it if someone would enlighten me on that.

    My plan is to get 3 bids and pick one. Or if they are all 'too high' wait until I have enough money or reduce the scope of the projects.

    If I don't feel comfortable with any of the people, despite their reputations, I'm walking away.

    I wish you good luck in your search!

  • PRO
    Joseph Corlett, LLC
    9 years ago
    last modified: 9 years ago

    "First of all, how many other bids a person is getting is none of a prospective bidders business. And if a business asks, I would automatically think of dropping that business as a prospect."

    handymac:

    Many remodelers give free estimates. I don't, but I will trade information. You tell me things and I will tell you things. You pick what you think is relevant and I will pick what I think is relevant. I'll save us both a lot of time.

  • rwiegand
    9 years ago
    last modified: 9 years ago

    Preparing a real bid is a lot of work, as is writing the detailed plan and specification for a project that will elicit a useful bid. It's important to respect people's time. I've been very happy with the contractors I've ended up using and don't generally think I've been ripped off by any of them. I've taken a two stage approach to hiring that seems to work reasonably well for both sides, which involves an initial meeting and conversation, perhaps with brainstorming over the drawings, and an initial estimate of the magnitude of the cost of the project. After a 30-40 minute walk through of the plans and site with someone talking about how things are or could be done I have a pretty good idea if we're on the same wavelength. If they tell me that my project will run $450/sf when my budget is more like $250 I know that while they may be wonderful, we are not a match. I then only ask for formal bids from contractors who I think I can work with well and where our budget expectations match up. I'll typically get three bids, only from people I'd be happy to hire. I do try to talk with references who have had similar kinds of work done. The question is not so much about "did you like the contractor", but rather about the communication, process, and management of the process. If possible I go to see some of their completed work prior to asking them for a formal bid.

    I think most of the issues people have are communication problems, not competence or honesty (though those happen). If you are crystal clear and consistent about what you want and are willing to pay fairly to get it I've found that most contractors will do a reasonable job.

  • GreenDesigns
    9 years ago
    last modified: 9 years ago

    Develop a scope of work on the front end, and a realistic budget for said scope of work. That is more than half of the issues that people have with contractors. It's the face in the mirror that wants to do "while we're at it" projects, and still expects the total and timeline to not change.

    The other half IS the contractor partner. It's like getting married. If you date and find a really great one, you STOP looking. And you "date" by trying them out on projects that are smaller in scope.