The Toolkit Overview

Working with home improvement contractors can be scary. Many of these projects are expensive, they require strangers to be in your home for extended periods of time, and we have all heard the horror stories about certain contractors. The real fear comes from the fact that you undertake a home improvement project only every so often—so it's a big deal to you—but contractors do this every day and don't have the same emotional investment in your home as you do. The Homeowner Toolkit is a guide to help you through your home improvement project by letting you know what is coming, what certain things mean (like punch lists, change orders, and lien releases), and ideas to help you and your contractor establish a solid working relationship.

The Homeowner Toolkit is made up of the following:

Interviewing Your Contractor: Get it Right!
Interviewing a home improvement contractor is one of the most important tasks you have as you hire a building professional to come into your home. To help facilitate this interview process, here is a list of questions so that you hire the "right" contractor every time:

• Have you completed a job similar to this before?
• Do you have a list of references that I can contact?
• When will you be able to start the job?
• When could we meet in person to further discuss this? (only if you're encouraged by the answers they give)

Homeowner Project Schedule Checklist
When you begin talking to contractors, you will want to keep track of who you have spoken to, and when they will be getting back to you with an estimate.

• Met with contractors:
• Receive estimate by:
• Project start date:

Establishing Ground Rules
The first document is about managing expectations. You need to know what the contractors are going to do and the contractor needs to make sure that you are both on the same page. Here are some of the questions that help to establish project ground rules:

• What time will daily work begin and end?
• Who do I take my comments and suggestion to?
• Is there a place where the contractors can park their vehicles? Store their tools?

With longer remodeling projects, the Homeowner Project Notebook is recommended to facilitate your working relationship with your contractor.

Interviewing Your Contractor

Interviewing Your Contractor: Get It Right! It's a bold title, and it's meant to get your attention. There are a lot of fly-by-night contractors around. I'm sure you've heard the stories. But at the same time, there are also some very good contractors in business with an ongoing commitment to quality construction and good customer service. You just have to know how to find them.

The purpose of this guidebook is to start your process of selecting a contractor that will give you what you want and need.

Virtually all homeowners approach the contractor selection process with anxiety and dread. Some feel prospective contractors won't be completely honest about cost and worry about being tempted by appealing promises or low-ball estimates. The abundance and variety of construction horror stories leads others to believe that there are only unqualified contractors out there ready to take advantage of the unsuspecting. Then others despair because they've heard of a homeowner who did shop carefully, hired a "very reputable" contractor, and still had a bad experience. It's little wonder most homeowners feel unsure about where to begin and what questions to ask.

Feeling confident you'll choose well is very difficult. If we add the haunting thought that thousands of dollars are at stake to this mix of doubt and dread, the burden's enough to keep many from ever starting.

I encourage you to step beyond this bind. During the selection process your fears don't have to rule you because it's possible to find not just a good, but an excellent contractor. By following my plan, you'll learn how to spot good contractors, build a list of qualified candidates, and test them so you choose the contractor best suited for your job. You'll find the selection process is not only manageable, but also informative and rewarding. As a bonus, it can aid in the development and refinement of your home's design.

Below is a summary of the simple steps you'll need to take to find the right contractor. As you look over this list you may think "this looks too easy and obvious to be of any use." On one level, you are correct. When you think about it, the plan IS obvious and very straightforward. But as you read on, you'll see that I equip you with two powerful tools that make you master of the process.

1. You'll learn to ask the questions that matter most.
2. You'll learn who to ask those questions to and when to ask them.

The Introductory Call: Your First Contact with Prospective Contractors
Most people don't like interviewing contractors because they don't have confidence in their ability to discern if a contractor is honest. If you've done your homework with thoroughness and patience, you've spared yourself that anxiety because you already know your candidates are qualified, honest, and reliable.

When you begin contractor interviews, your task will be to locate a contractor you can work with; one whose interest in your project impresses you; one who listens carefully to what you say. The goal of this quest is to find compatibility with a contractor whom you'll be able to work with successfully for the time necessary to complete your project.

Once you're ready to begin the interviewing process, call the contractors in the order you've rated them. Be prepared to describe your project and state when you'd like to begin construction.

When you call the contractors on your list, have three to five preliminary questions ready to ask each. Here are some suggestions:

1. Have you completed a job similar to this before?
2. Do you have a list of references that I can contact?
3. When will you be able to start the job?
4. When could we meet in person to further discuss this? (only if you're encouraged by the answers they give).

There is no set script for these calls. In fact, in the course of some conversations, a builder may offer everything contained above and more. Be aware of how easily the conversation progresses. When you hang up, make a few notes on the conversations. What were your impressions of the builder? Did he listen well? Did he answer your questions thoroughly?

Your First Meeting with Preselected Contractors
In this new relationship, common courtesy is a must and good contractors understand this. If a contractor fails to show up for your first meeting and does not call to reschedule, cross him off your list.

Also let me state definitively that all principle parties should be present at this initial and all subsequent meeting. This includes the contractor and both homeowners, if applicable. This is absolutely essential for all parties to participate fully in the interview process and for everyone to operate with equal information.

Listed here are questions you should ask during your first meeting. (Keep in mind, if you are using a ServiceMagic professional, you may be able to find a lot of this information on their profile as well.)

Contractor Questions: Business Identity

• How long has the firm been in business?
• What is their permanent business address?
• Is the prospect licensed to work in your area?
• What year was the business initially licensed?

Contractor Questions: Business Practices

• How does the company ensure warranty service complaints are effectively handled?
• In case of any accident, is the company insured against workman's compensation claims, property damage, or personal liability?
• For longer projects:
  • How does the company maintain good customer relationships throughout the construction and warranty period?
  • What will the payment or draw schedule look like?

Contractor Questions: Building Practices (applicable in longer projects)

• Who will be assigned as the project or site supervisor?
• Who will be your contact if that person is not available?
• Will there be a supervisor on the site full time?
• Will they be providing a written construction schedule?
• What's the company's routine regarding regular meetings with the homeowners during construction?
• Who will attend those meetings? Will the builder personally attend every meeting?
• Can I expect to see workers at the site every day?
• Does the builder plan to stay personally involved in the project at all points?
• May I have the names and numbers of five homeowners you've completed projects for?
• May I visit a site where work is in progress?

Note: A visit to a site-in-progress can reveal much about a company's ability to manage a large project. Notice how organized it looks. Is it messy and chaotic or does it seem well-organized with workers moving like they know what they are doing?

This list is not intended to be exhaustive. In fact, it should help you generate other, more personal questions.

I cannot encourage you strongly enough to ask any questions you may have. Nothing is off limits concerning your project or the company you're interviewing. Asking good, detailed questions is the heart of your due diligence. If you don't question thoroughly, you're giving up your responsibility in this process and possibly compromising the quality of your project.

How to Narrow the Field: Trust but Verify
You should suggest second meetings with your preferred candidates to discuss your project in greater detail. Second meetings provide an important chance to ask those questions you overlooked in your first meeting, plus the key questions that will enable you to identify the builder you'll move forward with. Trust the representations your favorites make, but verify them. Your due diligence may protect you from confusing an itinerant contractor with an established professional.

Below I outline steps to objectively verify your candidates' business representations. Among them are several items you should address during your second meetings if you didn't during your first.

1. They should be licensed, as required.
2. Obtain proof of insurance. The contractor should supply you with a Certificate of Insurance indicating it has a sufficient general liability and workman's compensation insurance. Additionally, the contractor should have coverage against theft of any materials delivered to the jobsite, but not yet installed.
3. Confirm the builder's business address. He may have an office, but it's also common for builders to work out of their homes. Ask for a visit just to confirm your candidate isn't working out of the back of a truck or a post office box. What you're trying to determine here is your candidate's permanence.
4. For bigger projects, you can call the Better Business Bureau and your local consumer affairs office to check the company for consumer complaints. Better Business Bureaus (BBBs) are non-profit organizations supported primarily by local businesses, which encourage honest advertising and selling practices and keep records of consumer complaints. Check your candidates' records, but remember that just as there are unreliable contractors, there are also unreasonable homeowners. Even a good contractor can receive a complaint. If a favorite has a complaint, ask for information about its resolution. If he addressed it quickly and to the client's satisfaction, that's a sign of professionalism.

Home Remodeling Ground Rules

Home improvement can be a costly and disruptive process. Misunderstandings are commonplace. It doesn't have to be this way. To prepare for your project, set some initial ground rules with your contractor for the numerous situations that neither of you planned for.

Licensing and Insurance
As you are probably working on the most expensive asset you own, make sure that the person you are working with has the appropriate insurance and licensing. Ask them about this during the sales process. Are they licensed to do this kind of work, and can you have a copy of their contractor's license? Ask about their insurance coverage. Ask about their limits of coverage, and then contact your home-insurance agent, and ask them about any additional coverage you might need to make sure you are protected.

A professional contractor will provide this documentation willingly as part of their sales process. Having appropriate licensing and insurance separates them from the more "fly-by-night" contractor, but it may also make them a little more expensive. There is some truth to the statement that you get what you pay for.

Project Costs/Discounts
There are hundreds of design options when doing most projects. As such, each of the choices has a direct effect on the price of your project. When you are putting your project together, see if you can work with your contractor using a concept called "design engineering". If you want a granite countertop in your kitchen, ask your contractor what other options there are. In almost every case, there are design options that may cost less while giving you the "look" that you are seeking. Don't ask for discounts because that might discount the work being done. Design engineer your discounts to get the biggest bang for your buck.

Work with your contractor by knowing what you want to spend. Utilize their experience by asking for less expensive ways to complete something. A good contractor will know some cost-cutting shortcuts that won't shortcut quality. Ask them if they will create a line-item estimate so you can see the material costs of your selections. Knowing the true costs of certain finishes may inspire you to make other selections.

Weekly or Bi-Weekly Progress Meetings
Things change. On most home-improvement projects, changes take place after the work has started. To prepare for this, ask your contractor if they will schedule weekly or bi-weekly progress meeting at your jobsite. These regularly scheduled meetings will provide a time to review your project, and will be a place where changes can be discussed. This is a time when you can review every aspect of your project, such as:

• Reviewing completed work
• Addressing any dissatisfaction with completed work
• Reviewing any changes in the work to be done
• Reviewing job progress and completion
• Addressing any misconduct by workers or subcontractors

The weekly or bi-weekly progress meetings allow you to address issues before they become an issue. They provide a regular check-in so that any and all questions are addressed in a timely fashion.

Working Together
Simply speaking, you and your contractors are partners in completing your job. Treat them as a partner - with respect. Surprise them by bringing a pizza for lunch, or donuts and coffee in the morning. These simple gestures will pay dividends far beyond what they cost.

The Homeowner Project Notebook

Because you will be involved in a series of meetings with your contractor, make sure communications are clear. The Homeowner Project Notebook accomplishes this quickly and easily. The Project Notebook will maximize homeowner involvement by providing documentation for the entire project. You will have a written record of every decision and source of expense.

Create a three-ring binder with dividers that create 8 sections for various documents. You may end up creating other sections for your own convenience, but you will probably want the following:

Section 1: Signed copies of the entire construction contract. This section should contain every part of your construction agreement including:

• Construction proposal
• General conditions
• Project specifications

Section 2: Progress meeting minutes or summaries. In any project that lasts longer than three weeks, make sure you incorporate weekly progress meetings between you and your building contractor. These weekly meetings allow you to deal with important issues that arise before and during construction. A sample weekly meeting notes form is included in this toolkit:

• Meeting date
• Action item
• Person responsible

Section 3: Preliminary and actual construction schedule. This schedule will reflect the milestones related to your project design and construction process. Included in this toolkit are:

• Sample preliminary construction schedule
• Sample actual construction schedule

Section 4: Change orders. In longer remodeling projects (three weeks or longer), there are frequently changes to the scope of work. These changes can extend the construction schedule, and can also increase the cost of the project. The change order form is used to document each of these changes. Make sure you and your contractor have identical copies of change orders that detail what work is being done and what it will cost. A sample Change Order form is included in this toolkit.

Section 5: Home construction and product warranties. Make sure you receive copies of all warranties applicable to your project. Review them all with your contractor before the project is finished.

Section 6: Waiver and Release of Liens Form. When you hire a general contractor to work on your home, the general contractor often hires subcontractors to complete your project. Electricians and plumbers are examples of subcontractors who may work on your home to help the general contractor complete your project. The Waiver and Release of Liens form is signed by each subcontractor to acknowledge they have been paid by the general contractor for work done on your property. By signing this form, each subcontractor acknowledges that they have been paid in full by your general contractor. A sample Waiver and Release of Liens form is included in this toolkit.

Section 7: Digital pictures. While not mandatory, it's good to create a section to insert digital pictures that you or your contractor take as the actual construction project takes place.

Sections 8: Miscellaneous documents. Supply a section for information that doesn't fall into the other sections.

One final point, when your job is all finished and everyone has gone, this notebook becomes a construction diary you can revisit - a nice memento of a well-executed experience.

The Value of Construction Schedules

A construction schedule is a communication tool. On longer projects, it provides you with a project context that can demonstrate what is happening on a weekly basis. It will also allow you to see the effect of project change orders that are initiated after the project has begun. There are two schedules included here. The preliminary construction schedule is included when the design and selection process must be completed within a specific amount of time. This provides you with a guide of what selections must be completed for the project to start at a specific time.

The actual construction schedule is just that. It is a working schedule that both homeowner and contractor can refer to as work is progressing.

The Preliminary Construction Schedule
Most people do not understand all the steps involved from the beginning conception of a project to the start of construction. Most homeowners have no idea how long the design and selection process takes because they have not done it before. This simple preliminary construction schedule is a sample timeline reviewing all the steps involved before the start of construction. This should give a realistic view of how long the design and selection process takes before construction can start. This preliminary schedule will document when decisions must be made by and product selection deadlines can be integrated into the schedule.

Use this link to view the Preliminary Construction Schedule

The Actual Construction Schedule
A construction schedule allows you to see, in a visual format, what is happening on any given week of your project, and allows you to discuss the progress of your job. Take the time on any project longer than three weeks to have your pro complete a construction schedule. It's easy to fill out and easy to follow, and will bring amazing piece of mind. It doesn't need to be elaborate or complicated; it just needs to list what work will take place beginning on which date and when that same work will be completed. In lieu of a performance clause that may or may not encourage quality construction and teamwork, the schedule is the means of demonstrating that work is proceeding "on time." A sample schedule/template is shown below:

Use this link to view the Actual Construction Schedule

Change Orders 101

A change order is a written modification of the scope of the work from what was originally defined in the completed Blueprints and Specifications. The two main causes of Change Orders are unforeseen soil or building conditions which become apparent only after construction has begun and owner-initiated design changes. As I mentioned earlier, your contract should contain a clear policy regarding change orders.

A standard change order should include the following:

1. Job name, address, and phone number
2. Owner's name
3. A complete description of new work to be performed
4. Total price for materials and labor to complete the change
5. Revised date of completion due to the change order
6. Signatures of the company representative
7. Signatures of the homeowners

See a sample change order form here.