WE HAVE DECIDED WE HAVE DECIDED TO REMODEL….TO REMODEL….

NOW WHAT??NOW WHAT??

Next Steps…Next Steps…

• Establish a budgetEstablish a budget• Obtain financing if necessaryObtain financing if necessary• Determine if you want to use a designerDetermine if you want to use a designer• If you do, begin looking for a design/build If you do, begin looking for a design/build

contractor or a designer and contractor separatelycontractor or a designer and contractor separately

Next Steps, cont’d.Next Steps, cont’d.

• Make as many design choices as possible Make as many design choices as possible (granite or tile countertops, hardwood floors (granite or tile countertops, hardwood floors or vinyl, etc.)or vinyl, etc.)• This will be important in determining the actual This will be important in determining the actual

cost of your projectcost of your project

• Obtain completed “plans” or drawingsObtain completed “plans” or drawings• Select a contractorSelect a contractor

How do I find A Contractor?How do I find A Contractor?

Ask friends and neighbors Ask friends and neighbors • Who did they use for their project?Who did they use for their project?

• Were they happy with the outcome and process?Were they happy with the outcome and process?

• Would they hire that contractor again?Would they hire that contractor again?

Consult professional organizations:Consult professional organizations:• NARI (The National Association of the Remodeling NARI (The National Association of the Remodeling

Industry) Industry) www.nari.orgwww.nari.org or or www.narisj.orgwww.narisj.org• NAHB (National Association of Home Builders) NAHB (National Association of Home Builders)

www.nahb.orgwww.nahb.org..

What Things Should I Look For?What Things Should I Look For?

Check license and insurance statusCheck license and insurance status• Contact the Contractors State License BoardContact the Contractors State License Board

• Does the contractor have a license in good Does the contractor have a license in good standing?standing?

• Does the contractor have current Workers’ Does the contractor have current Workers’ Compensation Insurance?Compensation Insurance?

• Does the contractor have Liability Insurance?Does the contractor have Liability Insurance?

How Do I Select The Right One?How Do I Select The Right One?

• Make appointments to interview Make appointments to interview potential contractors. Look for:potential contractors. Look for:• A professionalA professional

• Someone you can TRUST with your home and familySomeone you can TRUST with your home and family

• A personality with which you are comfortableA personality with which you are comfortable

• Someone with experienceSomeone with experience

• A certified, licensed professional that is affiliated with A certified, licensed professional that is affiliated with national trade organizationsnational trade organizations

• A company that trains and monitors their employeesA company that trains and monitors their employees

BEWARE OF “BUBBA”BEWARE OF “BUBBA”

Would you want to spend a few months

with this guy?

Questions to AskQuestions to Ask

•Prepare standard set of questions to ask each Prepare standard set of questions to ask each candidatecandidate

•How long have you been a contractor?How long have you been a contractor?

•Are you licensed?Are you licensed?

•How many projects like mine have you done?How many projects like mine have you done?

•What kind of insurance do you carry?What kind of insurance do you carry?

•Who will actually do the work?Who will actually do the work?

Questions, cont’d.Questions, cont’d.

• May I have a list of references from your recent May I have a list of references from your recent projects?projects?

• Do you have any industry certifications?Do you have any industry certifications?• Have you won any awards for your work?Have you won any awards for your work?• How will I know the cost of the project?How will I know the cost of the project?• What are your regular work hours?What are your regular work hours?• Will we sign a contract for the scope of work?Will we sign a contract for the scope of work?• What if I make changes after the project begins?What if I make changes after the project begins?

Watch out for these danger Watch out for these danger signs!!signs!!

The lowest bid – If a contractor’s bid is The lowest bid – If a contractor’s bid is very low it could signal:very low it could signal:• Proper insurance is not maintainedProper insurance is not maintained• The contractor is desperate for your business The contractor is desperate for your business

which could be an indicator of work quality and which could be an indicator of work quality and reliabilityreliability

• The contractor does not run a business that has The contractor does not run a business that has staying power – warranties will be uselessstaying power – warranties will be useless

Danger SignsDanger Signs

Danger SignsDanger Signs, cont’d., cont’d.

No proof of insuranceNo proof of insurance You could be liable for injuries on the job. You could be liable for injuries on the job.

Ask if the contractor has:Ask if the contractor has:• Liability insuranceLiability insurance

• Property DamageProperty Damage

• Personal LiabilityPersonal Liability

• Worker’s Compensation InsuranceWorker’s Compensation Insurance

Danger SignsDanger Signs, cont’d., cont’d.

““You don’t need a permit”You don’t need a permit”

• Be suspicious of any contractor that wants to do Be suspicious of any contractor that wants to do business illegallybusiness illegally

• This could indicate that the contractor does not This could indicate that the contractor does not want his work inspectedwant his work inspected

Danger SignsDanger Signs, cont’d., cont’d.

““I don’t take checks”I don’t take checks”

This could mean the contractor’s credit is This could mean the contractor’s credit is questionable and subcontractors and suppliers may questionable and subcontractors and suppliers may not get paidnot get paid

There is no payment record when paying with cashThere is no payment record when paying with cash

Danger SignsDanger Signs, cont’d., cont’d.

No written contractNo written contract• Insist on a contractInsist on a contract

Poorly written or unprofessional Poorly written or unprofessional looking contractlooking contract• Don’t accept a contract with no address, phone number Don’t accept a contract with no address, phone number

and/or license numberand/or license number• Be suspicious of contractor’s professionalism if contract Be suspicious of contractor’s professionalism if contract

is handwritten or unclearis handwritten or unclear

What Makes A Good Contract?What Makes A Good Contract?

• Company name, address, phone number and Company name, address, phone number and license numberlicense number

• Clear and complete description of work Clear and complete description of work • Well stated payment schedule corresponding with Well stated payment schedule corresponding with

benchmarks of completed workbenchmarks of completed work• Clear commencement and completion datesClear commencement and completion dates• Specific description of materials to be usedSpecific description of materials to be used• Description of deposit:Description of deposit:

• The deposit (in the State of California) can be 10% of The deposit (in the State of California) can be 10% of the contract total or $1,000 whichever is the contract total or $1,000 whichever is lessless

Thanks for ComingThanks for Coming

What questions can I answer for What questions can I answer for you?you?

Daniel Mackey Construction Incorporated

408-274-6060

www.danielmackeyconstruction.com