by Erich Hohengarten for CBN
With the local economy experiencing a much overdue correction in home valuations, a fierce presidential election and an extremely conservative lending atmosphere; it is no wonder people are tightening their belts and keeping their wallets close to their pockets.
Despite this, there are still some very convincing reasons to move ahead with the home improvement projects you’ve been considering.
Remodeling your space not only adds value to your property, it adds value to your day-to-day life by improving the comfort and the functionality of your home. With the building boom a recent memory, the good news is that it is not as hard to get one of the community’s premier contractors scheduled for your project. Plus, the flood of out-of-town contractors has moved on. Because the supply of build-able land remains low, it is still expensive, if not impossible, to replace your current lot footage, mature trees, convenient location, etc. Many upgrades will make your home more energy efficient, resulting in lower utility bills and a smaller carbon footprint from your home. The decrease in overall demand for skilled trade work means it is currently more affordable. For qualified applicants, interest rates still hover near record lows.
Choosing a contractor to upgrade your residence can be a daunting task. The following reminders seem obvious but they bear repeating. The contractor selection process is the most important step you will take to ensure that your project does not end up like one of the horror stories we all hear on the tee box, or in the spin class or the book circle. Be diligent with the selection and you will not only end up pleased with the project, but enthusiastic about it.
Getting Referrals for Possible Candidates
By far and away the best resource here is personal experience. If you have completed a project in the past that went very well, chances are you will become a repeat customer. If you are not so lucky, turn to people you trust- friends, family, and neighbors that have had a direct positive experience with a contractor. Next rely on referrals from the same trusted people for indirect positive referrals. Additionally, use the directory available at the Central Oregon Builder’s Association (www.coba.org) to generate or complete a list of candidates. Membership indicates a builder’s commitment to the industry, to current business and technical standards and to the community.
Checking Licensing and Insurance Compliance
Here in Oregon we are blessed to have the Construction Contractors Board, a governing agency that doubles as a consumer watchdog. All contractors in the state must maintain proof of insurance and bonding with the agency to keep their license current and active. The CCB’s website (www.oregon.gov/ccb/) is always up-to-the-minute with a contractor’s status, their time in business, and the workmen’s comp, liability and bond policies they have in place. You may also view a history of any complaints that resulted in administrative or disciplinary actions. If one of the candidates on your referral list is currently inactive or has a claims history in the past 3 years, remove them from the list.
Experience and Longevity
A good measure of a contractor’s mettle, especially in a small town like ours, is how long they have been in the business and more importantly how long they have been in business here. The highest attrition rate for businesses registered with the Secretary of State is contracting. Only two in ten contracting start-ups will survive two years. Only one in ten will survive ten years. The runner-up in attrition, restaurants, has only half as many failures as contracting. If the contractors on your referral list have been in business locally for more than ten years, it’s because they continue to satisfy their customers, pay their subs and vendors on time and keep current with modern trends and techniques. You may further qualify the candidate by asking if they maintain a physical office with business hours rather than an answering service or a cell phone. This is a reassuring indicator of the contractor’s long-term success.
Checking the References
This critical step in the qualification process should never be skipped. The references provided should include the scope and date of the projects and there should not be any noticeable gaps in the timeline. Take the time to call at least five of the references provided and speak to the clients personally. Be prepared to ask questions about the contractor’s timeliness, communication skills, cleanliness, billing procedure and follow-through. Ask if problems arose and how they were dealt with. No one is perfect. We all make mistakes. How those mistakes are handled and corrected separates the professionals from the novices. You may wish to ask specific questions about certain trades within the overall scope. If the proposed scope of your project includes a two person stone shower, ask specifically about the tile subcontractor. Listen carefully for any reticence or non-specific responses. Don’t forget that it was the contractor himself that provided the reference’s name. The past client should not only be satisfied, they should be enthusiastic about discussing the project.
Assuming your contractor meets your strict qualifications, you may now choose based on your personal preference. There are many excellent qualified contractors in our community so pick the one that you feel comfortable with. Was a good rapport established quickly? Did you experience a positive “chemistry” with their personality? Did their appearance, punctuality and demeanor project professionalism? This “gut instinct” we all possess to measure compatibility is powerful and should be heeded. A smooth and enjoyable process will depend on your ability to approach and communicate comfortably with the individual running your project.
By using these simple guidelines to qualify your contractor and your personal feelings to select them, chances are you will soon be answering calls from your contractor’s prospective clients from the comfort of your beautiful new space.
Erich Hohengarten is a Project Manager for D.E. Rink Construction