Negotiating with your Contractor

Do not be afriad to negotiate with your contractor.  Assume that everything is negotiable, but focus on areas in which you can achieve the greatest savings. Questions like “The hauling fees seem high to me. Is there any room in those figures?” can save you hundreds of dollars. Utilizing intelligence from the competing bids you received can also be extremely effective. If the estimate from your second-choice candidate listed a sliding glass door replacement cost that is $1,000 less than your contractor’s price, confidently state that you know it can be done for less. Unless you’ve already signed a contract, your contractor will recognize that you are still free to pursue other alternatives and should be willing to work with you.

The key thing is not to be shy about asking for price breaks. To the contrary, the average contractor has already incorporated some padding into his proposal and is expecting you to ask him questions about his estimates. As long as you are respectful in your discussions, and not squeezing the profit out of every excruciating detail, he should demonstrate a certain level of flexibility. On the rare occasion your contractor is unwilling to negotiate, thank him for his time and move on.

Selecting Materials

Once you’ve defined your project, making decisions about flooring materials, colors, hardwood styles and appliance models early on can pay great dividends. There are several reasons for this. First, this preliminary research will familiarize you with not only the decorative and functional options available, but also the expense associated with each of your choices. You will enter into negotiations with your contractor having a much better handle on the true cost of your supplies and materials. 

Minimizing Home Repair Costs

You can minimize contractor costs significantly by carefully reviewing and negotiating your contractor’s initial bid for your home remodel or repair. Having received bids ranging from as little as $50,000 to as high as $144,000 for my home restoration, I know first-hand how liberally contractors can pad their proposals.

 

 

Hurricane Season is Here!

With hurricane season in full swing, the prospect of widespread flooding is top of mind — especially in coastal communities. Following are a few actions you can take to better prepare yourself if you should find yourself the victim of significant water damage.

Maximizing Your Insurance Settlement

I get a lot of questions about how to maximize insurance settlements. Below are some suggestions on what to do during the early stages of a home disaster.

First and foremost, be sure to save any and all receipts related to the inconvenience of being displaced from your home. This includes hotel (be sure to clear hotel arrangements with the insurance company first), restaurant meals and even the expense of developing your photos. Keep in mind that some insurance companies may have reimbursement caps such as meal per diems and clarify any of these items with the agent up front. In my case, for example, I was reimbursed only for incremental meal expenses above and beyond my regular grocery costs. It is, unfortunately, true that the odds of the insurance company proactively communicating this information to you are low.

Checking Contractor References

When hiring a contractor, I recommend treating every aspect of the “recruiting” process the same way you would if you were hiring an employee at the office. Just as you would at work, never overlook the critical step of checking references.  Following are 

The Risks of Ignoring the Permitting Process

Failing to procure the necessary approvals for your project can cost you dearly down the road. If your municipality official discovers that you are performing construction without a permit, the Building and Safety Division can and will require that you demolish all work and begin from scratch under the watchful eyes of the building inspectors.

 

Nearly all forms of construction on residential or commercial private property, whether new or remodeled, require building permits. If you plan to move walls, build an addition or remodel an entire room, you will definitely need a permit(s).

 

Finding a Contractor

 

Your choice of contractor is the single most important decision you will make during the course of your home restoration or remodel. You will essentially be recruiting the person who will enter into your private living space and serve as your right hand for several months. 

 

At worst, a contractor will take your deposit and never begin work on your job. At best, a good contractor will at least perform the work according to the direction you give him and finish the project. Unfortunately, the majority of contractors will err on the side of low follow-through. It may take several months to find a contractor who shares the same sense of urgency that you do.

 

Preventing Household Accidents

If you have you ever left your home with the dishwasher or washing machine running, you might want to think twice before doing it next time. According to the Insurance Information Institute, billions of dollars in insurance claims are filed each year due to household water damage. Water hoses break; appliances malfunction. It happens all the time. I never used to shut my water supply off during extended travel, but I sure do now. And I also discovered the “water sensor.” For a couple hundred dollars, I’ve had water sensors installed on the floors of my bathroom and kitchen. If water should trip one of the sensors, it will activate my security system with a call into the central office. It’s not perfect, but after what I’ve been through, the peace of mind is worth every penny.

The Contractor Interview

A reader commented that the recently-posted reference screening questions were helpful to her. So I thought I’d follow up with a recommended list of questions for the actual contractor interview! As mentioned in earlier postings, you should treat the contractor hiring process as seriously as you would if you were recruiting to fill a position at work.