1. Personality & Fit

Construction is a long journey. There is almost always something unexpected that comes up during the process whether it’s finding something funky inside of a wall, an inspector requiring work that has never been required before, or simply inclement weather. If you are having trouble believing in or vibing with your contractor in the early stages of the project, things will only become more stressful. Trust us, you will need to make sure this relationship is solid if you want to keep your sanity throughout the process.

Pro Tip: Ask your contractor for a few references of homeowners they have recently worked with. Call or email these recent clients with questions about how the process went, how the contractor acted when something went wrong, and how the contractor maintained cleanliness and safety on the project site.

2. Work Type & Quality

Does the contractor typically work on projects of your scale, architectural style and level of detail? You wouldn’t go see an eye doctor for a broken ankle - in the same way, selecting a contractor that specializes in the type of work you’re looking for is important. If your home design includes a lot of millwork or trim details, look for a contractor that has quality examples of this they can point to. This will give you an understanding of the level of craft you can expect in your finished space.

Pro Tip: Ask your contractor for examples of their work or if they have any projects in construction currently that you can visit. This will give you an idea of the craft the firm can produce.

3. Client Service

How hands-on or hands-off is the contractor? Do they utilize some type of client relations management software that you can tap into to get updates on the process of the project? Are documents housed in a central place that is easily accessible or will you have to manage some of this on your end? Do they give you an organized understanding of when and how payments will be made or collected?

Understanding the type of service your contractor is providing you throughout the life of the project will help you formalize a vision of the way the project will be managed. If you are the type that likes to know details at every step, look for a contractor that has an organized process and feedback incorporated at regular intervals & milestones. If you are ok with the contractor working through things on their own and only want to be updated about the big stuff so that you can focus on other things, find a contractor that is more independent with fewer touchpoints throughout the project duration.

Pro Tip: Ask your contractor for an outline of their processes, how frequently they communicate with updates and what tools they use to do so. You can also ask their client references what the communciation was like throughout their project for an idea of what to expect.

4. Fee Structure

How is the fee structured? Is the fee is a percentage of overall construction costs or will you be charged a flat fee? These types of differentiations matter when it comes to your bottom line. Some contractors use a “cost plus” type of fee structure. This means the contractor’s fee is calculated based on the overall construction costs.

Cost Plus Example: Construction Costs = $100,000

Contractor’s Fee = 20%

Total Construction Fee = $100,000 x .20 = $20,000

Others will work of of a flat fee. This can be based off of “general conditions” or how many weeks/months they anticipate being on the job and what the cost to manage the construction might be. Let’s imagine your job will take 4 months to complete and the General Contractor’s overhead to run the job is approximately $5,000 per month. This fee may be calculated like so:

Flat Fee Example: Job Timeframe 4 months

Overhead or GC Cost/month $5,000

Total Construction Fee = 4 months x $5000/month = $20,000

Although each of these numbers look “equal” at the outset, both fees may escalate in different ways as you move through construction. For instance, if your construction costs creep up over the life of the project with a Cost Plus structure, the contractor’s fee escalates proportionally. With a Flat Fee structure, if the length of the job drags on, you may be paying additional fee based on each of those additional weeks or months.

Pro Tip: Ask your architect to help you review your contractor bids to help decode the format and particulars. Your architect will typically have an understanding of how to read these documents and can also help you look out for components or areas that have been omitted or missed in the estimating. They can also help you break down costs for an easier comparison between bids as some contractors format costs by trade and others by room or area.