Important Information That Can Save You Thousands When You Remodel Your Home

No, not necessarily!

Everyone tends to look for the lowest price. When you receive a low estimate, ask yourself what may be left out or what shortcuts might be taken.

One roofer bid on a re-roofing job for $500 less than every other contractor. The homeowner accepted the proposal, only to discover later that cleanup wasn't included.

Choosing the lowest price alone can be costly. Remodeling is a long-term investment in your home.

A contractor with no BBB complaints isn't automatically qualified.

Research Google Reviews, Yelp Reviews, ChatGPT, references, and other public sources before hiring.

DIY projects can work for small repairs, but major remodeling often becomes more expensive when mistakes need fixing.

Your home is likely your biggest investment. Hire a reputable, licensed, and insured professional.

Experience alone doesn't guarantee quality workmanship.

Investigate references, previous work, and reputation before hiring any contractor.

If a contractor ever tells you the price is available “for today only”, it’s time to show him the door.

Quite often they’ll provide you with a story that by signing today you’re entitled to a “model home” or “advertiser discount”. The story centers around the need to use your home as a model to advertise their services in the neighborhood. They mark their original prices up just to offer you this false “discount”. Don’t be fooled. This is an old trick used to pressure the homeowners into making a quick decision. This is your money we’re talking about! Quickly ask these salespeople to leave!

You should never feel pressured into making a decision when choosing a contractor. If you ever feel that a contractor or salesman is pressuring you, ask them to back off. If they persist, it’s time to look for another contractor. High pressure usually leads to a bad decision when remodeling. A qualified, reputable professional would never pressure anyone into a project.

These people might not be contractors at all. Never allow them into your home until you have checked them out thoroughly! We cannot stress this enough. It was recently reported that two men claiming to be contractors entered into a home, and while one took the homeowner of a pretend inspection, the other quickly went through purses and drawers, picking up items that could be sold quickly.

Some contractors working in your area may put out flyers or come to your door soliciting additional work in your area. The contractors could be honest, reputable people. But you should not invite them in. Instead, politely ask them for their business card, and the name, address and telephone number of the people they are doing work for in your neighborhood. Then make an appointment with that homeowner to take a look at the quality of their work.

Make sure your contractor is properly licensed. In the State of Illinois, all contractors MUST be either certified by the State (if they have a statewide license) or registered with the State (if they have a county-wide license). Anyone can say they are licensed. Make the contractor prove it by either showing you the license or giving you a copy of their license.

Remember to check the expiration date, and the county if it’s a county-wide license. Being licensed is the law. If a contractor cannot produce a valid license, DON’T HIRE THEM.

If you have any questions or doubts, call the State of Illinois or City of Chicago Department of Business and Professional Regulation.

Make sure your contractor carries general liability insurance. This type of insurance protects your property in case of damage caused by the contractor and/or their employees. The insurance company will pay for the cost of replacing and/or repairing any damage that occurs.

Anyone can say they are insured. Ask the contractor to have their insurance company email or mail you a certificate of insurance with you named as the certificate holder.

Make sure your contractor carries workers’ compensation insurance. It protects you from liability if a worker is injured while on your property. Be aware that if the contractor doesn’t carry workers’ compensation coverage, you may be liable for any injuries suffered by the contractor or any of their employees on your property.

If the contractor is a one-person operation, they can be exempt from having to carry workers’ compensation insurance. If they are doing so legally, they can provide you with a copy of their Construction Industry Certificate of Exemption from Workers’ Compensation. This is very risky for you though. if they show up with a helper and the helper gets hurt, with no workers compensation insurance, you may have to pay their medical bills.

If the uninsured contractor is sloppy about verifying their sub-contractor workers’ compensation insurance and the sub-contractor gets hurt, again you may have to pay their medical bills. In short, it is much safer to deal with a fully insured contractor.

Your contractor should provide you with a written lien waiver at the end of the job. This is a legal document which says you, the homeowner, have paid the contractor in full for services rendered, and the contractor waives the right to place a mechanic’s lien on your property.

If during the course of construction, you receive any Notice to Owner documents from material suppliers or sub-contractors, it would be prudent to ask the contractor for a Final Release of Lein from each one prior to paying the contractor their final draw. This protects you in case the contractor doesn’t pay his material suppliers or sub-contractors after you have paid him in full.

BBB stands for the Better Business Bureau. A company must meet certain professional criteria and have a solid history of good customer service to be a member in good standing with the Better Business Bureau. NARI stands for the National Association of the Remodeling Industry, and NAHB stands for the National Association of Home Builders. In most cases, both organizations only attract conscientious contractors interested in bettering the industry and in weeding out unprofessional contractors. In order to become a member, the contractors' background and references are thoroughly investigated.

Make sure your contractor pulls all required permits. This is very important. When a contractor pulls the required building permits, you know things will be done to code. Also, many homeowners' insurance policies require pulling a permit on any major remodeling to keep your home properly covered. Not all contractors will do this. Many prefer not to pull permits because of the time involved and the “hassle” with the inspectors. Some contractors may ask that you get the permits.

This should be a warning sign that they are not able to pull the permit because they are unlicensed, or the work is outside of their license. A reputable contractor will permit every job where a permit is required.

Your contractor should guarantee their work for at least one year from the date of completion. Some contractors guarantee their work for two or three years.

Make sure the contractor or their foreman is on the job whenever work is being performed – especially if sub-contractors will be used. The responsible party must be intimately familiar with every aspect of your project. If you won’t be home during the construction and must leave the house unlocked, or leave a key with the contractor, you must feel comfortable. You can’t be worried about what is going on when you are not there.

A good contractor will be happy to provide you with references. You should look for a well-established contractor who can give you several client references from the last six months to one year. Ask for the name of the contractors' accountant or banker. You want to ensure the contractor is financially sound and won’t be declaring bankruptcy in the middle of your project.

When a significant source of contractor’s business is derived from repeat or referral business, it usually indicates that their clients are pleased with the work they have received.

Your contractor should have experience in the type of remodeling project you want done – not just “contracting” experience.

Construction is dusty and dirty! It gets everywhere, especially if sanding is being done. Make sure the contractor will make an honest effort to keep the dust contained, or notify you when the heavy dust generating operations will take place so you can place sheets over your furniture or move sensitive belongings. Make sure the contractor agrees to sweep up and place construction debris in a predetermined place or refuse container at the end of every day.

It never ceases to amaze us how many people take advice on their construction and remodeling project from people who are totally unqualified to give this critical advice. Quite often when we see construction messes (which we see virtually every day) and we ask where they got the idea to do this or that, we inevitably hear things like:

My brother–in-law told me to do that. He used to do work like this on the side when he was a student.
I asked the guy in the office next to mine. He did the same thing at his home when they lived in Wisconsin.
I read an article by so-and-so, that said we should....
We watched an episode on DIY tv and followed their steps...

Everyone has an opinion on what you should do with your remodeling dollars. “Do it yourself” or “Hire the sub-contractors and run the project yourself”, etc. Just because someone is your relative, friend or thinks they know construction, doesn't mean they know the answers to your remodeling questions or problems.

If you have an idea or a thought about improving your home, call a reputable, qualified professional to answer your questions.

So many people start out on the right track by asking for references, but then never call them. You can never learn too much about the contractor you are considering using. Take a few minutes to talk to these people. Most will be pleased to accept your calls. It will be worth it! Ask if the job was done on time and at the agreed upon price. Ask if the contractor was easy to reach and easy to deal with.

You can learn a lot by seeing the finished product. If the contractor is good, many previous clients are extremely proud of their “new” home and will be glad to let you look.

Visit a job in progress. Is the job site clean? Or are tools and materials strewn around like a hurricane just blew through? Is everything dusty and dirty, or is it covered and sealed off? Chances are if a contractor keeps his work sites clean and neat, especially at the end of the day when it’s time to go home, you’ve got a conscientious contractor.

If you can talk with each other, you can work out any details that come up.

• When you leave a message, do they return your call?
• Do they return text messages promptly?
• Do they listen to you?

Nothing is more important than feeling like your contractor understands your needs and concerns. If your contractor is so busy that they cannot return your calls or texts promptly, maybe it’s time to look for a new contractor. When you’re in a discussion, does the contractor really listen to you? We mean really listen. This is vital.

You should always feel like the two of you are on the same page. This can avoid miscommunications and costly errors. This is a very important “secret” to a successful and enjoyable remodeling experience. Choose someone who will listen to you.

If you feel comfortable with your contractor, the chances are good your project will run smoothly. Think about it. You’ve just invited a stranger into your home. Do you find this person nice? Considerate? Personable? A listener? Were they polite and courteous? Or did they make you feel like they weren’t interested?

You will be working with this person for a matter of days, weeks, or months depending on the scope of the project to be completed. Can you stand to have this person around?

If you feel your contractor is trustworthy, the likelihood of a successful project is good. Check out their references. Keep in mind that if your project entails entrance into your home and you won’t be home during the day, the keys to your castle will be given to your contractor. Can you trust them? Listen to your conscience.

Will your contractor give you a reasonable estimate for how long this project will take to complete? A good contractor will do this. Remember, you want to hire a good contractor, not get a new roommate! Nothing is more frustrating and irritating than a remodel that drags on and on.

We can’t tell you how many contractors we’ve seen look at a rather complex jobs, pick a price out of thin air, scribble the figure only on the back of a business card and give the card to the homeowner. Show contractors that do that the door! You want a detailed written proposal that shows what is included; exact materials, brand names where important, costs, and the payment schedule.

Work out all of the little details before your project begins. Talk about thinks like;

• Where will the dumpster go, or the debris pile be created?
• What time will construction begin in the morning?
• What time will construction end in the evening?
• Will work take place on the weekends?
• Will workmen refrain from smoking inside the house?

Remodeling is an interruption to your normal lifestyle. If your project involves the kitchen, plan on eating a few extra meals out with the kids (or better yet, send the kids to “Mom” and have a night out). Remodeling time may not be the best time to host a slumber party for your eight-year-old daughter.

If your contractor has a neat appearance, this is a very good sign of things to come. This may sound silly, but it’s not. They don’t have to show up in a coat and tie, but neatness does count.

Are they clean? Is their truck presentable or falling apart? If their appearance is neat, chances are good they will keep your job and home neat.

If the contractor asks for a big chunk of money upfront, this could be a tip-off that they are not in good financial shape, and you could be in for a rocky experience. A fair down payment should not exceed a third of the total cost, unless custom ordered items are needed in the beginning stage of construction. As the work progresses, you should expect to pay out additional funds to match the prescribed, completed stages.

With remodeling there is always the chance that you may want or need to change a material or contract item. Ask how these are handled. They should be written on a separate document showing in detail what is being changed and how much it will cost. This should be done before the change is affected and signed by both the contractor and homeowner.