Once you feel like you have satisfactorily researched your candidates, you’ll be able to start taking contractor bids from them. Before a contractor puts in a bid, they should ask you for more information. They’ll want to see the plans for your custom home, and they’ll want to talk to you about your expectations for the project.
When a contractor gives you a bid, you should request that it be itemized. If contractors take the time to break down their bids, it will be a lot easier for you to compare them. All costs, from the costs of labor to the costs of materials, should be separated. You should request this in advance. Make sure your contractor knows what you expect.
Once you have your bids in hand, you can take some time to look them over. Compare the bids carefully. See what you are actually getting for your money. You shouldn’t make your choice until you’ve found a contractor that is offering you the kind of value that you’re looking for.
Set Up A Payment Schedule
If you’ve decided on a contractor, you’ll need to set up a payment schedule. You won’t have to give them all of the money that they are owed at once. You should be able to pay them over time. You’ll have to set up the kind of payment schedule that you will be able to stick to.
For large projects like this, contractors generally expect to receive 10% down before the job starts. After that payment is made, you’ll typically make three payments of about 25% over the course of the job. Once the work has been completed to your satisfaction, you’ll give them the final 15%.
With that said, you don’t necessarily have to stick to the payment schedule outlined above. You can talk to your contractor and set up the kind of plan that benefits both of you.
Don’t Accept A Bid Just Because It’s Cheap
If a contractor puts in an unusually cheap bid, you may be tempted to accept it. After all, this kind of work can get expensive. Everyone wants to cut costs where they can.
You need to remember that you’re asking this person to build a home for you. You are going to live in the house that they build. If a bid is unusually low, it’s probably for a reason. The best contractors can afford to charge more.
Check Your Contractor’s Insurance
Does the contractor you’ve hired have general liability insurance? You should make sure that they provide you with proof of insurance before they get started on the job. You will need to make sure that they have coverage for the duration of the job. If your contractor doesn’t have insurance, and something goes wrong, you could wind up having to pay for it.
What happens if the contractor fails to complete the job? What happens if the contractor falls behind schedule? These are questions that you need to know the answers to. Your contract is going to be legally binding. You’ll want to speak to a lawyer before you sign a thing. Make sure that your contract actually says what you want it to say.
If you want to build a custom home, you’re going to have to hire a team of contractors that will be able to bring your vision to life. Hiring the right contractor is absolutely essential. The tips listed above will help you to weed out bad candidates and find the kind of contractor that comes highly recommended.