When working with a general contractor, they are responsible for overseeing your construction project – including the day-to-day site work, management of vendors and trades, overall project management, and communicating key information and updates to all involved parties.
- The general contractor bidding process
All building plan created for the plan check and construction process are used during the bidding, contract signing, and building of a remodel. These plans are meant to be a core plan – so that any two contractors could receive the same plans and achieve the same end result.
- Receiving bid packages
To obtain bids on the project, a “bid package” is put together. It’s important to ensure all of the bid package information and plans are finalized and correct before starting bidding, finalizing contracts, or starting construction. This is especially true because whenever a change is made, the building plan must be changed as well, and the permit updated. Changes like this can cause huge delays in the schedule, while still paying overhead costs such as loan interest, utilities, etc.
BUILDING PLANS
The bid package will include all building plans and designs. These plans are often used by suppliers and subcontractors to determine the costs to perform their activity.
SCOPE OF WORK AND SPECIFICATIONS
The scopes of work and specifications will include a general scope of work that applies to all vendors, such as scheduling, workmanship, and warranty, as well as activity specific scopes of work and specifications.
BID SHEETS
There are also bid sheets, where vendors are shown how to break down their pricing, making it easier to compare costs and pricing among different companies. It is usually a standard form that each company will fill out to show how they arrived at their price – showing specific information like: estimated quantities, unit price, and additional costs if changes are made.
SUBCONTRACTOR INFORMATION SHEET
The subcontractor information sheets are used to capture key information about the bidding company in one document. Key information will include things like the company name, license number, insurance company, customer references, authority to sign, and insurance certificate. - Bid Requests
Once the bid package has been prepared, this bid package can be sent to contractors, requesting them to bid for the project. It’s ideal to include a deadline for the bid, giving the contractor enough time to review the package and prepare the necessary documents, while also trying to ensure the homeowner is staying on schedule. Once bids come in, you want to review the bids with your team and take time to meet with the contractor, to see which is the best fit for your project.
- Cost to Build Estimate
During the bidding process, each contractor can also share an estimate of the cost to build. Make sure that whoever provides this estimate has worked on relevant projects in the area, so they have a knowledge of the local costs. You will also want to revisit the overall costs of the project incurred so far, and overall costs anticipated for the project, and use this information to update your budget.
How to choose contractors for your remodeling project
Ask your network for referrals
Asking friends, relatives, and neighbors about who they would recommend is a great way to find a contracting professional. Be sure to ask questions like what made the experience positive for them, or how the contractor approached problems. It also can be helpful to ask who they would not recommend – in case you come upon that name during your research.
Pay attention to credentials
Before pursuing referrals, do some preliminary research about the contractor’s credentials and membership associations. It’s important to understand if they have all the required licenses from state and local municipalities, along with certifications from any professional associations such as the National Kitchen & Bath Association or the National Association of the Remodeling Industry. Also look into the contractor’s project history and specializations, to see if they are aligned with your needs and goals.
Interview candidates
After narrowing down the list of candidates, we recommend that you set up meetings with each one. Think of these meetings as interviews; be sure to pay attention to not just have the contractor answer questions, but also how they communicate with you, and if they ask questions about the project as well. You may also ask to see examples of their previous projects.
Some key information you want to ask about during the interview includes:
Does the contractor maintain permanent modes of communication, such as a mailing address, e-mail address, phone number, and voicemail?
Does the contractor carry insurance that will protect you from liability? It’s fine to ask for a copy of the remodeler’s insurance certificates.
Does the contractor have any professional certifications or designations? How long has the contractor been a member of any trade organizations?
How long has the company been in business? Does the remodeler maintain good relationships with subcontractors such as plumbers and electricians?
Does the contractor have a trusted reputation among customers and peers? Do they have a track record of success?
Ask yourself…
Checking general contractor references
After interviewing your candidates, request references from your top selection(s) and take time to speak with their former customers. Ask their former customers about how the contractors performed on key things like meeting deadlines, staying within budget, delivering a quality end-product.
Finalize the contract
After choosing your contractor, you can approach it by creating your own contract, or closely reviewing the proposed contract they prepare for you. You may want to work with an attorney to review either contract to ensure you are protected. Ensure that the contract includes:
- Project location address
- Names of both parties
- Work to be done
- The total price amount to be paid
- Payment details – such as how a company will invoice and require payment. It’s important to ensure that the contract mentions that no payment will be made for work not listed in the contract or on a change order
- Detailed scope of work
- Details about how changes will be made to the contract if any – such as no changes without the homeowner’s signature (a “change-order”)
- Warranty information
- Relevant documents, such as the building plan
- Detailed sequential schedule of primary construction tasks
- A procedural list for close-out
- Information about the protection of both people and property
- A clause about dispute resolution, and a waiver of lien, which prevents subcontractors and suppliers from putting a lien on a house should their invoices go unpaid by the contractor.