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When you meet a contractor for the first time, knowledge and confidence is key to building a strong relationship. Educating yourself about the specific job prior to meeting with a contractor will ensure you get the best pricing for your bid.

Homeowners

If you are a homeowner with minimal construction background, make sure you research the processes, terms, and pricing involved in the repairs you are about to take a bid on. When the contractor meets with you, use this knowledge when speaking about the repair. Contractors tend to bid jobs higher if a homeowner seems to not understand market value for the repair/remodel. If the repair is more than a minor cosmetic upgrade, make sure to check with the contractor to determine if he/she is licensed and insured. If the project is a major item such as moving plumbing, removing walls, or electrical upgrades, the contractor must pull a permit with the city. Make sure to have this included in the initial bid so it’s not a surprise come payday. Drafting up a contract is also a must when working with a contractor. Payment amounts, payment dates, timeline, and penalties all need to be clearly defined in this contract.

Investors

If you are a real estate investor and have worked with contractors before you understand the “game.” Contractors like to shoot high in the beginning to try and make top dollar on projects. Making sure a new contractor understands you want the best product at the best price upfront will ensure a good relationship. When you walk onto a project and meet a new sub for the first time, make sure he/she understands you know your way around a remodel project from top to bottom. Use your knowledge and talk about pricing per square foot and show your knowledge of market value on as many topics as possible. Make sure to let the contractor know that you will be inspecting his work daily, and if he/she can impress you getting the job done fast and at the right price, there will be more work to come. Contractors like to know they have consistent work coming from the same company. Make sure to have all legal/binding contracts signed with deadlines and penalties. The one time you don’t have these documents signed and in place, Murphy’s law will always come back and nip you in the rear.