Remodeling Red Flags: How to Avoid Getting Burned By Your Contractor

When planning a home remodel, excitement often takes center stage—imagining the transformation of your space into something fresh and new is thrilling. But keeping your eyes open for potential red flags is essential amidst the anticipation. Unfortunately, not every remodeling project goes smoothly, and without proper vigilance, you might find yourself in a sticky situation. In this guide, we'll highlight some remodeling red flags and share tips on how to avoid getting burned so you can confidently move forward with your dream renovation.

Never Pay for Your Renovation in Full UpFront

When researching your project, you may find that every company has its guidelines for receiving payments. As a rule, avoid asking anyone to make total payments or large deposits upfront. This leaves little to protect you, as the homeowner, from shoddy work or your contractor skipping town without completing your job. Instead, select a contractor with a laid-out payment schedule. A payment schedule will ensure you won’t get left hanging mid-job and allow the project to progress while maintaining a trusting relationship and accountability between both parties. Always trust your instincts; if something feels off, don’t proceed with the contractor.

Check That Your Contractor is Licensed and Insured

When researching contractors, always check that they are licensed and insured. If something goes wrong, allowing a contractor to work on your home without insurance or licenses can put you and your employees in a sticky situation.

In addition, check that your contractor will be pulling the proper permits for the work to be completed. Renovation work done without a license can have significant consequences for your home.

Determine If Your Job Requires a Permit.

Never blindly trust the advice of one person or contractor. Call your city to determine if the work requested requires a permit. A permit serves several purposes for you as the homeowner. The first is a fail-safe if your contractor skips out on the job. A permit will allow you to recoup some of the costs and give you legal grounds on which to stand. In addition, a permit will ensure that all work completed is structurally sound. On the contrary, if caught performing work without a permit, you may be required to tear down and re-do the work at your own expense. Never pull a permit as the homeowner unless you plan to DIY, it is the contractor’s responsibility to register with your city and pull the proper permit.

Do Your Research

How to Know What Kind of Contractor You Need.

There are many contractors to choose from, and you may have many questions regarding selecting the one best suited for you.  Knowing the type of contractor you need starts with creating a list of desired services since each contractor will offer something different based on how they are structured.  For example, if design services are something you want, then you would likely research a company structured as Design-Build.  On the contrary, if you do not need design services because you have already selected and purchased your materials, you would likely research a company structured as a general contractor. 

You may also notice that there are many avenues you can take when beginning a renovation. We have broken these methods down into 3 main categories: Owner-Build, Design-Build, and Design-Bid-Build. The diagram below explains the homeowner’s role and responsibilities within each scenario. Knowing which method you prefer will also help you narrow down which type of contractors to call.

Select a company you make a connection with

Think of the selection process as a dating scenario, and the initial consultation as a first date. You would likely not go on a second date with someone who didn’t listen to you or who was overly pushy with their agenda. The decision to renovate is a big commitment of your time and resources, so it is incredibly important to have a trusting and transparent relationship with your selected contractor.

Style is Important

Before contacting anyone, look at photos of finished projects from your top contenders. Do you like what you see?

If you are looking for a new, trendy kitchen, you wouldn’t want to pick a company with images of traditional cabinetry, flooring, etc.

Never Go with the Lowest Bid

You have done your research on various companies, understand what your wants/needs are, and are finally ready to get some bids.  You have a few consultations, and after receiving estimates back the investment range was a tad higher than you anticipated but for the most part every company was within the same ballpark - except one.  The quote sounds too good to be true, but is it?

Generally, if it sounds too good to be true, it likely is. The company could be underquoting only to hit you with “unknown” expenses later in the job, costing more in the long run. These companies may knowingly do this to undercut and outbid other companies at a surface level but are not being entirely transparent.

Your contractor may not provide you with quality work!

If the quote is significantly lower than other companies you have contacted, make sure to check references and reviews before agreeing to a job. Remember, you get what you pay for, and remodeling your home is a significant investment. Do it right the first time to avoid a major headache a few months or years later?

If you want to feel assured that you are making the right decision, ask your friends or family who they have used in the past. You will get honest feedback from those you trust, which will help give you peace of mind when embarking on a remodeling project.

Be Skeptical of Companies that are Available Immediately

You may have noticed that most companies you have contacted have a wait list or a start date quite a few months in the future. Waiting to start a project isn’t always a bad thing. Think of it as having a choice between two restaurants. You pull up to the first, but no one is in the parking lot. Walking in, you also notice no one at the bar or seated at tables during rush hour at dinner. You get an uneasy feeling, so you look across the street only to see another restaurant with a line out the door and smiling patrons. Which restaurant would you assume has better products and quality of service? The remodeling industry is no different, so be wary of those who immediately jump on a job.

Be Aware of Unpredictable Pricing Increases

The industry as a whole is seeing material cost increases of close to 25% or more. We’re not just talking lumber; we’re seeing it in cabinetry, windows, doors, and other pertinent materials that make a renovation possible.

Before signing a contract, ask your contractor if there is any opportunity to order materials beforehand. Once all of your selections have been made, investing an additional deposit to order materials can avoid the headache of unexpected costs in the future and shipping delays that may occur.

Some Key Take-a-ways

1. The demand for materials is high, driving up prices and causing material delays.

2. Be skeptical of companies offering to start immediately or undercut with the lowest bid.

3. Select a company that meets all of your needs, including pain point solutions, style, and personal connection.

4.   Never pay in full up front!

5. Check for licensing and proper protocols when it comes to remodeling.

Each year, the good majority of those 41 million people remodeling will end up spending millions correcting botched renovations. You can avoid getting burned by taking your time and watching for red flags during your consultation and throughout the quoting process. Remember that good things take time, and there is certainly no good reason to rush or jump into a renovation without proper planning.

Are you looking to have your home remodeled in the Cleveland area?

JENNA RAUS IS THE BUSINESS DEVELOPMENT MANAGER FOR ODELL CONSTRUCTION LOCATED IN WESTLAKE OHIO.