6 Tips to Help You Deal Successfully with Renovation Contractors
By Property Soul (guest contributor)
Are you looking to renovate a property? I have done four major renovations and countless fixing projects for my properties in Singapore. Over the years, I manage to find at least one good electrician, plumber, carpenter, handyman, etc. But for whatever reason – perhaps it’s because I’m unlucky, or maybe it’s simply the nature of the business – I have yet to find an honest contractor or a reliable renovation company. Yes, not even one.
Bad experiences with contractors
What I have had are some unpleasant experiences that you may have encountered before if you have commissioned any renovation project:
1. After placing a deposit, the salespersons’ prompt responses become delayed or you get no reply.
2. The contractors are “very busy” and you have to bear with the fact that they are often late for (or absent from) any appointment with you.
3. Timelines agreed beforehand are almost always delayed. As clients, you are expected to be flexible to cater to all unforeseen circumstances.
4. You can only expect 60 to 80 percent of what was originally agreed to be done. Be prepared to accept materials, end products and workmanship different from your expectations.
Of course there are some good contractors who are different from the above. But they are not cheap. Those who provide good customer service, quality workmanship and acceptable completion timeframe usually have “reasonable prices” missing from their quotations.
Tip #1 – Get good recommendations
I strongly recommend talking only to renovation companies or individuals with referrals from a trusted source. Don’t just get anyone from the local paper, the yellow pages, a sales leaflet or a tradeshow. It is like going for a blind date. You never know who will show up. You really don’t want to deal with any surprise and disappointment.
For small tasks like fixing the lights, giving the place a new coat of paint, repairing the leaking roof, etc., ask your trusted property agent for recommendations. Agents arrange handymen to do fixes for landlords and tenants every day. I am sure that they use efficient and reasonably-priced ones to get the job done. It allows them to rent or sell the owners’ properties without any delay.
Tip #2 – Be firm with contractors
I agree with the advice in Margaret Heffernan’s The Naked Truth: A Working Woman’s Manifesto on Business and What Really Matters:
Once you’ve hired a contractor and negotiated a budget, my best advice for you is to be tough on them. If you’re not, they’ll think you’re soft and a pushover.
(Contractors) will try to get away with as much as they possibly can. If you call them on it, they’ll shape up.
Even if your contractor is a good friend or your close relative, having a friendly relationship doesn’t automatically mean that you can trust a person. When evaluating whether a contractor can get the job done, differentiate between sociability and capability.
Tip #3 – Be clear and upfront about timing and the inflexibility of your budget
If you need the job finished by a certain time, hold the contractors to that date. If you keep an eye on their work and act as knowledgeable as possible, you increase the chances that the contractors will respect you and get something done.
Tip #4 – Get at least three quotations from different companies
Compare quotes item-by-item. Before you get back to the selected one, draft your own listing of work items with full descriptions. For each item, add in what you think are the reasonable prices. If there is an obvious price gap of a work item between two contractors, negotiate to see whether your selected contractor can match the price.
Tip #5 – Draft your own payment terms
For example, 10 percent deposit after signing the contract, 30 percent of the fee payable when job commences, and another 50 percent after job completion. Always leave 5 to 10 percent to be paid after fixing all defects.
Allow flexibility for delay in completion. However, do add a penalty clause for delay at the end of the contract.
Tip #6 – Put everything in writing
In every subsequent meeting with the contractor, put everything in writing and take detailed notes. The notes can serve as both a proof and a reminder for both parties. It will also come in handy next time when there is any argument on what has been agreed.
Good and bad times
When times are good, contractors are very busy. It is more difficult to bargain on prices. Give a reasonable timeframe for completion but stick to the major deadlines.
When times are bad, don’t be too happy if you get too good a bargain. Contractors tend to cut corners to get your business.
Be careful of commissioning a project when the market is recovering. Costs of raw materials and manpower will be on their way up when your place is work-in-progress. To make ends meet, the contractor may ask you to top up the difference so that they can afford to pay their suppliers and finish your job. Worse still, some contractors may go bust because of their under-quoting in too many projects.
By Property Soul, a successful property investor and enthusiast who shares her experiences and knowledge on her blog. Posted courtesy of www.Propwise.sg, a Singapore property blog dedicated to helping you understand the real estate market and make better decisions. Click here to get your free Property Beginner’s and Buyer’s Guide.
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