From bathroom remodels to entire home additions, there are multitudes of projects you may have on your mind. This means conversations with general contractors and design-build firms are on the horizon. Before you commit to your general contractor or remodeling company, check out our list of renovation red flags. We are shedding some light on the shadier areas of the business so that when you make plans for your next home project, you can feel comfortable knowing that you have done your due diligence to ensure you have enlisted the right people for the job.
Here are 10 red flags you should be on the lookout for:
- Lowballing Quotes. Some general contractors and companies will purposefully lowball their initial quotes, knowing the price will go up. This is a shady method used to win contracts. Lowballing the price wins the work and the client will be saddled with the surprise costs throughout the duration of the project. So, if the quote for your project seems too good to be true, proceed with caution because it probably is. The GCs that lowball quotes are also often the GCs that bid work out to the lowest bidder where subcontractors are concerned. This is also indicative of a lack of long-term trusted relationships with the GCs or the company’s subcontractors. Low bidding and poor treatment of subcontractors does not make for a reliable work team.
- Not licensed, not insured. Simply put, if your GC isn’t licensed, they probably don’t know what they’re doing. This means they may do it badly and won’t complete the work to code. They may resist pulling permits as well. Making sure your GC is insured is equally as important. If your GC and their subcontractors are not insured and anything happens during the renovation or years after, that liability will be on the homeowner and their insurance. Verify that your general contractor and their subs are all insured (You can look up licensure on the secretary of state website!)
- Bad reviews, no reviews. Just like a restaurant or hotel, when selecting your GC, it’s important to read their reviews. Make sure you can find positive feedback for the work they do and that there aren’t bad reviews. If they have no reviews at all, this can be equally as concerning. References are also a great way to determine the quality of your GC. Ask for references! If they can’t provide any, this is another big red flag.
- Spread too thin. Being a popular general contractor is a good thing, but be sure that your potential GC has the time to dedicate to your project. If your GC lets on that they are drowning in projects, they may be spreading themselves too thin. When this happens, things slip through the cracks and mistakes are more likely to be made.
- Proximity. When you think you’ve found the best GC or company for your project, make sure that they are close by. A farther out company isn’t likely to tell you.. but when your project is farther out, it’s harder to get people to come out and show up on time. Save yourself the stress and hire a reliable, local general contractor.
- Unreasonably large upfront costs. A large deposit for a large project is one thing, but if your GC is asking for the lionshare of the project cost at the beginning- proceed with caution. Some GCs are pushy because they need to use your deposit to keep other projects afloat. Their pushy sales tactics may be less rooted in eagerness and more rooted in urgency due to poor project management.
- No project managers. Ask about project managers! If your potential GC has none, this is likely indicative that your general contractor is trying to do everything himself. Without a dedicated project manager, things are much more likely to fall through the cracks and mistakes are much more likely to be made. One person can only do so much.
- They do their “own” work. As we mentioned above, one person can only do so much. You have likely heard the saying, “jack of all trades, master of none.” If your GC says he personally does electrical, plumbing, and HVAC work, run! Why? Because none of these are being done to the correct standard and, the project will likely take longer than expected.
- Company name. Speaking of doing their own work, be sure to pay attention to your GC’s company name. If you are looking to get a renovation and the quote comes in from a “Ben’s Drywall”, “Jose’s Painting”, or “Jim’s Landscaping”, you may want to give it a second thought. People and companies starting out in a specific trade don’t always evolve to singlehandedly have the skillsets and resources for certain projects. If a GC exclusively worked in drywall three years ago, you may want to reconsider before enlisting said GC to build your home’s new addition.
- Transparency. The final red flag you will want to look out for is a lack of transparency. If you are going to be working with a certain GC or company, it is important to make sure that they can be trusted. Ask questions and be on the lookout for honest answers. Avoid GCs and company’s that dodge certain questions and are unwilling to share information (such as allocations) with you. You don’t want a surprise bill at the end of your project!
We hope this list will prove to be beneficial when selecting a general contractor or company for your next home project. Have more questions, contact us– we’d be happy to help and if you’re looking for help with your dream home project, reach out to us for a free design consultation!
