How to Hire a Contractor

OK, you have received at least five recommendations, checked references and prepared a short list of three contractors to do your remodeling. How do you herd these cats into your living room to give you their best shot at pricing out your dream kitchen?

As with all negotiations, the best position is one of strength. First, get your financing in place if you need it. (Strangely, contractors like working for people who can pay.) Then hire architects and have plans drawn up, if necessary, before sitting down with the contractors. Bone up by reading home improvement books and magazines and doing research on the Internet. Next, meet with each contractor at your home and explain, thoughtfully and in detail, what you are trying to accomplish. Share any architects' plans or drawings you have. Try to give the contractor the sense that you will be a dream customer: calm, rational, pleasant, and resolute. Don't waffle or seem tentative; if the contractor thinks you are a flake, he isn't going to give you his best bid. After thanking the contractor for his time, gently mention that you are getting "a couple of other bids" and you look forward to hearing his thoughts. The contractor is on notice there is competition and may not like it. Tough.

Once you have met with everyone on the short list, establish a reasonable deadline (two weeks is good) for receiving a written bid from each contractor. Chuck out firms that are unresponsive (it will only get worse after the work starts). After you receive the bids, walk through them with the contractors so you understand what they entail. Take copious notes of your conversations. Make certain you write down any promises, guarantees, and representations ("This floor will definitely support a swimming pool").

Small jobs are usually priced on a time-and-materials, or cost-plus, basis. Time is billed by the hour and materials are charged at cost plus a markup. Large remodelings or additions are typically bid on a fixed-price basis, although in a hot market, some contractors may refuse to give you a fixedprice bid. Nonetheless, if your project will last more than a few days, you should ask for one, because it puts the risk of poor estimating on the contractor, not on you.

As a rule of thumb, the more parties involved, the more important it is to have a fixed price. If you are dealing with a single specialty contractor, such as a painter or plasterer, hourly rates will do. With a general contractor and multiple subs, there are too many opportunities for featherbedding.