Before starting the negotiation process, you want to get an estimate to help your negotiation with contractors. You should talk to several contractors, getting at least three estimates. These estimates should include the price of building materials, the work schedule, and labor costs. Don’t always go for those low estimates. You may regret it as the contractor does poor quality work at your property.
Once you have the estimates, you can negotiate with the contractor. You might like one contractor, but the price is too high. Take the estimate of the other contractors and see if they will come down on the price. Negotiations don’t always work with every contractor. Some may price match, while others will set their prices in stone.
You should always take your time to make a decision. Don’t feel pressured to make an immediate choice. If a contractor wants you to make a large upfront payment, be a little cautious. When looking at the estimate, read the fine print. Some contractors will add fees and other costs to the contractor. If you don’t read those details, you could be left paying hundreds of dollars more on a project.
Should I Pay Half Upfront after my Negotiation with Contractors?
You never want to pay the total price of the project upfront. In some cases, the contractor will ask for a percentage of the costs as a deposit. You always want to make a check payable to the company and never hand out cash. Many reputable contractors will ask for that one-third payment for the deposit. While half the costs are not unheard of, you might want to exercise some caution with these contractors.
When you make a payment, make sure to get a receipt. Some contractors will have you sign paperwork that you have made a payment. You want to ensure that your payment is noted in your records so there is no dispute about any transaction.
What is the safest way to pay a contractor? Personal checks and money orders are the best forms of payment. You want to have payment options that leave a paper trail. Cash might seem convenient, but you will have no record of those payments. Once the job is complete, you will pay for the remainder and finalize all of the paperwork.
Even after the job is completed, you want to hang on to those records. Keep all the estimates, change orders, bills, canceled checks, and other information in a file. While you might not need it now, this file can help you with problems down the road.
These tips can help you find professional contractors who will complete your next home renovation or new build. By taking the time to find the right person for the job, you can prevent those headaches down the road. For more tips and guides, check our weekly update on Suncoast Permits.