What To Look For When Hiring Building Contractors

With the current housing market there are more available building contractors for you to seek bids from. This always happens when the market slows down a bit. For the contractors it is not a good thing but for the consumer looking to have a new home built it is a great opportunity to get a good deal. However there are some things to keep in mind when you are looking for a building contractor for your new home and here we will cover a few of them.

First off when you are beginning your search make sure that you get at least three bids on your project. When you do this you need to make sure that contractors get the same information from you. For example if you want solid cherry cabinets then make sure that you tell all three contractors that this is a must for you and should be figured into your pricing. When you tell all three contractors the same information when you compare their bids you will be comparing apples for apples.

After you have received your bids carefully look them over. Make sure that each proposal includes everything you have specified. Many times you will see that builders include allowances for items. Make sure that the allowance adequately covers the item. For example if you are building a 2000 square foot home and you have picked tile throughout the house and you see a $500 allowance for it to be completed this should cause you some concern.

Another important aspect when trying to choose a home builder is to check them out thoroughly. The first thing you want to make sure of is that they are licensed and properly insured in your state. You will need to make a few phone calls but it can save you a lot of headaches down the road. Also ask the builder that you ultimately choose to provide you with an insurance certificate. This is a paper sent by the insurance company stating that their insurance policy is current. When you request an insurance certificate you will automatically be notified if their insurance policy is cancelled or any changes are made to it.

Before you sign a contract ask the contractor how they work with their subcontractors. Do they bid out the jobs, do they have insurance and licensing information on them, how do they pay them? One thing you should require from your contractor is release of lien from all the sub contractors that will be on your job site. This will save you from a possible fiasco later as you sometimes here about building contractors that get paid from you or your lending institution and then fail to pay their subcontractors. Then what happens is the subcontractors liens your home for the amount they are owed and you could end up paying twice for services.

Picking the right contractor to build your home is very important. You want to make sure that things go smoothly so everyone is happy in the end. Building contractors are less busy right now so it is a consumer's market so do your homework and you will end up with a good deal.