References, past work, project schedule, total cost and potential change orders should be evaluated while choosing the best contractor for your job.

When you start thinking about a renovation project, you often wonder about the resources you will need as the project progresses. You may get referred to an engineer or an architect but it is important that you select a wise contractor. Making an informed decision requires following a tested process and although you may be tempted to select a contractor with the lowest cost, this may not always be the best approach. Instead, you should look to follow a structured selection process to ensure smooth flow of your work on the site. Let us look deeper into what is required while choosing a contractor that fits your budget and ensures quality.

Look at References and Past work:

You need to ideally start looking at past projects and references before making a selection. This will help you identify the quality of work your contractor has done in the past. It will also give you an idea about the scale of work your contractor has done and is capable of doing. In addition to past projects, ask your contractor for resumes and experience details of key employees who will manage your project. All these requirements can be put in a structured RFP document. The RFP can be issued at the beginning to all potential contractors so they can bid on an equal footing. One important item to ask for in the RFP is the quality plan. A construction quality plan details how the contractor will manage quality and testing on the site. The contractor should also specify the names and experience of the key subcontractors that are going to be performing the work. 

Evaluate project schedule:

A project schedule is also required at the planning stages of the project. The project schedule is critical to the success of the project. Any delays to the schedule may increase the project cost and may also result in lost rental income if you are building an additional suite like the basement unit. The schedule should be updated as the project progresses.

Review Financial Cost and Potential Change Orders:

You may want to decide on a scoring criteria for each item that you are evaluating. Weighted averages can be used and you do not have to keep very high points for just the cost. Quality matters as well. As part of the project cost, a payment schedule needs to be evaluated in addition to the cost. Typically a 10 percent holdback from the total cost of the project is maintained at the end of completion, till all deficiencies are resolved. You will need to check that all items in scope are considered as part of the contractors cost or this may result in an unwanted change order later. The approach and cost of managing change orders after the start of construction should be evaluated. Typically the constructor should be charging you an additional 10-15 percent over the subcontractor cost for any change order. In addition, you need to ensure that the selected contractor has kept enough room for unforeseen costs in the proposal. You can also add contingencies to the project budget if your contractor has not.

Confirm Your Contractor has Insurance 

It is quite important that your contractor carries the appropriate insurance for his business and the construction work, that could protect you if the need arises. You may also want to check with your own home insurance provider to confirm if they any cover damages during home renovation.