Frequently Asked Questions
We have compiled a list of questions and answers as it pertains to remodeling and the related field. We update this area so please check back often for updates.
What are the benefits of Green Remodeling?
The U.S Department of Energy believes that if current buildings were green-improved, they would use $20 billion less in energy every year. Green remodeling is easier on the earth, it can lower energy costs, and it provides a healthier home in which to live. According to the Sustainable Building Industry Council (SBIC), housing alone consumes 20% of America's energy. Homeowners who make the choice to remodel green can lower their energy consumption by 30-50%. It's widely agreed that forests produce approximately 40% of Earth's oxygen, and that building supplies use up 25% of those forests. Remodeling green by incorporating recycled materials or sustainable species will help homeowners to use less of Earth's natural resources. More than 15 million Americans are estimated to have asthma, and more than 28 million suffer from hay fever and other allergies. All of these conditions are aggravated by poor air quality which can be improved by remodeling green. When you choose to remodel green, you are making the choice to minimize or eliminate products and practices that can cause harm to the occupants of the home as well as the environment.
How much of a down payment will a remodeler/contractor typically ask for to start a job?
There are many different factors that determine a payment schedule in the remodeling industry. From a contractor's perspective, receiving some sort of payment at signing is a good practice to insure a customer's sincere intent to do the project. A payment schedule should be part of the contract. Typical down payments are 25% to 33%, sometimes even higher depending upon the type of work being done. A down payment is typical when products have to be ordered by the contractor immediately. Doors, windows, cabinets and specialty items are usually ordered well before any construction starts. Dividing a project into 3 or 4 equal payments allows the contractor to keep abreast of the project's labor and material costs. Payments should be tied to a production schedule with predefined milestones.
These are only suggested down payments. Although they reflect a norm in our industry, down payments and a payment schedule can be whatever is negotiated between the contractor and client. The important thing to keep in mind is that a business cannot survive without a cash flow.
How should I select my remodeling contractor?
It's best to employ a home improvement contractor with an established business in your area. Local firms can be checked through references from past customers in your community, through the BBB at, www.newmexicoandsouthwestcolorado.bbb.org or through consumer guide websites like Angie's List at www.angieslist.com Local remodelers are compelled to provide quality work that satisfies their customers in order for their business to survive. Ask the remodeling contractor for a current copy of their license. You can also check with the State of New Mexico Consumer Affairs Office http://www.nmag.gov/office/Divisions/CP/Default.aspx to ensure there are no complaints on record for that contractor. Ask to see a copy of the remodeling contractor's certification of insurance for the name of his or her insurance agency to verify coverage. The state of New Mexico requires a contractor to carry worker's compensation, property damage, and personal liability insurance. Make sure the contractor's insurance coverage meets all the minimum requirements.
While I'm interviewing remodeling contractors, what questions should I ask?
How long has the company been in business? Look for a company with an established business history in your community. Surviving in any business in today's competitive marketplace is a difficult task. Most successful contractors are proud of their history in the industry.
Who will be assigned as project supervisor for the job? Ask whom you should contact if the supervisor is not available. Get exact names and contact phone numbers for all persons who will be involved in the project.
What is the time frame for starting the project? Now is the time to ask questions about work schedules: What is the estimate for completion? At what time does the crew normally begin work? At what time do they normally quit for the day? Will I be contacted about delays or changes in the schedule?
What is the company's approach to a project of this size and scope? This will give you an idea of how the contractor works and what to expect during the project. Listen carefully to the answer; this is one of the telling indicators of the company's work ethic.
How does the company operate? In other words, how is the firm organized? Are there in-house employees or sub-contractors? If there are in-house employees, what are their job descriptions? Is there a project supervisor or lead carpenter used to oversee the projects? Some firms will have additional positions. You should know what parts of your project will be handled by staff, and which will be contracted out to independent professionals.
Is the company a full service or specialty firm? If you are planning a small project, say remodeling the bathroom, you would probably do better by hiring a specialty plumbing firm, or a bathroom remodeler. However, if your project involves multiple changes, entire rooms or additions, you should consult a full service or design-build firm.
Are there design services available? If you are considering a large or involved project, you will need design services. If the contractor does not have design-build capabilities, you should consider hiring an architect. Depending on the size and scope of the project, you may need an architect or structural engineer.
Does the company carry workers compensation and liability insurance? Ask for copies of the insurance certificates to verify coverage. In addition, some states require licensing and registration. If your state does have construction licensing laws, ask for your contractor's registration and license, then confirm the license number and expiration date with your local jurisdiction.
Are there references available for similar completed projects? The contractor should be able to supply you with a minimum of three references, including names, telephone numbers, and addresses. As a follow up to this question, ask how long ago a similar job was completed, and if the contractor can arrange a visit to see the completed job. You should also ask for professional references from their suppliers, financial institutions, or sub-contractors to verify sound business practices.
What percentage of the business is driven by repeat business or referrals? This will give you a good indication about the company's customer satisfaction.
How many similar projects have been completed within the past year? This will help to determine the contractor's familiarity with your type of project. You should confirm that a good portion of those completed projects were similar to the job you are proposing.
Will a permit be needed for the project? Most cities and towns require permits for building projects. Failure to obtain the necessary permits or to arrange obligatory inspections can be illegal. In some cases, if a project violates a zoning law or some other regulations, it may even be demolished if there is no way to comply with the laws. A qualified remodeling contractor will be familiar with the permit process, and ensure that all permits have been obtained before beginning any work.
The most important questions to ask, is one you must ask yourself. Do you feel comfortable with the contractor you are about to hire? Do you trust them? The answer to this question should make the hiring decision that much easier.
How much should a remodeling project cost?
This really depends on the size and scope of your project. There is no easy answer to the question, and of course every project is different. The materials chosen, the size of the space, and the age of the infrastructure can all impact the cost of the project. Keep in mind that when you are comparing bids, you are comparing the exact same scope from each contractor. If a price comes in that looks too good to be true, it probably is. How much value the remodeling project adds to the home will also depend on the scope of the project. You may be surprised at which projects add the most value. Visit Hanley-Wood's Cost Vs. Value 2009-10 report at http://www.remodeling.hw.net/2009/costvsvalue/national.aspx .
How long should the project take?
Again, this depends on the size and scope of the proposed project and what may be found during any demolition. Unforeseen problems can crop up once walls are taken down that may require additional work. Ask your remodeling contractor for the most reasonable time-frame, and stay in touch with them as the project progresses so you can plan for a completion date.
Should more money be planned than the amount specified in the contract?
Additional work or a change in the project requested by the remodeling client usually requires a contract price change. Planning for the unforeseen is definitely wise, so putting aside an extra 10% or so over the contract price makes for a less stressful remodel.
How many estimates should be gathered for a remodeling project?
You can go about the process in many different ways. Conventional wisdom dictates a minimum of three estimates for any remodeling work you are going to have done. However, if a home improvement contractor comes highly recommended by a trusted source, and you have met and talked with the contractor, and you feel comfortable working with them, getting additional estimates may not be necessary.
Why would the pricing greatly differ on three different estimates?
There are a number of different factors that go into pricing a remodeling project. Be very sure that every estimate has the same scope of work and uses the same quality of materials. If the estimates are vague and you cannot interpret the information, go back to the contractor for clarification in writing. If you are unable to get adequate written information, it may be wise to eliminate that contractor from the bidding process.
What can be expected of a client while a remodeling project is being done in a home?
The most important thing is to keep the lines of communication open between yourself and your remodeling contractor and the work crew. Ask questions. Let them know what your family schedule is and whether you have pets confined somewhere. It is important to keep the work area off limits to children and pets for their safety. You also may have a little extra dust and dirt in your house, so keeping the work area off limits will keep the possibility of dirt being tracked to other parts of the house at a minimum.
How important is it for a remodeling contractor to be licensed and insured?
Extremely. Licensing is required in the state of New Mexico, ask for proof of licensing or call the issuing municipality to verify the license. For insurance, ask for proof of insurance, or call the insurance company the contractor is insured by to verify coverage.
