As a property manager, you know that hiring contractors is a crucial part of maintaining and improving your properties. But how do you balance cost and quality when choosing contractors? How do you avoid overpaying, underdelivering, or getting scammed? Here are some tips to help you find the best contractors for your needs.
Before you start looking for contractors, you need to have a clear idea of what you want them to do. Define the scope of the project, the timeline, the budget, and the expectations. This will help you narrow down your options and compare bids more effectively. It will also help you avoid scope creep, which is when the project expands beyond the original agreement and costs more than expected.
Simple, we self-perform, and control all of our property services, with the exception of paving. As we were first a property services organization, property services is our background, and by self-performing, we control pricing, timeliness of scheduling and completion, as well as the inspection process. We would have it no other way.
Don't just hire the first contractor you find online or in the yellow pages. Do some background research on their reputation, experience, credentials, and references. Check their online reviews, ratings, portfolio, and testimonials. Ask for referrals from other property managers, colleagues, or friends. Verify their license, insurance, and bonding status. And don't be afraid to ask questions and clarify details.
Tapping into your network for referrals is highly recommended. Hiring someone that comes from a trusted source will usually lead to better results as they should have first hand knowledge of the contractors work.
Once you have a shortlist of potential contractors, get at least three bids for your project. Compare the bids not only on price, but also on quality, scope, materials, and warranties. Look for any hidden fees, exclusions, or contingencies. Ask for a detailed breakdown of the costs and the timeline. And don't automatically choose the lowest bid, as it may compromise on quality or have hidden risks.
You should always get at least 3 quotes for any job. Even if the 1st one seems like it should be good, always...3...quotes! Having multiple quotes allows you to compare and will bring up things you otherwise might not have thought about. Plus, it will spark some questions in your mind to help you make sure you have everything covered.
Multiple quotes are necessary. Even when you use a list of ‘preferred vendors’. It helps to ensure vendors are always providing competitive pricing. When you forego the bidding process, even a trusted vendor’s pricing can begin to creep up over time at a detriment to the property owner’s bottom line. There are vendors who get frustrated when they bid several times and are not awarded the project so it is important to provide vendors with feedback explaining why they did not get the work.
Cost does not only mean the construction cost. Cost should also consider maintenance cost. Commonly, cheap materials does not come with extended warranty. Moreover, cheap materials requires frequent costly maintenance and repairs.
After you select the contractor you want to work with, you need to negotiate and sign a written contract. The contract should include everything you agreed on, such as the scope, the price, the payment schedule, the start and end dates, the change order process, the dispute resolution mechanism, and the guarantees. Read the contract carefully and make sure you understand and agree with everything. Don't sign anything you are not comfortable with or don't fully comprehend.
A suggestion is to create a standard Vendor Service Agreement (VSA) that you will use for all contracts. You can then insert the contractor’s proposal as an exhibit but the terms are those that you have drafted and are comfortable with. I never sign a vendor’s contract. I insert the proposal and ask the vendor to sign our VSA.
El costo y la calidad van de la mano, cuando un producto cumple con las características y expectativas que requiere que cumpla dicho producto, lo tanto se tiene un volumen destinado donde el costo-beneficio sea equitativo para ambas partes y no se descuide la calidad con personal especializado.
Once the work begins, you need to monitor the progress and the quality of the work. Communicate regularly with the contractor and address any issues or concerns as soon as they arise. Inspect the work and ask for updates and reports. Keep track of the invoices and payments and make sure they match the contract terms. And don't pay the final payment until you are satisfied with the outcome and have received all the necessary documents and receipts.
This is so important. You must monitor the work. Contractors have a tendency to get sloppy when they aren't monitored. They also have a tendency to get slow. They'll work other jobs if you aren't making sure work is getting done on time. There should be penalties in the contract if they don't meet deadlines.
After the work is done, you need to review and rate the contractor's performance. Give them honest feedback and let them know what you liked and what you didn't. If you are happy with their work, you can also give them a positive review online or refer them to others. If you are unhappy with their work, you can also file a complaint or a claim if necessary. And don't forget to thank them for their service and professionalism.
Balancing cost versus quality when hiring a contractor involves careful consideration of several factors. While everyone desires fast, cheap, and good craftsmanship, it’s often challenging to find a perfect balance. As they say, “You can have it fast, cheap, or good—pick two.” Finding the right fit often involves making trade-offs based on your project’s specific needs and constraints. It’s essential to strike a reasonable compromise rather than expecting perfection in all aspects.