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How to Negotiate with a Contractor

By William Myers

  • PUBLISHED June 10
  • |
  • 6 MINUTE READ

The phrase “working with a contractor” has sent shivers down the spine of many a homeowner. Delays, cost overruns, lack of communication—it seems that everyone who has hired a general contractor for a home improvement job has a horror story to share.

The process doesn’t have to be painful, though. Whether you’re renovating your kitchen or having new flooring installed, follow these steps to build a good relationship with your contractor and keep your project within budget.

Set the Right Tone
Build a solid foundation with your contractor so you won’t have problems later. While it’s true that some contractors take advantage of unwary clients, it’s also the case that an ounce of kindness goes a long way with them. Treat contractors with respect, rather than suspicion. This way, you can establish a rapport so that they treat you honestly and fairly in return.

And make sure to stay in communication for the duration of the job. So many issues can be nipped in the bud by keeping the lines of communication open throughout a project.

Talk with Previous Clients
Before you commit to working with a particular contractor, talk to your neighbors and friends to see if they have any experience—positive or negative—with the contractor in question. Apps like Nextdoor are another great way to learn about their work, too.

In the contracting business, reputation is everything, so if a neighbor is gushing about a painter or landscape architect, that’s a good sign. You can also look at sites like HomeAdvisor for referrals and quotes from local professionals.

Get Multiple Bids
If you’re doing a major home renovation, definitely shop around. Ask for bids from at least three contractors—and let each one know you are doing so. This will communicate to them that you’re concerned with keeping costs down. You can also use Facebook and other social media to see whether the price of your bid matches other people’s, or if it’s much higher than the going rate in your area.

Cost aside, talking to multiple contractors and soliciting their advice might lead to some new renovation ideas you hadn’t considered. So it really does pay to talk to a few people before getting started.

Get Details in Writing
Before signing any contracts, work out all the project details. This includes asking questions about any contract details you’re unsure about and getting itemized quotes for expenses related to labor and materials costs. If you’re concerned about making sure the contractor completes the job on time, make sure the end date is in writing, too.

Of course, with any big project, the unexpected can happen, and it can affect the timeline. If any changes to the project occur, get the details in writing and double-check all work along the way to avoid end-of-project surprises.

Be Clear About Your Budget
There are a lot of situations in which it can be awkward to talk about money. Working with a contractor isn’t one of them! Don’t be shy when it comes to discussing your budget.

Make sure your contractor knows how low your project budget is—and consider giving them an even lower figure than you can actually afford. Never give them a high-end figure for the maximum that you can afford. This can help you stay within budget even if unexpected costs come up during the project.

Ask for Help Trimming Costs
If the quoted bid is too high, ask how the contractor can get the figure down, preferably during the bidding phase. They might know how to rethink the project to meet your budget. Certain materials, for example, can cost quite a bit more than others. If you’re hiring them to build a new fence or install a new floor, talk to them about pricing out options for different materials.

Remember to treat the contractor as an ally who can help you lower costs if any figures are too high. They want your business just as much as you want their help. So if you’re open with them about cost concerns, they should try to meet you halfway.

Be Creative About Reducing the Price Tag
The costs of some home renovations fluctuate seasonally. Find out what time of year is slow—you may get a better deal in the off-season. For example, if you’re having landscapers beautify your yard, consider avoiding the peak season in the spring.

If you’re handy, you can also do some work yourself. If you’re having a new bedroom added onto your house, maybe you can paint walls. If you’re getting a deck installed, perhaps you can stain the wood. Ask if there are any materials that you can shop around for, too. (Just keep in mind that some contractors get better deals than laypeople.)

Know Who to Call if Things Go Sideways
If the contractor isn’t delivering on what they promised, you might need to call a lawyer or insurance company. These options can be expensive, though, so it always helps to start by talking with the contractor about anything you’re dissatisfied with.

In the end, keeping open lines of communication throughout the life cycle of the project can help you avoid unforeseen problems. Make sure to follow the project closely, ask plenty of questions and treat your contractor as an expert who can help you solve any problems as they arise.

William Myers is a financial writer based in Dallas.

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