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How To Check Your Contractors References

How To Check Your Contractors References

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We've got a short series this week that explores the process of checking contractor references from our newest contributor, Deren Monday, who brings with him more than 10 years in the residential and commercial construction industry and is also a graduate in construction management.

Checking References: The Most Critical Step in Contractor Selection

I find significant humor and a dash of irony in traditional reference checking, whether it be for a job application, credit application or a contractor. What is so funny, you ask? Well, 99% of the time the person (or company) providing the references stacks the list with only their favorite clients/associates/friends/family. And even funnier, 99% of the time the person (or company) checking references goes no further than the references initially provided. Low and behold, the references come out great! Wow! How unexpected, right? Wrong...

Nothing speaks more about a contractor than the satisfaction of past clients. And not just his favorite past clients, but all of them. So how do you check references in a meaningful way? How do you help avoid that horrible realization that you are paying the wrong person to do the job at hand? These four steps are guaranteed to dig up the past, good or bad:

Step 1 - Do Their Biggest Fans Love them?

Ask your potential contractor for three references from the past five years. He or she will certainly give you his three favorite clients. Call them and ask simple yet informative questions: Were you satisfied with Company X's work? (Fill in the companies name here, unless you are truly using a company called "Company X," in which case suggest they hire a marketing consultant...) How much did your project run over budget? Was Company X (or their subs) professional and courteous? Would you use Company X again? These questions provide great insight into their experience. Remember, however, that these references give you a partial picture of past performance. It is almost guaranteed that this initial list will only contain satisfied customers. It is helpful, but not nearly as helpful as Step 2...

Step 1. Do their Biggest Fans Love Them?

Step 2. Are Their Most Recent Clients Happy?

Step 3. Do Their Suppliers Tolerate Them?

Step 4. Are the Feds Hunting Them?


Deren S. Monday has spent over a decade in the residential and commercial construction industry, and is a graduate of the Construction Management Department at California Polytechnic State University, San Luis Obispo. He will send his references upon request and assures you his list would be full of his biggest fans. Deren is the author of Your Cheap Kitchen Remodel: A Guide to Your Affordable Dream Kitchen. More information on his book can be found at cheapkitchenremodel.com.

Deren S. Monday | September 7, 2009 | Comments () |

 

 

  • Meredith
    Ah, we have to wait for Step 2? This was just getting good. Thanks for offering this useful content. I've been worried that I'm not checking my GCs references as well as I should be. I was making the exact mistake Deren mentions here, only going as far as the references provided.
  • Thanks Meredith and Deb - check back each day this week as we get even more in depth on checking references. Hopefully you'll find these suggestions vital before hiring your next GC or sub.
  • KapsnerHomes
    Great article--looking forward to Step 2! As one of the "good" General Contractors/Builders, we feel that full-transparency with our clients is key, and potential clients are given full access to all of our past clients for this very reason. My only minor issue with this article is, that you list this as a question to ask: "How much did your project run over budget?"

    I know that builders and GC are notorious for not budgeting construction projects properly, not advising clients of budget scope creep, and for unforeseen budget busters. And yes, we've had a couple of projects go a little over budget, too (but the client insisted on $130/sf tile in the kids bath, so what can you do!?!). However, a good contractor should build in a line item for unforeseen budget overages and should advise the client at each step of materials selection to help them keep the budget in line.
    Thanks for the great article--happy to be following you!
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