7 Costly Contractor Hiring Mistakes (And How to Avoid Them)

As a homeowner, you hold the key to the success of your project. Whether you’re upgrading your cottage for a potential sale or making improvements to enjoy for years to come, your decision to hire the right contractor is crucial. It can make or break the success of your project. Yet, many homeowners fall into common traps that lead to stress, budget overruns, and disappointing results. But with the right knowledge and approach, you can avoid these pitfalls and ensure your project stays on track from start to finish.

To help you avoid these pitfalls, here’s a guide on seven crucial mistakes to avoid when hiring a contractor, along with tips to ensure your project stays on track from start to finish.

 

1. Skipping the Research Phase

Rushing into hiring a contractor without proper research is a common mistake. It’s tempting to go with the first name that comes to mind, but this can lead to poor results. Not meeting with multiple candidates and failing to learn about the necessary steps for your project leaves you vulnerable to hiring someone who doesn’t meet your needs.

What to do instead:

  • Educate yourself on your project’s requirements.

  • Interview at least three contractors who specialize in your type of renovation.

  • Ask for recommendations from trusted sources like friends, family, or real estate professionals like us.

 

2. Choosing Based Solely on Price

While a low bid can seem appealing, hiring a contractor based purely on price can be a mistake. Extremely low bids often mean cut corners, poor-quality materials, or unexpected hidden costs that may surface later.

What to do instead:

  • Consider overall value, including experience, reputation, and the quality of work.

  • Ask for detailed breakdowns of what’s included in each bid.

  • Be wary of bids that seem too good to be true—they usually are!

 

3. Neglecting to Verify Credentials and Insurance

Even if you feel you’ve found the perfect contractor, verifying their credentials and insurance is crucial. Hiring an unlicensed contractor can result in safety issues, building code violations, and financial risks if accidents occur on your property. It’s a risk you can’t afford to take.

What to do instead:

  • Confirm that the contractor is appropriately licensed and insured.

  • Check online reviews and ratings.

  • Contact references and visit current job sites to assess their work.

 

4. Proceeding Without a Written Agreement

Verbal agreements leave too much room for miscommunication and misunderstandings. A written contract ensures clarity on everything from costs to timelines.

What to do instead:

  • Insist on a written contract that outlines the scope of work, payment schedule, timelines, and warranties.

  • Ensure you understand all terms before signing.

  • Keep documentation of any changes or issues that arise during the project.

 

5. Paying Too Much Upfront

Handing over a large portion of the project’s cost upfront is risky. You’ll have little recourse if the contractor doesn’t finish the work or disappears.

What to do instead:

  • Limit upfront payments to 10-15% of the project’s cost.

  • Establish a payment schedule tied to progress milestones.

  • Always hold the final payment until you’re delighted with the work.

 

6. Failing to Get Necessary Permits

Skipping the permit process can lead to code violations, fines, or even having to undo completed work. Additionally, unpermitted work can lower your home’s resale value and create insurance complications.

What to do instead:

  • Discuss permit requirements with your contractor and include them in the contract.

  • Make sure inspections are completed at all required stages of the project.

  • Keep copies of all permits and inspection reports for future reference.

 

7. Ignoring Red Flags Mid-Project

Even after work has started, it’s important to stay vigilant. If you notice red flags, such as poor workmanship or lack of communication, don’t ignore them. Addressing issues early can prevent larger problems down the road. Your proactive approach can make a significant difference in the outcome of your project.

What to do instead:

  • Keep records of any concerns or issues that arise.

  • Maintain professional communication with your contractor.

  • Seek legal advice if the contractor becomes uncooperative or fails to meet expectations.

 

Take Action Early for Success

Avoiding these common mistakes can save you time, money, and stress, ensuring your home improvement project goes as smoothly as possible. Whether upgrading your property to sell or enhancing your cottage for long-term enjoyment, investing in the right contractor will pay off in the long run.

If you’re considering renovating and want to understand how it could impact your cottage’s value, or if you plan to sell soon, we’re here to assist you. Reach out to All Points North Group today, and we’ll help you be where you want to be!

Have you ever faced challenges with a contractor before? What lessons did you learn? Let us know in the comments!

Share This Post: