CONTRACTORS AND THE SIZE OF THE PROJECT

It is important to understand that while individual builders/contractors are generally capable of undertaking projects within their experience, capability and financial scope, many builders/contractors will not turn work away even if they have a full order book. When this occurs they end up trying to keep everybody happy, and if they do not have the resources to cope with the additional workload, it is the client who is let down.

This is an important factor with regard to cash flow as the more work the builder/contractor takes on, the more he will have to pay out, and this can be very difficult on the larger projects as it is the builder/contractor who will be expected to finance the initial stages.

He can expect to receive payments in arrears by up to two months on larger projects. If possible, it is worth finding out the size of projects that the builder/contractor takes on. Don’t just take his word for it – ask for information on recent projects of a similar size to yours.

You need to make any potential contractor aware of your estimated budget and that you will be making stage payments. This is covered in Chapter 7.

DIRECTORIES

One place to start the search for a contractor is a telephone directory such as the Yellow Pages. This is particularly useful as the more professional builder will normally belong to one of the major trade associations and will show their logo on the advert. This does not mean to say that they are better, just that they are prepared to have information about themselves available from a third party, which would indicate that they are confident in their own service.

LOCAL PAPERS

Small one-man operation builders generally advertise in this way and provide a service for the smaller projects. However, it would generally be fair to say that the larger and more professional the advert, the larger and more professional the company.

RECOMMENDATION

Most people know someone who has had work carried out. This is probably one of the most reassuring ways of finding a reliable builder/contractor, as you can discover first-hand if there were any problems. This method may even give you an opportunity to inspect the work that they carried out, to see the quality of workmanship.

You may also know someone who is currently having work done. You will get no better feel for a company than actually seeing how they operate and how the men treat the client’s premises!

Although we are concerned about whether or not the builder/contractor is capable of carrying out the work, it is advisable to meet the person that you may be entering into a contract with, as you need to be sure that you will get along with that person generally.

You would not necessarily exclude a builder/contractor just because you did not like the look of him. However, a person’s attitude generally can give a good indication to their work attitude. This is something that also needs to be taken into account with his employees.

It is worth mentioning at this point that if you do have problems with any of the employees on site, you should take this up with the builder/contractor himself rather than get into confrontation with the particular individuals.

ADVERTISING BOARDS

Builders who are prepared to put a board outside a job or who advertise on their vans are in the main confident in their work. As you travel around you will see many signs of work being carried out.

Take a good look at the cleanliness of the site and note whether the area is tidy. If you get the opportunity, stop and ask to see the person in charge. This will give you a much better chance to see the site set-up and if they work in a professional manner.

THE INTERNET

If you have access to the internet, you can search many different internet directories to find local builders who may even have their own website. This will allow you to find out much more about the nature of projects that they undertake and how they operate in advance of contacting them.

Their website may also have pictures of work that they have carried out which will give you an indication of the size of projects that they can cope with. It would be fair to say that companies who do have their own website are, again, confident that the service that they are supplying is of a high standard, and that they should have a fairly good system in place for providing computer-assisted letters and contractual information which is always important.

THE RESPONSE TO YOUR ENQUIRY

Depending on market forces, you may find that you get an initial favourable response, with builders/contractors coming to see you about your enquiry. However, it is a fact that, due to other work commitments, many contractors do not respond as quickly as clients would like.

In many cases they may not respond at all if it is a project that they are not particularly interested in. For this reason, it is important for you to know the type of work that a particular builder/contractor will or will not be interested in.

Even if a builder/contractor does carry out the type of work that you are trying to obtain quotes for, they will not necessarily tell you if they are not interested. It is worth seeking quotes from six or seven outfits, of which three may actually respond. Even then you may be able to tell who is submitting a quote but does not necessarily want to win the contract, by the vast difference in price.

Unfortunately some contractors will submit quotes that may be as much as 50 per cent above the going rate, if they already have too much work to cope with. If they are then awarded the contract, they will possibly use another contractor to carry out the work, or they will juggle their workforce around to do the work because of the high mark-up.

The problem with this arrangement is that the builder/contractor may be spreading his men around too thinly and not supplying a good service to anyone, as mentioned above. On the other hand, if he does use another contractor, this could become complicated if things start to go wrong.

Builders have also been known to price projects high in order to lose them for reasons such as difficulty with parking, or a terraced property with difficult rear access.

Finally do not wait to see what response you get – be prepared to chase the quote. Remember that builders generally have to plan their work well in advance and may have order books as long as six months or more.

Quotes and estimates

When you do receive a quote/estimate, be sure to have the builder/contractor confirm to you in writing that it is a ‘quote’ he is prepared to stand by. Some builders/contractors have been known to give a client an ‘estimate’ knowing that the work cannot possibly be carried out for the figure that they have submitted. Their way out of this is to say that it was an estimate and not a quote!

In theory they are correct, and court cases have been won by builders/contractors who have proved that, because they worded the price of the project in a specific way, the client should pay the additional costs. Obviously if the situation gets to this stage, relations are normally irretrievable and the client could end up paying compensation on top.

Although these are extreme situations, they are worth bearing in mind.