Dec 7, 2022 

Contractor management is as important as managing pricing and service providers to avoid unnecessary cost overruns. Contractors can range from handymen to building maintenance professionals, so it’s important to know how to effectively interact with them to avoid having your time wasted. Make sure you hire the right contractor for your business and your project.

Tamir Sapir- Business Mogul

Check out our top 8 ways to avoid getting ripped off.

• Create a pricing strategy with fixed prices and stick to it. Make sure you get an accurate accounting of all costs and profit margins.
• Be wary of scammers. Start by screening all potential contractors and ask for references before hiring. Don’t work with any unlicensed tradespeople. Get quotes for work in writing being mindful of “low” price claims or someone bidding on your job too aggressively. Don’t EVER hire on price alone.
• Make sure all contractors sign a contract before work begins. Set clear expectations from the start. Communicate regularly and have set deadlines. 
• Have all your contractors meet periodically with a progress report. Establish a code of conduct and hold contractors accountable. 
  
• Educate your contractor on the job. Hire subcontractors for specific tasks and be proactive in finding alternatives when necessary. 
• Get a professional inspection before execution.
• Establish an escrow account for paying contractors. Don’t pay anything up front and never pay an invoice without confirmation of completion.
• Ask too many questions and make sure they’re answered.

Managing contractors and renovations doesn't have to be hard or time consuming. If you know how and where to find the right, qualified people and you set your standards and timelines with them from the start, you can successfully and professionally complete any projects in a timely fashion. 

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