Things to Never Say to a Contractor

1.  Never Tell a Contractor They are the Only One Bidding on the Job

Always get a minimum of three bids, in fact, the more bids you get the better. Separate each bid into the cost of materials and the cost of labor. This will help you tremendously when comparing each contractor.. Don’t ever tell a contractor that they’re the only one bidding on a job, because that gives them too much power. You need to lead them to believe that you are considering many contractors for a job, so that they are held accountable for their bid.

2. Don’t Tell a Contractor Your Budget

If you tell a contractor that your budget is $20,000 they will find a way to make their bid $20,000, even if it should be lower. Instead you should have them provide a bid for the work you need done, so you can compare the cost of material and labor with other bids, to make an informed decision.

 Never Ask a Contractor for a Discount if You Pay Upfront

It is an extremely stupid to offer to pay a contractor the entire amount owed upfront. If you pay a contractor upfront, they can end up not doing a good job, or some will even take your money and disappear.

I have actually seen some real estate traders on Youtube teaching people to do this in order to save money. It is very dumb advice, because you have to be very careful about payments to your contractor. You will have to pay some money upfront to cover the cost of materials, but I actually try to work out deals where I am purchasing the materials myself. I dont trust contractors to buy the materials for me, because in the past I have had issues with contractors using leftovers from prior jobs, or purchasing cheaper materials then requested, thus scamming me out of money.

4. Don’t Tell a Contractor That You Aren’t in A Hurry

If you tell a contractor that there’s no rush to complete your project, they will give your job the lowest priority possible. They will take on other jobs and spend their time doing other things, besides getting your job done. You need to communicate timelines, and actually chart out the weekly expectations you have in terms of job completion. Be sure to set dates and deadlines, and let the contractor know that they will lose money if the job is not completed within a reasonable amount of time.

Never tell a contractor that you’re not in a hurry, or else your project can end up delayed more and more, until you are pissed off and losing money. 

5. Do Not Let a Contractor Choose the Materials

It is very important that you make the decisions on the exact materials you use for your project. With each type of material, there is a high end product, low end product, and something in the middle. Educate yourself on the difference between each type of material, so that you can choose based on your needs. If you allow the contractor to make all of these choices for you, they can really screw you over. They could use materials from other jobs, choose materials that are too expensive, or even too cheap.

6. Never Hire Anyone Illegally 

Some contractors might offer to bring in people that aren’t legally licensed to work on your jobs. You should never hire anyone that does not legally have the ability to do the job. If you are not diligent when hiring a contractor, you risk a huge liability if someone is injured.  Make sure that the contractor is licensed and insured, and has evidence of an insurance policy. Be aware of any subs brought in by a general contractor, to ensure that they are covered under their policy.

7. Don’t Agree to a “Gentleman’s Agreement”

Always, always, always put your agreement with a contractor in writing. I don’t care if it is a simple, one page piece of paper, just get the deal in writing. I have a link where you can download a copy of a contract I use with contractors. It is very simple, and ensures, that you and the contractor both understand what you are agreeing to.

Having everything in writing has nothing to do with trust. It helps ensure that everyone is on the same page and remembers what the agreed terms are.  So that months down the road, we don’t start arguing to what we agreed to in the beginning. I write out very detailed contracts, with my exact expectations and a list of all expenses.