Hiring a general contractor is a major decision with real dollars at stake. The right hire can keep design, cost, and schedule aligned. The wrong hire can slip dates and drain savings. This article highlights costly mistakes owners make and how to avoid them with simple checks. You will learn how to set a clear scope, read bids, choose a contract, structure payments, plan permits, manage the schedule, control changes, and verify quality and safety. No fluff—just steps you can use before you sign. With a short list of tools and questions, you can compare firms and pick the one that fits.
Start With a Clear Scope
Projects go over budget because the scope is fuzzy. Write down what is in and what is out, room by room. Add sketches or a plan. List must-haves and nice-to-haves. Ask for an itemized bid using common sections such as the CSI divisions: site work, concrete, framing, mechanical, electrical, plumbing, finishes, and closeout. Give counts and sizes for fixtures, tile, flooring, and windows so the math is clear. Use allowances only when you cannot pick a product yet, and note the unit costs. Define performance too: R-values for insulation, STC ratings for sound, and required warranties. The clearer the scope, the fewer change orders, and the easier it is to compare bids fairly. Include sample brands or model numbers to set a quality level.
Check Licenses And Insurance
Never skip license and insurance checks. Ask for a copy of the contractor’s active license and bond. Request a Certificate of Insurance that shows general liability and workers’ compensation, with you listed as additional insured. Confirm policy limits and expiration dates. Call the agent if anything looks off. Make sure subs are covered and the policy does not exclude residential work. Ask how they handle lien releases from subs and suppliers after each payment. Keep copies of all documents in one folder. Also, state complaint records and past lawsuits should be checked. A quick screen prevents liens and protects you if someone is hurt. If trucks or trailers will be on site, ask for auto liability and, when possible, an umbrella policy for added limits.
Demand Detailed Bids
Vague bids lead to expensive surprises. Require line-item bids with quantities, unit prices, allowances, exclusions, and alternates. Make every bidder price the same scope so you can compare. Good bids show labor, material, equipment, and markup separately, with lead times for long-lead items like windows or HVAC. Ask bidders to flag options that save money without lowering quality, such as changing tile size. Use this quick bid checklist:
- Line items match your scope and drawings
- Allowances list unit costs and brand level
- Exclusions are clear (e.g., permits, hauling)
- Schedule dates tie to the bid, not vague promises
Small gaps in a bid often become big costs later, so press for clarity before you award the job.
Choose The Right Contract
Pick a contract type that fits the job. A fixed-price contract sets one sum for a defined scope and works when plans and specs are clear. A cost-plus contract charges actual costs plus a fee; use it when design is still moving, but set a not-to-exceed cap and define cost categories. Time-and-materials pays hourly rates and materials; track with a cap. In all cases, define how change orders are priced, who can approve them, and how schedule days are added. Include retainage—often 5% to 10%—held until punch list and closeout are complete. Attached are the exhibits: drawings, scope, schedule, and a sample change order form. If the work is phased, allow separate pricing for each phase so you can pause or adjust with less risk.
Set A Fair Payment Plan
Front-loading payments can sink a project. Tie money to real milestones, not vague dates. A sample plan:
- 10% deposit after permits are filed
- 25% after framing and rough-ins pass inspection
- 25% after insulation and drywall
- 25% after cabinets, tile, and paint
- 10% at substantial completion; 5% held as retainage
Conditional lien waivers are required with each draw, and final waivers are required when checks are clear. Ask for proof when paying for stored materials off-site. Do not release final funds until the punch list is done and the closeout package—warranties, manuals, and as-built notes—is delivered. If a lender is involved, follow bank draws; otherwise, consider escrow. Make sure the schedule of values lines up with these milestones so billing matches actual progress.
Plan For Permits And Codes
Skipping permits can cause fines and trouble when you sell. Decide who pulls permits and books inspections. Ask which codes apply: structural, electrical, plumbing, energy, and fire. Confirm details such as GFCI and AFCI protection, smoke and CO alarms, fire blocking, and egress. For walls, ask if any are load-bearing and how they will be supported during work. Request a simple permit log with dates and inspection results, and recheck notes. Plan time for reviews and inspections in the schedule. Expect durations like:
- Plan review: 2–6 weeks, longer for structural work
- Rough-in inspections: same week if scheduled early
- Final inspection: after the punch list is done
Good code planning reduces rework, protects safety, and keeps the project sale-ready for the future.
Ask About Schedule Control
Time is money. Ask for a baseline schedule before work starts, shown as a simple Gantt chart. It should list tasks, durations, and dependencies. Ask which tasks are on the critical path—any delay there delays the whole job. Agree on how weather days are tracked. Request a two-week look-ahead each Friday so you know who is on site. Order long-lead items early and track them in a procurement list. Meet weekly to review updates, risks, and deliveries. Red flags include no written schedule, missing lead times, and crews hopping between jobs. Clear planning gives you predictability and the contractor fewer excuses for slow progress. Ask the contractor to explain the float on key tasks and show a recovery plan if a critical item slips.
Manage Changes The Right Way
Changes happen, but process matters. Use written change orders for every scope change. Each one should state the work, price impact, and any added days. Get pricing before work starts, not after walls are closed. For quick questions, use RFIs—simple, dated notes that ask for a choice. Keep a change log that shows status: proposed, approved, or rejected, with dates and dollars. If the contractor needs a field directive to keep crews moving, write it and agree on a not-to-exceed number until full pricing is complete. Track cost and days so trends show early. Clear records prevent surprises and reduce haggling at the end. For common changes, set agreed unit prices—like cost per square foot of drywall or tile—so small tweaks are fair.
Watch Quality And Safety
Quality and safety are daily habits. Ask for submittals on key items—windows, roofing, waterproofing, and HVAC—so model numbers and ratings match the spec. Request small mockups for tile layout, grout joints, and paint finish. Protect the site: dust walls, floor covers, and daily clean-up reduce damage. A simple safety plan should cover fall protection, ladder use, PPE, and first-aid gear. Ask for near-miss reports so small issues get fixed early. Near the end, walk through the job with a punch list and target dates for each fix. Collect a closeout package: warranties, O&M manuals, serial numbers, and final lien waivers. For systems like HVAC, ask for start-up reports and balancing. Quality control is not fancy—it is a steady checklist that is done every week.
Hire With Confidence
Hiring well is about clear steps, not luck. Start with a sharp scope, push for detailed bids, pick the right contract, and tie payments to real progress. Plan permits and code checks, keep the schedule visible, and control changes with simple forms. Then close strong with punch lists, warranties, and final waivers. These habits cut risk, improve planning, and make costs predictable. If you want a steady guide, choose a contractor who follows these basics and communicates in plain terms. Ready to talk through your project or get a second look at a bid? Reach out to BC&P LLC.