Contractor Red Flags
Based on our experience of witnessing failed rebuilds in the 2017 Santa Rosa Fires, here is a list of red flags to look for when selecting your rebuild contractor:
🚩 They promise you everything you want at a price too good to be true.
If a contractor gives you a quote that is well below the cost of competitors, be skeptical. The last thing you want is for your contractor to realize mid-job that they are losing money on your job and can’t afford to complete it.
🚩 They haven’t built a residential home before.
We saw a lot of contractors with non-residential building experience try to move into residential building following our fire. A disproportionate share of those projects did not go well. Check their websites for past projects. Make sure your contractor has built a home from the ground-up before trying to build yours!
🚩 They have never built more than one house at a time, but are now going to build 5 homes or more at a time.
Don’t be afraid to ask about your contractor’s schedule and bandwidth. The skill, bandwidth, labor and cash flow needs explode when building multiple homes at the same time, especially with the fire rebuilds. Be cautious if your contractor is taking on a lot more work than they have traditionally performed in the past.
🚩 They have minimal or no back-office support.
The documentation of work, invoicing and payment of subs and the collection of funds from insurance companies and banks is critical to a rebuild and making sure the project progresses efficiently. Make sure your contractor has the resources to efficiently handle all the accounting and paperwork associated with a rebuild. If they fall behind, it will very quickly become your problem!
🚩 They don’t have adequate insurance.
Be sure to verify their coverages and effective policy dates, including worker’s comp. You don’t want to end up liability for their injured worker.
🚩 They don’t have access to consistent and quality labor.
The labor market is extremely tight. If your contractor doesn’t have access to a quality pool of subcontractors, it may be a problem. Inquire as to who they have used for past jobs and who they will use on your job. They should have names to reference very quickly. Verify that they have access to enough labor to complete your job and any other jobs they may be working on. You don’t want your house sitting and waiting for trades to show up.
🚩 They don’t have any positive references.
Any quality, experienced contractor should have references that you can contact to verify the professionalism and quality of their work. It’s worth a couple of calls.
Rebuild Resources by Synergy Group
We Are Here to Help
Rebuilding can feel overwhelming, but you don’t have to navigate it alone. Through our LA Fire Rebuild Program, we streamline the process, working with you, your insurance, and your bank to make rebuilding efficient and cost-effective. We offer Free Consultations (with no strings attached) to speak with you regarding your current situation and prospects to rebuild.