When obtaining bids for home building or remodeling projects, virtually 100% of the time people select the contractor who provides the lowest bid, yet almost always end up paying an amount equal to or greater than the highest bid. While the price should be a factor, it absolutely cannot be the only factor when making a decision. Lots of references, punctuality, organization, personality, professionalism and an extensive portfolio are all equally important. 

Learn the basics of construction contracts from Kelly Anderson of Ironwood Custom Builders. << MORE >>

 It's summer time again, so make sure you're keep your a/c properly maintained! 



Kelly Anderson
www.IronwoodCustomBuilders.com
2825 East Cottonwood Parkway
Suite 500
SLC, Utah 84121

 The Environmental Protection Agency (EPA) recently instituted federal regulations that affect remodeling contractors who work on homes built prior to 1978. The new regulations require that contractors be certified through the EPA to work in homes with lead based paints and finishes. The requirements are designed with the safety of the homes occupants in mind; especially children who are under the age of 6 years.
 
 Lead based paint was used in paints and finishes as a color enhancer and hardener. It was discovered in the early 1900's however that lead is toxic. Lead based paint is attributed to causing ADHD and mental retardation in children who either eat the lead chips (from flaking paint) or from inhaling dust caused by renovation activities.
 In adults lead poisoning causes severe joint pain, headaches, and loss of sexual desire just to mention a few.

 The new EPA regulations provide that non-certified contractors caught remodeling homes that contain lead can be fined up to $37,500 per day until they either pull off the project or get certified. If they are caught and continue to work after they have been cited, the $37,500 per day fine will continue each and every day until they comply.
 
In Utah, only 1 in 293 contractors are EPA Certified Renovators. If you live in a home built prior to 1978 and intend to remodel or renovate, for the sake of the health of you and your family, please be sure to hire a Certified Renovator.  

Ironwood Custom Builders has been certified by the EPA to perform renovations in homes that contain lead paint and also to perform lead testing. If you have questions about lead  based paint, remodeling an older home, or about having lead testing done, please contact me and I'll be happy to help.

Kelly Anderson
Ironwood Custom Builders, Inc
kelly@ironwoodcustombuilders.com
www.IronwoodCustomBuilders.com
801-205-2817

 

Things to Consider When Hiring a Contractor

 

Hiring a contractor can be an intimidating, nerve wracking process. But there are a few things that when taken into consideration, can make the process of selecting a contractor, and the actual build process itself go much smoother. The general guideline is that you should get 3 bids for your project. The general guideline continues that you should throw out the highest and lowest bids and accept the middle. While these are good guidelines, they are just that “guidelines”. There are many other things that need to be taken into consideration, such as;

 

 

1. License and Insurance

Make sure that your contractor is properly licensed by the State of Utah and that they carry the mandated (by law) liability and workers compensation insurance. If they are not properly licensed and insured, they are operating illegally and if any damage or injuries occur on your project, you are personally liable. So called “contractors” that offer unusually low bids are usually doing so because they don’t have the overhead of licensing fees and insurance premiums. While it may be tempting to accept the lowest bid of an illegal contractor in order for you to get what you want for your prescribed budget, be assured if this is the route you choose, you will probably get much more than you bargained for!

 

 

2. Comparing “Apples to Apples”

It will be up to you to do the proper due diligence to make sure all of the bids you receive are actually for the same thing. But if you provided the same plans to all of the contractors, wouldn’t they all be bidding the same thing? Yes they should, but they’ll probably not. Generally there should not be a spread of more than 10% from the highest to lowest bid. If the lowest bid is more than 10% away from the highest, then the two contractors are most likely not bidding the same thing. The profit margins in construction are generally only a few percent so don’t be fooled by thinking that the $10,000 remodel bid has a $5000 markup compared to the $5,000 bid. Contractors usually provide what are known as allowances for things like plumbing fixtures, light fixtures and any other “finish” items because at the bidding stage, you usually have not selected those items just yet. Even specifying something like stainless steel appliances doesn’t narrow it down. The contractor could provide a $2,000 allowance for a stainless steel refrigerator or $10,000. So one bid for a kitchen remodel could literally be $8,000 higher than another based on just the refrigerator! If you haven’t told the contractors which particular fridge you want, they will either give you an allowance or include one that they’ve chosen, so it is up to you to make sure you are comparing the items included or the allowances provided in each bid.

 

3. How is The Contractor to Work With During the Bid Process?

• Does he answer his phone promptly and if not, does he return your calls within a reasonable time frame?
• Did he present his bid to you on the day he said he would and do so in a professional manner?
• Is he on time to your meetings?
• Does he seem knowledgeable about the things that you want to do and in construction in general?

 

If the answer to any of these questions is “no” this will most likely not change for the better once you tart the project. An unresponsive, unorganized contractors don't provide results that leave happy customers.

 

 

 

4. Do You Click?  

If there seems to be any sort of personality conflict or if you are not comfortable with a particular contractor during the bid process, for whatever the reason, you should probably go with your gut. First impressions are often the right ones. You will become “best friends” as soon as you sign the contract and the last thing you want is to have to deal with someone daily for 6, 8, 10 weeks or even as many months, if you don’t have a good rapport. While the lowest bid isn’t always the one you should throw out, if you seem to have a good relationship with a contractor who is organized, shows up when he promises and generally does everything else as promised, when promised, then the high bid may very well be worth the extra expense.

 

 

5. Don’t Be Afraid to Ask!

 If you have questions about a bid, or in particular about anything that the contractor is including, make sure you ask. Remember, the only stupid questions are the ones that you don’t ask! If you feel most comfortable with the contractor that has submitted the highest bid but he is over your budget, make sure to ask about what can be done to get his bid to within your budget. He may very well have included things that you either don’t want, don’t need, or can live without. Sometimes, very simple adjustments can be made to a bid proposal to get it in line with whatever your budget may be. But always remember that the old adage “you get what you pay for” is probably truer in construction than in any other business. So spending a few extra percent than what you may have budgeted for in order to get exactly what you want will be well worth it in the long run.

 

6. Check References!

This one is real simple. Your contractor needs to be able to provide some references. Online customer reviews are big right now, so check your contractor’s web site to see if he has an independent 3^rd party doing customer reviews for him. If he does, he is most likely proudly displaying them on his home page. If not, just ask to be able to speak to a few past clients and don’t be afraid to ask questions like “what would you do differently?” or “would you refer the contractor or hire him again?” A few simple questions should give you enough information to determine if that contractor is right for you.

 

Remodeling a home or building a new one can be a very rewarding experience; you just need to start off on the right foot by hiring the right contractor. To hire the right contractor, just take a little extra time to do some research and ask a few questions. A little extra time spent in the beginning will usually prove to be time be well spent in the end.

 

and always remember...

The bad aftertaste of shoddy work lasts much longer than the sweet smell of a good deal

Kelly Anderson
www.IronwoodCustomBuilders.com
2825 East Cottonwood Parkway
Suite 500
SLC, Utah 84121

 Plumbers in Salt Lake City generally charge around $85 per hour and usually have a minimum charge of 1-2 hours. If a plumber has a 1 hour minimum and he is at your house for 15 minutes clearing out a clogged drain for you, you will get a bill for $85.

 With that in mind, I wanted to talk about some easy things you can do to avoid expensive plumber visits. From my experience as a builder, I have found that there are three main reasons why people clog their drains: 1)  putting things down the disposal that they shouldn't, 2) not running the water long enough after they've turned the disposal off, and 3) flushing things down the toilet other than what was meant to be flushed down the toilet!

 The toilet one seems kind of obvious, but maybe the disposal one isn't as obvious. The rules for your disposal are simple: do not put stringy, starchy vegetables like celery or potatoes down the drain, or things like egg shells or meat. Your meat needs to go in the trash and the others can easily be composted if you don't want to throw them out. When you hear that the disposal has finished grinding up your food, simply continue to let the water run for about 15-20 seconds in order to completely flush the waste down the drain.

With regards to the toilet, nothing more than the obvious 2 things and toilet paper should ever be put in the toilet. Avoid flushing feminine hygene products, paper, or anything else for that matter down the toilet. And though it might seem obvious to you, educate your kids about flushing toys! 

By simply following these guidlines you will minimize your chances of ever needing to pay a plumber $85 an hour!

Kelly Anderson
www.IronwoodCustomBuilders.com
2825 East Cottonwood Parkway
Suite 500
SLC, Utah 84121

A problem that we contractors sometimes run into though is when our clients ignore deadlines for making selections for things such as lights, carpet, paint, etc.<< MORE >>

 One week has past since daylight savings time, so I’m sure that you’ve moved your clocks forward by now, but did you change your smoke detector batteries?

 According to the U.S. Consumer Product Safety Commission, every year in the United States, about 3,000 people lose their lives in residential fires. Most fire victims die from inhalation of smoke and toxic gases, not as a result of burns. Most deaths and injuries occur in fires that happen at night while the victims are asleep.

  So if you haven’t changed your batteries in a while, for the sake and safety of you and your family, do it now. Besides, Murphy’s law says that when the batteries do die and the alarm starts to chirp, it will be in the middle of the night…

Kelly Anderson
www.IronwoodCustomBuilders.com
Kelly@IronwoodCustomBuilders.com
2815 East Cottonwood Parkway
Suite 500
SLC, Utah 84121

 It's September again which means it's time for the annual Blitz Build! Every year the Salt Lake Home Builders Association partners with the Salt Lake City chapter of Habitat for Humanity to build a home for a low income family in less than 96 hours.

 If you aren't familiar with Habitat for Humanity, it is a charitable organization that builds homes that are competely donated and sells them to low income familes that meet certain criteria at a discounted interest rate. Even though it is technically a charity, I wouldn't necessarily call it that because once an applicant meets Habitat's criteria and is selected, they must then work on a home or homes for other Habitat families for a minimum of 200 and often times up to 400 hours. So the great thing about the program is first that the family must work for the home and second, they do actually have to pay for it. Since all of the homes are donated, Habitat only needs to purchase and develop land which is where the proceeds from the low interest mortgage go.

So back to the Blitz Build. What's so special about this particular Habitat for Humanity house and why is called the Blitz Build? The Blitz Build is an opportunity for the local home builders, subcontractors, and suppliers to show off their stuff by constructing the home in less than 96 hours. You will often hear, as I have mentioned, 96 hours when you hear about the Blitz Build, but it's actually built in about 65-70 hours! 

 This is Ironwood Custom Builders 4th Blitz Build in the last 5 years. It's a fun time for everyone and of course it gives all those involved an opportunity to give something back to the community. We at Ironwood believe in Habitat for Humanity because it helps families realize the American Dream and as home builders that's what we're all about.

Watch for us on the news Monday morning September 21st, and of course I would urge you to support your local chapter of Habitat for Humanity. You can contribute either your time or your money, but I recommend your time. You don't need any home building experience to be able to spend a Saturday helping work on a home with the experienced Habitat staff. Click on the link below to get more information about Habitat for Humanity.
 
http://www.habitatsaltlake.com/



Kelly Anderson
Ironwood Custom Builders, Inc
801-205-2817
kelly@IronwoodCustomBuilders.com
2825 East Cottonwood Parkway
Suite 500
SLC, Utah 84121

The economy follows the housing market. It's a fact. So instead of giving potential home buyers a $7,500 tax credit (which is actually just a loan that has to be paid back), that no one wants or is even using, the government needs do something that will affect the housing market and in turn pull this economy out of it's slump.

It is also a fact that tax cuts stimulate the economy. It's really simple, if you are a small business owner and your taxes go down, your overhead goes down which means you have more capital, which will allow you to increase your marketing, increase your staff, or even expand. Each of these things lends to the increase of the others, which ultimately leads to more job creation, which leads to more people paying taxes, which leads to the government generating more tax revenue in spite of the tax cuts.

So taking these two things into consideration, we need tax cuts! Capital gains tax cuts so we're not penalized for selling our homes within two years of the initial purchase. Income tax cuts so we have more disposable income. And finally a reduction in interest rates to encourage those who may be sitting on the fence to finally make their move.

So if the current administration wants to REALLY fix this economy, they need to cut our taxes and lower interest rates. Taking the tax credit from $7,500 to $8,000 and the move to make the tax credit an actual credit as opposed to the original loan that it was is a step in the right direction. But we need more. I would encourage you to contact your Representatives and urge them to take the necessary steps to fix housing first. Once people start buying and building homes again, the economy will follow.

Kelly Anderson
801-205-2817
www.ironwoodcustombuilders.com
kelly@ironwoodcustombuilders.com
2825 East Cottonwood Parkway
Suite 500
Salt Lake City Utah
Builder Director Salt Lake Home Builders Association
Winner 2003 Parade of Homes "Best of Show"
Habitat for Humanity Blitz Build Project Manager
2005, 2006 & 2008