Choosing the Right Contractor for My ADU: Lessons Learned

Choosing the Right Contractor for My ADU: Lessons Learned

When building an ADU (Accessory Dwelling Unit), selecting the right contractor is one of the most crucial decisions you’ll make. You want a final product that you feel confident in, without overspending, though it’s no secret that construction has become increasingly expensive. Here’s a breakdown of my experience in choosing the right contractor and some valuable lessons I learned along the way.

Start with Referrals

Having worked in real estate and completed my own projects in the past, I knew that referrals would be essential. My architect, with extensive experience working with various builders, recommended five contractors he trusted. Getting referrals from someone knowledgeable is a great way to filter through potential candidates and gain insight into their reputation.

I reached out to those five builders, and three responded. One didn’t have availability, but two were willing to bid on the project. Ideally, it’s best to get three bids for comparison, but given how busy contractors are these days, I was pleased to have two solid options.

The Bidding Process

The bidding process itself tells you a lot about each contractor. It’s not just about who comes in at the lowest price—it’s about how thorough they are, how well they evaluate the project, and the types of questions they ask. This is when you start to gauge their level of engagement and professionalism. You want a contractor who is invested in understanding the scope of the job and isn’t rushing through the details.

Once I received the bids, I did my due diligence by seeking personal referrals for both contractors. This step is critical, as it gives you real feedback from past clients. There are several key questions to ask when speaking to referrals:

1. Communication – Were they responsive and communicative throughout the project?
2. Timeliness – Did they complete the work on time? If not, how far off schedule were they, and what caused the delays?
3. Expertise – Did they demonstrate knowledge and keep the project moving efficiently?
4. Site Management – Was the site kept clean, and did they show consideration for people living on-site? This was particularly important for me as I have tenants.
5. Budget Management – Did they stay within the projected budget, and were there any unexpected costs?

Discussing Costs and Managing Expectations

After reviewing the bids and checking references, I reached out to both contractors again to discuss ways to manage costs. This wasn’t about eliminating necessary expenses but rather finding areas where I could be involved or make decisions that would help reduce the overall price. For example, I explored the possibility of sourcing materials or hiring specific trades like painters on my own, where I had connections that could help cut back on costs.

This part of the process allowed me to get a better sense of how flexible the contractors were and their willingness to collaborate. By discussing these options, I was able to negotiate a few adjustments, which made a difference without compromising the quality of the work. It’s important to have open conversations about what parts of the project you can manage and where they can be flexible, even if it’s just small adjustments.

Making the Final Decision

Once I had the bids, checked the references, and discussed cost-saving options, I felt ready to make my decision. I ultimately chose a contractor who agreed to work on a time-and-materials basis. While this can sometimes be risky, I had confidence in him after thoroughly vetting his references, specifically from projects where he used this method. So far, he has started on time and has been upfront and consistent in his communication. I’m hopeful the process will continue to run smoothly, though, as with any construction project, there are always unknowns.

Choosing a contractor is about more than just price—it’s about finding someone you can trust, who will communicate well, and who will treat your project with the care and attention it deserves. If you take your time, ask the right questions, and stay involved, you’ll set yourself up for success.

____________________________________________________________

List of Questions to Ask potential Contractors:

1. Are you licensed and insured?

• Ensure the contractor has the necessary licenses and insurance, including liability and worker’s compensation, to protect you from any potential issues or accidents during the project.

2. Can you provide references from previous clients?

• Speaking to previous clients gives you insight into their work quality, reliability, and communication skills. Ask for specific projects similar to yours.

3. What’s your experience with this type of project?

• Make sure they have experience with the type of work you’re planning. Specialized projects often require contractors with specific expertise.

4. Will you provide a detailed written estimate?

• Get a clear, itemized estimate that includes the cost of labor, materials, and any potential extra charges. This will help you avoid unexpected costs down the line.

5. What is your payment schedule?

• Clarify the payment terms. Avoid contractors who ask for a large upfront payment. Standard practice usually involves an initial deposit, followed by payments at different stages of the project.

6. How do you handle unexpected changes or issues?

• It’s important to know how the contractor handles unforeseen issues like material delays, design changes, or site complications. Ask if they provide change orders and how those will be communicated and approved.

7. Will you handle all necessary permits?

• Permits are often required for construction projects. Ask whether the contractor will obtain these permits or if that’s something you’ll need to handle.

8. Who will be managing the project on-site?

• Make sure you know who will be overseeing your project on a day-to-day basis. Is it the contractor you are hiring or a project manager? Clear communication is crucial throughout the process.

9. How do you ensure the job site is kept clean and safe?

• Ask about daily cleanup procedures and site safety practices. A clean and organized site helps minimize accidents and keeps the project moving smoothly.

10. What is the timeline for completion?

• Ask for a realistic project timeline, including key milestones, to ensure your expectations align. Discuss what will happen if there are delays and how they handle changes in the schedule.

11. Do you offer a warranty for your work?

• Find out if the contractor guarantees their work, and if so, for how long. A reputable contractor should offer a warranty on workmanship, and any materials they use should come with a manufacturer’s warranty.

12. How do you handle communication during the project?

• Ask how often and by what methods (email, phone, in-person meetings) the contractor will communicate updates or issues. Good communication is vital for a successful project.

13. Can I make changes to the project once it’s started?

• It’s not uncommon for clients to make changes midway through a project. Ask how flexible the contractor is with changes and what the process looks like, including the cost implications.

14. Do you work with subcontractors? If so, who will they be?

• If the contractor uses subcontractors, you’ll want to know who they are and ensure that they are also licensed and insured. This can affect the quality and timeline of the project.

15. What happens if the project goes over budget?

• Discuss how the contractor will handle cost overruns or if they anticipate any parts of the project being more expensive than originally estimated. Ask how they will communicate these increases and when you’ll need to approve them.