Avoid These 7 Common Mistakes When Hiring a Contractor in Colorado Springs

According to Global Market Insights, the home remodeling market in the United States is estimated to grow at a compounded annual growth rate of 4.8% from 2024 to 2030. Embarking on a home or commercial renovation project is both daunting and exciting. You’ll need to choose the right contractor to make your vision a reality during this time.

However, most property owners make the mistake of hiring the wrong contractor, which leads to financial strain, stress, and subpar results.

Let’s learn more about seven common mistakes to avoid when hiring a contractor in Colorado Springs.

1. Failing to Carry Out Research

One of the common mistakes that property owners make when choosing a contractor is failing to conduct proper research. You must take the time to find out more about Colorado Springs contractors before hiring them.

Conduct interviews with various general contractors in Colorado Springs to evaluate their different approaches, expertise, and pricing. Skipping this process can lead to you hiring an ADU builder who doesn’t meet your needs or one that’s too expensive. To avoid hiring unqualified contractors, take the following steps:

Educate yourself on the best practices surrounding your project
Interview multiple accessory dwelling unit builders near you
Ask about the materials and processes that each contractor uses
Seek recommendations from neighbors, friends, and family members

2. Neglecting to Check Licenses and Credentials

Failing to check and verify the insurance and licensing of ADU builders in Colorado Springs may bring you problems later. An unlicensed and untrained contractor will most likely do a shoddy job and put you at risk of code and safety violations.

Moreover, hiring a contractor without proper insurance may lead to hefty bills for legal issues, costly repairs, and medical bills in case someone gets injured. To avoid this, confirm the general contractor is licensed according to the requirements of Colorado Springs.

Also, contact references and request photos of their previous work. If possible, you can visit the contractor’s site to observe their work and interaction with clients.

3. Making a Decision Only Based on Pricing

During your contractor hiring process, don’t choose the one with the lowest bid. According to a report by the University of South Alabama, the median amount spent by Americans on home renovation projects is estimated at $24,000.

It’s normal to want to save some money during your property renovation process; however, selecting the cheapest ADU builder in Colorado Springs can be a costly mistake.

Contractors with extremely low prices may have hidden costs or use subpar materials. Instead of just focusing on the price, look at the contractors’ quality of work, reputation, and experience.

Ask for a comprehensive breakdown of their prices and ensure all costs are included. Invest in high-quality work to avoid costly mistakes in the long run.

4. Hiring Without a Written Contract

Verbal agreements and handshake deals seem straightforward and friendly. However, they may lead to legal issues and misunderstandings. With verbal contracts, there may be miscommunication regarding costs, timelines, and the scope of the renovation project.

Before proceeding, you need to have a signed contract. Read through the written contract carefully and ask questions where you feel necessary. Additionally, don’t shy away from pushing back on contract terms that may not sit well with you.

Always ask for receipts for any payments made and document issues that may come up during the project.

5. Overpaying Upfront

One of the most common home renovation mistakes is paying a considerable amount of money or the entire cost before the completion of the project. This action can lead to losses if the contractor disappears with your money or fails to complete the project. Schedule a consultation with the best ADU builders in Colorado Springs to determine how much deposit you should make upfront.

In your written contract, outline how you’ll pay the remaining costs after meeting certain milestones. In your hiring guide, do the following:

Avoid general contractors that accept cash only or demand large upfront payments
Come up with a payment schedule and stick to it
Complete the payment only after you’re satisfied with the contractor’s work

6. Not Getting the Required Permits

When carrying out a renovation project for your home or commercial building, it’s crucial to get proper permits to avoid violating the building codes and regulations of Colorado Springs. While this process may seem time-consuming and costly, it will save you from serious consequences.

Further, unpermitted renovation projects may compromise your home’s structural integrity and safety. This, in turn, leads to diminished resale potential or hazardous conditions. If issues arise later, your insurance company may not cover the damages since the renovations were unpermitted.

Before any work begins, discuss the homeowner’s association (HOA) requirements and permits with your contractor. In your contract, you must obtain all permits and approvals and ensure all inspections are conducted during the project. Keep the inspection reports, HOA approvals, and permits for your records.

7. Ignoring Red Flags

Unfortunately, some contractors may seem professional during the recruitment process until the project begins. If your contractor portrays any red flags in the middle of the project, discuss your concerns and expectations calmly. This measure may seem challenging, especially if you’ve already paid a lot of money or demolished your property.

Request a plan to correct the issues and include everything in the written contract to ensure you’re on the same page. However, if you find the contractor dismissive or unresponsive, seek professional or legal advice. Besides, contact your consumer protection agency or licensing board for help.

Avoid Regrets by Hiring a Qualified General Contractor in Colorado Springs

Hiring the right contractor in Colorado Springs plays a significant role in the success of your renovation project. Avoiding these seven mistakes will increase your chances of having a smooth and unproblematic renovation experience. Take your time to interview different contractors and make informed decisions.

StreamHome Construction LLC specializes in custom homes, Accessory Dwelling Units (ADUs) in Colorado Springs, and commercial construction and renovation projects. We have professional contractors who help you renovate your property to ensure it aligns with your next phase of business.