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Fixed Price vs. Cost-Plus Contracts: Which One is Right for Your Renovation Project?

Fixed Price vs. Cost-Plus Contracts: Which One is Right for Your Renovation Project?

When embarking on a renovation project, one of the most important decisions you’ll make is the type of contract you enter into with your contractor. At Eagleview Construction, we often receive questions from clients about the difference between a fixed-price contract and a cost-plus contract. It’s an important topic, and while we openly admit our bias toward the fixed-price model, we believe in offering an honest and transparent overview so you can make the best choice for your project.

In this post, we’ll dive into the definitions of both contract types, weigh the pros and cons of each, and explain why we’ve chosen the fixed-price approach as our preferred method. By understanding the differences, you can make an informed decision that aligns with your expectations and budget.

What is a Fixed-Price Contract?

A fixed-price contract, also known as a lump-sum contract, is an agreement where the contractor commits to completing the project for a predetermined, set price. This contract type outlines the scope of work, timeline, and total cost from the beginning, and the contractor is responsible for delivering the project within these parameters. Changes in project scope or unforeseen circumstances that require adjustments are explicitly outlined in the contract.

Key Characteristics of Fixed-Price Contracts:

  • Predictability: You know the total project cost upfront, making it easier to plan your budget without surprises.
  • Defined Scope: The scope of work is clearly outlined and agreed upon before the project begins, leaving less room for ambiguity.
  • Risk Transfer: The contractor bears the risk of cost overruns, as they are obligated to complete the project within the agreed price.

What is a Cost-Plus Contract?

  • Flexibility: The project scope can be adjusted more easily, accommodating changes or unforeseen conditions as they arise.
  • Transparency: Clients receive detailed breakdowns of the actual costs, providing visibility into exactly what they are paying for.
  • Variable Costs: The final project cost is determined by the actual expenses, which can make budgeting less predictable.


Comparing Budget and Risk

The primary differences between fixed-price and cost-plus contracts boil down to budget and risk

  • Budget: A fixed-price contract provides certainty. The price agreed upon at the beginning of the project is the price at the end, barring any significant changes. Conversely, a cost-plus contract bases billing on actual costs, which can lead to price fluctuations and budget uncertainty.
  • Risk: With a fixed-price contract, the contractor assumes most of the risk, as they must manage costs to protect their profit margin. In a cost-plus contract, the risk shifts to the client, who is responsible for covering the actual expenses, even if they exceed initial estimates.

Pros and Cons of Fixed-Price Contracts

Advantages
  1. Predictable Budget: Fixed-price contracts provide a clear, upfront cost, simplifying financial planning and offering peace of mind.
  2. Risk Transfer: The contractor assumes the risk of any cost overruns, protecting the client from unexpected expenses.
  3. Incentive for Efficiency: Contractors have a strong motivation to complete the project efficiently and on schedule to maintain profitability.
Disadvantages
  1. Higher Initial “Price”: The estimate may appear higher than Cost-Plus estimates because the contractor must account for potential risks upfront.
  2. More Upfront Effort: Defining the project scope requires significant time and detail during the planning phase.
  3. Less Flexibility: Changes or additional work requests are managed individually, which can feel rigid.

Pros and Cons of Cost-Plus Contracts

Advantages
  1. Flexibility: The project can easily accommodate changes, making it easier to address unforeseen issues or client requests.
  2. Transparency: Clients receive detailed breakdowns of the costs, providing clarity on where their money is going.
  3. Lower Initial Estimates: Cost-plus proposals often appear lower initially, as they are based on best-case pricing rather than a conservative, risk-adjusted figure.
Disadvantages
  1. Budget Uncertainty: The final cost isn’t known until the project is complete, which can lead to unexpected financial stress with cost overruns.
  2. Limited Incentive for Efficiency: Since the contractor is reimbursed for actual costs, there may be less motivation to control spending or complete the project quickly.
  3. Strained Relationships: While transparency is a pro, it can also be a con if clients feel overwhelmed by the details, start questioning the accuracy of the costs or if the contractor does provide all the information in a timely manner.


Why Eagleview Construction Chooses Fixed-Price Contracts

From the start, we at Eagleview Construction decided to operate with fixed-price contracts, and here’s why.

  1. Client Peace of Mind: We believe that our clients deserve cost certainty. With a fixed price, you know what you’re paying before the project begins, which makes budgeting simpler and less stressful.
  2. Incentive for Efficiency: We are committed to delivering on time and within budget. Fixed-price contracts put the onus on us to perform efficiently, ensuring we stay motivated to manage the project effectively from start to finish.
  3. Clear Expectations: Fixed pricing requires a robust planning process. By defining the scope, timeline, and budget upfront, we eliminate ambiguity and align our vision with yours. This way, everyone knows what to expect, and the project can move forward smoothly.

Which Option is Best for You?

Ultimately, the choice between fixed-price and cost-plus contracts comes down to your comfort level, risk tolerance, and project goals. Both types of contracts have their merits, and there are excellent contractors who successfully use each model. However, it’s important to understand the arrangement you are entering and to align your expectations accordingly.

If you value budget certainty, prefer a streamlined process, and appreciate a contractor who is motivated to deliver efficiently, then a fixed-price contract may be the best fit for you. If you prioritize flexibility and want the ability to make changes throughout the project without predefined limitations, a cost-plus contract could be more suitable.


Our Commitment to Transparency and Quality

At Eagleview Construction, we chose the fixed-price model because we believe it offers the best experience for our clients. It provides clarity, reduces stress, and ensures that we are held accountable for delivering on our commitments. By investing time in planning and defining the project scope from the outset, we can deliver high-quality renovations that meet our clients’ needs and exceed their expectations.  

If you’re considering a renovation project and want the peace of mind that comes with a fixed-price approach, we’d love to hear from you. Contact Eagleview Construction today to discuss your vision and learn how we can help bring it to life — on time, on budget, and to the highest standards of quality.

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Renovated Kitchen
Winner: 2024 Record Readers' Choice in 10 Categories!

Winner: 2024 Record Readers' Choice in 10 Categories!

The votes are in, and we couldn’t be more thrilled to share the fantastic news with you! Eagleview Construction has been once again recognized in the top three of the Waterloo Region Readers’ Choice awards. We are proud to announce that we have achieved the following awards:

  • Diamond Awards:
    • Best Home Improvement Centre / Services
    • Best Home Builder
    • Best Construction Company / Services
    • Best Building Contractor / Consultant to Iain K
  • Platinum Awards:
    • Best Bathroom Design / Renovation
    • Best General Contracting Services
    • Best Home Renovation Company
    • Best Kitchen Design / Renovations
    • Best Interior Designer / Decorator to Jackie Artinian
  • Gold Award:
    • Best Interior Designer / Decorator to Brenna Granger


A special shoutout goes to our talented designers for their individual recognition. Your creativity and passion shine through in every project, and this achievement is a testament to your hard work and dedication. We are incredibly proud to have you on our team!


At Eagleview Construction, we strive to create beautiful, functional spaces that enhance your lifestyle. Whether you’re looking to renovate your kitchen, transform your bathroom, or build an addition on your forever home, our team is here to bring your vision to life.


Thank you to everyone who voted for us and supported our mission. We are excited to continue serving the Waterloo Region and look forward to helping you with your next construction project. Stay tuned for more updates as we keep building excellence together!

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The Importance of Aging in Place Renovations
Building for the Future: The Importance of Aging in Place Renovations

Building for the Future: The Importance of Aging in Place Renovations

As we age, our living environments must adapt to our changing needs. Aging in place renovations focus on making your home safer, more comfortable, and more accessible, allowing you to live independently for as long as possible. With our expertise in well-designed renovations, we’re here to help you transform your house into an efficient space that meets the demands of modern living.

Understanding Aging in Place

Aging in place refers to the ability to remain in your home safely and comfortably as you age. This concept has gained popularity in recent years, as more individuals seek to maintain their independence rather than move to assisted living facilities. However, to make this a reality, thoughtful renovations are essential. That’s where Eagleview Construction comes in.


Key Areas to Consider for Aging in Place Renovations

Accessible Washrooms

  • Safety First: One of the most critical areas to renovate is the bathroom. Installing grab bars, non-slip flooring, and walk-in showers can significantly reduce the risk of falls. Consider a curb-less shower for easy access, and add a shower bench for comfort.
  • User-Friendly Design: Lowering countertops and using lever-style faucets can create a more accessible environment for individuals with mobility challenges.


Open Concept Rooms

  • Enhanced Mobility: Open concept designs eliminate barriers and allow for easier navigation throughout your home. By removing unnecessary walls and incorporating wider doorways, you create a spacious, flowing environment that accommodates mobility aids and enhances social interaction.
  • Functional Design: Open layouts facilitate better use of space, allowing for a more efficient flow throughout your home. This design approach not only accommodates various activities—like hosting family gatherings or enjoying a quiet evening—but also provides opportunities for future modifications, such as adding adaptable furniture or flexible zones for different purposes.


Railings for Safety

  • Sturdy Support: Installing railings on staircases and in hallways is essential for providing stability and confidence while navigating your home. Strong, well-placed railings also offer support when standing or moving between different levels. Choose durable materials and ensure railings are securely fastened for maximum safety.

Kitchen Improvements

  • Efficient Layout: A well-designed kitchen is essential for functionality. Consider open shelving for easy access, lower countertops and pull-out cabinets to minimize bending and reaching.

Our Approach

At Eagleview Construction, we believe that aging in place renovations should not only be functional but also aesthetically pleasing. Our team specializes in creating designs that reflect your personal style while ensuring efficiency and accessibility. We work closely with our clients to understand their unique needs and preferences, delivering tailored solutions that enhance the quality of life.

Whether you’re planning a minor update or a complete renovation, our team is here to guide you through the process with expertise and care. Contact us today to learn more about how we can help you create a home that supports your lifestyle now and in the years ahead!

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Kitchen Renovation
Why Canada’s Recent Interest Rate Drop Makes Now the Ideal Time to Tap into Your Home’s Equity for Renovations

Why Canada’s Recent Interest Rate Drop Makes Now the Ideal Time to Tap into Your Home’s Equity for Renovations

As of the recent October 2024 announcement, the Bank of Canada has lowered its benchmark interest rate to 3.75%, marking a significant shift in the financial landscape. For homeowners, this creates an ideal opportunity to reconsider how they manage their mortgage and home equity. Specifically, if you’ve been contemplating home renovations or improvements, now is the time to act. Here's why.



1. Access to Cheaper Borrowing

The primary reason this rate cut is such a game changer is simple: lower borrowing costs. When the Bank of Canada reduces its interest rates, it leads to lower interest rates across various borrowing options, including home equity lines of credit (HELOCs) and mortgage refinancing. Pulling equity from your mortgage to finance home renovations is now cheaper, allowing you to borrow more affordably than at any time in recent months.

With a reduced interest rate, the cost of borrowing drops significantly, meaning you can take out a larger loan or access more equity for your home improvement plans without facing exorbitant interest charges. For major projects—like a kitchen overhaul, adding a bathroom, or building an extension—this can make all the difference in the world.


2. Increased Equity Due to Rising Home Values

Over the past few years, the real estate market in the Ontario has experienced significant appreciation, particularly in key markets like Kitchener-Waterloo, Guelph, Cambridge and the surrounding Tri-City regions. Many homeowners are sitting on much more equity than they realize due to the rising value of their properties. This gives you the financial leverage to unlock that equity and reinvest it in your home.

Renovating while your home is worth more not only improves your quality of life but also increases your property’s market value, creating a smart long-term investment. By tapping into your home’s equity at today’s low rates, you can effectively use this equity to enhance the value of your property—setting yourself up for even greater appreciation in the future.

3. Protection Against Rising Interest Rates in the Future

While the recent drop to 3.75% feels like a financial break, it’s also worth noting that interest rates are historically unpredictable. Inflationary pressures, global economic conditions, and monetary policy changes could lead to rate hikes in the coming months or years. By locking in a home equity loan or refinancing now, you can take advantage of the current low-rate environment before rates potentially rise again.

Renovating now, while interest rates are low, ensures that you’re borrowing under the most favorable conditions. If rates were to increase in the future, you’d be paying much higher costs for the same home improvement projects. By acting now, you can lock in the benefits of lower rates and avoid potential future financial strain.


4. Boosting Home Value Before Selling

Even if you aren’t planning on staying in your home long-term, now is an ideal time to consider pulling equity for home improvements. Renovations like kitchen remodels, bathroom upgrades, or energy-efficient improvements can significantly increase your home’s resale value.

With the Tri-City regions housing market showing signs of stabilization, enhancing your home’s appeal through smart renovations can make a big difference when it comes time to sell. Buyers are more willing to pay a premium for homes that are move-in ready and updated with modern features. By investing in upgrades now while borrowing is cheaper, you’re putting yourself in a better position to get top dollar when it’s time to sell.



5. Renovating for Comfort and Sustainability

Beyond the financial reasons, home renovations are a great way to enhance your quality of life. Whether it’s modernizing outdated rooms, improving energy efficiency, or creating more space for a growing family, renovations can make your home more functional, comfortable, and suited to your needs.

With sustainability being top of mind for many Canadians, now is a perfect time to invest in energy-efficient renovations, such as better insulation, solar panels, or upgrading to energy-efficient windows. Not only do these improvements lower your energy bills, but they also add value to your home—something future buyers will likely appreciate. And with borrowing rates down, financing these upgrades has never been more affordable.



6. Flexible Financing Options

Lower interest rates typically bring about more favorable terms on home equity loans and HELOCs. This rate cut is likely to encourage lenders to offer flexible financing options, meaning you could have greater choice in how you access your home’s equity. Whether you opt for a fixed-rate or variable-rate loan, today’s low-rate environment allows for more predictability and control over your finances.

With more affordable monthly payments, you can execute home renovations without straining your budget, allowing you to prioritize your project without the stress of unmanageable costs.


Wrap Up

The Bank of Canada’s recent interest rate drop to 3.75% represents a golden opportunity for Tri-City homeowners. Whether you’re looking to enhance your living space, increase your home’s resale value, or make sustainable improvements, now is the ideal time to pull equity from your mortgage. With lower borrowing costs, more home equity to tap into, and the potential for rising rates down the road, acting now allows you to take full advantage of this financial window.

Your home is one of your most valuable assets—by investing in renovations at a time when borrowing is affordable, you can increase its value and enjoy the benefits for years to come.


Next Steps

For more information, or to discuss your home renovation plans, please reach out to us to schedule a no charge consultation, where we will walk you through all of the steps involved and create a plan with you to achieve the vision you have for your home.

Eagleview Construction

Office: 226-756-1487

Cell: 416-529-3755

Emal: chris@eagleviewconstruction.com

Web: www.eagleviewconstruction.com

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General Contractor at the construction site.
I’m looking to undertake a renovation project, who should I call?

I’m looking to undertake a renovation project, who should I call?


Right out of the gate, I think it’s worth acknowledging that we, the authors of this article, are a general contractor and design and build general contracting company. While I am immensely proud of our capabilities, I’m also the first to admit that we are not always the best fit for every project or client, and that’s OK. The purpose of this article is to hopefully demystify the overall renovation process and guide readers toward the best option for their particular needs. And of, course, if that means you need a general contractor, and you're in an area we service, we’d be honoured to hear from you!

Choosing to renovate is a major investment of time, energy, and money. Unlike other major investments, such as buying a car or a new home, there isn’t a well-known process that everyone knows to follow, and yet, everyone has heard of someone with a horror story about a renovation project gone wrong. A question we commonly receive is, “Where do I start?” That’s the purpose of this article - to go through the various approaches homeowners can take to tackle their renovation projects and which options tend to be best suited for different types of projects.

Types of Service Providers in the Renovation Space:

When planning a home renovation, homeowners have several options for the type of company they can work with, each offering unique expertise and services. These companies range from handyman services for small repairs to full-service design and build contractors for larger, more complex projects. Whether a homeowner is looking for specialized trade professionals, comprehensive project management from a general contractor, or a creative design solution from a design firm, understanding the different types of companies available is key to selecting the right partner for your project. The following are the main types of companies that homeowners will have to choose from.

1. Handyman Companies

Handyman companies are typically small businesses that provide a wide range of basic home repair and maintenance services. These services often include tasks like minor plumbing repairs, fixing fixtures, painting, and other small-scale renovations. Handyman companies are ideal for homeowners who need quick and affordable fixes without major structural changes.

Two Eagleview employees discussing a construction plan.


2. Specialty Trades

Specialty trades refer to companies or individual contractors that focus on a specific area of home renovation, such as electrical work, plumbing, HVAC (heating/cooling), roofing, or flooring. These professionals are specialized experts in their field and are usually brought in for projects that require technical skills or licensed professionals. Clients often hire specialty trades directly for specific tasks, such as replacing a roof or fixing a leak.

3. General Contractors

General contractors oversee and manage all aspects of a home renovation or construction project. They are responsible for hiring and coordinating subcontractors, obtaining permits, and ensuring that the project adheres to timelines, budgets, and regulations. General contractors are well-suited for medium to large-scale renovations, offering a comprehensive approach to managing various trades and suppliers.

A photo of the back of an Eagleview employee working on a construction site.

4. Design and Build General Contractors:

Design and build general contractors offer a full-service solution by combining both the design and construction phases of a renovation project under one roof. These firms handle everything from initial concept design to final construction, providing a streamlined process for clients. This integrated approach can lead to better coordination, faster timelines, and potentially lower costs by reducing communication gaps between designers and builders.

5. Design Firms

Design firms specialize in creating the aesthetic and functional layout of a renovation or new construction project. These firms typically employ architects, interior designers, and space planners to develop detailed plans and blueprints that match the client’s vision. Design firms are ideal for clients who want a custom design solution before moving into the construction phase of a project. After the completion of the design process, design firms typically work with a general contractor.

Size and Complexity Matter When Selecting Who to Work With for Renovations

When deciding who to work with, the size and complexity of the project are key indicators of which type of service provider is best suited.

If a project is small, more repair-oriented, or focused solely on a single item, a handyman company or specialty trade is typically a good start. These types of projects could include things like:

  • If your shingles are looking worn, you’d probably be best served by calling a roofing company directly.
  • If you want some Ikea wardrobes assembled and installed, you’d likely be better off calling a handyman company.
  • If you want to replace the faucet and toilet in your bathroom, you’re probably best served by calling a plumber.
  • If your furnace is making unusual noises and likely needs to be replaced, you’re likely best to call an HVAC company.
  • If you’re looking to refresh the colors of your home with new paint, it’s likely you just need a painting company.
  • If you’re looking to have windows replaced, working directly with a window and door company likely makes the most sense.

If your project is more complex, will involve coordination between multiple trades, or if there is difficulty conceptualizing what you want, it is likely that a general contractor (GC) might be the correct choice. Some projects where a GC is well-suited include:

  • Projects where multiple trades are involved that require coordination, such as bathroom and basement renovations on the smaller end, up to whole home remodels, additions, and additional dwelling units on the larger end.
  • Projects where design and visualization are important, which is pretty much every project, would be well served by working with either a standalone designer or a general contractor with in-house design capability.

Two people holding a construction plan while standing in front of the project.

What is a General Contractor?

While it’s straightforward to understand what handyman companies and specialty trades do, the concept of a General Contractor (GC) isn’t always as broadly understood.

General contracting companies can be structured differently, but they all share one key role. They are typically responsible for coordinating and managing the overall project. Some general contracting companies have in-house capacity to complete portions of the construction work; for example, we have a staff of carpenters who handle all carpentry-related tasks for our projects. Other GCs are purely project managers and subcontract all aspects of construction to other companies.

At its core, a general contractor is a professional responsible for overseeing and managing a construction project from start to finish. Here’s a detailed look at the role and responsibilities of a general contractor.

1. Project Management:
  • Overseeing the entire construction process, including scheduling, budgeting, and quality control.
  • Coordinating between various trades and subcontractors (e.g., electricians, plumbers and carpenters).
2. Hiring Subcontractors
  • Selecting, hiring, and managing subcontractors for specific tasks.
  • Ensuring that subcontractors are licensed and insured.
3. Permits and Regulations
  • Obtaining necessary building permits and ensuring compliance with local building codes and regulations.
  • Navigating zoning laws and environmental regulations.
4. Budget Management
  • Estimating project costs and managing the budget throughout the construction process.
  • Handling payments to subcontractors and suppliers.
5. Communication
  • Acting as the main point of contact between the homeowner and the construction team.
  • Providing regular updates to clients on project progress and addressing any concerns.
6. Problem Solving
  • Addressing unexpected issues during construction, such as delays, design changes, or material shortages.
  • Finding solutions to keep the project on track.
7. Quality Control
  • Ensuring the work meets the required standards and specifications.
  • Conducting inspections and coordinating with inspectors as necessary.

The main value a general contractor brings to a project is ensuring it is well managed and as stress-free as possible for the homeowner. General contractors are professional project managers, and while the cost of working with a GC may initially seem more expensive than hiring individual trades, their expertise in managing timelines and budgets can make the upfront investment worthwhile in the end.

If you think that a GC is the right fit for your project, check out our other articles about things to consider when selecting a GC for your project.

Design plans laid out on a table.

Should I Use a Design Firm or a Design and Build General Contractor?

Deciding between a design firm and a design and build general contractor for your home renovation project depends on the scope of your project, your preferences, and how involved you want to be in managing different phases.

A design firm specializes in creating a custom design solution, focusing on the layout, aesthetics, and overall vision for the space. If you already have a contractor or plan to hire one separately, a design firm can work with you to develop detailed plans and blueprints, which can then be executed by your chosen construction team. This option allows you to work with experts solely dedicated to design, giving you greater flexibility to choose contractors for the build phase.

On the other hand, a design and build general contractor offers an all-in-one service, handling both the design and construction aspects of your project. This integrated approach ensures that the design is practical and feasible from the start, as the same team is responsible for executing the project. With this option, you avoid the need to coordinate between separate design and construction teams, which can save time, streamline communication, and prevent potential misalignment (also known as, finger pointing). Additionally, design and build firms tend to provide more accurate cost estimates upfront, as the entire process is managed under one roof.

Ultimately, the choice depends on your needs. If you have a unique design vision that requires specialized attention, a design firm might be the best option. However, if you want a more seamless process and value convenience, a design and build general contractor can provide a comprehensive solution from start to finish.  

It should also be noted that most design and build GCs are happy to work with external designers. For example, at Eagleview Construction, we proudly work with a number of external designers, and are always excited to work with new ones, where we often complement their services when necessary. We often complete the construction and permit drawings for projects where we are working with an interior design company, or we assist with interior design and finishes selection for some of the architects we work with.

Above all, anyone looking to undertake a renovation project more complex than the smaller, repair-type projects mentioned above should understand how critical design is to ensuring the success of the project. For more information about things to consider regarding design and home renovations, check out our content on that topic.

Two workers looking at the construction site they are standing in front of.


Conclusion:

In this article, we’ve tried to answer the question of “Who should I call?” when considering a renovation project. To do this, we reviewed the most common types of companies in the home renovation space and provided insight into what they do and when they are likely the best fit for your project.

If you are considering a renovation project and have any doubts about where to start, feel free to give us a call. We’d be happy to chat about your project and where we think you’d be best served. For those in our area, we love the opportunity to refer people to great specialty trades or other GCs if we’re not the best fit for your project. If you’re outside our area, we’re happy to offer broader advice about who might best serve your needs. When people have a great renovation experience, it benefits the entire industry, and we’re passionate about improving that experience. So, please don’t hesitate to connect.

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General contractor team in the meeting
What Should I look for when Choosing a General Contractor?

What Should I look for when Choosing a General Contractor?

Everyone has heard horror stories about shady contractors, or renovation projects gone wrong. So, in order to protect yourself against these nightmare scenarios, one of the best things that you, as a homeowner, can do is follow a thorough selection process when choosing which contractor to work with. Choosing the right contractor for your project is crucial to its success and can significantly impact both how stressful the process is, and ultimately, the overall quality of the final product.

Design plans laid out on a table.

As a General Contractor ourselves, we’re likely biased about what makes a good contractor; however, we’re also well positioned to see what works and what doesn’t.   At Eagleview we’re obsessed with ensuring that our clients have a great renovation experience, and we work hard to make that a reality. Despite there being other amazing contractors out there who share that same goal, every year, we receive calls from homeowners who are stressed out beyond belief and in the throes of a dispute with their contractor. Many times, they have had to fire their contractor and are looking for assistance to get things back on track. While we endeavour to assist these folks, it often quickly becomes obvious that there were many red flags that were ignored early on, and had they been paid attention to, could have avoided a lot of pain and suffering.

So, here’s our best effort to summarize what you can do to confidently choose a fantastic contractor for your project:

1. It Starts with You

  • Begin by defining the intent of your project and what problems you are looking to solve.
  • Set a budget. When heading into a renovation, know that you own your budget and stick to what you are comfortable paying for on a project. Any contractor should be respectful of that and take staying within those parameters very seriously. To assist with understanding what certain types of projects costs, please read our article titled “How Much Will My Renovation Cost.” It can also be helpful to speak with a financial advisor or mortgage broker very early in the process to assist in determining what you are able to spend.
  • Understand your desired timeline for when you would like the work to be started and completed.

Three Eagleview employees discussing the project they are working on.

2. Create a Shortlist of Potential Contractors

  • Find out what type of contractor you need. To do so, please see our article on that.
  • Gather recommendations from friends and family. Another source is finding contractors with high reviews and ratings online.

3. Interview Potential Contractors

  • Ask about their process (hint: if a contractor doesn’t follow a set process or is willing to change their process based on your demands, that’s a red flag).
    • For design and build contractors, they should be able to clearly outline both the design process as well as the build portion of the project.
  • Ask about their experience with similar projects (e.g. Similar sized projects and similar aged properties, etc.).  Or even ask to see examples of their past work.
    • Reputable contractors are very proud of their past projects and happy to show them off!
  • Ask for references and check online reviews. A reputable contractor should be more than happy to provide you with past clients who can share their experiences.
  • Ask about insurance and warranties. A reputable contractor will be able to easily summarize their insurance coverages and even provide a Certificate of Insurance if requested.
  • Ask about who they use as subcontractors and how long they’ve worked with their trade partners.
    • A general contractor’s sub trades are integral to a project's success. A general contractor’s ability to maintain longstanding relationships with excellent trades is typically a strong indication that they are a competent contractor.
  • Ask about affiliations and organizations that they are a part of. Organizations such as the Better Business Bureau and RenoMark require members to adhere to strict codes of conduct and provide proof that they are in conformity.
An Eagleview employee using a nail gun.

4. Get it in Writing

  • A reputable contract should put everything into writing that will clearly outline what they will be delivering, how you will pay for it, timelines that you can expect, and any other details that are pertinent to your project.

5. Making a Selection

  • In addition to everything above, it’s also important to ensure that communication style, professionalism and values of a potential contractor are in alignment with yours. Renovation projects are typically long-term relationships, so it’s critical that you will enjoy who you’re working with.
  • Don’t just base your decision on price. There are so many aspects of a project that add value to a project than simply the initial price.
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