How to Hire a Contractor?

Hiring the right contractor is crucial for ensuring a successful renovation. Whether you’re updating your kitchen, bathroom, or undertaking a whole-home remodel, a skilled and reliable contractor can make all the difference. Here’s a step-by-step guide to help you find and hire the right contractor for your project.

1. Clearly Define Your Project

Before you start looking for contractors, make sure you have a clear understanding of your project’s scope. This includes defining your goals, budget, timeline, and materials. The more detailed you can be, the easier it will be to communicate with potential contractors and get accurate quotes.

• Create a project outline: Include all the tasks you want completed.

• Set a budget: Establish a realistic budget, including a contingency fund (10-20%) for unexpected expenses.

• Determine a timeline: Decide when you want the project to start and how long it should take.

2. Ask for Recommendations

One of the best ways to find a reliable contractor is through personal recommendations. Ask friends, family, neighbors, or coworkers who have had similar renovations done for referrals. You’ll be able to learn about their experiences, which can help you find someone trustworthy.

• Other sources for recommendations:

  • Local Facebook groups or online communities like Nextdoor.

  • Real estate agents who work with contractors regularly.

  • Hardware stores or supply companies, as they often know reputable contractors.

3. Use Online Platforms to Find Contractors

Several online platforms can connect you with licensed and reviewed contractors in your area. These websites often include ratings, reviews, and photos of completed projects to help you narrow down your search.

Popular contractor-finding platforms include:

• Angi (formerly Angie’s List): Provides customer reviews, ratings, and contact information for contractors based on service categories.

• HomeAdvisor: Matches you with local contractors based on the type of project you’re planning.

• Houzz: A platform known for home design inspiration that also allows you to find professionals and view their portfolios.

• Thumbtack: Allows you to submit your project and receive quotes from local contractors.

4. Check for Licensing and Insurance

It’s essential to hire a licensed and insured contractor to protect yourself from liability. Licensing requirements vary by state, so check your local regulations to ensure the contractor is fully licensed for the type of work you need.

• Verify licenses: Ask for the contractor’s license number and verify it with your local licensing authority.

• Check for insurance: Contractors should carry both liability insurance and workers' compensation insurance. Liability insurance covers damage to your property, and workers’ comp covers injuries to the contractor’s employees on your job site.

5. Review Portfolios and Past Work

Ask contractors to provide examples of similar projects they’ve completed. Many contractors have online portfolios or websites showcasing their work. This will give you a better idea of their capabilities and whether their style aligns with your vision.

• Look for projects similar to yours: Focus on finding contractors with experience in the type of renovation you’re planning.

• Ask for references: Speak to past clients to ask about their experience. Were they satisfied with the contractor’s work? Did the project stay on budget and on schedule?

6. Get Multiple Quotes

It’s important to get at least three quotes from different contractors. This will give you a sense of the market rate for your project and help you avoid overpaying. When asking for quotes, be sure to provide detailed project information to ensure you’re getting accurate estimates.

• Request an itemized estimate: Make sure the quote includes a breakdown of costs for labor, materials, permits, and any other fees.

• Beware of very low bids: If one contractor’s bid is significantly lower than others, it could be a red flag. They may be cutting corners or underestimating costs, which could lead to additional expenses later.

7. Conduct Interviews

Once you’ve narrowed down your list of potential contractors, conduct interviews to learn more about their processes and determine if they’re a good fit for your project. Treat this as a job interview—ask detailed questions to gauge their experience, communication style, and professionalism.

Key questions to ask:

• How long have you been in business?

• Do you have experience with projects similar to mine?

• Can you provide a timeline for the project?

• Will you handle the project personally, or will you have a crew working on it?

• How do you handle changes or unexpected issues that come up during the renovation?

• Do you provide warranties for your work?

8. Check for Red Flags

When evaluating contractors, watch for warning signs that could indicate unreliability or poor-quality work.

Red flags to watch for:

• No license or insurance: Avoid contractors who can’t provide proof of their license or insurance.

• Demanding large upfront payments: A reputable contractor should not ask for more than 10-20% of the total project cost upfront.

• No written contract: Always ensure the contractor provides a detailed written contract. Avoid contractors who refuse to formalize the agreement.

• Poor communication: Contractors who are hard to reach, slow to respond, or vague in their answers may not be dependable during the project.

9. Finalize a Contract

Once you’ve chosen a contractor, finalize the details in a written contract. This document is crucial for protecting both you and the contractor by clearly defining the project’s terms.

A good contract should include:

• Detailed scope of work: A clear description of the work to be done.

• Project timeline: Start and completion dates, as well as milestones for key phases of the project.

• Payment schedule: Payments should be tied to project milestones, with a final payment due upon completion.

• Warranties and guarantees: Outline any warranties on the contractor’s work and materials used.

• Change orders: Procedures for handling changes to the project’s scope or cost.

10. Stay Involved Throughout the Project

Once the project begins, maintain open communication with the contractor to ensure the work stays on schedule and meets your expectations. Regular check-ins allow you to address any issues early on before they become bigger problems.

• Visit the site regularly: Keep an eye on the progress and quality of the work.

• Address issues promptly: If something isn’t going as planned, bring it up with the contractor immediately to avoid delays or misunderstandings.

Hiring the right contractor requires time, research, and careful consideration. By defining your project clearly, checking licenses and insurance, reviewing portfolios, and getting multiple quotes, you can ensure you’re hiring a reliable professional who will complete your renovation to your satisfaction. Once you’ve selected a contractor, stay involved and maintain open communication to ensure the project runs smoothly from start to finish.

How to Hire a Contractor?

Construction Cost estimate in the Philippines

Construction costs in the Philippines can vary depending on factors such as location, the type of construction (residential, commercial, industrial), the quality of materials, labor costs, and other project-specific factors. Below is a detailed breakdown of the typical construction cost estimates in the Philippines, along with the key factors that influence these costs.

Cost Per Square Meter Estimate (Residential Construction)

Residential construction costs are typically calculated on a per square meter basis, and they can vary significantly depending on the quality of materials and finishes. Below are typical ranges for different types of homes in the Philippines:

1. Low-End Construction (Basic Finishes)

• Estimated Cost: ₱15,000 to ₱20,000 per square meter

• Description:

  • Basic finishes and materials.

  • Suitable for socialized or economic housing.

  • Often uses local materials such as hollow blocks, corrugated roofs, and basic plumbing and electrical fixtures.

  • Minimal architectural design.

2. Mid-Range Construction (Standard Finishes)

• Estimated Cost: ₱20,000 to ₱30,000 per square meter

• Description:

  • Moderate-quality materials and finishes.

  • Standard family homes with features like tiled floors, painted walls, and mid-range plumbing and electrical fixtures.

  • More attention to design, comfort, and aesthetic appeal.

3. High-End Construction (Premium Finishes)

• Estimated Cost: ₱30,000 to ₱50,000+ per square meter

• Description:

  • High-quality materials and finishes.

  • Custom-built homes or luxury houses with advanced features like premium flooring (e.g., hardwood, marble), high-end kitchen and bathroom fixtures, custom cabinetry, and modern design elements.

  • Incorporates sustainable or energy-efficient materials.

Detailed Breakdown of Costs (Residential)

The total cost of building a house includes several components: materials, labor, permits, design, and contingency. Below is a breakdown of these major components for a mid-range project.

1. Materials Cost

The materials used will vary based on the type of construction, but here is a general breakdown for a mid-range home:

• Cement (40kg bag): ₱200 - ₱260

• Concrete Hollow Blocks (CHB): ₱12 - ₱30 per piece

• Steel Reinforcement (Rebars): ₱160 - ₱450 per piece (depending on size)

• Roofing (metal sheets, per linear meter): ₱150 - ₱400

• Floor Tiles (per sqm): ₱150 - ₱500 (depending on quality)

• Doors (solid wood): ₱5,000 - ₱12,000 per unit

• Windows (aluminum sliding): ₱6,000 - ₱10,000 per unit

2. Labor Cost

Labor costs typically account for 20% to 30% of the total project cost. Labor rates depend on the location (urban vs. rural) and the type of construction.

• Skilled Labor (carpenter, mason, electrician): ₱500 - ₱1,500 per day

• Helper/Unskilled Labor: ₱300 - ₱600 per day

3. Design and Architectural Fees

Design fees typically account for 5% to 10% of the total project cost. If you hire a design-build contractor, this fee may be incorporated into the overall contractor’s fee.

• Architect’s Fee: 5% to 10% of the total construction cost, depending on the complexity of the design.

• Structural Engineer's Fee: Additional 1% to 3% for structural analysis and design.

4. Permits and Legal Fees

Construction permits vary depending on the size of the project and location, but typical costs include:

• Building Permit: ₱5,000 - ₱50,000 (depending on the size and scope of the project).

• Barangay Clearance: ₱500 - ₱1,500.

• Zoning Clearance: ₱1,000 - ₱10,000.

• Electrical, Plumbing, Mechanical Permits: ₱1,000 - ₱10,000 each.

5. Miscellaneous and Contingency Costs

It is advisable to set aside a 10% to 15% contingency fund for unexpected costs, such as material price increases, delays, or design changes.

Commercial Construction Costs

Commercial construction costs also vary based on the type of building and its intended use (e.g., office buildings, retail spaces, or warehouses). Below are general cost estimates for commercial construction:

1. Low-End Commercial (Basic Finishes)

• Estimated Cost: ₱20,000 to ₱30,000 per square meter

• Description:

  • Basic office spaces, small retail shops, or warehouses with minimal features.

  • Basic materials and finishes with a focus on functionality.

2. Mid-Range Commercial (Standard Finishes)

• Estimated Cost: ₱30,000 to ₱50,000 per square meter

• Description:

  • Medium-sized office spaces, shopping centers, or small hotels with standard finishes.

  • Includes standard features like tiled floors, drop ceilings, and HVAC systems.

3. High-End Commercial (Premium Finishes)

• Estimated Cost: ₱50,000 to ₱70,000+ per square meter

• Description:

  • High-end office spaces, hotels, or restaurants with premium materials and advanced features.

  • High-quality finishes, advanced HVAC and electrical systems, and modern architectural design.

Other Factors Influencing Construction Costs

1. Location

• Urban Areas: Construction costs are generally higher in major cities like Metro Manila, Cebu, and Davao, where labor, materials, and permits may be more expensive.

• Rural Areas: In rural areas or provinces, labor costs tend to be lower, but material transportation costs may increase due to accessibility.

2. Type of Construction

• New Construction vs. Renovation: New construction typically costs more upfront but avoids hidden issues found during renovations, such as structural problems or old utilities.

• Building Type: The type of building (residential vs. commercial vs. industrial) will significantly impact costs due to differences in material, labor, and design requirements.

3. Material Quality

• Local vs. Imported Materials: Using imported or high-end materials increases construction costs. Locally sourced materials, on the other hand, are generally more affordable.

• Sustainable Materials: Eco-friendly or energy-efficient materials often come at a premium but may result in long-term savings in energy costs.

4. Design Complexity

• Custom Designs: Unique or custom architectural designs typically require more specialized labor and materials, increasing the overall cost.

• Standard Designs: More straightforward, standard designs can save on both material and labor costs.

Cost Breakdown Example for a 100 sqm Mid-Range Home

Assuming you are building a 100 sqm house with mid-range materials and finishes, here’s a rough cost breakdown:

• Construction Cost (100 sqm at ₱25,000/sqm): ₱2,500,000

• Labor Cost (25% of construction cost): ₱625,000

• Design and Architectural Fees (7% of construction cost): ₱175,000

• Permits and Legal Fees: ₱30,000

• Miscellaneous and Contingency (10%): ₱300,000

• Total Estimated Cost: ₱3,630,000

Construction costs in the Philippines can vary widely based on location, materials, labor, and project scope. For residential homes, expect costs to range from ₱15,000 to ₱50,000 per square meter, depending on the quality of materials and design complexity. Commercial projects may cost more, especially for high-end finishes or unique architectural designs.

Construction Cost estimate in the Philippines

How to Avoid Delays?

Delays in construction projects can be costly and frustrating. However, with proper planning, communication, and management, they can be minimized or even avoided. Below are strategies and best practices to help you avoid delays in your construction project:

1. Thorough Planning and Pre-Construction Preparation

Comprehensive planning is the foundation of a successful project. The more detailed and accurate your plans are from the beginning, the fewer surprises and setbacks you’ll encounter during construction.

• Key Actions:

  • Clear Scope of Work: Define a clear and detailed scope of work, including project specifications, design plans, and objectives.

  • Set a Realistic Schedule: Develop a realistic timeline for the project. Avoid rushing the planning phase, as inadequate preparation often leads to delays during construction.

  • Permit Approvals: Secure all required permits (e.g., building, zoning, environmental) before starting the project. Permit delays can derail your timeline, so ensure applications are submitted early.

  • Budget Planning: Establish a well-defined budget and allocate funds for unexpected costs (a contingency fund). Financial problems often lead to delays if you don’t have funds set aside.

• Why It Helps:

  • Reduces unexpected changes during the project.

  • Ensures the project starts smoothly with all legal and financial issues resolved in advance.

2. Hire a Competent and Experienced Contractor

Choosing the right contractor is critical to avoiding delays. A qualified contractor will manage the project efficiently, handle unforeseen issues, and keep the project on track.

• Key Actions:

  • Check Contractor’s Track Record: Review past projects, check references, and verify the contractor’s experience with similar projects.

  • Licensed and Insured: Ensure the contractor has all necessary licenses (e.g., PCAB in the Philippines) and is adequately insured.

  • Sign a Clear Contract: Make sure your contract specifies the scope of work, schedule, payment terms, and penalties for delays.

• Why It Helps:

  • An experienced contractor knows how to manage schedules, subcontractors, and materials efficiently, minimizing risks of delays.

3. Effective Communication

Regular and clear communication among all stakeholders (contractors, architects, engineers, and clients) is crucial for a smooth project. Poor communication can lead to misunderstandings, mistakes, and ultimately, delays.

• Key Actions:

  • Regular Meetings: Schedule regular meetings with the contractor and project team to review progress, discuss challenges, and adjust plans as needed.

  • Clear Point of Contact: Designate a project manager or key contact who oversees communication between all parties and ensures that instructions are properly relayed.

  • Document Everything: Keep written records of all decisions, agreements, and changes made during the project. Miscommunication can be avoided by documenting and sharing important project details.

• Why It Helps:

  • Good communication ensures that everyone is on the same page, reducing the risk of costly misunderstandings.

4. Accurate and Detailed Design Plans

Incomplete or inaccurate design plans are one of the leading causes of construction delays. Having detailed architectural, structural, electrical, and mechanical plans ensures that the project progresses without significant revisions.

• Key Actions:

  • Finalized Plans Before Starting Construction: Ensure that all design plans are finalized before breaking ground. This includes architectural, structural, and engineering drawings.

  • Coordinate with Specialists: Work with specialized engineers and professionals (e.g., civil, electrical, mechanical engineers) to ensure every aspect of the design is well thought out and aligned.

  • Account for Site-Specific Challenges: Address site-specific challenges (e.g., soil conditions, drainage, or access issues) in the design to avoid last-minute modifications during construction.

• Why It Helps:

  • Avoids costly and time-consuming changes during construction, which are often the result of incomplete or faulty plans.

5. Obtain All Necessary Permits Early

One of the most common causes of delays in construction is failing to secure permits on time. Delays in permit approvals can halt construction, resulting in additional costs and schedule disruptions.

• Key Actions:

  • Understand Local Requirements: Research the specific permits and approvals required for your project (e.g., building permits, zoning clearance, fire safety permits).

  • Early Permit Application: Submit permit applications well in advance of the construction start date to account for any processing delays.

  • Follow Up Regularly: Follow up with the respective offices to check the status of your applications and address any concerns that may arise.

• Why It Helps:

  • Ensures that the project starts on time without legal or regulatory obstacles.

6. Efficient Supply Chain and Material Management

Delays in the delivery of materials can halt construction and cause the project timeline to stretch. Efficient material management ensures that materials are available when needed without causing delays.

• Key Actions:

  • Reliable Suppliers: Work with trusted suppliers with a proven track record of on-time deliveries and quality materials.

  • Order Materials in Advance: Pre-order materials that may have longer lead times (e.g., specialized equipment, imported materials) to ensure they are available when needed.

  • Monitor Inventory Levels: Ensure that sufficient materials are available on-site to avoid work stoppages due to material shortages.

• Why It Helps:

  • Prevents delays due to material shortages or late deliveries.

7. Prepare for Unforeseen Challenges

Unexpected challenges such as bad weather, labor shortages, or site-specific issues (e.g., unstable soil, hidden utility lines) can cause delays. While these factors are sometimes unavoidable, preparing for them can reduce their impact.

• Key Actions:

  • Weather Contingency Plans: Include weather-related buffer times in your schedule, particularly if building during the rainy season.

  • Contingency Budget: Set aside a contingency fund of 10-15% of the project cost to cover unexpected expenses or delays.

  • Flexible Scheduling: Build flexibility into the project timeline so that unexpected issues can be addressed without significantly impacting the overall completion date.

• Why It Helps:

  • Anticipating potential problems allows you to adjust quickly and avoid significant delays.

8. Effective Project Management

Good project management ensures that the construction process runs smoothly, from breaking ground to final completion. A dedicated project manager or foreman should be responsible for overseeing day-to-day activities, coordinating with subcontractors, and keeping the project on schedule.

• Key Actions:

  • Appoint a Competent Project Manager: The project manager should be experienced and capable of managing timelines, subcontractors, and resources.

  • Monitor Progress Closely: Keep track of daily progress and ensure the team is hitting key milestones.

  • Address Issues Immediately: Resolve any issues or bottlenecks as soon as they arise, rather than waiting until they cause significant delays.

• Why It Helps:

  • Good project management ensures that the team stays on track, and potential delays are identified and resolved early.

9. Avoid Design Changes During Construction

One of the most common causes of delays in construction is scope creep—making changes to the design once construction has started. Even minor design changes can cause significant delays if they require rework or new materials.

• Key Actions:

  • Finalize Design Before Construction: Ensure that the design is finalized and approved by all stakeholders before construction begins.

  • Change Control Process: If changes are unavoidable, have a clear process for approving and implementing changes to minimize disruption.

  • Assess Impact of Changes: Evaluate the cost, schedule, and resource impact of any changes before implementing them.

• Why It Helps:

  • Prevents unnecessary rework and delays caused by mid-project changes to the design or scope.

10. Coordinate Subcontractors and Labor Resources

Delays in one part of the project can cause a domino effect, delaying other tasks. Proper coordination of subcontractors and labor resources is essential to keep the project on track.

• Key Actions:

  • Hire Reliable Subcontractors: Work with subcontractors who have a proven track record of delivering on time and are well-versed in their respective trades.

  • Schedule Overlap: Plan schedules so that different teams (e.g., electricians, plumbers, carpenters) can work simultaneously where possible, without creating bottlenecks.

  • Labor Availability: Ensure that you have sufficient labor on-site for critical phases of the project and avoid labor shortages during peak times.

• Why It Helps:

  • Proper scheduling and coordination prevent unnecessary downtime, keeping the project on track.

Delays in construction projects can be minimized or avoided with thorough planning, strong communication, effective project management, and timely procurement of permits and materials. By anticipating potential problems, being proactive, and working with reliable contractors, you can keep your project on schedule and within budget.

How to Avoid Delays?