Picking the right contractor is more important today than it's ever been. Home improvement projects jumped 23.8% in 2020 and 2021, which is a big deal as it means that the expected 12.5% growth. At the time of the pandemic, homeowners got creative with their living spaces. But many of them ran into mistakes that got pricey.
You should talk to at least three candidates and ask for detailed written estimates before picking a general contractor. State law requires home improvement contracts over $1,000 to be in writing - this protects homeowners. On top of that, your friends and family's recommendations are a great way to get a sense of a contractor's work quality and reliability.
Our team at Larsa Construction knows how a contractor's experience affects project results. Contractors with more than five years in the field usually deliver better quality and reliability. Materials make up about 30-40% of total renovation costs - this helps you plan your project budget better.
This piece walks you through key steps that help you avoid common mistakes that get pricey when hiring a contractor. These practical tips will protect your investment and lead to a successful project, whether you want a small update or major renovation in Orlando. Our team at Larsa Construction in Orlando, FL welcomes your questions about upcoming home improvement projects.
Mistake #1: Starting Without a Clear Plan
Most homeowners rush into renovation projects without a detailed plan. Clear goals that turn into detailed plans make it easier to finish projects quickly and affordably. Projects with unclear plans almost always run into trouble.
Why vague goals lead to budget overruns
The numbers tell a worrying story: only 36% of remodeling homeowners stayed within their budgets in 2019. This means that most homeowners felt the stress of costs going over what they expected. Looking at why this happens shows that unclear project goals are usually the biggest problem.
Vague planning works just like "driving without a destination in mind". Contractors can't give accurate estimates without defined goals, and homeowners lack what they need to make good decisions during the project.
Unclear goals usually cause these problems:
Projects keep growing as new ideas and additions pile up
Contractors guess what you want, which leads to misunderstandings
Wrong materials arrive at the wrong time and cause delays
Poor communication between homeowners and contractors creates tension
Larsa Construction's data shows that homeowners who start with unclear goals run into the highest budget overruns. The link between poor planning and money problems is clear.
How to define your scope and timeline
Making a detailed project plan doesn't have to be hard. Our team's experience as trusted general contractors in Orlando suggests this approach:
Start by getting a full picture of your situation. "Understanding where your [project] stands financially is the first step to setting realistic and achievable goals". Know your starting point and where you want to end up.
Next, write down everything in your scope of work. Include "the specific activities, deliverables, milestones, and responsibilities involved". Don't just say "update kitchen" - be specific like "install quartz countertops in Calacatta gold with undermount sink."
On top of that, it helps to set aside money for surprises. Experts say you should save 10-20% of your total budget for unexpected costs. This way, you won't panic when surprises pop up.
Your timeline should plan for possible delays. "When planning the timeline of your renovation, take into consideration upcoming holidays and events you would like your home to be ready by". Complex projects need realistic timeframes.
Larsa Construction helps Orlando homeowners create clear, detailed plans before work begins. Our knowledge of local rules and careful planning helps avoid the budget problems that affect many renovation projects.
Planning to renovate in Orlando? Let's talk about how our team can help you create a detailed project scope that sets up your renovation for success. Getting your general contractor involved early is the quickest way to avoid mistakes that get pricey and turn your vision into reality.
Mistake #2: Ignoring Licensing and Insurance
A solid plan sets you up for success, but knowing how to choose a contractor requires proper license and insurance verification. Many homeowners skip this vital step and expose themselves to huge financial risks. Yes, it is tempting to save money now, but your original decision could turn into an expensive nightmare later.
What to check in a general contractor's credentials
Checking a general contractor's qualifications needs a full picture. Make sure the contractor has a valid state license first. Licensed contractors have shown their expertise through tests and hands-on experience. Most states require contractors to display their license number on everything - business cards, trucks, and websites.
Insurance coverage matters just as much as licensing. Always ask for:
Certificate of Insurance - Ask to see physical proof of their coverage
Workers' Compensation Insurance - A must if the contractor has employees
Commercial General Liability Insurance - Protects your property from damage
Missing documentation should raise serious concerns. Don't just take their word - call the insurance company to verify current coverage. Larsa Construction provides detailed documentation of licensing and insurance coverage to give Orlando homeowners complete peace of mind.
Note that contractors with employees must carry workers' compensation insurance. This is a big deal as it means that without proper insurance, you could end up paying for worker injuries and rehab costs if something goes wrong.
Risks of hiring unlicensed workers
Hiring unlicensed contractors creates problems way beyond reach and influence of quality issues. The biggest problem involves liability. Unlicensed contractors become your employees by law instead of independent contractors. Then you must provide them with a safe workplace and cover any injuries.
Money-wise, the stakes run high. Injured unlicensed workers can sue you for medical costs, lost wages, and damages. These expenses are nowhere near the money saved from their lower bid. Most homeowner's insurance policies won't cover incidents with unlicensed contractors.
On top of that, unlicensed contractors can't get building permits. Work without proper permits hurts your home's value and causes headaches at the time of sale. Their work might break local building codes, forcing expensive fixes later.
Larsa Construction keeps all required licenses and detailed insurance coverage as Orlando and Florida regulations demand. We know local building codes inside out to protect your investment and meet legal requirements. Orlando homeowners planning renovation projects should reach out to us for a consultation where we'll show all our credentials upfront.
Mistake #3: Choosing Based on Price Alone
The lowest bid from a contractor might seem attractive, but this choice often creates unexpected problems and higher costs down the road. Our experience at Larsa Construction shows that price should be one factor in your decision-making process, not the only one.
How to compare bids beyond cost
Smart bid evaluation requires more than looking at the final number. Materials make up about 30-40% of your total renovation cost. The remaining amount covers overhead and profit margins, which usually range from 15% to 20%. This knowledge helps you determine whether a bid shows realistic costs.
The best value selection method weighs both price and quality factors before awarding a contract. Your potential contractor should provide detailed breakdowns that include:
Materials costs and quality specifications
Labor expenses
Profit margins
Project timeline
Warranty information
A side-by-side comparison of labor and materials for each bid reveals inconsistencies in estimates. To cite an instance, see how one kitchen renovation bid might include appliance installation while others leave it out. These differences need clarification from contractors to ensure a fair comparison.
Multiple rounds of contractor communication might be necessary, but this creates transparency and prevents misunderstandings about scope and quality expectations.
Signs of a lowball estimate
Bids that seem too good to be true usually are—this raises a red flag. Unusually low estimates often mean the contractor plans to use subpar materials, cut corners, or leave items out of the original quote.
Common lowball tactics include:
Hidden fees: Missing elements like permits, labor, or materials show up later as "surprise" costs
Unrealistic allowances: Extremely low quotes for items like cabinets or flooring that you'll exceed during selection
Bait and stair-stepping: An attractive initial low bid gradually increases through change orders once work starts
Industry expert Tom Silva warns against bids substantially lower than others: "That contractor is probably cutting corners—or worse, desperate for work". This situation often leads to poor work quality, communication issues, and a stressful renovation experience.
Larsa Construction provides clear, detailed estimates that cover every aspect of your Orlando home renovation project. Our pricing approach reflects our steadfast dedication to quality results without surprise cost increases.
Your next renovation project deserves a general contractor who values honest pricing. Contact our team at Larsa Construction for a full picture that helps you understand your investment and its value.
Mistake #4: Skipping the Contract Details
A solid contract builds the foundation of every successful renovation project. Many homeowners rush through contract details. This mistake can lead to disputes, delays, and surprise costs. Our team at Larsa Construction has seen how good documentation protects everyone during the renovation experience.
What every contract should include
Your construction contract needs several vital elements to protect your interests. The scope of work must detail every part of your project. General statements won't do - you need specific descriptions of materials, timeline, and expected outcomes. Make sure it includes exact measurements, material brands, and clear completion dates for each phase.
Payment schedules are the foundations of any good contract. They should match construction milestones with exact payment amounts and due dates. The contract should also spell out a detailed process to handle change orders. This includes how to calculate cost adjustments and what approvals you'll need.
Other vital elements include:
Project timeline with start and completion dates
Contractor's license number (required by law in most states)
Warranty information specifying what's covered and for how long
Provisions to handle unexpected costs or delays
Procedures to resolve disputes
Red flags in contract language
Some warning signs should make you pause when reviewing a contractor agreement. Rigid or unfair terms often show that a contractor won't work together or adapt as your project grows. Watch out for contracts that demand large upfront payments or have unclear payment schedules.
Look carefully at vague language about responsibilities, materials, or timelines. These gaps can create misunderstandings and disputes later. Be careful if a contractor pushes you to sign quickly without reading everything.
Take your time to review all details and ask about anything unclear. Large renovation projects deserve a construction law attorney's review to give you extra protection.
Larsa Construction creates clear, balanced contracts for our Orlando clients. Our agreements protect everyone while spelling out every part of your renovation project. Planning a home improvement project in Orlando? Let's talk about how our detailed contract approach helps prevent costly mistakes and keeps your renovation running smoothly from start to finish.
Mistake #5: Hiring Without Local Knowledge
Your construction project's location plays a significant role in its success. Many homeowners don't realize how valuable local expertise can be when selecting a contractor. This oversight could lead to regulatory issues and delayed timelines.
Why local contractors are more reliable
Local general contractors add unique value to your renovation project. They know regional building codes and regulations inside out. These professionals "are familiar with state and county building regulations, ensuring that repairs meet all necessary codes". Their familiarity helps avoid mistakes that could get pricey when out-of-town contractors miss local requirements.
Local contractors excel at:
Reading regional weather patterns and choosing right building materials
Building strong bonds with quality local subcontractors
Responding quickly to project needs
Protecting their community reputation
On top of that, local contractors "know which subcontractors provide high-quality work" after years of working together in the community. Their network helps them build reliable teams that deliver excellent results consistently.
A local hire will "understand the specifics of local building codes, climate challenges, and regional styles". Your project will line up with regulatory requirements and match regional architectural traditions perfectly.
How Larsa Construction understands Orlando regulations
Larsa Construction's Orlando roots give us exceptional insight into Florida's building requirements. We know that "Wilmington and the surrounding areas bring unique considerations to our industry such as stormwater regulations or hurricane resiliency". Orlando's regulatory landscape comes with its own special requirements.
Our team keeps current with Orlando's permit processes, zoning rules, and building code updates. This knowledge protects you from violations that might cause "excessive fines, penalties and legal hassles down the road".
National chains might miss regional details, but we bring "intrinsic understanding of regional challenges" to every project. Our local expertise protects your investment and helps complete projects smoothly.
Ready to renovate in Orlando? Contact Larsa Construction. Our local knowledge will make your project stress-free and compliant with all regulations.
Conclusion
Your home renovation project's success depends on picking the right contractor. This piece outlines five mistakes that can get pricey for homeowners who hire contractors. A good plan helps you avoid these issues. You need to check credentials, evaluate bids, create detailed contracts, and value local expertise.
The contractor you pick determines how well your renovation turns out. Many homeowners who make quick decisions end up with budget problems, project delays, and poor work that needs fixing later. Time spent checking potential contractors saves money and headaches during your project and beyond.
Larsa Construction helps Orlando homeowners direct their renovation process without stress. Our team offers detailed planning, full licensing and insurance, clear pricing, thorough contracts, and expert knowledge of local building codes. These qualities set us apart from contractors who might take shortcuts or lack local experience.
Our team's clear communication helps eliminate common renovation headaches. We know your home is both a major financial investment and a personal space. This understanding guides every project we take on.
The right contractor makes the difference between a stressful renovation and a rewarding one. Orlando homeowners trust us because we deliver quality results while steering clear of the mistakes mentioned here.
We believe home projects should excite you, not stress you out. Ready to start your next home improvement project? Contact Larsa Construction, Orlando's trusted general contractor who understands your needs and delivers great results without the usual renovation headaches.
